MANILA, Philippines – Social Security System (SSS), the state-owned pension fund for private employees, is planning to raise this year its contribution rate to 11 percent of a worker’s monthly salary credit (MSC) from the existing 10.4 percent, its top official told The STAR.
In a recent interview, SSS president and chief executive officer Emilio de Quiros Jr. said that an increase in the contribution rate would also mean higher benefits for members.
“We want to make SSS benefits more meaningful. If you want to increase your benefits, you have to increase your contributions. Right now, the contribution rate is only 10.4 percent. We’re looking at increasing the rate to 11 percent,” he said.
The higher contribution rate would be split between the employer and the employees, he pointed out.
He said the increase is minimal and would help ensure more benefits for members when they retire.
This is among the plans and programs which de Quiros plans to put in place during his term.
The last time the SSS raised its contribution rate was in January 2007, shared by both employer and employee.
Aside from raising the contribution rate, De Quiros said SSS also plans to increase the amount of the maximum MSC to more than the prevailing ceiling of P15,000.
At present, the minimum and maximum MSC brackets are P1,000 and P15,000, respectively.
“We’re planning to increase this to P20,000,” De Quiros said.
He said the increases are meant to improve the benefits received by members.
Benefits include different retirement benefits. A monthly pension is applicable to SSS members who have contributed for at least 120 months, has 60 years old and is not in gainful employment or self-employment or those who have reached 65 years old.
SSS retirees also receive 13th month pension and dependents’ pension for each minor child who is no more than 21 years old conceived prior to retirement, but not exceeding five. Those who are of retirement age but not qualified for pension benefits are given a lump-sum amount equal to total contributions paid plus interest earned.
Members are also entitled to disability benefits. A monthly pension is provided in the case of permanent total disability for members who have at least 36 monthly contributions. –Iris C. Gonzales (The Philippine Star)
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