Systems upgrade to delay SSS pension benefits in March
The SSS main office in Quezon City (File photo from the Philippine Daily Inquirer)
Those who receive their pension benefits from the Social Security System (SSS) during the first five days of each month will get them later than usual as the state-run pension fund upgraded its electronic disbursement system.
“Some pensioners might experience a slight delay in the release of their monthly pension in March due to enhancements in the e-disbursement system, which caused the delayed release of funds to the partner-banks,” the SSS said in a statement Thursday.
The SSS was referring to pensioners or their survivors who were supposed to get their benefits between March 1 and 5.
Pensioners usually get their pension on the same day as when they retired, while survivors get theirs on the day that the pensioner died.
“The SSS, however, assures the pensioners who might be affected of the delay that they will receive their monthly pension starting March 6,” it said.
“The SSS management also appeals for understanding as it works on its system enhancements for better service delivery,” it added.
In 2017, President Rodrigo Duterte approved a two-stage monthly pension hike of P2,000, of which P1,000 per month were already being disbursed to pensioners since March last year.
As such, the SSS was seeking Duterte’s approval of its proposal to hike members’ contribution rate to 14 percent from 11 percent at present to compensate for the impact of last year’s pension increase on the fund life.
The SSS was unable to implement the contribution rate increase as initially scheduled in May last year as it awaited passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
The pension fund also sought to increase the minimum monthly salary credit to P4,000 from P1,000 at present, as well as the maximum cap to P20,000 from P16,000.
The higher contribution rate will allow the SSS to extend the fund life to 2044 from the current 2042.
The contribution rate hike is necessary because the SSS’s actuarial life will be reduced by 14-17 years to 2025-2028 if members’ contributions will not be increased.
The latest SSS data showed that its net income plunged to P9.69 billion as of end-November last year mainly because of the pension increase. /jpv
RELATED STORY
SSS to increase contributions of members to over 12.5%
