MANILA, Philippines — The new head of the Social Security System (SSS) has officially taken over and is likely to push through with the scheduled contribution rate hike.
SSS president and CEO Rolando Macasaet formally assumed office as the 20th head of the agency, replacing Michael Regino.
The turnover ceremony Tuesday morning was done internally. Macasaet has yet to face the media to lay out his plans for the SSS.
The SSS is being urged by various groups to defer the contribution increase that effectively took effect at the onset of the new year.
Such a position has been repeatedly rejected by former head Regino as postponing the measure will reduce the actuarial life of the fund.
As to Macasaet’s expected stand, Regino said the new SSS chief, whom he described as his personal friend, would likely push through with the contribution increase.
“Most likely to continue as SSS has to implement the law,” Regino said in a Viber message.
An SSS source, however, said no exact decision has been made amid the still ongoing transition.
But in his turnover speech, Macasaet said he would continue with the reforms and innovations started by Regino to provide better social services to workers and pensioners.
“I will continue with the path of growth started (by Regino) and explore new ways for the benefit of members, pensioners, and other stakeholders,” Macasaet said.
“We will work doubly hard to provide our current members and pensioners what is just and due to them without jeopardizing the financial protection of members and future pensioners,” he said.
In accordance with the schedule provided under the Social Security Act of 2018, the contribution rate will increase to 14 percent from the current 13 percent.
Under the law, SSS should gradually increase the contribution rate by one percentage point every two years until it reaches 15 percent by 2025.
Under the new contribution rate, employers will shoulder the one percent increase, which means that their contribution will now be at 9.5 percent. The remaining 4.5 percent will be deducted to the employee.
Regino has said that gradually increasing the contribution rate was among the reforms being implemented by SSS to lengthen the fund life and to ensure that the system can provide the benefits for members and pensioners.
Postponing the contribution increase may cut the fund life of SSS, as the 2054 projection is based on the hike being given out at the right time. This means that an additional 22 years have been added to the SSS fund life with the help of contribution rate increases since 2019.
Macasaet said that President Marcos has high expectations from the SSS to provide guaranteed safety nets for Filipinos.
Macasaet previously held the position of president and general manager of the Government Service Insurance System during the last four years of the Duterte administration.