How Reasonable Is The ₱1000 Increase To Monthly Pensions?

Being an accountant, I can understand why SSS cannot decide immediately about increasing the pension benefits of SSS pensioners. They have to study the impact of the increase to avoid SSS going bankrupt, if such is the word for a government agency. The next question is: Can SSS afford to increase the monthly pensions by ₱1000?

Let’s take an example using a simple mathematical calculation. If I had contributed ₱1200 a month for my social security for 10 years, that would be ₱144,000 total. If my money earned 12% p.a. for 10 years, I would have earned ₱172,800. If SSS would return my money monthly for 10 years, from a total of ₱316,800, divide it by 10, then divide it by 12, I should get ₱2640 in return. More or less, that gives me an idea of how much, at least, my monthly pension be. If I would receive higher than that, I would already appreciate it.

Of course, in the real world, this is not how the SSS pension is calculated. But at least, it would give you an idea, in case you invested your money at 12% per annum for 10 years.

The problem is: Where did the money go? How much SSS has earned from investments? How much share of profits from investments are they giving to its members? Are the officers and directors of SSS receiving ₱1,000,000 salary A MONTH?

Maybe, the directors should start receiving less than too much. Moreover, with SSS’ computerised system, maybe SSS should start retiring half of their employees.

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