SSS to sell condo units in Makati, Pasig

MANILA, Philippines — To raise additional revenues, the Social Security System (SSS) will sell nine condominium units in the cities of Makati and Pasig worth a total of P79.5 million.

In an invitation to bid, the state-run pension fund said the public bidding on Feb. 15 will involve eight units at Pryce Center Condominium in Makati City, with a total minimum bid price of P51.6 million.

The prices per unit at the Makati property range between P4.8 million for the two 73.3-square meter (sqm) units and P7.9 million for the biggest, 123.9-sqm unit.

The SSS will also sell one condominium unit at Renaissance Tower 1000 in Pasig City, with an area of 384.7 sqm.

The Pasig property has a minimum bid price of P27.9 million.

All of the nine condominium units the SSS will have parking slots, the SSS said.

The terms of reference (TOR) for the bidding were already available since Dec. 28 at the office of the SSS’s Acquired Assets Disposal Committee (AADC) Secretariat in Quezon City, with a pre-bid conference scheduled on Jan. 29.

“Bidding is open to individuals/sole proprietorship, partnerships, corporations and joint ventures authorized by law to acquire properties in the Philippines,” the SSS said.

Last year, SSS president and chief executive Emmanuel F. Dooc said the pension fund targets to generate P50 billion from investment activities, which include disposition of idle assets.

Higher investment income, coupled with the long-delayed contribution rate hike, were expected to raise revenues to augment ballooning disbursements for pension benefits.

The SSS’s net income fell 38 percent year-on-year to P8.6 billion as of end-September 2018 as the increase in its revenues was outpaced by the faster jump of expenses due to higher pension payouts.

Its fund life was already slashed by 10 years to 2032 from 2042 previously when the additional P1,000 a month were granted to pensioners since 2017.

Implementing the second tranche of pension hike this year, as earlier promised by President Duterte, would further slash the fund life to only until 2026—which means that the SSS will no longer have funds to disburse benefits in seven years’ time, unless its fund is replenished.

Under the current SSS charter, the President can increase the contribution rate, but Mr. Duterte has not done so despite dwindling funds.

As such, the SSS was banking on Congress’ approval of the proposed amendments to its charter, which included granting the Social Security Commission power to hike contribution rates.  /muf