Senate OKs on 3rd reading bill granting President power to suspend SSS rate hikes

The Senate on Monday approved on third and final reading the measure seeking to grant the President the authority to suspend the scheduled increases in the contribution rates of the Social Security System (SSS) in times of national emergency or calamity.

With an overwhelming 21 votes, the chamber approved Senate Bill 2027, principally sponsored by Senator Richard Gordon, amending the Social Security Act of 2018 providing for the gradual increases in the monthly premium contributions of SSS members.

The Social Security Act of 2018, which was passed to ensure the long-term viability of the SSS' fund life, mandates a 1% increase in the contribution of its members this year, bringing the monthly contribution rate to 13%.

Under Senate Bill 2027, the chief executive is granted the power to postpone the scheduled increases in the SSS contribution rate for six months in times of a declared national emergency or state of calamity.

The deferment may be further extended for another six months.

The power granted to the President, however, is subject to consultation with the SSS and affected members and key stakeholders.

Senator Joel Villanueva, co-sponsor of the bill, said the postponement of the contribution hike would ease the burden of employees, employers and businesses amid the economic impact of the COVID-19 pandemic.

"Our proposal is not a prescription for bankruptcy as we are made to believe by a few people. This temporary hold in SSS premium hike in the name of compassion will not sink the SSS. It will remain financially buoyant," Villanueva said.

"Yes, there may be a momentary dip in income but it is not and will never be an irreversible disaster," he added.

The House of Representative earlier this month also approved its version of the measure. — RSJ, GMA News