Pres. Bongbong Marcos Speaks on SSS Funds amid 3-Year Increase on Pension
SSS – President Bongbong Marcos is “fine” if the funds of the Social Security System will drop because of the 3-year increase in the monthly pension.
Aside from the Government Service Insurance System or GSIS, another social insurance giant in the country is the Social Security System. It has a multi-million member populace.
Filipinos who are working in the private sector are required to be a member of the Social Security System or more popularly called SSS. It is primarily in the pursuit of widening the financial options of the employees in different situations as well as to help them prepare for the future.
The membership to the Social Security System is not only open for the employees in the private sector but as well as the following
Compulsory Coverage
- Local Employees in the private sector
- Self-employed individuals
- Overseas Filipino Workers (OFWs)
Voluntary Coverage
- Non-working spouses
- Separated members
- Former OFWs
- Filipinos living abroad but not OFWs
The Social Security System has several offers for its members. One of the SSS benefits that members may avail is the Retirement Benefit. Under it, a retiring member of the social insurance giant may be granted either a monthly pension or a lump sum.
With regards to whether you are eligible for a monthly pension or a lump sum, it actually depends on the total contributions that you have posted at the time of retiring from work.
- SSS Pension — if a member has posted at least one hundred twenty (120) monthly contributions prior to semester of the retirement
- SSS Lump Sum — if the member-retiree has not reached the 120 total monthly contribution required under the benefit offer
Of course, like in the other benefit offers of the Social Security System, there is a set of criteria on who may qualify to be a pensioner of the social insurance giant. Here’s a guide:
- a member with at least one hundred twenty (120) monthly contributions prior to semester of retirement; and
- has reached sixty (60) years old and is separated from employment or has ceased to be self-employed, except:
- In the case of an underground mineworker (R.A. No. 8558), at least 55 years old effective 13 March 1998; and
- In the case of an underground or a surface mineworker (R.A. No. 10757), at least fifty (50) years old effective 27 April 2016; or
- is at least sixty-five (65) years old, except:
- in the case of an underground mineworker effective 13 March 1998 [R.A. No. 8558] or a surface mineworker effective 27 April 2016 (R.A. No. 10757), at least sixty (60) years old, and
- in the case of a racehorse jockey (R.A. No. 10789), at least 55 years old effective 24 May 2016.
- has reached sixty (60) years old and is separated from employment or has ceased to be self-employed, except:
- a former retiree-pensioner whose monthly pension was suspended due to re-employment/self-employment and is now separated from employment or has ceased to be self-employed.
Recently, the social insurance giant announced that there will be a three-year increase in the SSS pension starting September 25 of this year. The good news will benefit the retirement, survivorship, and disability pensioners.
According to the SSS, there will be a 10% increase on the SSS pension of retirement and disability pensioners every 25th of September beginning this year until September 2027. In the case of survivorship pensioners, they will get a 5% increase in their monthly pension every year for three (3) years as well.
The Social Security System assured that the increase in the SSS pension will not result to the raise in the monthly premiums of the contributing members of the social insurance giant. Furthermore, based on a report on Inquirer, Pres. Bongbong Marcos is “fine” if the funds of the SSS will drop due to the pension increase.
Marcos Jr. stressed that the working population of the SSS is growing and that is how the social insurance giant will make up for it. Based on the report, he is confident that the SSS member populace will continue to grow that it may be even bigger than the Government Service Insurance System.
“In fact, in our estimation, SSS in terms of its fund is growing at such a rate that it will be bigger than GSIS soon,” the President said.
Aside from the benefit offers for the members, the Social Security System also has several SSS loans that the members may avail.