(Eagle News)– Social Security System (SSS) President Emilio De Quiros said on Friday that they will need to increase the contribution rate if the planned P2,000 pension increase would be followed.
According to De Quiros, SSS contribution is estimated to be raised by five to six percent.
De Quiros said the increase in contributions should be gradual for the SSS to extend its actuarial life to about 70 years.
Former President Benigno Aquino III vetoed the bill on pension increase saying that SSS would yield a deficit of P16 billion to P26 billion annually if he approved it.
He also cited the need ensure the stability and existence of the SSS as a major reason for vetoing the bill.
Aquino then explained that the P2,000 across-the-board increase with a corresponding adjustment of the minimum monthly pension would result in substantial negative income for the SSS since the proposed hike per retiree multiplied by the present 2.15 million pensioners would result in a total payout of P56 billion annually.
President Rodrigo Duterte, however, was in favor of the bill noting that the increase in pension will help retirees with their medical expenses.
