MANILA — Malacañang has announced that it will allow the Social Security System (SSS) to proceed with its planned contribution rate hike, citing that the increase was “well-studied.”

In a press briefing on Tuesday (07 Jan 2025), Executive Secretary Lucas Bersamin emphasized that the government should refrain from interfering with the operations of the social insurance agency.

“Increases like these are based on thorough actuarial studies,” Bersamin said. “It’s not appropriate to arbitrarily block such adjustments. The SSS is backed by a respected team of actuaries, and they have conducted extensive research to support the increase.”

He added, “If the government constantly interferes in their management, it may lead to undesirable outcomes. We should allow the process to unfold and trust that it will yield positive results.”

Bersamin also suggested that calls to delay the contribution hike might have political motivations. Among those advocating for a suspension is former SSS president Rolando Macasaet, who is running for a party-list seat in the 2025 midterm elections.

“You need to understand the source of the opposition. It comes from someone who’s a candidate – Rolly Macasaet, who was previously the president of the SSS,” Bersamin said. “I don’t know if this is part of his campaign strategy, but we will take his request seriously if it is formally presented to us.”

Several groups, including Macasaet and certain lawmakers, have urged President Ferdinand Marcos Jr. and the SSS to halt the scheduled increase in contribution rates.

In a separate briefing, SSS President Robert Joseph De Claro stated that while he has not yet discussed the issue directly with the President, the hike is necessary to address the immediate needs of the agency’s members. De Claro emphasized that the increase would not jeopardize the fund’s sustainability, but would provide crucial financial resources for SSS services, particularly calamity loans.

He revealed that the additional P51 billion in projected collections would be allocated to various SSS programs, including disaster relief loans. Last year, the agency disbursed approximately P9.8 billion in calamity loans to affected areas.

ia/mnm

By Junex Doronio

MANILA — Committed to serve well the proverbial “least of our brethren”, the Department of Social Welfare and Development (DSWD) will sign on Monday (8 July 2024) a Memorandum of Agreement (MOA) with the Social Security System (SSS) for a low-cost social insurance for the beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).

“The DSWD is fortunate to collaborate with the state-run SSS. This partnership with SSS will extend social security coverage to our 4Ps beneficiaries, providing them with safety nets from income loss, sickness, and other financial burden,” DSWD Assistant Secretary and agency spokesperson Irene Dumlao said.

To be known as the “4Ps AlkanSSSya Program”, the DSWD and the SSS shall establish a contribution subsidy table specific for the 4Ps organized group, upon SSS’s determination based on actuarial study and the actual capacity of the beneficiaries to pay the minimum amount of P570.00 per month.

The SSS monthly premium will be shouldered by the beneficiaries themselves.

The 4Ps beneficiaries who are members of workers’ associations, informal sector groups (ISG), and Sustainable Livelihood Program Associations (SLPA) will also be covered by this partnership.

Under the agreement, the SSS will also assist the DSWD in the registration and processing of applications of all eligible beneficiaries.

The roles and responsibilities of both agencies in the conduct of seminars and orientation activities for the 4Ps organized groups are also included in the MOA.

“It is necessary that our 4Ps beneficiaries are educated on the importance and benefits of SSS membership and savings. This also contributes to our financial literacy efforts among our beneficiaries,” the DSWD spokesperson said.

Earlier, 4Ps National Program Manager and Director Gemma Gabuya said  insurance is integral to the DSWD’s Social Welfare and Development Indicator  (SWDI) Framework.

“Before graduating from 4Ps, it is crucial for beneficiaries to have security or insurance,” Gabuya said.

Gabuya said this initiative is part of the DSWD’s commitment to ensure the financial security and sustainability of 4Ps beneficiaries as they transition out of the program.

The 4Ps, one of the DSWD’s flagship programs, is a national poverty reduction strategy institutionalized under Republic Act No. 11310 or “An Act Institutionalizing Pantawid Pamilyang Pilipino Program (4Ps)” signed on April 17, 2019. 

The 4Ps puts a premium on giving poor and vulnerable families the means to break-away from the intergenerational cycle of poverty through human capital investments. 

As of May 31, there are 4.3 million household-beneficiaries nationwide that are receiving conditional cash grants under the program. 

(el Amigo/mnm)