An Act Rationalizing and Expanding the Powers and Duties of the Social Security Commission to Ensure the Long-Term Sustainability of the Social Security Program

Background

The Social Security Commission (SSC) has been mandated by law to administer the Social Security System (SSS), which provides social insurance coverage to millions of Filipino workers. However, the current law governing the SSS, Republic Act No. 1161, has been in place for over 50 years and is no longer adequate to address the evolving needs of the social security program.

New Legislation

In response to this need, the government has enacted Republic Act No. 11199, also known as the Social Security Act of 2018. This new law repeals the old Social Security Law and expands the powers and duties of the SSC to ensure the long-term sustainability of the social security program.

Key Provisions

The new law includes several key provisions, such as:

• Increasing the contribution rate of members to 12% from the current 11%.
• Extending the coverage of the SSS to include self-employed individuals and overseas Filipino workers.
• Providing for the automatic adjustment of benefits based on inflation.
• Establishing a new investment fund for the SSS to generate additional income.

Implementation

The SSS is currently working on implementing the new law. The Implementing Rules and Regulations (IRR) of Republic Act No. 11199 were published on December 10, 2018, and will take effect on January 1, 2019.

Conclusion

The Social Security Act of 2018 is a landmark legislation that will strengthen the social security program and ensure its long-term sustainability. The new law expands the coverage of the SSS, increases benefits, and provides for the automatic adjustment of benefits based on inflation. These changes will provide greater financial security to millions of Filipino workers and their families.