Metro Manila (CNN Philippines, December 23) — Twenty-two years will be added to the fund life of the Social Security System (SSS) because of contribution rate increases since 2019.
Michael Regino, the state pension’s president and CEO, explained it would only have lasted until 2032 with the additional ₱1,000-pension benefit in 2017.
Republic Act 11199 or the Social Security Act of 2018 required gradual rate hikes for members and employers’ contributions which extended the fund life until 2044, the SSS said.
The SSS will carry out beginning Jan. 1, 2023 a 14% contribution rate, with employers taking on the 1% increase, meaning they will cover the 9.5% share while workers still shell out 4.5%.
The rate began at 12% in 2019 and has been increasing by 1% every two years under the law. The contribution increase will end by 2025.
“It is important for us to implement the contribution rate increase together with other social reforms so we could achieve this goal and ensure that we have sufficient funds to provide the short- and long-term benefits, including the immediate financial needs, of our members and pensioners especially in times of contingencies,” Regino said.
The agency said it now projects the fund life until 2054 after the latest actuarial valuation of 10 more years.
