MANILA, Philippines – The Social Security System (SSS) has doubled its total comprehensive income in the first half of the year driven by higher revenues and unrealized gains from the mark-to-market value of its available-for-sale financial assets.
SSS said its income in the first half of 2014 grew by 107 percent to P32.59 billion from P15.73 billion in the same period last year.
SSS president and chief executive officer Emilio de Quiros Jr. cited the P16.37 billion increase in unrealized gains for the significant growth.
Contributions surged to P58.77 billion while investment and other income chipped in P16.60 billion for total revenues of P75.37 billion.
Contributions collected were mostly from the employed sector at P50.74 billion, followed by voluntary paying members at P5.25 billion and self-employed at P2.78 billion.
“Total revenues continued to grow mostly from members' contributions that registered a 15.6-percent increase on 2013 figures. Actual expenditures grew as well at 13.2 percent to P53.21 billion from P47.01 billion,” de Quiros said.
SSS spent about 93 percent or P49.52 billion of total expenditures on benefit payments for the first half of 2014, which is 13.9 percent higher than the P43.46 billion total payout in 2013.
De Quiros attributed the growth in benefit disbursements to streamlined processing of death, disability and retirement claims, and advance payment of six months worth of pensions of members affected by typhoon “Yolanda.”
“The SSS remains to be in a healthy financial condition given a net revenue of P22.17 billion. Latest projections indicate that SSS will continue to generate a positive net revenue up until 2018, where contributions collection and investment income will continue to outstrip benefit payments and operating expenses,” de Quiros added.
SSS has total assets of P422.70 billion, P38.07 billion or 9.9 percent higher than its assets of P384.63 billion in 2013.
“This was due to our investments, which comprised 91.2 percent of our total assets. Total investments went up by P33.79 billion or to P385.43 billion at end of June this year,” said de Quiros, adding that reforms and policy changes that the SSS have undertaken so far led to consistent delivery of improved financials.
SSS increased the monthly pension of existing pensioners by 5 percent in June following the recent hike in contribution rate and monthly salary credit.
The actuarial life of the state pension fund has been extended to three more years, and is currently projected to last through 2042.