MANILA, Philippines – Net revenues of state-run pension fund Social Security System (SSS) jumped 6 percent last year on the back of strong contribution collections, steady investment earnings and improved efficiency in operations and benefit disbursements.
SSS said net revenues climbed to P38.3 billion in 2013 from P36.2 billion in 2012.
The increase was mainly attributed to contribution collections, which increased by 9 percent to P103.1 billion in 2013 from P94.2 billion in 2012.
The year-end total in 2013 marked the first time collections surpassed the P100-billion level.
SSS Management Services and Planning vice president May Catherine Ciriaco said the increase in collections was “bolstered by ongoing campaigns to promote the value of active SSS membership, improved monitoring of employer compliance and intensified coverage drives spanning a wide range of sectors, including the hard-to-reach informal sector and overseas Filipino workers.”
SSS total revenues reached P137.4 billion in 2013, an increase of 75 percent year-on-year from P128.1 billion in 2012.
Total expenditures, which is comprised of operating expenses and benefit payments, also jumped 9 percent to P99.1 billion.
“Operating efficiency, or the ratio between operating expenses and members contributions and investment and other income less benefit payments, further improved to 17 percent in 2013, as compared with 18 percent in 2012 and 23 percent in 2011,” Ciriaco said in a statement.
“Moreover, operating expenses represent only 57 percent of the allowed charter limit. This means we are spending way below our allowed margin,” she added.
Meanwhile, benefit payments reached P91.4 billion, a 9 percent increase from the P84.2 billion in 2012.
SSS said it has been able to monitor pension releases through the Annual Confirmation of Pensioners (ACOP).
ACOP is a program that protects the fund from fraudulent claims by requiring pensioners to present themselves to SSS or to their depository bank on the member's birth month to prove their continued eligibility for pension.
“With the ACOP, SSS continues to clean up its database of non-eligible pensioners to prevent the release of undeserved benefits,” Ciriaco said.
She added that the pension fund found out last year that 4,331 pensioners were no longer eligible for pension due to reasons such as death, remarriage or recovery from total disability.
"This translates to recurring SSS savings of about P12 million every month,” she said.