DAVAO CITY, January 10, 2017 — President Rodrigo Duterte has signed the law increasing the pensions of beneficiaries of the Social Security System (SSS), with the first tranche to be released in February.
The announcement was made by SSS officials in a press conference held in Malacañang this afternoon.
SSS chair Amado Valdez said the approval of the increase in SSS pensions comes from direct instructions from Duterte for a sustainable contribution scheme so that the increase would be funded properly.
Meanwhile, SSS president Emmanuel Dooc said the government-owned and controlled company (GOCC) is asking Congress to further amend its Charter (the Philippine Social Security Act of 1997 or the SSS Law) to promote more condonations for pensioners.
Dooc lamented that the condonations were the only way out of troubles of the SSS pensioners since the penalties would sometimes overtake the principal amount.
“Napakataas ng penalty na ipinapataong pag nagkaroon ng default in paying contribution to SSS,” he said.
The penalty is 3% per month. That’s 36% per annum. Kaya po yung mga nagpatong-patong na yung kanilang moroso sa pagremit sa kanilang contribution, eh mas mataas na po yung portion sa penalty kaysa sa principal.
We can effect the payment of the additional increase in February. Don’t concern yourself with the money, we have the funds for that.”