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July 24, 2020
Contribution Rate Increase: Expands the SSS Fund Life
BY: CHINO S. LEYCO | DECEMBER 22, 2022, 2:00 PM
According to the government-run Social Security System (SSS), the pension fund's life was extended by more than two decades through a series of contribution rate increases.
SSS President and CEO Michael G. Regino announced in a statement on December 22 that since contribution rates increased in 2019, the fund's life has been extended by 22 years.
According to Regino, the SSS fund life would have only lasted until 2032 if the additional P1,000 on the pension benefit had not been applied in 2017.
Nevertheless, the fund life was prolonged by another 12 years, or until 2044, with the help of gradual contribution rate increases mandated by Republic Act No. 11199 or the Social Security Act of 2018.
The fund life was recently extended by an additional ten years, based on the most recent SSS actuarial valuation, which Regino attributes to the SSS's efforts to broaden its membership and coverage.
According to the SSS, the fund life will now be extended until 2054. Simply, it implies that all SSS members and pensioners would be able to make use of their various benefits for an extra 22 years.
Moreover, the SSS will begin implementing the third stage of its four-tier contribution hike on January 1, 2023, raising the contribution rate from 13 percent to 14 percent.
Regino explained that the SSS is still trying to further prolong the fund's life to achieve its goal of providing social security protection to its stakeholders that should last throughout generations.
To achieve the objective and guarantee that there is enough money to meet the short and long-term requirements of both members and pensioners, including their immediate financial needs, especially in times of contingencies, Regino continued, "we need to implement the contribution rate hike along with other social reforms."
SSS President and CEO Michael G. Regino announced in a statement on December 22 that since contribution rates increased in 2019, the fund's life has been extended by 22 years.
According to Regino, the SSS fund life would have only lasted until 2032 if the additional P1,000 on the pension benefit had not been applied in 2017.
Nevertheless, the fund life was prolonged by another 12 years, or until 2044, with the help of gradual contribution rate increases mandated by Republic Act No. 11199 or the Social Security Act of 2018.
The fund life was recently extended by an additional ten years, based on the most recent SSS actuarial valuation, which Regino attributes to the SSS's efforts to broaden its membership and coverage.
According to the SSS, the fund life will now be extended until 2054. Simply, it implies that all SSS members and pensioners would be able to make use of their various benefits for an extra 22 years.
Moreover, the SSS will begin implementing the third stage of its four-tier contribution hike on January 1, 2023, raising the contribution rate from 13 percent to 14 percent.
Regino explained that the SSS is still trying to further prolong the fund's life to achieve its goal of providing social security protection to its stakeholders that should last throughout generations.
To achieve the objective and guarantee that there is enough money to meet the short and long-term requirements of both members and pensioners, including their immediate financial needs, especially in times of contingencies, Regino continued, "we need to implement the contribution rate hike along with other social reforms."
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