P2,000 pension hike will compromise SSS financial sustainability

BALANGA CITY, Bataan – The P2,000 pension hike cannot be implemented because it will compromise the financial sustainability and stability of Social Security System (SSS).

“We are for increasing benefits, provided it will not compromise the financial sustainability and stability of SSS funds”, said Jordan Herrera, OIC Branch Manager of SSS Mariveles during his guesting in Radyo Balita program at city-based 98.3 FM Smile Radio on Monday.

“The pension increase will deplete SSS funds within the next 13 years, putting at risk its capability to provide the benefits of members and their beneficiaries by 2029. The increase will require additional funding of P56 billion for the first year of implementation alone”, he added.

“Such total payment for pensioners will result in a net revenue loss for SSS of P26 billion annually. This amount of deficit will continue to grow as more members retire and begin their pensions each year”, Herrera further explained.

“SSS is committed to provide a viable and meaningful social security protection to its 33 million members and pensioners”, he said.

President Benigno Aquino III on Thursday vetoed the bill which increases SSS monthly pension of retirees by P2,000.