SSS needs to rule on mode to lengthen fund life: Dominguez

MANILA - - Finance Secretary Carlos Dominguez III said officials of the Social Security System (SSS) need to decide as soon as possible what mode the agency would take to ensure longer actuarial life.

"The payout benefits have increased. Unless they raise revenues then their fund life will just continue to drop," he said.

At present, SSS fund life is up to 2038.

The agency has proposed several legislative measures such as a 1.5 percentage points increase in the annual contribution of its members from the current 11 percent; lifting of the PHP16,000 maximum salary credit to PHP20,000; increase in the minimum salary credit from PHP1,000 to PHP4,000; and indexation of pension and contribution to inflation rate.

Last week, SSS President and CEO Emmanuel Dooc told reporters that they would implement contribution hikes in 2018 once the first package of the tax reform proposal takes effect.

Dominguez said contribution hike is not the only way that the SSS can ensure its fund life.

Other options include better managing their funds to get higher yields or remove the salary cap for members.

"By doing those they may not even require an increase in contribution," he said.

"But again I leave it up to their Board to make a recommendation on what to do and we will comment on it when we see the various alternatives they have submitted," he added.  (PNA)