The net income of state-run pension fund Social Security System (SSS) jumped 168 percent to P7.89 billion in the first quarter, a reversal from the steady decline in previous quarters due to higher expenditures as a result of the pension hike.
The SSS’ latest statement of comprehensive income showed that its total income from January to March totaled P59.02 billion, up 17 percent from P50.61 billion a year ago.
Service and business income rose to P56.76 billion, gains increased to P2.16 billion and other nonoperating income, up to P93.29 million.
As for total expenses, these also increased but by a slower 7 percent to P51.12 billion from P47.66 billion last year.
Benefit payments, personnel services, maintenance and other operating expenses, and financial expenses as of March grew compared to the same three-month period of 2018.
Noncash expenses, meanwhile, declined.
As such, the SSS’ first-quarter net income climbed from only P2.95 billion last year.
In 2018, the SSS managed to jack up its full-year net income as higher collections from members’ contributions grew revenues faster than expenditures despite the bigger benefits being enjoyed by pensioners.
As last year’s revenues rose 7 percent to P216.9 billion while expenditures increased 6 percent to P194.3 billion, its 2018 net income went up 12 percent percent to P22.7 billion.
To recall, the SSS’ net income of P20.3 billion in 2017 dropped 37 percent from 2016’s P32 billion as it implemented the additional P1,000 monthly pension approved by President Duterte.
Under Republic Act No. 11199, or the Social Security Act of 2018, the monthly contribution rate of SSS members was hiked by the Social Security Commission to 12 percent since April, to be followed by three more 1-percentage point increases in 2021, 2023 and 2025 until it reaches 15 percent.
With the staggered contribution rate increase and if RA 11199 will be fully implemented by 2025, the SSS’ fund life would be extended to 2045 from 2032 previously.