The Social Security System (SSS) urged the Senate to implement the initial P1000 across-the-board pension (ATBP) increase in January 2017.
“The SSS is attuned to the wishes of legislators for higher pensions in response to the prevailing public sentiment, which we also consider reasonable given the current cost of living. We request legislators to heed our appeal to how to best grant the pension increase without sacrificing the life of the fund,” SSS Chairman Dean Amado D. Valdez said.
The SSS appeals to lawmakers to consider its proposal to grant the P1,000 across-the-board pension (ATBP) increase in January 2017, and an additional P1,000 in 2022, or earlier.
Lawmakers appear to be receptive of the proposal considering that it is doable, and will avert passing on the pension burden to taxpayers.
“Immediately implementing the full P2,000 pension increase will put in peril the SSS funds. The P1,000 initial pension increase offers a more doable option towards the same goal of an additional P2,000 per month for pensioners,” said Valdez, who joined SSS officials in the hearing on pension-related Senate bills on Monday.
SSS funds are currently projected to last until 2042 but will deplete in 2025 if the P2,000 ATBP increase is immediately granted in full. If the P2,000 ATBP hike is implemented in 2017, SSS would need an additional P64 billion for pensions for that year alone, and this amount is expected to grow every year.
With the P1,000 initial ATPB increase, the SSS funds life will last until 2032. SSS can use the remaining funds for innovative investments to further boost its earnings, along with other measures, such as improving contribution collections, and generating higher cost savings from optimized operations.