THE new charter of the Social Security System (SSS) will provide more beneficial pension package to contributors, according to Senior Citizens Party-list Rep. Milagros Aquino-Magsaysay.
Aquino-Magsaysay also thanked President Rodrigo Duterte for signing into law Republic Act 11199 or the Social Security Act of 2018.
The solon said this new law is expected to set in motion the full modernization and the increased accountability, responsiveness, and efficiency of the 62-year-old Philippine Social Security System.
“The Social Security Act of 2018 further empowers our pension contributors with more responsive benefit schemes and relevant packages, and enables the SSS to be more reactive to economic shifts by according them autonomy in fiscal management, investments, and benefit package hikes,” she added.
The Senior Citizens Party-List, in particular, sees the provision on the Mandatory SSS Coverage of Overseas Filipino Workers (OFWs) as a big leap in ensuring our 2.3 million migrant workers and their families a reliable pension package in their home country upon their retirement.
Likewise, the solon said the provision on Unemployment Insurance is commendable, which equips labor force with the surety of basic income even in times of unemployment or involuntary separation, that can tide them over in their search for better opportunities.
The Senior Citizens Party-List also believes that the autonomy the law provides the Social Security Commission (SSC) in increasing contributions and benefit packages based on results of the actuarial studies of the SSS makes our social security system more responsive to economic volatility and the actual needs of our pensioners and contributors.
“This also curbs the politicizing of our state pensions, as it dramatically decreases the dependence on the Office of the President to institute and enforce pension reforms,” she said.
“Our elderly also commends the establishment of the SSS Provident Fund for its purpose of providing contributors with lump sum payments at the time of exit from their place of employment. This increases the potential of further income generation through investments and business capital for our future retirees,” the solon added.
The new law repealed RA 1161 as amended by RA 8282, mainly aims to strengthen the pension fund through its salient features such as the rationalization of the powers of the Social Security Commission, the policy-making body of the SSS, allowing it to expand the investing capacity of the pension fund to generate better income for the benefit of its members and pensioners.
The law is also expected to generate additional funding for the pension fund as it imposes the implementation of the gradual increase of monthly contributions from the current 11 percent to an additional 1 percentage point starting on the year of implementation until it reaches 15 percent in 2025, and the gradual adjustment of the minimum and maximum monthly salary credit.
Under the revised SS Law, members will enjoy an additional benefit from the current six types with the introduction of unemployment insurance.
Covered qualified employed individuals who may suffer from involuntary separation from work, will be protected from a sudden loss of income as the law has a provision for unemployment insurance.
Aside from Aquino-Magsaysay, other authors of the House version were Batangas Rep. Vilma Santos-Recto; 1-PACMAN Reps. Michael Romero and Eric Pineda; Sorsogon Rep. Evelina Escudero; and Bohol Rep. Rene Relampagos.