MANILA – Social Security System (SSS) posted a net income of P37.3 billion from January to October, a 14 percent increase from the same period last year.
SSS said the double-digit growth was driven by strong collections from members following the increase in contribution rate.
Emilio de Quiros Jr., SSS president and chief executive, said contribution collections grew 16.9 percent to P100 billion from the same period last year.
“Contributions, which constitute 77.5 percent of our total revenues, registered improved growth primarily due to the employed sector,” de Quiros said.
“We also noticed immediate improvement in collections after we implemented the new contribution rate and increased the monthly salary credit this year,” he added.
Employers remitted an estimated P87 billion in employees' contributions while voluntary paying members contributed P8.6 billion. Self-employed members remitted P4.5 billion.
De Quiros also cited the SSS AlkanSSSya program, which has covered 106,824 members from 1,061 informal sector groups and association, as a key driver for the growth.
He added that intensified marketing campaigns for overseas Filipinos and partnerships with 18 microfinance institutions, cooperatives and organized groups also contributed to the growth.
Total revenues of SSS stood at P129 billion at end-October.
Meanwhile, investment and other income, which comprised 22.5 percent of total revenues, grew by only 1.9 percent to P29 billion.
“Profits slightly moved up with revenues posting an increment of 13.2 percent vis-a-vis expenditures of 13 percent. Significantly, we were able to keep our operations costs down while outperforming our target by 46 percent,” de Quiros said.
Total expenditures reached P91.7 billion, 93 percent of which was spent on benefits totaling P85.6 billion.
“The increase in benefit payments resulted from the five percent across-the-board increase for 1.8 million SSS pensioners that took effect this June 2014,” de Quiros said.
“Also part of the reason for the increase was the pensions we advanced to 3,931 pensioners including those affected by Zamboanga siege, Bohol and Cebu earthquake, typhoons Labuyo and Santi and to 17,394 pensioners affected by super typhoon Yolanda,” he added.
The financial position of the state pension fund for the private sector is performing well with total resources reaching P436.6 billion, a 13.5 percent increase from the 2013 yearend level of P384.6 billion.
“SSS assets achieved double-digit growth on the back of our investments that rose P57.9 billion to P409.6 billion due to robust growth in government securities of P23.3 billion driven by additional placements on higher portfolio accounts and initial placement of ECC fund into government bonds,” de Quiros said.
SSS has about P414 billion at fair value in investible funds, a bulk of which are invested in government securities and equities.
About 20 percent are invested in housing and member loans, four percent in real estate, and 11 percent in corporate bonds and bank deposits.