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Manila Bulletin

Recto wants SSS law, charter to be reviewed

Recto wants SSS law, charter to be reviewed

By AJ Siytangco

By Vanne Elaine Terrazola Senator Ralph Recto wants the proposed increase in the contribution rate of Social Security System (SSS) members be held in abeyance as he called for a comprehensive review of the Social Security Law and the SSS charter first.

Senator Ralph Recto (JOHN JEROME GANZON / MANILA BULLETIN FILE PHOTO)

Senator Ralph Recto (JOHN JEROME GANZON / MANILA BULLETIN FILE PHOTO) Recto filed Senate Resolution No. 621 which pushes the Senate Committee on Government Corporations and Public Enterprises to conduct an inquiry, in aid of legislation on the proposal to increase SSS contribution and recommends that it be suspended pending the comprehensive review of the Republic Act 1161, which created the SSS. The SSS recently announced its plan to raise its members' contribution rate from 11 percent to 14 percent in April this year to increase its collection and extend the pension fund’s life. This, after implementing last year the P1,000 across-the-board increase in SSS pensions. The senator, in his resolution, noted the disapproval by various labor advocates of the hike due to insufficient consultation from stakeholders. He also recognized that "workers are still struggling to cope" with the various price increases brought about by the recently-implemented tax reform law. Recto said there is an "immediate" need to look into the matter and its possible impact to the millions of SSS members. He added that it is also high-time to revisit the 20-year-old SSS charter for reforms so that the agency can grant additional pension without increasing its premium and contribution rates. He said the SSS charter should remain responsive to the needs of its members and pensioners. "It is the role of Congress to ensure that the proposed increase in the contribution rate shall not further aggravate the collection inefficiency of SSS because many members and employers may no longer be able to pay the higher premium," he said.

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