CHIZ SEEKS TRANSPARENCY IN SSS PREMIUM HIKE

CHIZ SEEKS TRANSPARENCY IN SSS PREMIUM HIKE

Senator Chiz Escudero said the Social Security System (SSS) should be more transparent about its plan to raise anew the premium contributions because of its potential impact on its more than 30 million members.

According to reports, the SSS is considering increasing the monthly contributions of its members by one (1) percentage point before the end of President Benigno Aquino III’s term in 2016, to extend the life of the pension fund. This was despite implementing a contribution rate hike only in January last year.

According to Escudero, the SSS must convincingly explain to the public why there is a need for premium increase, and where and how members' contributions are spent.

The senator also said it was high time for the SSS to make a full disclosure and accounting of the public funds being administered by the pension fund, as well as the need for an independent review of its actuarial status.

“Nananawagan din po ako na buksan ang book of accounts ng SSS para malinawan ang publiko hinggil sa planong taasan ang kontribusyon ng mga miyembro nito. Tinaasan na kamakailan ang kontribusyon, nagbunga ba ito ng mas magandang serbisyo sa mga miyembro?” Escudero asked.

He said the public must be assured of a stable and financially sound SSS, which is mandated to protect private sector employees against hazards of disability, sickness, old age, death and other contingencies resulting from the loss on income or financial burden.

The SSS had claimed that based on the latest actuarial valuation, four years were added to the life of the fund from the previous valuation of 2039 after enforcing a contribution rate increase in January 2014. /MP