SSS fund will only last for 7 years if second tranche of P1000 pension is released

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Metro Manila (CNN Philippines, May 16) — State-owned pension fund Social Security System (SSS) will run out of money in seven years if the second tranche of another P1000 benefit will be released next year without a funding mechanism.

"Should the second tranche of additional pension be implemented in 2019 without any funding mechanism, the SSS will have a fund life of seven years or until 2026," SSS said in a statement released on Wednesday.

After implementing the first tranche of the additional benefit in 2017, the SSS fund life dropped from 2042 to 2032 last year, SSS President and CEO Emmanuel Dooc added.

SSS is still waiting for President Rodrigo Duterte to issue an executive order to release the additional benefit he promised to pensioners in 2016. The second tranche can also be released if  the proposed amendment of Republic Act 8282, or Social Security Law of 1997 gets enacted.

"Our goal here in SSS is to see to it that we are able to release the second tranche [of pension] still within the term of President Duterte, which can be approved in 2022 during his last year in office," Dooc said.

He also said that to strongly support the implementation of the second tranche of pension increase, there should be approval of either an increase in contribution rate or adjustment in the minimum and maximum monthly salary credits in SSS.

"This is important to support the viability of the pension fund and to assure our current members that the SSS will still be there in their times of contingencies para mapanatag ang kalooban ng mga kasalukuyang miyembro  [to appease our current members]," he added.

As of December 2017, SSS has more than 960,000 registered employers and a combined 8.63 million registered voluntary and self-employed members. Some 218,000 or 10 percent of SSS pensioners claimed the additional benefit last year.