House panel to look into SSS finances amid call to suspend hike in contributions
MANILA, Philippines — The House public accounts panel is set look into the financial condition of the Social Security System after passage of a bill suspending a planned hike in member contributions.
The initial briefing conducted by SSS is slated for Monday, February 15.
In a statement issued Sunday morning, Rep. Jose Singson Jr. (Probinsyano Ako Party-List), who chairs the House Committee on Public Accounts, said that he had filed House Resolution No. 1563 calling for the congressional inquiry that will determine any "weaknesses or excesses" in the social security program that may require amendatory legislation.
"Congress has strengthened and continues to strengthen the SSS for the purpose of aiding the firm to attain its main objectives as set forth in the law and the agency’s implementing rules and regulations," Singson said in his statement.
To recall, the lower chamber in late January approved House Bill No. 8512, which seeks to amend Republic Act No. 11199 or the Social Security Act of 2018.
This came as the SSS contribution rate was expected to increase from 12% in 2020 to 13% in 2021 according to the law. According to Singson, though, the purpose of the scheduled hike at the time of the law's passage was to "expand the powers and duties of the social insurance firm to ensure the long-term viability of the system."
In response, the insurance company urged Congress in late January to reconsider the move, saying the possible delay would in effect weaken and put more strain on the SSS fund amid the coronavirus pandemic and could boomerang on millions of its members.
In the 2019 Annual Financial Report for Government Corporations, COA disclosed that SSS is among the top income earners, registering 16.71% or P268.10 billion out of the total 1.6 trillion gross earnings of state-owned and controlled corporations.
The year before, the commission also directed SSS management to improve its collection mechanisms, noting that outstanding membership loans had reached up to P78.95 billion over a four-year period. The state audit agency has also noted huge overpayments on loans to members that have yet to be refunded.
Audit examiners also disclosed that lack of monitoring related to assessment and collection of delinquencies, at least P186.2 billion in premium contributions of 463,261 have remained uncollected as of December 31, 2019.
Singson said that the effects of the coronavirus pandemic in the Philippines "triggered strong public clamor for deferment of the member contribution adjustment," citing the annual audit reports submitted to Congress by the Commission on Audit from previous years, which he said threw into question "the way the SSS has been managing the members’ contribution."
Earlier in January, President Rodrigo Duterte ordered a halt in the increase of members' contribution to the government-run Philippine Health Insurance Corp., a call the state health insurer later heeded. — Franco Luna with a report from Xave Gregorio
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