Metro Manila (CNN Philippines, July 14) — The Social Security System (SSS) has failed to collect billions in premium contributions from employers, reaching less than 3% of its targeted collectibles for 2022, the Commission on Audit (COA) found.
In its latest report on the state-run insurance program, the COA noted the non-remittance by 466,881 employers of contributions amounting to over ₱92.4 billion by the end of last year.
“The low collection efficiency of less than three percent of the established collectibles during the year deprives the SSS of much needed funds for the prompt delivery of social security protection, claims, and benefits to its members and beneficiaries,” state auditors said.
Records showed that 90.63% of the amount remained uncollected for more than five years.
The National Capital Region had the lowest collection rate of only 0.59% with payments of around ₱383.7 million out of the established collectibles for the region of over ₱64.4 billion.
However, the COA noted that the right of members to the benefits of SSS coverage should not be affected by the failure to collect from delinquent employers.
“Hence, the SSS is still bound to pay member benefits corresponding to the uncollected premium contributions, which may negatively affect the reserves of the SSS,” the COA said.
SSS officials previously said they are expecting for the pension fund to face challenges by 2039 as it struggles to find new financing sources.
The SSS management assured auditors that concerned offices are monitoring and reviewing the status of non-compliant employer accounts.
Meantime, the COA noted that the SSS also failed to collect over ₱77 billion in member loans, which include educational assistance, emergency and calamity loans.
Around 26% or some ₱20 billion of the total ₱77 billion are uncollected loans for over five years.
This, according to COA, hindered the reinvestment of the funds to earn income for the benefits of members.
