Probe on SSS’ dismal collection rate pushed

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Sen. Grace Poe is pushing for an investigation into the Social Security System’s (SSS) collection of contributions from delinquent employers, saying systemic inefficiencies need to be addressed.

Poe said the investigation aims to enhance SSS’ efficiency in its collection mechanisms “amid significant premium increases and ensuring the sustainability of its funds for the benefit of all members.”

SSS president Robert Joseph de Claro earlier said the state insurer will impose the last tranche of members’ contribution increase of 1 percent effective this month, which is expected to extend its fund life until 2053.

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RA 11199 or the Social Security Act of 2018 provides for a scheduled monthly member contribution “with a programmed increase in monthly salary credit (MSC) bracket as well as increase in member contribution rate to 15 percent in 2025 from the previous 14 percent in 2023 and 2024.”

Under the law, employers will shoulder 10 percent, while employees will bear the remaining 5 percent of the 15 percent contribution rate.

While the law provides for such increase, Poe said it will cause additional hardship to private sector workers and employees already struggling with the increasing trend in inflation and the rising cost of living.

She noted that labor groups have opposed the scheduled contribution increase, saying the SSS should first address collection inefficiencies before increasing members’ contribution.

Poe also pointed out that the Commission on Audit (COA) has called out the SSS for its “anemic performance” in running after companies with unpaid or unremitted premium contribution from their employees which amounts to billions of pesos.

“In its 2022 audit report on SSS, state auditors found that only P2.48 billion or less than 3 percent of the P94.97 billion target was collected as of the end of 2022. Now in its latest 2023 annual audit report, COA found that SSS has only collected P4.581 billion or 4.89 percent of the total P93.747 billion established collectibles. This leaves at least P89.17 billion that are yet to be collected from 420,627 employers,” Poe said in filing Senate Resolution No. 1279 on Wednesday.

“COA said that this has a direct impact on the agency’s ability to carry out its mandate, adding that it ‘deprives SSS of much-needed funds for the timely delivery of social security protection, claims, and benefits, to its members and beneficiaries,” she added.

Poe said there is a need for SSS to improve its collection mechanisms.

“While SSS PCEO (president and chief executive officer) De Castro claims in the latest press briefing that their collections have improved, there still remains a significant amount of collectibles from delinquent accounts which is crucial to ensuring the fund’s sustainability and maintaining public trust in the system,” she said. “Any increase in contribution will be rendered ineffective in extending the SSS fund life as projected if the agency’s collection rates continue to remain dismal.”

“The SSS must also ensure stronger enforcement mechanisms to address systemic collection inefficiencies and ensure accountability among stakeholders,” she added.

Senate Deputy Minority Leader Risa Hontiveros earlier filed Senate Resolution No. 1269 seeking an investigation into the possible economic impact of the last tranche of SSS contribution increase to workers and employees in the private sector.

Hontiveros also called on the SSS to suspend the scheduled increase in premium contribution.

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