PNoy bats for hike in train fares, SSS premiums

MANILA, Philippines - President Benigno Aquino III on Monday pressed for hikes in Social Security System premiums and fares of Manila Rail Transit and Ligh Rail Transit systems.

In his fourth State of the Nation Address, his longest so far at one hour and 42 minutes, Aquino said there is a need to hike SSS contributions and  train fares.

"We believe that it is time to amend the SSS Pension Scheme. We must establish measures that remedy the outflow of funds. If we add 0.6 percent to the contribution rate, it will immediately deduct P141 billion from the unfunded liability," Aquino said.

He cited a 2011 study that found that 28 years from now, SSS funds would be depleted if no hike in premiums would be implemented.

Meanwhile, Aquino also said fare hikes in MRT and LRT are just, noting that the government subsidizes each passenger's fare by  as much as P45. Owing to this  even residents in Visayas and Mindanao, who never set foot on the trains,  fund the train operations.
  
"Perhaps it is only reasonable for us to move the fares of the MRT and LRT closer to the fares of air-conditioned buses, so that the government subsidy for the MRT and LRT can be used for other social services," Aquino said.

Priority bills are the amendment to Cabotage Law to lower the cost of transportation for agricultural sector and other industries, the Fiscal Incentives Rationalization Bill and the Land Administration Reform Bill.

The administration is also proposing a P2.268-Trillion budget for 2014, about 13.06-percent higher than this year's budget of P2.006 trillion.