President Rodrigo Duterte’s economic team said that there must be a corresponding increase for Social Security members’ contribution in order to have a viable P2,000. pension increase.
Duterte was studying his economic ministers’ opposition to the proposed P2,000-increase, the first tranche of which is scheduled this January.
During his campaign, the president promised to increase the pension of the SSS pensioners, which President ‘Noynoy’ Aquino vetoed during his term.
Socioeconomic Planning Secretary Ernesto Pernia said that there is no such thing as a free lunch and that somebody will have to bear the cost.
The right thing to do is really to make the members raise their contributions as well as the employers.
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 corresponding contribution adjustment, the life of the pension fund would be cut short from 45 years to 22 years, he added.