The House of Representatives approved twin measures on Monday, allowing the Social Security System (SSS) to increase the monthly contribution of its members and to increase the monthly pension of SSS pensioners.
Voting 227-7-1, lawmakers approved House Bill 2158, or “An Act Rationalizing and Expanding the Powers and Duties of the Social Security Commission (SSC) and the SSS,” by amending Republic Act 1161 as amended, or the Social Security Act of 1997.
The bill authorizes the SSC-SSS to enter into a compromise pact or to release any interest, penalty, or any civil liability to the SSS in connection with short- and medium-term loans to its members, such as salary, educational, livelihood, marital, calamity and emergency loans, without need for approval from the president of the Philippines.
It also authorizes the SSC-SSS to condone, compromise or release, in whole or in part, on a case-by-case basis, such penalties imposed upon employers for delinquent social-security contributions due to fiscal difficulties.
The bill also mandates the SSC-SSS to submit to Congress annual reports related to the exercise of the power to condone penalties for delinquent social- security contributions/payments and to include the names, addresses and other information on the delinquent employers.
The measure also said the SSC-SSS shall determine the salary credits, schedule and rate of contributions and rate of penalty or unremitted contributions and unpaid loan amortizations without need for the approval from the President of the Philippines. Currently, the SSS Charter said an increase in benefits for SSS pensioners must be subsidized by a concurrent increase in members’ premium.
To make it permanent, the lower chamber also approved the House Joint Resolution 10, which provides for a P2,000 across-the-board increase in the monthly pension of retired members, to be implemented in two schedules: the first installment, in the amount of P1,000 shall be made in January 2017 and the second installment of another P1,000 shall be implemented starting January 2019.
The resolution also sets the minimum monthly pension from P1,200 to P2,200 beginning January 2017, and to P3,200 beginning January 2019, for members who have contributed the equivalent of 10 credited years of service; and from P2,400 to P3,400 beginning 2017, and P4,400 beginning January 2019 for those with 20 credited years of service.
Earlier, President Duterte also approved an executive order providing the same pension increase for SSS pensioners.
Image credits: Nonoy Lacza