The Social Security System will seek to delay the implementation of the second tranche of additional pension scheduled next year as the planned contribution rate hike has yet to push through.
Emmanuel F. Dooc, SSS president and chief executive officer, told reporters that the state-run pension fund would have to shell out an additional P2.5 billion a month if the pension increase were to be jacked up to P2,000 per month starting 2019.
At present, the SSS collects about P15 billion a month from its members, up from P12 million monthly in 2016, but disbursements already amount to a higher P16 billion per month, Dooc said.
He said it will be “difficult” for the SSS if the second round of pension increase pushes through next year without upward adjustments in its contribution rate.
Dooc said they would ask the Office of the President and the Department of Finance to defer the implementation of the further increase in pension to 2020 instead.
“I think [Finance] Secretary [Carlos] Dominguez will support us because he wanted to strengthen the fund,” he said.