The Social Security System registered a double-digit growth in its net revenue in the first semester of the year, which was attributed by officials of the pension fund to measures boosting members’ contributions.
SSS president Emilio de Quiros Jr. on Tuesdasy said revenue grew substantially despite the drag caused by the low interest rate environment and the unfavorable performance of the stock market on the pension fund manager’s securities investments.
De Quiros reported that the SSS’ net revenue in the first half rose by 16 percent to P21.67 billion from year-ago level.
This came about as gross revenue, composed of contributions from members and investment income, grew by nearly 6 percent to P68.68 billion and as expenditures rose by 1.5 percent to 47.12 billion.
De Quiros said the financial performance of the SSS in the first half boosted optimism that the pension fund would likely surpass its full-year net revenue target of P30 billion.
“We were able to generate a good net revenue. With our performance in the first half, we should be able to post [a full-year income] better than the target,” De Quiros said on Tuesday in a forum.
Contributions from members accounted for the bulk, or P50.84 billion, of the gross revenue. The amount was up by 8.9 percent from a year ago.
De Quiros credited measures to tap workers in the informal sector, such as domestic helpers and self-employed, to be members of the SSS for the rise in net revenue. He also credited administrative measures to improve efficiency of collection of contributions.
He cited the campaign program of the SSS for households to register their helpers as SSS members.
Income from investments accounted for about P18 billion. This was 2.6-percent lower than the investment income generated in the same period last year.
“The drop in investment income was due partly to the prevailing low interest rates, which prevented us from generating the higher yields we used to generate in the past,” De Quiros said.
“It was also due to the stock market, which has been volatile this year,” De Quiros added.
The SSS has equity investments in several firms including Philex Mining Corp., Philippine Holdings, Philippine Long Distance Telephone Co., Union Bank and Security Bank.