SSS increases pension, with no contribution hike

MANILA, Philippines — The Social Security System (SSS) has rolled out a pension reform program that will raise monthly benefits for pensioners, with the increase to be implemented in three phases.

In a statement, SSS said the reform will shorten the shelf life of the insurance organization by only four years. As a result, the fund life remains manageable and will not require any increase in member contributions.

“Our actuarial team confirms that the fund remains financially sound,” SSS president Robert Joseph De Claro said.

“We are committed to restoring fund life to 2053 through coverage expansion and improved collection efficiency,” he added.

The reform is expected to benefit more than 3.8 million pensioners, from 2.6 million retirement and disability pensioners to 1.2 million survivor pensioners.

It is also expected to inject P92.8 billion into the economy between 2025 and 2027.

The pension increases will be implemented in three annual tranches starting September 2025, granting retirement and disability pensioners a 10 percent hike and survivor pensioners a five percent boost each year, based on their status as of Aug. 31 annually.

“After three years, pensions will have increased by approximately 33 percent for retirement and disability pensioners and 16 percent for death and survivor pensioners,” the SSS said.

It said the pension reform program is anchored on providing inclusive benefit adjustments to uplift all pensioners, restoring purchasing power amid inflation and promoting the importance of work, saving, investment and prosperity.

“This pension reform program will not necessitate any contribution increase, unlike the P1,000 additional benefit allowance given to all pensioners starting 2017 that immediately required contribution increases to restore financial stability to the SSS fund,” it added.

Finance Secretary Ralph Recto said the addition to the pension will help in the economic growth because it will give pensioners additional spending power.

The Department of Finance added that the reform will primarily support retirement pensioners or the elderly as income security increases, especially as life expectancy increases.

Meanwhile, disability pensioners who are unable to work will also be supported.

“We will work with the government to improve the implementation of this program to ensure that no one is left behind in lifting themselves out of poverty,” Recto said.