This has reference to some issues raised about the Social Security System by Bernardo V. Peralta in his letter (“Pension increase ought to start January 2014,” 9/9/14).
In his letter, Peralta said that: “The 0.60-percent increase in the premium contributions of the 30 million SSS members and their respective employers took effect on Jan 1, 2014; therefore, the pension increase should also start on that date.”
We would like to inform Peralta that an increase in contribution rate does not automatically translate to an increase in pension benefits. Increases in contribution rates are implemented to ensure the sustainability of the fund and, if actuarially viable, an increase in pension may be granted.
Throughout the 57-year history of the SSS, maintaining a balance between the solvency and long-term viability of the fund while ensuring prompt and adequate payment of benefits has always been its responsibility. As such, benefit increases largely depend on the viability of the fund—that is, as long as actuarial studies will show that there are enough funds to pay the additional disbursement.
On the issue of pension increases, we have already explained this to Peralta in a previous letter. But to show proof of our claim that there had been 21 pension increases since 1980, we also have a summary list of benefit increases under the SSS for death, disability and retirement since 1975.
The last pension increase of 5 percent for all active pensioners was granted in June 2014. The pensions received by our pensioners for August 2014 already included said increase. The SSS has started depositing the differential for June and July 2014 to our pensioners’
accounts.
Thank you for giving us the opportunity to clarify these issues.
—MARISSU G. BUGANTE,
vice president,
Public Affairs and Special Events Division,
Social Security System