January 24, 2018, 9:21 am
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SSS net plunges on pension hike

The Social Security System’s (SSS) net income as of November 2017 dropped by 66.54 percent from the previous year’s level due to the increase in pension benefits as well as adjustments implemented last year.

The pension fund’s profit stood at P9.69 billion in the first 11 months of 2017 from P28.96 billion in the same period in 2016.

SSS said it disbursed more than P157.39 billion to its about 35 million members through benefit payments on January to November 2017 against P123.17 billion recorded in the same period in the previous year. 

The benefit payments include the P1,000 additional pension, amounting to P30.85 billion in 2017.

“The third and fourth tranches’ pension adjustment arising from un-lumping of 1985 to 1989 contributions amounting to P72.43 million and P66.92 million given in June 2017 and September 2017, respectively, to SSS death, retirement and disability pensioners also contributed to the increase in benefit payment,” said Emmanuel Dooc, SSS president and chief executive officer.

Bulk of the benefit disbursement was released for retirement benefit payments at P91.22 billion for the first 11 months of 2017. This was 25.72 percent higher than the P72.56 billion released on the same period in 2016.

Likewise, payments for death, maternity, disability, funeral grant and sickness benefit also posted positive growth as of the end-November 2017 period. 

Benefit payments for death and maternity for the 11-month period in 2017 increased to P49.04 billion and P5.56 billion from the P36.21 billion and P4.84 billion recorded in the previous year, respectively. 

Expenditures for disability, funeral grant, and sickness meanwhile amounted to P5.71 billion, P3.5 billion, and P2.35 billion, respectively, as of end-November 2017 period. 

Medical and rehabilitation services expenditures stood at P11 million and P1.48 million, respectively. 

Operating expenses of the pension fund, which include personnel services and maintenance, among others, slightly declined by 0.42 percent to P7.86 billion as of the end-November 2017 from the P7.89 billion posted in the same period on the previous year. 

Meanwhile, revenues as of end-November 2017 reached nearly P175 billion, which the pension fund attributed to aggressive collection efforts for members’ contribution and investment and other income. 

Total revenues reached P174.94 billion for the January to November 2017 period, up by 9.3 percent or P14.92 billion from the P160.02 billion in the same 11-month period in 2016. 

“The growth in our contribution collection is primarily due to the collection drive of the current administration of the Social Security Commission along with the efforts of SSS employees who are in direct contact with our employer- and employee-members every day,” Dooc said. 

Broken down, members’ contributions, which represent 82.5 percent of the total revenues, grew to P144.36 billion as of end-November 2017 from the P131.28 billion in end-November 2016.

Investment and other income as of the end-November 2017 further increased to P30.58 billion from the P28.74 billion posted in the same period in the previous year. 

This was boosted by the income from government securities, equities, and salary loans which stood at P11.04 billion, P8.15 billion and P7.61 billion, respectively, SSS said.

“Total investments, representing 92.6 percent of the pension fund’s total assets, went up by P16.68 billion due to additional placement in government bonds, new salary loans releases including restructured member loan accounts and the reclassification of real estate properties,” Dooc said.

The SSS’ total assets as of end-November 2017 amounted to P493.29 billion, P16.89 billion higher than the P476.4 billion recorded at the 2016 year-end level.
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