SSS at 54: A protective presence members can rely on 

The SSS fulfills a noble mandate as amplified by this year’s anniversary theme: “Sa SSS: Miyembro’y Protektado, Kinabukasa’y Sinisiguro.”

The Social Security System (SSS) is a shoulder of support to workers in times of financial emergencies and has loomed like an avuncular presence in the

workplace and in the home for more than half a century. Proud of its past and confident of its future role in the lives of its members and stakeholders, the SSS notches up another fruitful year of service as it celebrates its 54th anniversary on September 1.

The SSS fulfills a noble mandate as amplified by this year’s anniversary theme: “Sa SSS: Miyembro’y Protektado, Kinabukasa’y Sinisiguro.”

SSS coverage is mandatory for private sector employees, household helpers and self-

employed workers — including farmers, fishermen and high income professionals such as actors, entrepreneurs, athletes, accountants, doctors and dentists. But the institution has widened its reach to allow informal sector workers such as street vendors and watch-your-car boys to also avail of social security protection. Migrant workers, members separated from private sector employment — such as those who moved on to government service — and non-working spouses of active members fall under voluntary coverage.

The SSS protects members in various ways:

Protecting members by providing benefits, loans and other privileges

SSS benefits serve as lifeline to millions of workers when they lose their capacity to earn due to sickness, maternity, disability, old age and death. Last year, SSS benefit payments amounted to P77.17 billion, which made up 92 percent of total expenditures. About half of total benefit disbursements were for retirement claims, which were paid out to members as monthly pensions or in lump sum.

The SSS administers the regular Social Security program, which offers short-term and long-term benefits. Maternity and sickness benefits are short-term cash allowances given to members who temporarily stop working due to ailments and pregnancy.

The SSS also looks out for the future of members over the long-term. Contributions of

members, which represent 10.4 percent of their covered monthly income, add up as savings to meet future needs.

Members look forward to getting retirement benefits at the end of their employment, while workers who become physically or mentally incapable receive disability benefits. Survivors of members are entitled to death benefits, including funeral grants of up to P20,000.

The SSS also grants additional benefits for work-related sickness, disability or death

under the Employees’ Compensation program, which the agency administers. The SSS promotes social justice under the principle of cross-subsidy. Contributions of

active members subsidize pensioners. High-earners subsidize low-income workers. Male members help fund maternity benefits of female workers.

The institution offers loan privileges to employers and members to help fulfill their credit

needs. Members can avail a maximum of P24,000 in salary loans. Its housing loan programs help members buy their own home or apply for loans for house repairs and improvements.

SSS corporate loans help businesses to expand and grow, to create jobs and spur social

and economic growth. In more than two decades, the SSS has released more than P23 billion for business and social loans to fund more than 5,000 projects that have generated 99,300 jobs, created 4,125 hospital beds and provided school facilities for almost 168,000 students.

To increase employers’ access to SSS lending facilities, the agency has relaxed its

requirements and allowed monthly adjustments of interest rates to align them with market rates starting July 2011. Also, the SSS opened the credit facilities to new projects such as sustainable energy, forest development and mining.

Protecting fund viability

The SSS must ensure the continuing viability of the fund to secure a good future for its members.

The SSS manages the flow of income from contributions and investments to finance its

operations, pay for members’ benefits and protect its reserve fund, which serves as buffer in times of deficits.

From September 1957 to June 2011, the SSS collected a total of P794.76 billion

contributions and earned P370.68 billion in investment and other income. Over the same period, benefit payments amounted to P794.69 billion while operating expenses totaled P86.41 billion.

At present, SSS has assets of nearly P315 billion and its fund life is expected to last 28 years or until 2039. The SSS hopes to bring back the fund life to perpetuity through structural reforms that can lead to higher income from contributions and investments.

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Joining Santos from the employers’ sector are Diana P. Aguilar, an investment banker with 13

years of experience in capital markets transactions, and Bienvenido E. Laguesma, who was former Secretary of the Department of Labor and Employment.

The workers’ advocates in the SSC are Daniel L. Edralin, chairperson of the Alliance of

Progressive Labor, and Ibarra A. Malonzo, a lawyer, who held various positions such as General Secretary of the National Confederation of Labor and President of the National Federation of Labor. Marianita O. Mendoza, a doctor who pushed for the inclusion of non-working spouses under SSS coverage, has been reappointed as female representative of the workers’ group.

Eliza Bettina R. Antonino represents the general public. She held positions as Vice President of

Wemilco Management and Development Company and served in various capacities at the Senate of the Philippines.

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With new technology, the SSS is in step with new innovations to provide a mantle of protection to every Filipino worker in the Philippines and abroad.

SSS Progress of Operations   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: SSS Actuarial Department 

Showing steady growth, the Social Security System (SSS) made remarkable progress in various aspects of its operations in the past 54 years.

Bulk of annual SSS revenues come from contributions, which has grown from less than P50 million in 1960 to nearly P80 billion last year. Investment earnings, another important factor in the fund’s long-term viability, reached P27.85 billion in 2010 — more than double the P12.3-billion annual income from investments a decade earlier.

In a display of the institution’s resilience, SSS reversed the trend of deficits arising from

excessive benefit payments compared with contribution collections near the turn of the millennium. In 2000, benefits of P33.89 billion outpaced total contributions of P30.32 billion.

Figures in 2010 paint a brighter picture, with SSS posting a surplus in contributions of more than P2 billion over benefit payments of P77.17 billion.

As a young institution in 1960, SSS spent P4.11 million for members’ benefits, which

was slightly more than the P3.57 million it spent for operations. The gap between benefit payments and operating expenses widened over the years. In 2010, benefit payments accounted for 92 percent of P84.29-billion total expenditures, and the rest were for operations.

Strong revenues enabled SSS to amass assets of P314.61 billion as of June 2011. The

agency’s growth runs parallel with the upsurge in SSS membership through the decades. From only 29,000 employers and about 484,000 workers under its coverage half a century ago, SSS membership has swelled to more than 880,000 registered employers and 28.9 million members this year, about 70 percent of which are employees and household helpers.

2011 SSS Balikat ng Bayan Awardees 

Top Employers Large Accounts NCR North - TELUS International Phils., Inc. Central - Mercury Drug Corporation South - Convergys Philippines Services Corporation Luzon North - St. Louis University Central - DG21 Limited Liability Co. South - Analog Devices Gen. Trias, Inc. Bicol - Metro Legazpi Development Corp.

Visayas Central - Metro Cebu Resources, Inc. West - BISCOM, Inc. Mindanao North - Taganito Mining Corporation South - Holy Cross of Davao College, Inc. Medium Accounts NCR North - FLEXO Manufacturing Corporation Central - Magnum Integrated Security Services, Inc. Luzon North - Mountain Maid Training and Development Foundation Central - Bataan 2020, Inc. South - ROHM Mechatech Phils., Inc. Bicol - Rural Bank of Camalig Albay, Inc. Visayas Central - Teradyne Phils., Ltd. West - Siliman University Medical Center (SUMC)

Foundation, Inc.

Mindanao North - OROPORT Cargo Handling Services, Inc. South - HOLCIM Phils., Inc. Best Banks Best Collecting Bank Commercial - Banco de Oro (BDO) Thrift - RCBC Savings Bank, Inc. (RSBI) Rural - Rural Bank of Cauayan (RBC) OFW Remittances - i-Remit Incorporated Best Paying Bank Commercial - Land Bank of the Philippines (LBP) Thrift - RCBC Savings Bank, Inc. (RSBI) Rural - First Macro Bank (FMB) 1st SSS Balikat ng Bayan Awards for Excellence in Journalism Television GMA Network for Unang Hirit UNTV for Kaagapay and Good Morning Kuya Radio DOLE and SSS On-Air DZRC-AM, Filipinas Broadcasting Network Legazpi City Oras na Pilipinas DXFE, Far East Broadcasting Company Davao Print Louella D. Desiderio BusinessWorld Romeo “Butch” M. del Castillo BusinessMirror Posthumous Award Marlina “Len” Flores Sumera Arangkada 1530, DZME