SSS cites structural reforms to improve fund life


The Social Security System (SSS) will require structural reforms such as a contribution rate hike or an increase in the statutory cap for SSS contributions to improve its Fund life.

Based on latest actuarial valuation, SSS funds regained a life of four years from the previous valuation of 2039 as a result of the increase in contribution rate and monthly salary credit ceiling that took effect in January 2014.
Shortly after the new contribution rate was adopted, SSS pensions were raised by five percent in June that same year causing a one year decrease in the Fund life, which is now projected to last until 2042.
“What has to be done immediately are structural reforms. Our investments have been performing remarkably well despite the low interest rate environment, but we can only invest and earn so much. If the contribution rate remains unchanged while benefit payments continue to swell, the SSS’ reserve fund will be exhausted by 2042,” SSS Chief Actuary George Ongkeko, Jr. said.
Meanwhile, SSS President and Chief Executive Officer Emilio S. De Quiros, Jr. dismissed earlier reports that SSS will deploy a portion of its investment reserve funds abroad, although cites its possibility if it is line with the SSS law’s basic principles of “safety, good yield, and liquidity.”
“We are evaluating all available investments options allowed by the SSS Charter that can generate the highest yielding returns on our investments. At the moment, we are strengthening our position in the local market. While investing abroad is an option, it is still under study.” De Quiros said.
The SSS law sets the prescribed ceilings for select instruments, institutions or industries where the agency can only invest. Section 26 of Republic Act 8282 prescribes cumulative ceilings for the SSS reserve fund as follows: 40% in private securities, 35% in housing, 30% on government financial institutions and corporations, 30% in real estate related investments, 10% in short- and medium-term member loans, 30% in infrastructure projects, 15% in any particular industry, and 7.5% in foreign-currency denominated investments.
SSS has over P428 billion in investment reserve funds as of April 2015, allocated in government securities at P155.3 billion; corporate notes and bonds, P29 billion; member loans, P76.8 billion; bank deposits, P44.6 billion; equities, P103.9 billion; and real estate properties, P18.6 billion.

Comments

Post a Comment

Popular posts from this blog

POPCOM, gagamit ng ‘digital platforms’ para pagtibayin ang mga ugnayang pampamilya

Mas pinalalawig ng Komisyon sa Populasyon at Pagpapaunlad (POPCOM) ang adhikain nitong pagpapalaganap at pagpapabuti ng pakikipag-ugnayan ng mga nakakatandang Pilipino sa kanilang mga anak na nagdadalaga at nagbibinata. Nitong Setyembre 21, ang POPCOM ay nagsagawa ng isang “parent-teen talk webinar” gamit ang Zoom, kung saan ang isang “interactive program” ang nagbigay ng naaayon na kaalaman at kasanayan sa mga magulang, habang tumulong ito sa mga anak na teenager na maabot ang kanilang buong potensyal. Hinikayat din nito ang mga nanay at tatay na sumali sa malayang usapan, lalo na sa mga usapin ukol sa sex at sekswalidad, na nakikitang makakatulong upang bumaba ang mga bilang ng mga pagbubuntis sa hanay ng mga kabataan. Maaaring mapanood ang webinar sa https://youtu.be/lZ9jrJCjYas. Ayon kay Ikalawang Kalihim (Undersecretary) Juan Antonio A. Perez III, MD, MPH, “ang webinar ay naging isang tagapag-simula at ‘padaluyan’ ng pag-uu
Read more

In Cairo, senior Hamas officials discuss hostage deal with Egyptian intelligence chief ---By TOI STAFF, AGENCIES and LAZAR BERMAN

Delegation said led by terror group’s Qatar-based political leader Ismail Haniyeh; Wall Street Journal reports Hamas demanding 150 security prisoners for each female soldier A delegation of senior Hamas officials arrived in Cairo on Thursday for talks with Egyptian officials on a possible deal that would see the release of hostages held by terrorists in Gaza. The delegation was led by Hamas political leader Ismail Haniyeh, who lives in Qatar, and included senior members Mousa Abu Marzook and Khalil al-Hayya, the Qatar-based Al-Araby news outlet reported, citing an unnamed Egyptian source. The Hamas officials met with the head of Egyptian intelligence, Major General Abbas Kamel, to discuss the details of a hostage deal proposal that was presented to the Gaza terror group earlier this week by Qatari and Egyptian mediators. The outline of the deal was drawn up during a meeting in Paris last week in the presence of Israeli and US officials, as well as Qatari and Egyptian negotiators, a
Read more

Biden said set to make push for demilitarized Palestinian state as part of new doctrine ---By LAZAR BERMAN

New York Times’ Thomas Friedman, who’s close to the US administration, says emerging doctrine would include Saudi-Israeli normalization, 2-state solution, and campaign against Iran US President Joe Biden’s administration is homing in on a new doctrine involving an unprecedented push to immediately advance the creation of a demilitarized but viable Palestinian state, The New York Times’ Thomas Friedman reported on Thursday. The plan, Friedman wrote, “would involve some form of US recognition of a demilitarized Palestinian state in the West Bank and Gaza Strip that would come into being only once Palestinians had developed a set of defined, credible institutions and security capabilities to ensure that this state was viable and that it could never threaten Israel.” White House officials “have been consulting experts inside and outside the US government about different forms this recognition of Palestinian statehood might take,” revealed Friedman. What he termed the new “Biden Doctrin
Read more