SSS wants to grow collections from self-employed professionals in 2025

State-run insurer Social Security System (SSS) is targeting to grow its collection from self-employed professionals this year, following the scheduled contribution rate hike in January, as the agency said it is looking to improve services for pensioners.

SSS said it will meet with the Professional Regulation Commission (PRC) to discuss opportunities for cooperation, and ensure SSS coverage of professionals such as accountants, doctors, and engineers.

“Our goal is to make them continue paying SSS contributions while they are gainfully self-employed even if they have reached 120 contributions already,” SSS president and chief executive officer Robert De Claro said in a statement.

This comes as De Claro said the SSS is working to improve benefits of pensioners, including the possibility of having its personnel conduct home visits. The agency reported 157,493 pensioners at the end of 2024.

The SSS is now reviewing the guidelines on the Annual Confirmation of Pensioners (ACOP) Program, in a bid to simplify requirements and other verification processes to address the sentiments of retirement pensioners.

“Our review of the current guidelines include the analysis of age and geographical distribution of pensioners, authorizing additional means for ACOP compliance and using available SSS resources to facilitate compliance such as by conducting home visits to pensioners through our branch of office personnel,” he said.

De Claro said the SSS is also looking at reducing the interest rates for salary and calamity loans, which is currently set at 10% per annum.

“Given the consistent, solid performance of SSS’ investment portfolio, it is not timely to revisit the interest rate of our salary and calamity loan programs toward reducing it to increase the cash proceeds from loan applications by qualified SSS members,” he said.

The SSS last month raised the contribution rate to 15% from 14% previously and increased the minimum monthly salary credit (MSC) to P5,000 from P4,000 and the maximum MSC to P35,000 from P30,000.

The insurer estimates such increases to result in P51.5 billion in additional collections, with 35% of which, or P18.3 billion, going to the Mandatory Provident Fund (MPF) accounts of SSS members.

Senator Grace Poe in January called for a Senate inquiry on the reported inefficiency of SSS in collecting contributions from delinquent employers.

Poe, who chairs the Senate Committee on Finance, cited audit reports that the SSS only collected P2.48 billion or less than 3% of the P94.97 billion target in 2022, and only P4.581 billion or 4.89% of the P93.747 billion collectibles in 2023. This would leave at least P89.17 billion that have yet to be collected.

De Claro previously noted that collections have improved, but the agency still has collectibles from delinquent accounts, with employers hit by the COVID-19 pandemic. —Jon Viktor D. Cabuenas/KG, GMA Integrated News