The Social Security System (SSS) will shoulder the costs of standard service fee applied for local collection and disbursements of benefits of accredited collecting banks in accordance to Social Security Commission (SSC) Resolution No. 870s. 2017.
SSS President and Chief Executive Officer Emmanuel F. Dooc said the application of standard service fee is in compliance with the Department of Finance directive to shift to fee-based compensation agreement, which will take effect upon amendment of the agency’s existing agreement with its partner banks.
Dooc stressed that the SSS will pay its partner banks P10 for every payment made by members and employers as stated in the SSC Resolution.
“We would like to emphasize that the service fee for every transaction with partner banks will be paid by SSS and no amount should be collected from our members or employers,” said Dooc.
Dooc added that the service fee charged for SSS transactions made through the their partner banks will compensate the latter for helping the SSS in its collection efforts. It will also remove the practice of “float”, which usually serves as a source of compensation for the banks’ services.
“We thank our partner banks for their unrelenting support to SSS and for helping us in our collections efforts even without compensation in the past years. We truly appreciate their kindness in accommodating our members,” said Dooc.
Based on the SSC Resolution approved late last year, banks are required to remit to SSS all its collections from SSS members and employers immediately on the next banking day from the date of the transaction. Dooc explained that funds received through its partner banks can be used for immediate investment.
“With the Real-Time Posting of Contributions (RTPC), we encourage our partner banks to expedite their compliance with the new system. Let us help our members in providing more avenues in paying their contributions,” said Dooc.