SSS .6% contribution rate increase to balance fund scheme-A A +A
Thursday, October 3, 2013
THE Social Security System (SSS) announced that the increase of .6 percent in the contribution of members to take effect next year is a need to balance the system’s funding scheme.
Lawyer Josefina M. Olan-Fornilos, assistant vice-president of SSS Northern Mindanao, stressed that the life of SSS fund is a balancing act.
The inflows or revenues such as investment income and contributions must be equal or greater than the outflows or expenditures such as the operating expenses and benefits, she explained.
She emphasized further that contribution rate has been stagnant for 23 years from 1981 to 2002 while pension increased 21 times.
She said, as benefit payments catch up, the contribution rate has to be adjusted to allow the SSS fund to cumulate reserves; thus, provision of social security protection to all members across generations be sustained.
As of June 2013, there are a total of 30,040,266 SSS members nationwide. (PIA/Sun.Star Cagayan de Oro)
Published in the Sun.Star Cagayan de Oro newspaper on October 03, 2013.