SSS told to explain basis for contribution hike-A A +A
Tuesday, January 14, 2014
MANILA -- MalacaĂ±ang and the management of the Social Security System (SSS) were ordered by the Supreme Court (SC) to defend the legality of the recently-implemented 0.6 percent increase in membersâ€™ premium contributions.
SC spokesperson Theodore Te said Tuesday the respondents were given 10 days to comment on the petition by militant groups Anakpawis party-list, Kilusang Mayo Uno (KMU) and Center for Trade and Human Rights (CTUHR).
Starting January, monthly SSS contributions will increase to 11 percent from 10.4 percent last year. This, according to KMU, means minimum wage earners would have to pay at least P25 more on premium contributions per month.
KMU had said the hike would not be necessary to improve the benefits offered by the SSS to members or to extend the life of the agencyâ€™s funds.
The group claimed the additional funds will only go to the pockets of big capitalists in the form of start-up capital for projects under the governmentâ€™s Public-Private Partnership program.
â€śThe SSS definitely does not need to increase premium contributions just to continue to exist. The truth is it already has more than enough funds from members who dutifully pay their contributions. Its board members have even pocketed millions of workersâ€™ hard-earned money as the fat bonuses,â€ť said KMU secretary general Roger Soluta.
SSS said that the rate increase is necessary to cover the accumulated unfunded liability worth P1.1 trillion since 1980. The Palace also defended the policy as the increases were allegedly minimal and affordable and will benefit SSS members. (Sunnex)