AFTER claiming during the Aquino administration that an increase in the pensions of Social Security System members would mean the end of the institution, the SSS now agrees that a hike is indeed possible but only if monthly contributions are similarly increased.
“We are not opposed to any pension hike,” said SSS president Emilio de Quiros Jr., who had recently submitted his resignation upon the orders of President Rodrigo Duterte for all holdover officials from the previous administration to step down from their positions.
“We are just saying that there must be a funding mechanism and one option is increasing [members’] contributions,” Quiroz said during the SSS Kabalikat Awards 2016 on Friday.
But De Quiros clarified that the Social Security Commission can only make recommendations but not order an increase. “Only the President can order an increase. All we can do is recommend,” he said, adding that an increase of five percent to six percent is likely if the P2,000 pension hike is approved.
De Quiroz announced the change of tack after renewed efforts to increase pensions, including that of Senator Vicente Sotto III who filed a bill seeking an immediate passage of the bill that would raise the SSS monthly pensions.
Sotto said it is high time lawmakers amend the Social Security Act of 1997 and raise the amount of pensioners receiving lesser amount while those already receiving higher pension should be also given minimal increase.
The senator said it is high time Congress adjusts pension rates but still ensure that the SSS funds would survive for the next couple of years.
The Aquino administration had earlier vetoed similar measure on the ground for fear that the state-run pension fund would be depleted in the long run.
In filing Senate Bill No. 1068, Sotto said the minimum monthly pension shall be P2,000 from previous P1,200 for at least 10 credited years of service and maximum of P3,000 from the previous P2,400 for those 20 credited years of service.
Sotto said he sees the urgency to pass the proposed measure for SSS pensioners pointing out that most of the minimum monthly pensioners are those who are in their senior years or ripe old age, needing more care, assistance, to sustain and survive on a daily basis.
Sotto pointed out the government has to take into account inflation, noting that the peso-dollar exchange rate back in 1997 was at P29.47 to US$1. Today, the exchange rate is already pegged at P46.31 to US$1.
He also said the basic minimum wage in the National Capital Region increased from P180 to P185 in 1997 to P444 to P481; and the average annual expenditures per family has ballooned from P99,537 in 1997 to P193,000.