DAVAO CITY — The Social Security System (SSS) vowed to run after employers who failed to remit contributions of their employees.
The move is aimed at boosting the funds of the SSS.
Under SSS regulations, negligent firms will face closure and their officials will be imprisoned. SSS recently launched its Run After Contribution Evaders and linkages with various professional sectors.
Although the SSS assets and collections from two sources are growing to cover expenditures, SSS President and CEO Emmanuel Dooc said there is a need to make funds stable and robust to truly serve the members.
There are 36.1 million SSS members nationwide and the number of new members is growing by 100,000.
The self-employed members have six to seven average density of contribution.
This developed as Dooc bared the amount of SSS expenditures is higher than its income because of the recent increase in pension benefits, citing the P1,000 increase for 2.2 million pensioners. Dooc also said benefit payments increased roughly from P98.06 billion in 2016 to P127.78 billion.
During the Kapihan sa SSS at the Ritz Hotel, Davao City on Wednesday, Dooc said SSS has a total asset of P509 billion as of October 31, 2017. With the remaining two months, SSS could hit bigger at the end of the year.
This is an increase as compared to 2016 figure of P400 billion. Dooc said the SSS’ income is derived from two sources – investments and the contributions of members and employers.
This year, SSS hit P169 billion from contributions of members and employers. This indicates an increase of 10.5 percent or P13.1 billion.
The average last year was P12 billion. From investments in stocks, property, and loans, Dooc said SSS posted P28 billion. “We hope to hit P31 billion,” he said.
Despite growth in earnings, Dooc said expenditures increased by 31.1 percent or P200 billion. The deficit could be covered from the investment source, he said.
Earlier, SSS reported that component-wise, collections from the employed sector registered the biggest amount at P103.1 billion, followed by voluntary paying members at P10.98 billion, and self-employed at P5.42 billion.
Investment and other income for the nine-month period of 2017, which represents 18.2 percent of total revenues, was 8.16-percent higher, from P24.61 billion to P26.62 billion.
The pension fund’s financial position remained stable with total assets of P511.72 billion, up by 7.4 percent from P476.40 billion due to the increase in investments and cash equivalents. (Lilian C. Mellejor/PNA)
