Pension hike drags down SSS earnings in H1

MANILA, Philippines — State-run pension fund Social Security System (SSS) reported a 27.8-percent drop in net income in the first half, as benefit payouts outpaced contributions and investment earnings.

The pension fund manager’s latest financial statement showed its net income slipped to P48 billion from P66.45 billion a year ago.

This comes as total expenses ballooned by 26.8 percent to P206.8 billion at end-June from P163.10 billion in the same period last year.

Benefit payments stood at P173.45 billion, up by 19 percent from P145.73 billion.

SSS also reported that it paid P4.32 billion for personal services and P1.48 billion for maintenance and other operating expenses.

The SSS began the early rollout of the second tranche of its three-year pension hike program, where retirement and disability pensioners will receive a 10-percent increase in their monthly pensions, while death and survivor pensioners will get a five-percent increase.

The pension reform program is the first-ever multi-year pension increase in SSS history. Under the program, pensioners will receive annual increases in their pensions every September from 2025 to 2027.

The early release sought to help pensioners cope with inflationary pressures and higher energy costs.

Members’ contributions inched up by 6.9 percent to P200.32 billion in the first semester from P187.44 billion in the same period last year.

Despite this, the fund’s total income rose by 11 percent to P254.83 billion at the end-June from P229.55 billion a year ago. Net investments and other income surged by 38 percent year-on-year to P33.18 billion from P24.12 billion.

The SSS’s total assets stood at P1.35 trillion as of end-June.