THE Social Security System (SSS) should be more transparent about its plan to raise anew the premium contributions due to the potential impact on its more than 30 million members, Senator Francis Escudero said Wednesday.
Despite implementing a contribution rate hike in January last year, the SSS said Tuesday it is planning to increase the rate of its members' contribution by one-percentage point to extend the life of the pension fund.
Escudero said the SSS must be able to explain to the public why there is a need for premium increase, and where and how members' contributions are spent.
Ha added that it was high time for the agency to make a full disclosure and accounting of the public funds being administered by the pension fund, as well as the need for an independent review of its actuarial status.
"I urge the SSS to make their book of accounts open to the public so it would be clear to them why it is necessary to increase the members’ contribution. It (members' contribution) has been increased recently; does the hike become fruitful by providing good service to its members?" Escudero said.
The senator said the public must be assured of a stable and financially sound SSS, which is mandated to protect private sector employees against hazards of disability, sickness, old age, death and other contingencies resulting from the loss of income or financial burden.
Based on the latest actuarial valuation, the SSS said four years were added to the life of the fund from the previous valuation of 2039 after enforcing contribution rate increase in January 2014.
A 27-year life span for a pension fund, however, is still way below the international standard of at least 70 years. (Sunnex)