By boasting about the longer fund life of the Social Security System by another 22 years, SSS head Michael Regino seems to be conditioning the minds of contributors to agree to investing the funds to the controversial Maharlika Welfare Fund of President Marcos. Regino had worked for Marcos Sr. in several capacities.
Social Security System president/CEO Michael G. Regino said because of the contribution rate increases, the fund life of the pension fund of the private sector has been stretched by an additional 22 years.
The SSS now projects the fund life to be extended until 2054. This means an additional 22 years wherein all SSS members and pensioners can enjoy their various benefits.
Coming shortly after the unanimous passage by the Lower House of the controversial Maharlika Investment Fund (aka Maharlika Wealth Fund), Regino’s announcement of the better actuarial shape of SSS seems more like mind-conditioning to make it more acceptable for contributor-members to invest such excess funds into MIF (MWF).
Although the pension funds lodged at SSS (for private sector) and the Government Service Insurance System (for government workers and retirees) have been removed as fund sources for MIF (MWF), the heads of both pension funds have made known their affirmations to Maharlika Wealth Fund. Given a little push from these heads, they will force the Maharlika investments proposal to the members, by citing supposed short-term windfalls.
In a statement, Regino said an additional 22 years were added to the fund life with the help of contribution rate increases since 2019.
Starting Jan. 1, 2023, the SSS will then implement the third step of its four-tier contribution increase, with contribution rate increasing to 14 percent, up by one percentage point from the current 13 percent.
He explained how after implementing the additional P1,000 pension benefit in 2017, the SSS fund life would have lasted until 2032 only.
However, with the help of gradual contribution rate increases mandated by Republic Act No. 11199 or the Social Security Act of 2018, the fund life was extended by another 12 years or until 2044.
Recently, the latest SSS actuarial valuation has shown that the fund life was boosted by another 10 years to which Regino has credited to the SSS’ efforts to boost its membership and coverage.
In the meantime, Regino shared how the SSS is still working towards further extending the fund life in response to its mandate of providing social security protection to its stakeholders which should transcend within generations.
“It is important for us to implement the contribution rate increase together with other social reforms so we could achieve this goal and ensure that we have sufficient funds to provide the short- and long-term benefits, including the immediate financial needs, of our members and pensioners especially in times of contingencies,” Regino added.
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