The Social Security System (SSS) has doubled its total comprehensive income in the first half of 2014, posting P32.59 billion from the P15.73 billion in the same period in 2013.
SSS President and Chief Executive Officer Emilio S. de Quiros Jr said the 107-percent growth was a result of the P16.37 billion increase in unrealized gains from the mark-to-market value of available-for-sale financial assets of the SSS.
The consolidated financial statements of the agency for the six-month period showed that revenues totaled P75.37 billion, composed essentially of contributions at P58.77 billion and investment and other income at P16.60 billion.
Contributions collected during the period were largely from the employed sector at P50.74 billion, followed by voluntary paying members at P5.25 billion and self-employed at P2.78 billion.
“Total revenues continued to grow mostly from members’ contributions that registered a 15.6-percent increase on 2013 figures. Actual expenditures grew as well at 13.2 percent to P53.21 billion from P47.01 billion,” De Quiros said.
About 93 percent of total expenditures were spent on benefit payments, totalling P49.52 billion, which is 13.9 percent higher than P43.46 billion total payout in 2013.
De Quiros owed the growth in benefit disbursements to streamlined processing of death, disability and retirement claims, and advance payment of six months worth of pensions of members affected by Typhoon Yolanda.
Meanwhile, operating expenses posted a modest rise of 3.8 percent during the six-month period as service improvements and coverage efforts continued, particularly with the establishment of 16 SSS offices and intensified campaign for new programs. De Quiros said only 48.8 percent of the allowed charter limit was utilized for SSS operating expenses.
“The SSS remains to be in a healthy financial condition given a net revenue of P22.17 billion. Latest projections indicate that SSS will continue to generate a positive net revenue up until 2018, where contributions collection and investment income will continue to outstrip benefit payments and operating expenses,” De Quiros said.
He stressed that SSS financial position remains solid with total assets of P422.70 billion, P38.07 billion or 9.9 percent higher than its assets of P384.63 billion in 2013.
“This was due to our investments, which comprised 91.2 percent of our total assets. Total investments went up by P33.79 billion or to P385.43 billion at end of June this year.” De Quiros said.
He said SSS investments in government securities performed strongly, registering a 13.6-percent increase from P135.54 billion it reached in 2013. Likewise, equities were up by P6.47 billion due to favorable mark-to-market valuation.
“The reforms and policy changes that the SSS have undertaken so far led to consistent delivery of improved financials,” De Quiros noted.
In June 2014, the SSS has increased the monthly pension of existing SSS pensioners by five percent following the recent hike in contribution rate and monthly salary credit. The SSS fund’s actuarial life is currently projected to last through 2042, extending the previous fund life to three more years.