MANILA - A pension increase for Social Security System members will not be viable unless there is a corresponding adjustment in contributions, a member of President Rodrigo Duterte’s economic team said Friday.
Duterte said Thursday he was studying his economic ministers’ opposition to the proposed P2,000-increase, the first tranche of which is scheduled for next month.
He had promised during the campaign to increase SSS pension, which was vetoed by his predecessor, Benigno “Noynoy” Aquino III.
“It’s really as no-brainer in terms of what to do. There’s no such thing as a free lunch. Somebody will have to bear the cost,” Socioeconomic Planning Secretary Ernesto Pernia told ANC.
“The prudent thing to do is really to make the members raise their contributions as well as the employers,” he said.
Pernia said member and employer contributions have been raised three times while pension payouts have been raised 22 times.
If a pension increase is implemented without a contribution adjustment, Pernia said the life of the pension fund would be cut to as short as 25 years from 42 years.