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Philippines
Thursday, March 28, 2024

Grant of P2,000 pension hike for SSS members supported

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NEWLY appointed Social Security System Chairman Amado Valdez on Friday said the agency backs the grant of a P2,000 pension increase for its two million pensioners—but with conditions.

Valdez told a news conference the pension hike that could total P56 billion could “go back to the economy, and create a lot of employment.”

“We are looking more at benefits than the contribution aspect,” he said, adding the pension increase could be granted on a staggered basis.

The agency is studying at least five options to implement P2,000 pension increase in the monthly pension of retirees without impacting the welfare of its members.

“We need an additional P56 billion in the first year alone to fund the 12 monthly pensions and 13th month benefit of the SSS pensioners,” Valdez said.

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At 8 percent, the disbursement of pension is rising since 2011, he said.

“Since 1980 to 2002, pensions went up to 20 percent and implemented a total of 19 times. There were times [the increase] was implemented twice a year,” he added.

The members’ contribution rate was estimated at 8.4 percent for a 23-year period that brought about the funds’ short life, he noted.

The first option shall be implemented in P500 installments over four years to start next year.

Under the scheme, the life of the SSS fund could last up to 2027.

The second alternative could be implemented yearly based on five age groups. 

The first tranche prioritizes those 70 years old and above.

The oldest pensioners, while the third option is somehow related to the second option, except the increase for the second tranche, shall have their pensions granted in 2019.

On the other hand, a retiree, under the fourth voluntary or compulsory option, could leave his or her P2,000 pension hike as a provident fund that could be withdrawn after five years.

Two or three other options are still being studied, Valdez said.

Meanwhile, a radio blocktimer earned the wrath of Valdez in a question-and-answer portion of the news conference. 

He blocked the involved person, one Ed Dural, to further ask questions, saying “you stop. I have to check it out if you really belong to that radio station [Radyo Inquirer].”

The new agency official welcomed the line of questioning of the other members of the media, and even called them his friends. 

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