House panel OKs report on PHP2,000 SSS pension hike bills

MANILA — The House of Representatives’ Committee on Government Enterprises and Privatization approved on Tuesday its report on the several measures seeking to give a PHP2,000 across-the-board increase to the monthly pension of Social Security System (SSS) members.

The committee report recommended the consolidation of the 16 bills, all of which propose the PHP2,000 pension hike, into one version through House Bill No. 18.

The proposed bill seeks to provide financial relief to the two million pensioners under the SSS whose monthly pensions are way below those received by pensioners under the Government Service Insurance System.

The measure also sets the minimum monthly pension from PHP1,200 to PHP3,2000 for members who have contributed the equivalent of 10 credited years of service, and from PHP2,400 to PHP4,400 for those with 20 credited years of service.

Section 12 of Republic Act No. 1161, otherwise known as the “Social Security Act of 1997”, will be amended.

To recall, former President Benigno Aquino III has vetoed the enrolled SSS pension hike bill, noting that it has “dire financial consequences.”

“More specifically, the proposed pension increase of PHP2,000.00 per retiree, multiplied by the present number of more than two million pensioners, will result in a total payout of PHP56.0 billion annually,” Aquino said.

The total payment for pensioners will yield a deficit of PHP16 billion to PHP26 billion annually, he added. Filane Cervantes/PNA-northboundasia.com