PENSIONERS in Baguio City expressed their satisfaction after President Rodrigo Duterte approved the P1,000 increase in the Social Security System (SSS) pension which will be implemented next month.
John Wallang, a 71 -year-old pensioner shared his satisfaction after the president approved the increase in their pension.
“Okey at least there is an additional in our pension,” Wallang said.
Wallang added he started working in 1970 where he paid his SSS monthly contribution and received his first pension after retiring in 2008.
“I will it use for my maintenance. I have high blood. I hope there will be another increase of P1,000 again after five years,” Wallang added.
Another pensioner, 69-year-old Evelyn Yapyapan was overjoyed after learning there is an increase in their SSS pension.
She said the increase is beneficial for them specially they can no longer work normally now adding the pension will be used for her medicines and other basic needs.
While Duterte approved to raise the monthly pension, the chief executive was not amenable to using taxpayers’ money to fund the increase since SSS is a private pension fund.
As a result of the approved pension hike, the contribution rate would increase in May this year by 1.5 percent, or 12 percent from the current 11 percent contribution rate.
The additional total contribution would range from the original P15 to P740 while the 1.5 percent increase in contribution would be done every year.
The initial proposal was to increase the pension of SSS members by P2,000.
Duterte, however, admitted his economic managers were not keen on granting the P2,000 across-the-board increase in the SSS pension as the agency might face bankruptcy.
The additional P1,000 was already “part of the package” approved by the President but was still “subject to conditionality” while the next P1,000 increase might be received by 2022 or at the earlier time.