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Drilon lauds SSS pension hike but says contribution increase is illegal

MANILA, Jan. 11 (PNA) -- While the decision of Pres. Rodrigo Duterte to approve the PHP1,000 hike in the monthly pension of all pensioners under the Social Security System (SSS) is “commendable”, Senate Pres. Pro-Tempore Franklin Drilon on Wednesday said that raising the monthly contribution of members is illegal.

"The President's move to help our aging SSS pensioners is laudable, but the executive branch must also ensure that this pension hike will not be used as an excuse to enforce higher contributions from SSS members," Drilon said.

Drilon, a lawyer and former justice secretary, cited Section 4 of Republic Act No. 8282, which prohibits SSS to recommend increase in benefits that would require an increase in contribution.

"The SSS is not allowed to raise the premium rates so it can increase benefits," Drilon said.

He explained that the increase in benefits of pensioners should not come from a similar increase in the burden shouldered by current SSS contributors.

The senator said that SSS can only implement an increase in the benefits of its members, subject to the approval of the President, "if such increase is based on the actuarial soundness of the reserve fund" and as "such shall not require any increase in the rate contribution."

Sen. Paolo Benigno “Bam” Aquino IV for his part, said that he was “surprised” by reports about the rise in the contributions of members noting that there were more members compared to pensioners.

“Nagulat rin kami na mayroon palang increase in premiums na ipapataw sa 34 million Filipinos. Dalawang milyon po kasi iyong SSS pensioners natin at sumuporta naman tayo sa pag-increase ng pension nila (We were surprised by the increase in premiums that will be imposed on 34 million Filipinos. There are 2 million SSS pensioners and we support the increase in their pension),” Aquino said.

“Pero I think marami ring nagulat, pati na rin ang business community, iyong mga employer nagulat sa pagtaas ng premium na 1.5 percent (But I think many were surprised, including the business community, employers were surprised by the increase in premium by 1.5 percent),” he added.

Aquino said that senators have previously proposed to instead increase the efficiency of collecting contributions.

“I think what we need to do is increase the efficiency of collecting contributions not increasing the premium of members,” Aquino stressed.

He meanwhile expressed hope that the SSS would hold consultations with employers and employee organizations regarding the increase in contributions of members.

SSS Chairman Dean Amado Valdez earlier said that implementing the pension increase with a corresponding contribution hike will eventually benefit the population who look forward to their own SSS pensions at the time of retirement.

The release of the pension would come in two tranches -- the initial PHP1,000-increase this month will be the first tranche while the additional PHP1,000 in 2022 or earlier will be the second tranche.

Pres. Duterte signed approved a pension hike for SSS members along with a corresponding increase in contributions on Tuesday (January 10). (PNA)

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