SSS reports lower net revenue

MANILA, Philippines – The Social Security System (SSS) reported a lower net revenue of P8.37 billion during the first six months of this year, or P8.38 billion lower than the P16.75 billion recorded in the same period last year.

Total revenues of P47.78 billion in the first half of the year also declined by P5.39 billion or lower than the P53.17 billion recorded in the same period last year.

SSS officials said the higher revenues last year were largely due to the sale of its shares in Banco de Oro last year wherein SSS gained P1.6 billion.

SSS president and chief executive officer Romulo Neri, meanwhile, said the agency’s contribution collections surpassed benefit disbursements by nearly P650 million during the first six months of the year.

“This means that SSS has consistently posted surpluses of contributions over benefits since 2005,” Neri said.

Neri said contributions from January to June totaled P36.30 billion while total benefit disbursements including retirement and death claims stood at P35.65 billion during the period.

“We also paid P1.79 billion for maternity claims, P1.65 billion in disability benefits and P1.20 billion in funeral grants while payments for medical and rehabilitation services and sickness benefits totaled P856 million,” Neri said.

Neri said it was good for SSS contribution collections to outpace disbursements for benefits.

“A surplus of contributions over benefits indicate a stable financial position for SSS and assures the fund’s continuing viability,” Neri said.

SSS assets, meanwhile, rose by nine percent to P254.06 billion from P233.12 billion as of end-December 2008 while the reserve fund increased by eight percent to P242.53 billion during the period.

Neri said the agency would continue to step up efforts against delinquent employers to boost collections.

It has already filed a total of 565 cases against delinquent employers from January to June. –Iris C. Gonzales (The Philippine Star)