PNoy seeks explanation on planned hike in SSS contribution rate

ROSALES, Pangasinan — President Benigno Simeon Aquino III is set to ask Social Security System (SSS) to explain its plan to increase its monthly contribution rate, saying he was not aware of such plan. "Hindi pa nagre-report sa atin either ang Government Service Insurance System (GSIS) or ang SSS on the necessity (to increase contribution rates). To be honest with you, I will be calling their attention regarding it. [Tatanungin ko sila] bakit may discussions [na ganyan]? Ano bang level ng discussions bago nyo ako abisuhan?" Aquino told reporters here. SSS president and chief executive officer Emilio de Quiros Jr. earlier said the SSS planned to raise its contribution rate by 0.6 percent, from the present 10.4 percent to 11 percent of the monthly salary, to be equally shared by employers and workers. He said the move would add seven years to the fund life of SSS and provide leeway for benefit enhancements. Without structural reforms, benefit increases would strain the fund and shorten its actuarial life, which at present is projected to last until 2039, according to the 2007 actuarial valuation, De Quiros said. He said the SSS started consultation meetings with labor representatives, employers’ groups and other stakeholders about upgrading benefits, which would require boosting revenues from contributions. But Aquino said no report has been submitted to him yet indicating that the SSS fund is in danger of depletion. "So far wala pa namang nagsasabi sa ating nasa peligro yung kanilang pondo," the President said. "Ang importante in a healthy position [ang SSS] para ma-service ang lahat ng pangangailangan ng mga talaga namang naging loyal sa paglalagay ng kanilang contribution dito sa pension fund," he added. — LBG/RSJ, GMA News