NextGen Day

The latest round of the Social Security System (SSS) condonation scheme is expected to pay almost 20% of the PHP55 billion arrears owed by employers and employees in the private sector.

In a virtual conference on Thursday, SSS senior vice president Mario Sibucao said, “The total amount of delinquencies is about PHP55 billion, and at least 20% of that PHP55 billion is penalties to be forgiven.”

He did warn out, however, that the final sum to be forgiven would be determined by whether the more than 700,000 employers who are covered by the condonation scheme are eligible.

Employers whose businesses are impacted by the epidemic and tragedy are eligible to apply for the condonation program.

Employees whose livelihoods have been impacted by the crisis are also eligible to apply.

According to SSS president and chief executive officer Aurora Ignacio, the latest condonation initiative intends to assist both businesses and employees who are affected by the pandemic.

She claimed that the pandemic has made it difficult for SSS members to make their contributions and loans.

Despite this, SSS EVP Rizaldy Capulong stated SSS’ fund life is healthy, even if expenditures have eclipsed contributions collections as of August.

As of August, he claimed, the state-owned insurance agency had collected PHP155.59 billion in private sector payments.

On the other side, spending has reached PHP159.6 billion, with PHP154 billion going to member benefits and PHP4 billion going to expenses, according to him.

“However, the PHP4 billion shortfall has been catered for since we have investment income of roughly PHP20 billion,” he said.

SSS, according to Capulong, has reserves that can be used if contributions and investment income are insufficient to cover its overall expenses.

“So far, when we add our donations and investment income, our revenue exceeds our expenses. So far, we haven’t used our reserves,” he explained.

Earnings from government securities, salary loans, equities, corporate and bond loans, and properties are expected to bring the SSS’s investment income to PHP22.2 billion by September, according to SSS officials.

Capulong stated SSS has a fund life of till 2054, citing a 2019 assessment on the agency’s actuarial life.

“Hopefully, the pandemic’s effects will be short-lived,” he continued.

During the epidemic, the agency’s benefits payout expanded to meet the requirements of its members.

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