MANILA – The state-run private pension fund Social Security System (SSS) surpassed its 2017 target revenue, with PHP200.5 billion in total earnings from members’ contributions, investments, and other income last year.
The agency’s unaudited financial performance showed its total revenues for the period January to December 2017 increased by PHP26.04 billion from PHP174.46 billion in 2016 or 5.6 percent higher than the PHP189.79-billion target.
“We achieved good numbers in 2017 on the back of our intensified campaign to increase our collections. We are pleased that the efforts of the SSS management and employees paid off,” SSS President and Chief Executive Officer Emmanuel Dooc said in a statement.
Contribution collection, which comprised the bulk of the pension fund’s revenue for 2017 was at PHP159.72 billion, up 10.6 percent or PHP15.36 billion from the 2016 figure of PHP144.36 billion.
The remaining PHP40.78 billion in total revenues came from investments and other income, which soared 35.5 percent from PHP30.10 billion in 2016.
Similarly, the expenditures of the pension fund for the same period, which included benefit payments and operating expenses, jumped 26.5 percent to PHP180.2 billion from PHP142.46 billion in 2016.
Of the total expenditures, PHP170.68 billion were released for benefit payments, which climbed 28.4 percent from PHP132.98 billion in 2016.
SSS also grants maternity, sickness, disability, retirement and death benefits to qualified active members under the regular Social Security Program.
Dooc said that in 2017, SSS gave higher benefits to pensioners. The agency has disbursed some PHP33.5 billion to cover additional benefits to pensioners starting January 2017.
“As a result, our expenditures, which were made up largely of benefit payments, saw a huge increase compared to 2016, wherein no additional benefit was enjoyed by the pensioners,” Dooc said.
Operating expenses, which accounted for five percent of SSS’ total disbursements, meanwhile, showed a slight increase to PHP9.52 billion from PHP9.48 billion in 2016 but were still below the allowed amount mandated by the SS Charter.
“Our operating expenses are way below our allowable expense under the Social Security Law of 1997, which is equivalent to not more than 12 percent of the total yearly contributions and three percent of other revenues,” Dooc said.
“We’ll strive to make benefits more relevant while ensuring financial viability through the support of all our stakeholders, especially our legislators, who are now studying the proposed SS Charter Amendment Act due for bicameral hearing soon,” Dooc said. (PNA)
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