MANILA – The Social Security System (SSS) chairman said Tuesday it was considering raising member-contributions to fund a pension increase for two million retirees, which might be delayed.

Pushing through with the first tranche of a P2,000 increase this month without additional funding sources would shorten the projected lifespan of the pension fund to 2032 from 2042, SSS Chairman Amado Valdez told DZMM.

Valdez said the SSS proposed to President Rodrigo Duterte a 1.5-percent increase in contribution rates by June and raising the cap on maximum salary used as basis for contributions of 30 million members to P20,000 from P16,000.

With these reforms, Valdez said the lifespan of the SSS could reach 2040. Higher contributions could be cushioned by a planned reduction in income taxes, he added.

• READ: SSS pension hike needs contribution increase: Pernia

“Binabalanse ng ating pamahalaan ngayon at yung pinag-aaralan ng ating Pangulo kung ano pinakamaigi. Sa kanya, kailangan matulungan ang mga pensyonado ngayon dahil tumataas na presyo ng gamot,” he said.

(The government is balancing, and the President is studying a solution. For him, pension holders need help, especially with the rising cost of medicine.)

Valdez said “issues” on how a pension increase would affect the viability of the SSS cropped up only after its finances were analyzed.

“Nung malinis na, lumabas na lahat ng issues kaya madedelay ho, hindi nangangahulugang hindi matutuloy,” he said.

(When it was straightened out, all these issues came up. It will be delayed but this doesn’t mean that it will not push through.)