Poe asks Senate to probe dismal collection of SSS

MANILA, Philippines — An inquiry into the Social Security System’s (SSS) reported “inefficiency” in collecting contributions from delinquent employers has been sought in the Senate.

This is aimed at enhancing the efficiency of the state-run pension fund’s collection mechanisms and “ensuring the sustainability of its funds for the benefit of all members,” according to Sen. Grace Poe, head of the Senate committee on finance.

“The efficient collection of contributions from employers, employees, and self-employed members is crucial to ensuring the sustainability and viability of the SSS fund, which serves as a lifeline for millions of Filipino workers and their families,” Poe said through Senate Resolution No. 1279 she filed on Wednesday.

A 2023 Commission on Audit (COA) report, however, revealed that SSS has only collected P4.581 billion or 4.89 percent of the total P93.747 billion established collectibles.

This leaves at least P89.17 billion that are yet to be collected from 420,627 employers, Poe’s resolution pointed out.

But SSS President and CEO Robert Joseph de Claro later clarified that their uncollected contributions are already down to P46 billion as of October 2024.

Still, Poe said, “there remains a significant amount of collectibles from delinquent accounts which is crucial to ensuring the fund's sustainability and maintaining public trust in the system.”

“Any increase in contributions will be rendered ineffective in extending the SSS fund life as projected if the agency's collection rates continue to remain dismal,” said the senator.

A one percent hike in SSS members’ monthly contributions —from 14 percent to 15 percent— is scheduled this January in accordance with Republic Act No. 11199 signed by then-President Rodrigo Duterte in 2018.

The law provides for the gradual increase in contributions from 12 percent rate in 2019 to 13 percent and 14 percent in 2020, and 2023, respectively.

“While the SSS law itself provides for incremental increases in contributions to strengthen the fund and that these adjustments align with actuarial studies that project the fund's sustainability under current economic and demographic conditions, the SSS must also ensure stronger enforcement mechanisms to address systemic collection inefficiencies and ensure accountability among stakeholders,” Poe further said.

(2025/01/16-09:49)