The state-run Social Security System (SSS) needs to reduce its overhead expenses and use digital tools to make it easier for members to access services, Finance Secretary Carlos Dominguez 3rd said on Sunday.

With the new SSS law having provided for contribution rate adjustments, “we need to be very prudent in managing expenses because we are talking about the hard-earned savings of Filipino workers,” said Dominguez, who is also the new Social Security Commission chairman, in a statement issued by the pension fund.

He added that the SSS should move to digitize and modernize systems, which “would also eventually save on costs and other operating expenses.”





The SSS said it was allowed by the Social Security Act of 2018 to spend no more than 12 percent of total yearly contributions, plus 3 percent of other revenues, for administrative and operational expenses such as salaries and wages, supplies and materials, depreciation, and the maintenance of offices.

It added that it had been utilizing an average of 5 percent since 2016, with operating expenses hitting P9.48 billion that year, P9.54 billion in 2017 and P9.76 billion in 2018.

Dominguez, meanwhile, said he wanted to see more investments in information technology in support of a planned digital transformation.

“We have to do some serious investments in technology because it will not only save us money, but will also save time for the transacting public. Online transactions are easier and more convenient,” he added.

“But I directed the SSS management at the same time to be clear as to when exactly we are supposed to see the returns of our investments in electronic services,” Dominguez continued.

The SSS’ electronic services currently include applications for salary loans, social security numbers and member data amendments, salary loan certifications, payment reference number generation and inquiries, submissions of employment reports and contribution and loan collection lists, and the filing of maternity and sickness notifications.

These can made through the My.SSS website, the SSS Mobile App, Self-Service Information Terminal, Interactive Voice Response System and Text-SSS, the pension fund said.

Dominguez said that under his leadership, he wanted to reinforce the message that the SSS helps its members save for tomorrow while providing them with easy access to services today.

“What you put in SSS as savings today is what you will receive in benefits in the future. The increase in contributions is an opportunity for members to save more for contingencies, and particularly for retirement,” he said.

SSS contribution collections jumped by over P22 billion to P181.92 billion in 2018, 13.89 percent higher compared to the P159.72 billion recorded a year earlier.