Workers oppose SSS plans to increase premiums to generate PPP funds
KMU deputy secretary-general Leandro Gerodias said the agency’s main objectives in pushing for higher contributions is to generate more funds for business projects and investments, and not so much to benefit workers in the long run.
By INA ALLECO R. SILVERIO
Bulatlat.com
Members of the Kilusang Mayo Uno (KMU) picketed the main office of the Social Security System (SSS) in Quezon City to protest against the agency’s plan to increase members’ contributions and invest in the Aquino government’s public-private partnership projects.
As early as April last year, the SSS, through its president and chief executive officer (CEO) Emilio S. de Quiros, announced the agency’s plan to increase members’ premiums from 10.4 per cent to 11 per cent. The announcement was met with protests and the SSS was forced to delay its implementation.
Members of the Kilusang Mayo Uno (KMU) picket the main office of the Social Security System (SSS) to protest against the agency’s plan to increase members’ contributions and invest in the Aquino government’s public-private partnership projects. (Photo courtesy of KMU / bulatlat.com)
According to de Quiros, the increase in contributions will be shared equally by both employers and workers. Currently, employers and minimum wage earners pay a combined amount of P809 to P886 ($18.8 to $20.60) monthly in SSS contributions. With the 10.6 percent increase, contributions from workers and employers will increase, amounting to P855 to P937 ($19.88 to $21.80) The higher the wages, the higher the contributions.
In the meantime, the SSS also explained that the proposed increase will also extend the benefits and pension to its members from the year 2039 to 2049. Based on an actuarial valuation done in 2007, SSS’ funds are sufficient for the next 27 years or until the year 2039.The SSS has more than 29 million members.
By comparison, the contribution rate of SSS’ 10.4 percent is less than half of the 21 percent rate of the Government Service Insurance System, the equivalent pension fund for government employees. The last time the SSS imposed an increase in contribution rates was in 2007, with premiums being adjusted by one percent.
The SSS posted net revenues of P24 billion ($558 million) in the first 11 months of 2011, or 12 percent higher that what it earned in 2010 during the same period.
Increase benefits and pensions
The KMU is against plans to increase workers’ contributions to the pension fund.
(Photo courtesy of KMU / bulatlat.com)
“The SSS is going after workers’ hard-earned income to funnel the funds into the coffers of big foreign and local capitalists. We will not take this sitting down,” he said.
“The SSS has the funds to increase workers’ pensions without increasing workers’ premiums. We want an increase in our pensions, but not in our premiums.”
The labor leader pointed out that the SSS wants to raise workers’ premiums because it wants to aid the Aquino government in its PPP projects, as well as big business groups that want assurance for their investments..... MORE
Source: Bulatlat.com
URL: http://bulatlat.com/main/2012/02/16/workers-oppose-sss-plans-to-increase-premiums-to-generate-ppp-funds/
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