‘Christmas gifts’ for SSS pensioners began in 1988

This refers to Primo C. Urayan’s letter (Inquirer, 1/4/12) challenging the Social Security System to give cash gifts to pensioners and allow an increase in pension.

For the information of Urayan and other pensioners, since 1988, the SSS has been giving a 13th-month pension to retiree, disability and survivor pensioners every December. The 13th-month pension is actually a bonus or an extra cash gift given every Christmas season to SSS pensioners.

As to the clamor for pension increase, this is only possible if the Social Security Fund can accommodate such benefit enhancement. Based on the 2007 Actuarial Valuation, providing a 10-percent across-the-board pension increase without additional source of income would lessen the fund life by two years.

To ensure the long-term viability of the pension fund, the SSS management has recommended a set of reforms including the increase in the rate of contribution from 10.4 percent to 11 percent, as well as an increase in the maximum monthly salary credit from P15,000 to P20,000.

Once this proposal is approved, the SSS can provide a 10-percent across-the-board pension increase and a one-time grant of P500 without affecting the soundness and viability of the Social Security Fund.

—MARISSU G. BUGANTE,

vice president,

Public Affairs and Special Events Division,

Social Security System