SSS sees double digit growth in collections to P180 billion this year

MANILA, Philippines — State-run Social Security System (SSS) expects collections to increase by 13 percent to P180 billion on the back of its aggressive campaign against delinquent employers.

SSS president and CEO Emmanuel Dooc said its campaign versus erring employers has gained results as contributions grew steadily, rising 8.8 percent to P144.36 billion in 2016 and 10.6 percent to P159.7 billion last year.

Dooc said ongoing programs to run after delinquent employers such as the Run After Contribution Evaders (RACE) would boost collections.  RACE involves posting of show cause orders in establishments found to have violated the SS Law like non-registration and non-remittance of contributions.

He said SSS also has its own version of Operation Tokhang in partnership with the Philippine National Police (PNP) where warrants of arrest are issued to employers convicted by the regional trial courts for violation of the SSS Law.

According to Dooc, SSS is set to start issuing a warrant of distraint, levy and garnishment (WDLG) among delinquent employers at large and convicted.

Dooc said SSS is considering tapping third-party collectors as the lack of account officers has deprived the government coffers of P13.8 billion in collections and penalties from 122,658 delinquent employers as of end-2017.

This has deprived the government-owned pension fund manager of additional funds for administering social security protection for members.

“Account officers are priority positions for filling up that have been allocated with budget this year as well as in 2019,” he added.

Dooc said the hiring of additional account officers is considered by management as one of its revenue improvement measures, aside from studying the feasibility of engaging the services of third-party collector for contributions.

He said the P13.77 billion recorded in the 2017 report of the Commission on Audit (COA) represents only 7.6 percent of the agency’s expected contribution collection by yearend.

Uncollected or delinquent member loan accounts reached P78.9 billion, exceeding the limit as of 2017 by P30.1 billion.

He said the shortfall hindered the pension fund from reinvesting or using the funds for more viable and profitable investments.

“SSS’ member loan releases for 2016 and 2017 amounted to P38.1 billion and P38.2 billion, respectively. As mentioned earlier, these will all be collected when the final settlement of benefits is made,” he said.

Dooc said SSS is currently enhancing its billing and collection system targeting push notifications to individual borrowers and employers alike.

“We are also currently implementing the 2018 penalty condonation program called loan restructuring program (LRP) which enjoins SSS borrowers to clean up or pay their past due salary loans with the benefit of waiver of penalties. As a policy direction, increase in charter limit from 10 percent is part of the recommendation for amendment in the SSS Charter,” Dooc said.