S.S.B. Says It Needs to Invest to Pay Future Pensioners

Deborah Ruiz

The way the social security scheme works, the monies that people who are working today contribute are used to pay people who are already on retirement. So when today’s working class retires, it will be future contributors who will also pay their pension. According to Ruiz, S.S.B. needs to invest the monies they have in order to grow the fund and have sufficient in there to pay future pensioners. If they don’t, then S.S.B. will have no choice but to return to contributors and seek increases in the contributions they make in order to meet the pension pay-outs.

Deborah Ruiz, C.E.O, S.S.B.

“We look at our benefit expenditure and we look at our contribution income. The excess we invest. Right now we have a lot of money to invest, correct me if I’m wrong , Leo, but we have over $130 million that we need to put to work, and I mean, put to work, not sitting at the bank earning 2% or 1%.  That will put us nowhere and put us in jeopardy in terms of meeting our obligations for the long term, right? Social Security is talking long term down the road, 10 15 years from now – we need to have that money working now so that when more persons are retiring that we can afford to pay the pensions.”