STATE-RUN Social Security System (SSS) plans to lease or sell a number of its assets next quarter to further boost its investments and generate more revenues for the pension fund.
“We’re looking at leasing HK Sun Plaza which is somewhere in Roxas Boulevard,” SSS President and Chief Executive Officer Emilio S. de Quiros said in an interview last week.
“We’re planning to lease it on a long-term basis because we know that there is good development in that area with Entertainment City. Land prices are going up. We think that SSS should keep it,” he added.
The lease may last between 15 to 25 years, Mr. de Quiros said.
The plaza, at present, houses various shops and restaurants, including SSS’ Pasay Branch.
“We’re in the process now of preparing the bid documents. Maybe this quarter, we’ll be able to issue,” Mr. de Quiros said.
Mr. de Quiros added that the SSS may likewise unload a number of its properties in North Harbor, also targeted to be auctioned in the third quarter.
Meanwhile, SSS said in a statement it has no plans to increase the contribution rate for members following news reports it would hike monthly dues to offset a proposed law raising benefit payments by as much as P2,000.
“Although a contribution hike is much needed to improve the actuarial soundness of SSS funds, we would like to assure the public, especially our members that we are not seeking for another increase in their contributions at this time,” Mr. de Quiros was quoted as saying in the statement.
The House of Representatives approved on third reading Rep. Neri J. Colmenares’ (Bayan Muna) proposal for a P2,000 across-the-board increase in the monthly pension of SSS beneficiaries.
SSS said an increase in benefit payments would cut its current 2042 fund life by 13 years unless contributions are hiked by at least 15%-16%.
The pension fund’s net revenue grew just half of a percent to P15.21 billion from January to April 2015 from P15.14 billion in the same period last year, based on SSS data.
Net revenue is the difference of the pension fund’s total revenues and expenditures. Revenues include contribution collections and investment and other income while expenditures are SSS’ benefit payments and expenses from its operations.
Data from the pension fund showed total revenues reached P54.35 billion in the first four months of 2015, up 7% from P50.77 billion last year.
Broken down, contribution collections totaled P42.69 billion, up 9.7% from P38.91 billion last year. Investment and other income shrank to P11.66 billion from P11.86 billion.
Benefit payments went up by 10.1% to P36.57 billion from P33.21 billion. Operating expenses totaled P2.58 billion, up 6.6% from P2.42 billion.
Total expenditures reached P39.14 billion in the first four months of the year, up 9.8% year on year from P35.63 billion.
SSS manages over P428 billion in investment reserve funds at the end of April 2015. These are invested in various instruments, with P155.3 billion placed in government securities; P29 billion in corporate notes and bonds; P76.8 billion in member loans; P44.6 billion in bank deposits; P103.9 billion in equities; and P18.6 billion in real estate properties.
It plans to appoint three local fund managers in the third quarter as part of efforts to diversify the pension fund’s growing investment portfolio. Mr. de Quiros said last week that the fund managers could be appointed within the third quarter.
Each manager will handle a P1-billion investment portfolio from the SSS’ assets for two years, the pension fund’s head said. After which, the fund manager with the worst performance would be replaced.
Mr. de Quiros said SSS saw the need to tap fund managers as the pension fund continues to grow.
“This is the first time we’re doing it. Eventually once we get the experience from the local fund managers, we hope that the next administration can think of also doing it for foreign fund managers,” Mr. de Quiros had said
In 2014, SSS saw its net revenue rise to P44.47 billion, up 15.9% from the previous year. Despite its sluggish performance in the first four months, Mr. de Quiros said SSS can still hit its P40-billion revenue target this year.
source: Businessworld
No comments:
Post a Comment