THE left-leaning Bayan Muna on Monday denounced the impending increase in Social Security System (SSS) contribution as announced by its president Emmanuel Dooc.
Bayan Muna party-list Rep. Carlos Zarate said the SSS was quick to announce the increase in contributions when it has yet to implement the initial P1,000 pension hike.
Zarate, a lawyer, said the increase in SSS contribution was illegal.
Apart from the fact that the increase in contribution was not approved by President Rodrigo Duterte, Zarate said such was not allowed under Section 4.b (2) of Republic Act 8282 which prohibits increase in contribution to fund a pension increase.
Zarate, together with former Bayan Muna Rep. Neri Colmenares, said “Dooc must discuss the proposal first with Malacañang and why he wants to dampen Malacañang’s announcement of a pension increase with claims to increase contribution when it is not true that President Dutere has even approved the same.”
”We maintain there is no major impact on SSS fund life if there is no contribution increase this year or even next year,” Colmenares said.
The Bayan Muna claimed the SSS leadership is quoting a 1.5-percent increase without factoring in the increase in collection.
The group said “SSS is currently collecting contribution from 12-million members when according to the Philippine Statistics Authority the 41 million of the labor force are employed.”
“This means SSS has failed to collect from the many employers who do not remit their workers’ contributions.If only SSS will increase its collection rate efficiency to about 16-20 million paying members, I am sure they do not even need a 1.5-percent contribution increase,” Colmenares said.
“I am also sure that SSS did not even factor this collection increase in their actuarial study. Otherwise, I am sure the SSS projection of a 1.5-percent increase is baseless,” he added.
Both Zarate and Colmenares urged President Duterte not to allow a contribution increase, especially since setting aside contribution increase proposals until SSS has conducted reforms in two to three years will not even substantially affect SSS fund life.
“There is no rush for increase in contribution, absent efforts by SSS to increase collection rate efficiency,” the militant group said.