SSS 9-mo net income plunges 57%

The SSS main office in Quezon City (File photo from the Philippine Daily Inquirer)

The profit of state-run pension fund Social Security System (SSS) plunged 57 percent to P11.91 billion at the end of the first nine months due to a jump in disbursements mainly from the pension increase implemented this year.

SSS data showed that its end-September net revenue dropped from P27.43 billion in the same nine-month period last year.

Total nine-month expenditures, which included benefit payments and operating expenses, jumped 28.43 percent to P134.26 billion from P104.54 billion a year ago, the SSS said in a statement Monday.

End-September benefit payments climbed 30.3 percent to P127.78 billion from P98.06 billion a year ago.

“The increase in benefit payouts was higher due to the release of the P1,000 additional benefit amounting to P24.03 billion from January to October and the third tranche of pension adjustments arising from the unlumping of 1985 to 1989 contributions amounting to P72.43 million,” SSS president and chief executive Emmanuel F. Dooc said.

In January, President Duterte approved a two-stage monthly pension increase of P2,000, of which P1,000 a month was being disbursed to pensioners since March.

As of September, retirement benefit payments soared 26.75 percent year-on-year to P73.65 billion; death benefits jumped 43.51 percent to P40.17 billion; maternity benefits increased by 9.24 percent to P4.52 billion; disability benefits were up 42.8 percent to P4.64 billion; funeral benefits rose 6.09 percent to P2.85 billion, and sickness benefits increased by 8.47 percent to P1.95 billion.

Meanwhile, medical and rehabilitation services benefits declined 13.47 percent and 20.36 percent year-on-year to P9.7 million and P1.1 million, respectively.

Operating expenses decreased 0.05 percent year-on-year to P6.48 billion.

Revenues, on the other hand, increased 10.72 percent as of end-September to P146.17 billion from last year’s P131.97 billion.

Members’ contribution, which accounted for four-fifths of total nine-month revenues, grew 11.31 percent to P119.5 billion from a year ago’s P107.36 billion.

“The increase in our contribution was due to the aggressive collection drive of the SSS, like our recently launched Run After Contribution Evaders and linkages with various professional sectors,” Dooc noted. “Component-wise, collections from the employed sector registered the biggest amount at P103.1 billion, followed by voluntary paying members at P10.98 billion and self-employed at P5.42 billion,” Dooc added.

Investment and other income from January to September increased 8.16 percent to P26.62 billion from P24.61 billion in the first nine months of 2016.

“The pension fund’s financial position remained stable with total assets of P511.72 billion, up by 7.4 percent from P476.4 billion, due to the increase in investments and cash equivalents. The SSS’s investment reserve fund as of end-September stood at P490.32 billion or 5.6-percent higher than the P464.42 billion recorded at end-2016,” according to Dooc.

President Duterte had ordered that SSS members’ contribution rate be raised in increments of 1.5 percentage points a year until 2020 to reach 17 percent from the current 11 percent.