Republic of the Philippines Review of the Social Security System : Considerations for Strengthening Sustainability and Coverage
This report was prepared at the request of the Philippines Social Security System (SSS) to analyze key challenges and propose reform options to improve the sustainability and expand the coverage of old age income protection for private sector worke...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26520261/philippines-review-social-security-system-considerations-strengthening-sustainability-coverage http://hdl.handle.net/10986/24671 |
| Summary: | This report was prepared at the request
of the Philippines Social Security System (SSS) to analyze
key challenges and propose reform options to improve the
sustainability and expand the coverage of old age income
protection for private sector workers. A simulation
employing the Pension Reform Options Simulation Toolkit
(PROST) found that the SSS scheme will face outflows greater
than inflows in about 20 years and depletion of its assets
in about 28 years. Fortunately, its medium-term financing
issues can be addressed through the gradual introduction of
parametric reforms that shield workers and retirees from
abrupt changes in contributions and benefits. At the same
time, the Philippines faces a challenge to improve the
defacto coverage of workers by Social Security, and to
increase the income protection coverage of the elderly.
Options suggested include SSS measures to leverage its
identification system and introduce a special instrument for
informal workers. Rather than introducing matching
contribution subsidies to expand coverage, it was suggested
to broaden the scope of beneficiaries eligible for social
pensions. Beyond the scope of the SSS, additional measures
were suggested including those to improve the access and
efficiency of contributions and payments systems,
strengthening mobile-money platforms and efforts to improve
access to savings instruments, particularly for small and
isolated savers. The report points out that the key means of
improving coverage lies beyond the scope of social security
or pensions, namely, to improve the quantity and quality of
wage-based employment. |
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