SSS says 'cash-ready' to serve loan demand during pandemic

ABS-CBN News

Posted at Oct 12 2021 02:19 PM | Updated as of Oct 12 2021 02:53 PM

MANILA - State-run pension fund Social Security System on Tuesday said it remains cash-ready to meet the demand for loans from its members during the COVID-19 pandemic. 

In 2020, it collected P178 billion in contributions and paid P155 billion in claims, SSS Executive Vice President for Investment Sector Rizaldy Capulong told ANC. 

SSS is aligning its investments according to the demand, Capulong said.

"The top priority for SSS is by way of investment especially last year and this year during the COVID-19 pandemic, is to be cash-ready for the needs of our members and pensioners. Top of the priority are member loans and pension loans," he said. 

Capulong said the SSS portfolio is around P642 billion, where 3 percent is allocated in cash, 44 percent in government securities, 17 percent in equities, 17 percent in member loans, 12 percent in property and 4 percent in corporate bonds. 

Return of investments (ROI) is at 4.9 percent as of end of August, he said.

Capulong said the pension fund also has a 5-year investment plan, which would aim for higher yield and to expand the life of the fund. 

SSS will also start investing in overseas markets soon, he said.

SSS earlier filed for a rate increase of contributions to 13 percent from 12 percent of members' income. The proposal is currently under review by the Office of the President, Capulong said.

There were calls to defer the implementation of the contribution hike, supposedly set to take place last January 2021. 

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-- with reports from Michelle Ong, ABS-CBN News