Finance Secretary Carlos Dominguez III (PNA File Photo)
MANILA -- Finance Secretary Carlos Dominguez III has underscored the need for state-run Social Security System (SSS) to "dramatically increase income" to lengthen its fund life and efficiently cater to its members.
In a speech read by Finance Assistant Secretary Antonio Lambino II during SSS' 62nd anniversary celebration Thursday, Dominguez said authorities "need to institute better financial management and market engagement."
"With the rapid expansion of our domestic economy and improved business outlook, the SSS should be able to improve its earnings from investments," he said.
Last year, the pension fund that caters to workers from the private sector registered a 5.4-percent increase in revenues to PHP212.55 billion.
As of June this year, revenues rose by 20.9 percent to PHP115. 53 billion.
The Finance chief attributed higher earnings to better collection of contributions.
Dominguez, however, noted that these gains "will have marginal returns eventually" partly because of increasing number of retirees.
He stressed the need to also explain to SSS members the importance of paying their contributions since they should consider it as savings and investments.
"When we are more efficient in delivering benefits, we can all the more convince our members that contributions are a worthwhile investment in their own futures," he added.
The Finance chief pointed out that "only improved financial activity will convince our members that their contributions are indeed investments in the future."
"Because of the size of the fund SSS manages, there should be no reason why our earnings should not be better than market averages," he said.
Dominguez, who chairs the Social Security Commission (SSC), further said it is also imperative to tap digital technologies to improve services and save on cost in the long run.
"The management, however, must very clearly justify these investments by demonstrating their returns," he added. (PNA)
