President Rodrigo Duterte has signed the Social Security System (SSS) Rationalization Act to allow the SSS to improve its investing capacity and generate more revenue for members and pensioners.
It provided for a gradual increase in monthly contributions to make it 15 percent by 2025 from the current 11 percent.
It also allowed the gradual adjustment of minimum and maximum monthly salary credits.
The increased contributions would start this year.
SSS president and chief executive Emmanuel F. Dooc said the additional collection would replenish the SSS fund in six years.
Dooc said the SSS would immediately craft the law’s implementing rules and regulations.
The new law provided that the Social Security Commission, the highest policy-making body of the SSS, may collect the higher contributions without the President’s approval.
At least two-thirds of the contribution rate increase would be shouldered by the employer.
With higher contributions, the SSS fund would be extended until 2038. This meant members and pensioners can enjoy benefits for 20 more years.
The SSS fund life was slashed by 10 years when an additional P1,000 in monthly pension was given starting in 2017.
For OFWs, the new law will include mandatory SSS coverage for those under 60 years of age and also includes the expansion of powers of the SSS Commission to determine the monthly contribution of the members, as well as their salary credit. This added measure will soon enable SSS to increase contributions as per the report from GMA News.
On the other hand, Senator Gordon posted about this in his Facebook page:
Another game changing law benefiting the people has been signed by President Duterte – the new SSS Law.
Salient provisions of the new SSS Law include the compulsory coverage of all overseas Filipino workers, both land-and-sea-based. For land-based OFWs, the Department of Foreign Affairs and the Department of Labor and Employment and all their agencies involved in deploying OFWs for employment abroad are mandated to negotiate bilateral social security and labor agreements with the OFWs’ host countries to ensure that the employers of land-based OFWs pay the required SSS contributions.
We want to develop a culture of work, save, invest, prosper. The law envisions a benefits-based system—what you invest is what you get; no investment, no benefit.
This is a game changing law. Ngayon mas malaki ang savings ng mga tao, mas malaki ang makukuha nila pag lampas nila sa threshold ng 12% at 20 years. Hybrid na – meron silang defined benefits at saka defined contribution.
The law does not promise an abundance of wealth. Ang sinasabi dito ay pagka-nagkaroon sila ng aberya sa kanilang buhay, meron silang panghahawakan. Meron silang masasandalan. Meron silang lifeline that they, themselves, created. Na sila mismo ang nag-contribute with other Filipinos towards the benefit of their own posterity.
LOOK: President Duterte signed bills expanding the coverage of SSS to include more overseas Filipino workers and bolstering the regulatory powers of the BSP https://t.co/zohUnHJjGN pic.twitter.com/h4MoTUePJg
— CNN Philippines (@cnnphilippines) February 18, 2019
