SSS net income jumps 224%

The Social Security System (SSS) grew its bottom line by 224 percent to P73.3 billion in 2019 on the back of a higher contribution rate imposed under the state-run pension fund’s amended charter last year.

The SSS’s latest condensed statement of comprehensive income showed that last year’s net income jumped from P22.6 billion in 2018.

Total income rose to P248.9 billion in 2019 from P217.1 billion in 2018, primarily as service and business income—including members’ contributions—increased to P248.2 billion from P209.8 billion in 2018.

Under Republic Act No. 11199, or the Social Security Act of 2018, signed by President Duterte last year, the monthly contribution rate of SSS members was jacked up by the Social Security Commission to 12 percent, to be followed by three more 1-percentage point increases in 2021, 2023 and 2025 until it reaches 15 percent.

Gains, mainly from investments, climbed to P32.7 billion last year from P6.3 billion in 2018.

Other nonoperating income also grew to P4.04 billion from P1.01 billion in 2018.

Meanwhile, total expenses rose to P211.6 billion in 2019 from P194.7 billion in 2018, mainly as benefit payments to members and pensioners climbed to P196.8 billion from 2018’s P180.1 billion.

Expenses on personnel services inched up to P6.8 billion, while maintenance and other operating expenses declined to P2.4 billion.