Friday, November 24, 2017

Drilon: P1,000 hike in SSS pension against the law if premiums are raised

Jan 11, 2017 @ 17:16

President Rodrigo Duterte may have scored some brownie points with the public by approving a P1,000 increase in the monthly pension received by retired members of the Social Security System, but funding it through a hike in premiums is against the law, Senate President Pro Tempore Franklin Drilon said Wednesday (Jan. 11).

Citing Section 4 of Republic Act 8282 or the Social Security Act of 1997, Drilon said the SSS cannot raise benefits through an increase in members’ contributions.

“The increase in benefits of our pensioners must not come from a similar increase in the burden shouldered by current SSS contributors. The law is crystal clear in that regard,” he said.

Drilon said the SSS can only implement an increase in the benefits of its members subject to the approval of the President, “if such increase is based on the actuarial soundness of the reserve fund” and as “such shall not require any increase in the rate contribution.”

According to Malacañang, the hike in pension benefits entails 1.5 percent increase in contribution rate in May 2017 and adjustment in monthly salary credit to P20,000 from P16,000.

The increase in contribution rate translates to an additional total contribution ranging from P15 to P740, to be equally shared by employer and employee.

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