MANILA, Philippines– The Social Security System (SSS) was flagged by the Commission on Audit (COA) for failing to collect P92.5 billion in premium contributions from employers.

COA said that the state insurer’s inability to collect the said amount from 466,881 employers impacts on its ability to deliver social protection and benefits to its members.

“The non-remittance by 466,881 employers of the premium contributions… and the low collection efficiency of less than three percent of the established collectibles during the year deprives the SSS of much needed funds for the prompt delivery of social security protection, claims, and benefits to its members and beneficiaries,” COA’s findings read.

State auditors found that the collection rate was only 2.3% of the total established collectibles, with the National Capital Region having the lowest collection rate of 0.6%.

COA’s findings also showed that of the P92.5 billion, 90.6% of the amount was uncollected for more than five years, indicating that procedures in handling of cases were “not strictly complied with or with slow actions.”

Despite the uncollected contributions, COA emphasized that SSS is still bound to pay members benefits corresponding to the uncollected premium contributions. This, however, may negatively impact the reserves of the SSS.

Meanwhile, COA also found that SSS was unable to collect P77 billion in member loans. Of the total amount, P20.7 billion had been uncollected for over five years.

“The substantial amount of delinquent loan accounts not only affects the financial health of the SSS but also undermines the goal of providing comprehensive social security protection to its members,” COA said.

COA also found that 356,733 claims amounting to P8.9 billion, representing 22.3% of claims filed in 2022, were processed beyond the applicable processing time prescribed under the law. This deprived members of the prompt receipt of funds in times of contingencies.

COA also noted that death and maternity benefit claims totaling 59,658 were processed beyond the expected timeframe of 20 days, extending to more than four years. Additionally, 43,282 disability and retirement claims were processed within a range of 16 days to over four years as well. –Rappler.com