SSS eyes investing in PPP road projects

ABS-CBN News

Posted at Nov 21 2016 03:23 PM

MANILA - The Social Security System (SSS) said Monday it is proposing to allow its funds to be invested in road projects under the government's Public-Private Partnership (PPP) program to generate income.

The proposal is among the amendments that SSS is considering as it seeks to generate needed revenues to grant better benefits to members.

Currently, SSS can only invest in stocks, housing, real estate, and debt instruments, among others.

"We plan to invest 25 to 30 percent of our reserve fund in these road development projects and we expect the same rate of return, if not better,” Dean Valdez, SSS chairman, said in a statement.

"SSS seeks to include new investment vehicles where SSS can invest their reserve fund without compromising the basic investment principles of safety, good yield and liquidity," he added.

The state-owned fund earlier said it plans to implement a P2,000 pension hike in two tranches in 2017 and 2022.

Valdez said the scheme would enable SSS to grant the pension hike without exhausting its reserves.