SSS bares P23-B income in H1

The Social Security System (SSS) earned P23.3 billion from its operations in the first six months this year, making the institution one of the best performing agencies in the country in terms of income, SSS president Corazon de la Paz said yesterday.

She said the January to June revenues showed a 16-percent increase from the more than P20-billion income it posted for the same period last year.

"Investment income rose by 33.6 percent to P7.6 billion from the P5.6 billion we earned during the same period last year," De la Paz said. "We are already reaping dividends from the investment reforms we have implemented."

SSS income dropped to P42.66 billion last year compared with P46.16 billion in 1999, but benefit payments increased to P33.89 billion from P28.77 billion for the same period. Officials said the drop in income was caused by low returns in equities investments.

This year, returns from its investments in the equities market, government securities and housing registered a sharp 42.6-percent increase to 9.8 percent from 6.8 percent during the same period in 2000. SSS released for the same period P4.4 billion in loans to members.

De la Paz said the bulk of SSS income came from government securities, where it shifted its investments from the sluggish equities market.

"The SSS strong performance this year despite the economic downturn outlines the thrust of the new administration when it comes to its investments," she said.

SSS disbursed more than P17.6 billion in sickness, maternity, disability, funeral and death benefits for the first six months of this year, representing a 17-percent increase from P15 billion it released in 2000.

Contribution collections went up to P15.7 billion showing a nine-percent increase from P14.4 billion during the same period in 2000 while loan repayments grew to P6.9 billion from P6.6 billion last year.

The institution is preparing to introduce reforms that would shorten processing of loans and benefits as part of a "covenant of service," which was started by former SSS president Vitaliano Nañagas and was designed to improve service delivery to members, De la Paz said.

"Under the covenant of service, we will outline the standards by which the public could measure our performance as a service institution," De la Paz said. "Our aim is to make our procedures member-friendly."