SUMMARY
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MANILA, Philippines – President Benigno Aquino III pushed for a higher contribution rate for Social Security System (SSS) to arrest the financial hemorrhage of the state-owned pension fund for private employees.
In his 4th State of the Nation Address (SONA) on Monday, July 22, he said the SSS has an unfunded liability of P1.1-trillion, causing the funds to dry up by 2018.
View Rappler’s coverage of President Aquino’s 4th SONA
This was due to the 21 across-the-board pension increases since 1980, but only two increases in contribution rates.
He cited that a 0.6% contribution increase will result shaving off P141-billion from the unfunded liability, extending the life of the fund.
In the first four months of the year, SSS posted a net income of P16.44 billion, already more than 50% of its P30 billion target for the year, data from the agency showed. – Rappler.com
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