MANILA, Philippines – President Benigno Aquino III vetoed the the SSS Additional Pension Benefits Bill which aims to increase the monthly pension of retirees by P2,000 on Thursday January 14.
In order to execute this, the government will have to allot a total of P56 billion, an amount that increases every year as the number of SSS retirees increases.
Around 2.15 million SSS pensioners would have benefited from the increase, which represents 6.5 percent of the 33 million active SSS members.
P2,000 x 13 months x 2.15 million = P56 billion yearly
How will this affect SSS operations?
According to the GOVPH, SSS risks running out of funds in 11 years because of the increase.
SSS earns by re-investing the monthly contributions made by its members. For every P1 contributed, SSS returns P6-P15 when the member retires.
Why was the SSS Additional Pension Benefits Bill vetoed?
Quite simply, the large amount required – P56 billion yearly – is unsustainable in the long-term.
In order to sustain the amount required, the government will have to source the funds from other programs and projects.
The Presidential Communications group insists that although the short-term effects would benefit 2.15 million pensioners, SSS risks going bankrupt, leaving 33 million active members behind.