The Social Security System (SSS) posted a net revenue of P13.96 billion from January to April this year, up by 49 percent from its P9.37 billion income for the same period in 2011 due to strong earnings and prudent management of expenses.
SSS President and Chief Executive Officer Emilio de Quiros, Jr. said total revenues during the first four months of the year reached P44.82 billion, which includes P31.15 billion earnings from contributions and P13.67 billion in investment income.
“The 15 percent growth in revenues has far outpaced the four percent increase in expenses for operations and benefits. In fact, our operating expenses amounted to only P2.43 billion, which was five percent less than the P2.55 billion we spent from January to April 2011,” he said.
Members’ contributions, which accounted for 70 percent of total revenues, grew by nine percent due to improved collections, including double-digit increases from priority sectors such as overseas Filipino workers and household helpers.
Employees remitted P26.78 billion, or 85 percent of total contributions, while P1.79 billion came from self-employed members such as informal sector workers, farmers and fisherfolk. The SSS also collected P1.62 billion from voluntary members, P878.66 million from OFWs and P74.21 million from household helpers.
Half of SSS’ P28.43 billion benefit payouts were for retirement claims. The agency also disbursed P10.94 billion for death and funeral grants; P1.41 billion for maternity; P1.16 billion for disability; and about P580 million for sickness benefits and medical claims.
De Quiros said the P13.67 billion earnings from investments, which surpassed the target of P9.35 billion by four percent, reflected an increase of 31 percent from the total of P10.47 billion from January to April 2011.
“A robust stock market boosted equity earnings to a four-month total of P8.26 billion, or 43 percent more than P5.76 billion in 2011. Other major investment earners were government securities, which brought in P3.01 billion, and salary loans with P1.59 billion,” he said.
Investments, which made up 92 percent of total SSS assets, rose to P321.88 billion as of April 30 due to additional placements in government securities, favorable mark-to-market valuation of equities and higher exposure to salary loans.
The growth in investment level increased SSS’ asset size to P351.22 billion, or nine percent higher than P322.38 billion as of December 31, 2011.
“We continue to manage the SSS Fund prudently and ensure safety, good yield and liquidity in our investments,” de Quiros said.