MANILA, Philippines – Government-run pension fund Social Security System (SSS) posted growth in net income and assets in 2013 due to a jump in contribution collections.
SSS said net income grew by 6 percent to P38 billion in 2013 from P36 billion in 2012, while total assets also grew by 6 percent to P385 billion.
SSS vice president for Management Services and Planning May Catherine Ciriaco attributed the growth to the improved financial operations as reflected by the 9.3 percent increase in contribution collections.
The contribution collections surpassed the century mark at P103 billion for the first time.
“Investment and other income stood at P34.4 billion, up by 1.5 percent from P33.9 billion in 2012 despite the low interest rate scenario and volatility in the financial market. SSS' 8.7 percent return on investment continues to outperform market benchmarks such as the four percent 10-year T-bond rate and 0.7 percent 364-day Treasury bill rate,” said Ciriaco.
The pension fund’s contribution-benefit surplus, which is the positive difference between collected contributions and disbursed benefits, also grew by 16 percent to P12 billion.
SSS said the 2013 surplus marked a five-year high, and was six times more than the P2 billion surplus in 2010.
Prudent management of operating and capital expenditures, Ciriaco noted, led to improved SSS operating efficiency despite higher transaction levels, greater number of members served and increased SSS presence locally and overseas.
“SSS operating expenses in 2013 reached only P7.6 billion, which was relatively flat compared to 2012. More significantly, spending for SSS operations in 2013 represented only 57 percent of our allowed charter limit, even as we were able to reach out to more members and handle a heavier transaction load last year,” she said.
The number of transactions also grew by 6.4 percent to 33.7 million in 2013 from 31.7 million in 2012.
SSS opened 21 local offices nationwide and 18 rent-free SSS service offices in 17 malls and one inside the Muntinlupa City Hall.
“To reach out to overseas Filipino workers, SSS opened two foreign representative offices for Filipino communities in Macau and Bahrain that have a high concentration of migrant workers. We also deployed more roving SSS officers to bolster our coverage activities in the Middle East, Europe and Asia and encourage OFWs to register or re-activate their SSS membership,” Ciriaco said.