MANILA, Philippines (UPDATED) – The Social Security System (SSS) can expect major changes in its charter and board membership given the new law signed by President Rodrigo Duterte .
Executive Secretary Salvador Medialdea on Friday, February 15, said the President has already signed the law meant to ensure the longterm viability of the SSS fund, which will supply Filipinos with their pension when they retire.
The new law, Republic Act No 11199, expands the powers and duties of the Social Security Commission and repeals the Social Security Act of 1997.
The law “professionalizes” the SSS board, the entity that manages the critical fund, by requiring that board members be a professional in law, management, banking, or insurance.
It also gives the SSC more powers and allows for reserve funds to be invested for them to grow.
Senator Richard Gordon, one of the bill’s authors, previously said the measure’s passage would “expand, protect and increase the SSS fund so that when the time comes, there would be available pension for the people.”
The law also requires SSS coverage for overseas Filipino workers (OFWs), whether land-based or sea-based. Currently, only 500,000 OFWs are covered.
The new powers provided by the law allow the SSS management to increase the salary credit and contribution of employees “considering that at present it is only limited to P16,000 which yields very little benefit,” Gordon said. – Rappler.com