THE Commission on Audit (COA) has called out the Social Security System (SSS) for its anemic performance in going after private companies with unpaid or unremitted premium contributions from their employees totaling P93.747 billion.
As of yearend 2023, state auditors revealed only P4.58 billion or only 4.89 percent of the outstanding sum has been collected, leaving P89.17 billion in collectibles.
This even as private sector workers are required to pay another increase in contributions starting this month, which the SSS said is necessary to strengthen the pension fund by improving its long-term financial security.
However, the COA pointed out that the inability of SSS to collect the P89.17 billion has a direct impact on its stability and performance.
“The inefficiency in collecting premium contributions from delinquent employers, …despite the offering of installment payment scheme, deprives the SSS of much-needed funds for the timely delivery of social security protection, claims, and benefits, to its members and their beneficiaries,” the Commission said.
Based on records obtained by the audit team, the uncollected sum represents the accounts of 420,267 delinquent employers, a majority of whom ignored efforts by the pension fund to simplify payment.
“Examination disclosed that out of the 420,267 delinquent employers, there were 349,189 active (employers) who have not availed of the installment plan offered by SSS for their delinquent accounts totaling P63.296 billion, representing 70.98 percent of the net collectibles as of December 31, 2023,” the COA said.
In addition, 70,975 employers were classified as “inactive, under temporary suspension, or with closed/dormant accounts” representing P25.774 billion in collectibles.
Since the Social Security Act of 2018 provides that the failure of the employer to pay or remit the contributions shall not prejudice the right of the employee to SSS benefits, auditors pointed out that the weak collection performance exerts more pressure on the pension fund to pay members’ benefits.
The SSS said it is doing all it can to compel payment or remittance of the collectibles and lamented that the cases it filed against some of the delinquent employers have been pending in court for a long time.
Among the factors it blamed for the delay are the non-apprehension of company executives, dilatory tactics being employed by the counsel of defendant companies, and the retirement, transfer or promotion of judges who are handling the cases.
