SSS: Reserve fund at P625 billion; fund life until 2054

State-run pension fund Social Security System (SSS) announced on Tuesday that it had P625 billion in reserve funds, which, based on the last actuarial evaluation in 2019, would last until the year 2054.

“Ngayon po ang ating pondo, ang ating reserve fund po ngayon ay nasa P625 billion, yun yung ating pondo ng SSS ngayon na ginagamit para sa mga benepisyo ng ating mga members," said SSS President Aurora Ignacio in a press briefing.

"Ang fund life naman po natin ay base sa last actuarial evaluation which is in 2019, ang fund life natin until the year 2054.”

(Our reserve fund is now at P625 billion, that is our SSS fund now that is used for the benefit of our members. Our fund life is based on the last actuarial evaluation which is in 2019 and our fund life will be until the year 2054.)

Ignacio, however, noted that this actuarial evaluation was conducted two years ago. The next actuarial evaluation will be in 2023.

“Kaya lang po hindi po kasama sa pinagaralan ng gumawa ng actuarial evaluation ang COVID-19 pandemic dahil noong ginawa po ito ay wala pa po yung pandemya,” she added.

(However, the COVID-19 pandemic was not included in the actuarial evaluation as this was made before the COVID-19 pandemic.)

Contribution hike

Asked if there would be a contribution hike amid the COVID-19 pandemic, Ignacio bared that the next contribution hike as stated in the law would be in 2025.

“Yung atin pong batas, yung SSS Act of 2018 or yung RA 11199, ay nagtala po ng contribution hike schedule at ang susunod po natin pagtaas ng contribution na nakasaad sa batas ay sa taong 2025. So yun po hindi po tayo basta basta makagawa ng increase sa ating management o commission kailangan po yung nasa batas,” she explained.

(Our law, the SSS Act of 2018 or RA 11199, had a contribution hike schedule and our next contribution increase as stated in the law is in 2025. So our management or commission cannot just call for an increase. We need to follow the law.)

The SSS earlier launched four relief and restructuring programs for borrowers and employers with past-due payments on their employees’ compensation contributions as well as salary or housing loans to ease their financial burden amid the prolonged economic fallout from the COVID-19 pandemic.

Ignacio said that applications for the Contribution Condonation Penalty Program, Enhanced Installment Payment Program, Housing Loan Restructuring and Penalty Condonation Program, and Short-Term Member Loan Penalty Condonation Program would be opened for applications this month.

She added that the pension fund saw a decline in both contribution and loan payments in 2020 due to the COVID-19 pandemic. — DVM, GMA News