State-run Social Security System disclosed a plan to increase the monthly pension of qualified members by P1,000 starting next year.
“The Social Security System is attuned to the wishes of legislators for higher pensions in response to the prevailing public sentiment, which we also consider reasonable given the current cost of living. We request legislators to heed our appeal to how to best grant the pension increase without sacrificing the life of the fund,” SSS chairman Amado Valdez said during the Senate deliberation for the pension hike.
SSS said it planned to grant a P1,000 across-the-board pension increase in January 2017 before implementing an additional P1,000 in 2022.
“Lawmakers appear to be receptive of the proposal considering that it is doable, and will avert passing on the pension burden to taxpayers,” SSS said.
“Immediately implementing the full P2,000 pension increase will put in peril the SSS funds. The P1,000 initial pension increase offers a more doable option towards the same goal of an additional P2,000 per month for pensioners,” said Valdez.
SSS funds are currently projected to last until 2042 but will deplete in 2025 if the P2,000 ATBP increase is immediately granted in full, he said.