The government-run Social Security System (SSS) is considering tapping private insurance companies to insure some of its risks and liabilities, in order to address risks brought about by growing expenditure, according to its President and CEO, Mr Emmanuel Dooc.
Total disbursements of the fund jumped by 43% in the first three months of the year to PHP44.77 billion (US$883 million) because of the recently approved PHP1,000-per-head additional benefit for pensioners last March.
Mr Dooc said that the fund has not yet talked to any private insurance provider. He said the SSS is consulting with the the social security committee of the Actuarial Society of the Philippines.
Despite its growing expenditures, the SSS has given assurances that it has enough reserves.
The SSS is a government-controlled corporation that provides social security insurance to workers in the private sector. Premiums are deducted from the workers’ wages by their employers, which pay the same to the SSS. The fund has about 34 million members who receive sickness, maternity, disability, retirement, funeral and death benefits.