Former Social Security System (SSS) President and CEO Rolando Ledesma Macasaet on Saturday (4 January) said the SSS has not contributed a single centavo to the Maharlika Fund amid reports that the hike in SSS premium contribution was meant to replenish the amount that the state-run pension fund gave to the Maharlika Investment Fund.
“The increase in SSS premium contribution was provided by a law passed in 2019 stipulating premium increases in 2020, 2023 and 2025. This is prior to my term as SSS President,” Macasaet said, who resigned from the SSS in October 2024 to run as partylist representative of the SSS - GSIS Pensyonado Partylist (No 45).
Republic Act 11199 or the Social Security Act of 2018 mandates the SSS to increase its contribution rate every two years with the final increase in 2025.
In 2019, the contribution rate was set at 12 percent, in 2021 it rose to 13 percent and increased to 14 percent in 2023. The rate will be shared by the employer and the employee.
For the 15 percent contribution rate this year, 10 percent will be shouldered by the employer, while the employee pays the remaining 5 percent.
Macasaet said Malacañang can suspend the implementation of RA 11199 if there is a clamor from SSS members for its temporary suspension.
“We call on Malacañang to ask the SSS Board to temporarily suspend the implementation of any premium increases. The SSS had an income of over P80 Billion in 2023 and a banner year of over P100Billion in income for 2024. The temporary suspension or gradual implementation of the Social Security Act of 2018 will not burden our hard-working SSS members and will not significantly affect the fund life of the SSS,” Macasaet said.