THE Palace on Wednesday approved the P1,000 increase in the benefits of Social Security System (SSS) pensioners that will be incorporated starting April.
Executive Secretary Salvador Medialdea, who signed the memorandum, informed SSS Chairman Amado Valdez and SSS president Emmanuel Dooc that the Malacañang approved the proposed increase in the benefits of qualified SSS pensioners and beneficiaries, retroactive from January this year.
“Upon representations made by SSS, and subject to existing laws, rules, and regulations, please be informed that the one thousand peso [P1,000] increase in benefits of qualified SSS retirees, survivors, and permanently disabled pensioners effective January 2017, has been approved,” Medialdea’s memo said.
In a text message to reporters, Dooc said that pensioners will be retroactively paid for the three months.
The January differential of P1,000 will be given on March 3, the February differential of P1,000 to be given March 10 and the March differential of P1,000 to be given March 17.
“Starting April 2017, the additional P1,000 increase shall be incorporated in the regular pension,” Dooc said.
Starting January, an SSS pensioner will be receiving a P1,000 pension increase, but there would be a corresponding annual 1.5-percent rate hike in premiums to be implemented by May 2017 from the current 11-percent contribution rate, over a stretch of six years, until it reaches 17 percent.
Valdez said that a second tranche of increases will be implemented by 2022, if the SSS gets “favorable results” following a reform of the whole pension system.