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Gordon wants SSS to review possibility of suspending contribution hike in 2021


Senator Richard Gordon on Thursday urged the state-run Social Security System to submit to his panel some proposals on how the scheduled contribution hike in 2021 can be suspended without affecting its fund life.

"Bagama’t kailangan at nakasaad sa batas na magkaroon ng dagdag na kontribusyon ang SSS sa 2021, nakikita natin na hindi ito napapanahon lalo na't lugmok ang ating mga negosyo," Gordon, chairperson of the Senate committee on government corporation and public enterprises, said in a statement.

Citing data from the National Economic and Development Authority, the senator stressed that the economic losses in the first semester of 2020 alone amounted to P5.2 trillion, higher than the P4.5-trillion national budget for 2021.

"Noong ginawa ang RA 11199, wala pa sa hinagap ng mga mambabatas na magkakaroon ng pandemya at magiging malala ang epekto nito sa ekonomiya," he added, referring to the Social Security Act of 2018.

Nonetheless, Gordon acknowledged that halting the contribution increase would require a new law as there is no provision in the existing one that authorizes the SSS to stop the scheduled 1% hike.

Effective January 2021, the monthly SSS contribution rate would increase from 12% to 13%, pursuant to the Social Security Act of 2018.

SSS said the full implementation of the restructured rates and other reforms by 2025 will offset the financial impact of the P1,000 increase in the monthly pension of all member-pensioners that was implemented in 2017.

RA 1199 was previously enacted to protect the fund life of the SSS which has been shortened by ten years from 2042 to 2032 due to the said P1000-pension increase, Gordon said.

Aside from the SSS, the Philippine Health Insurance Corporation (PhilHealth) will also implement an increase in the contribution rate of its members in 2021 as mandated by the Universal Health Care Act. Several senators expressed inclination to amend the law and defer the hike, considering the COVID-19 situation.—AOL, GMA News

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