Following the recent contribution rate adjustments, the Social Security System (SSS) is directed to use technology to improve its delivery of service to its members and reduce overhead expenses, at the same time.
Social Security Commission Chairperson and Finance Secretary Carlos Dominguez said that the new SSS law has provided the means to beef up the pension fund through contribution rate adjustments. As such, the SSS’s role now is to digitize processes so it will be easier for members to access its services.
He added that modernizing systems will eventually save on costs and other operating expenses.
Dominguez further said that the state fund needs to be more prudent in managing its expenses, as the fund comes from the savings of the Filipino workers.
In turn, he mandated the SSS to invest in information technology to support its digitization.
The SSC Chairperson said that the SSS have to seriously invest in technology, as it will not only save them money, it will also save the time of the transacting public. He added that online transactions are easier and more convenient.
On the other hand, Dominguez has directed the SSS management to be clear as to the exact time that they are supposed to see the returns of their investment in electronic services.
SSS’s financial statements show that since 2016, the pension fund utilizes an average of five percent of the fund’s total revenue for its annual operating expenses.
In 2016, the SSS used P9.48 billion for its operating expenses; P9.54 billion in 2017; and P9.76 billion in 2018.
These operating expenses include salaries and wages; supplies and materials; and the maintenance of the offices of the SSS.
According to the Social Security Act of 2018, no more than 12 percent of the total yearly contributions, plus three percent of other revenues may be spent for administrative and operational expenses of the SSS.