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In addition to the significant contribution of the SSS in the promotion of the economic and social development of our country through its investment programme, the earnings realised from the investments of the funds have greatly stabilised the funds of the SSS thereby strengthening the financial guarantee for the settlement of social security benefits as they become due in the future.
Despite the low interest rates charged on service loans to members, total investment earnings during the period 1957 to 1973 totalling ₪596,749,335.00 were ΠΟΣΕ than enough to meet social security payments for death, disability, sickness, retirement and refund totalling 2449,700,190. Because of these investment earnings, the SSS was able to increase benefit rates a number of times in the past without а corresponding increase in the contribution rates and without impairing the financial stability of the SSS. It was on ly under Presidential Decree No. 24 when the contribution base was increased from #500.00 to #1,000.00 (without increasing the contributi on rate). However, under Presidential Decree No. 177 the contribution rate was increased by 1 per cent beginning January 1974. The increase became necessary not only because of the increase in the rates of existing benefits but also the addition of two new benefits, to wit, burial benefit and survivors' pension benefit.
Investment portfolio
As of 31 December 1973, the SSS investment portfolio included the following:
Investments in government securities) deposits
Amount (in thousands)
Per cent
Time/savings deposits
PNB/DBP notes receivable
Treasury notes/bills
Government bonds
National orthopaedic hospital
12 739
0.67
564 073
29.84
332 274
17.58
110 014
5.82
1 159
0.06
Loans to employer-members
Commercial/industrial loans
69 495
3.68
Community hospital loans
11 166
0.59
Investment in preferred/common stocks Corporate bonds
22 769
1.20
2 755
0.15
Loans to employee-members
Real estate housing loans
Investment incentives loans
Salary educational loans
TOTAL:
595 559 3 860 164 587
31.50
0.20
8:71
P1 890 450
100.00
The yearly growth of SSS assets, investments and earnings are as follows:
Year
Year-end
assets
Per cent
increase
Year-end investments
Ratio I/A
Yearly earnings
Per cent return
1957
P 6 372
5 957
1958
31 277
390.85
28 219
93.49% 90.22
P
37
3.82
492
2.92
1959
68 155
117.91
66 217
97.16
2 326
5.05
1960
110 740
62.48
108 483
97.96
3 578
4.18
1961
165 668
49.60
158 632
95.75
5 981
4.58
1962
225 188
35.93
212 861
94.53
8 553
4.71
1963
295 230
31.10
275 404
93.28
12 274
5.16
1964
376 888
27.66
348 852
92.56
16 302
5.36
1965
471 821
25.19
428 752
90.87
19 506
5.15
1966
583 538
23.68
534 157
91.54
27 434
5.87
1967
696 290
19.32
596 562
85.68
32 929
6.00
1968
820 616
17.86
780 808
95.15
40 532
6.06
1969
963 203
17.38
919 717
95.49
51 977
6.31
1970
1 128 178
17.13
1 085 480
96.22
66 360
6.85
1971
1 330 613
17.94
1 265 843
95.13
79 315
6.98
1972
1 572 300
18.16
1 519 213
96.62
99 383
7.40
1973
1 949 216
23.97
1 890 450
96.99
128 572
7.84
Average
33.14
94.04
6.63
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