In a move aimed at empowering its members to secure a more substantial nest egg for their retirement years, the state-run Social Security System (SSS) is in the process of developing an innovative pension program.
According to SSS President Rolando Macasaet, once the program receive approval from the organization's policy-making body of commissioners, the current monthly retirement pension cap of ₱20,000 will be surpassed.&nbsp;
The implementation of this plan does not require an executive order from Malaca&ntilde;ang or any congressional authorization.
"The pension will be increased from the current say 5 [thousand pesos], 10 [thousand pesos], to as high as 30,000&hellip; 40,000," the top official said during a press briefing.
While the SSS has established a timeline of two to three months for the rollout of the enhanced pension program, Macasaet clarified that participation in the higher pension scheme is optional.
"Voluntary lang ito. Pero ang mga employers, kung gusto nilang mag-share, puwede din lalo na for their employees na gusto nilang i-retain," he explained.
Under the existing system, retirees receive a monthly pension ranging from ₱4,000 to ₱20,000, depending on their contributions to the fund.
The underlying principle behind the revised scheme is that members who choose to contribute larger premium amounts will enjoy greater benefits upon retirement.&nbsp;
This is in stark contrast to the current maximum monthly pension limit of ₱20,000.
Last year, the agency already raised its members' contribution rate from 13% to 14%.

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SSS to introduce voluntary pension program with higher retirement benefits