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Social Security System (SSS)

MANILA — Government-run Social Security System (SSS) reported that the pension fund’s financial performance continues to improve due to prudent management of its operation expenses and robust investment income.

In a statement, Emilio de Quiros Jr., SSS president and chief executive officer, said the agency posted a P25.5 billion in net earnings last year, higher by 12 percent than the P22.8 billion it registered in the previous year.

“The bottomline is that 2011 was another landmark year for the SSS in terms of financial performance and service delivery. Our moves towards more electronic and Internet-based transactions also resulted in better efficiency and better service to our members,” De Quiros said.

Contribution collections in 2011 came close to P86 billion, an increase of 8.4 percent from the P77 billion contributions a year ago.

De Quiros said the increase came as a result of intensive marketing efforts by SSS and expansion of the range of its payment deadlines for contribution and loan remittances.

The SSS collected P17.5 billion from the employed sector, which posted the biggest amount of collections, while contributions from household helpers, the self-employed and overseas workers saw the biggest volume growth from 2010.

In the second half of 2011, the SSS undertook an “OFW Information Caravan” to widen its coverage in the Middle East and Europe where many Filipino contract workers are deployed. Negotiations were also held for the conclusion of bilateral social security agreements with Denmark and Japan.

Meanwhile, SSS benefits payments in 2011 totaled P76 billion, an increase of 6.8 percent from the 2010 benefit payouts of P71 billion. The majority of these payments were for retirement and death-benefit claims.

“It is worth noting that contribution collections outpaced benefit payments by P3.2 billion – the highest recorded since 2002. This is in step with our objectives of continually building up the Investment Reserve Fund and lengthening the actuarial life of the social security und,” De Quiros said. (MB)