SSS to sell part of real estate assets to help fund pension hike

The Social Security System (SSS) will sell 47 condominium units and 49 parking slots in Mandaluyong City worth a total of at least P344 million as the state-run pension fund disposes of more properties to fund the pension hike approved by President Duterte early this year.

In a notice, the SSS invited interested bidders for 17 residential condominium units as well as their respective parking slots at Pioneer West Highlands, whose floor areas range between 122.9 square meters and 436.56 sqm and with minimum bid prices ranging between P6.145 million and P22.265 million.

Also up for sale were 13 units and parking slots at Pioneer Madison Suites, whose areas range between 94.84 sqm and 141.2 sqm, with bid prices ranging between P4.742 million and P7.06 million.

The SSS was also selling 12 office condominium units and their respective parking at Pioneer Corporate Center, whose floor areas range between 71.66 sqm and 206.8 sqm, and with minimum bid prices ranging between P3.941 million and P11.374 million.

At Globe Telecom Plaza, the SSS was selling five office units whose areas range between 108.95 sqm and 123.16 sqm, with prices ranging between P5.992 million and P6.774 million.

The SSS was likewise disposing of a pair of 12.5-sqm parking slots worth P500,000 each.

In all, the properties for sale at Pioneer West Highlands were valued at least P160.9 million; at Pioneer Madison Suites, a minimum of P75.6 million; at Pioneer Corporate Center, at least P75.1 million; and at Globe Telecom Plaza, a minimum of P31.9 million.

The SSS said the deadline for submission of bids as well as the opening of proposals would be on Oct. 20.

SSS president Emmanuel F. Dooc earlier said the plan was to sell more than P3.45 billion in properties to augment revenues amid the implementation of the additional P1,000 monthly cash benefit to pensioners since March, following the President’s approval of the measure in January.

The latest SSS data showed its net revenue slid by 60 percent year-on-year to P6.561 billion in the first half mainly due to the pension hike.

A second tranche of another P1,000 monthly benefit to pensioners is expected before 2022 or the end of Mr. Duterte’s term.

The President had also ordered an increase in members’ contribution to compensate for the pension increase.

The SSS’s actuarial life will be slashed by 14-17 years to 2025-2028, from 2042 based on 2016 estimates, if members’ contributions would not be increased.

After the first package of the comprehensive tax reform program is enacted into law, the SSS plans to collect an additional 1.5-percentage points to the previous contribution rate of 11 percent, on top of lifting the maximum monthly salary credit to P20,000 from P16,000 previously, to prolong its actuarial life until 2040. —BEN O. DE VERA