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The Social Safety System is about to implement a second wave of pension hikes for retirement/incapacity and survivor pensions in September 2026 with out rising contribution charges
MANILA, Philippines – The Social Safety System (SSS) marked 2025 with a landmark three-year pension reform that may enhance advantages with out rising contribution charges.
Beginning September 1, the state pension fund raised retirement and incapacity pensions by 10%, whereas loss of life and survivor pensions can be elevated by 5%.
SSS president and Chief Govt Officer Robert Joseph Montes De Claro mentioned the state pension fund will perform the second tranche of pension hikes on September 1, 2026. The ultimate wave of pension hikes will take impact in September 2027.
By the tip of the three-year program, advantages for retirement and incapacity pensioners could have elevated by 33% whereas loss of life and survivor pensioners’ advantages are estimated to develop 16%. This may cowl over 3.8 million SSS pensioners, together with 2.6 million retirement or incapacity pensioners and 1.2 million survivor pensioners.
Other than pension will increase, the SSS additionally goals to launch a micro mortgage program in early 2026. Its emergency mortgage program with a 7% rate of interest from the unique 10% may also be accessible till December 2026 or till the state of nationwide calamity is lifted.
Influence on fund life
De Claro earlier mentioned the pension hike will shorten its fund life to 2049 from 2053. However he’s assured that this can be offset by stronger money flows from earlier contribution will increase and enhanced assortment efforts.
“Our actuarial staff confirms that the fund stays financially sound. We’re dedicated to restoring fund life again to 2053 via protection enlargement and improved assortment effectivity,” he mentioned.
The SSS in January carried out a 1% contribution hike to fifteen% from 14% as a part of a fee hike that began in 2019.
As of September 2024, the SSS has practically P55 billion in property and has P11.3 billion in reserves for the long run fee of worker compensation claims.
De Claro beforehand mentioned they anticipate SSS’ web earnings progress to decelerate in 2025 because the fund implements the three-year pension hike. Nevertheless, he stays optimistic that the pension fund will make at the very least P100 billion.
The SSS made a P90.2 billion revenue in 2024, with earnings from the fund’s investments contributing greater than half of its bottomline.
The SSS at the moment has round P500 billion invested in long-term authorities securities whereas the remaining 45% of the fund’s portfolio is invested within the capital market and actual property. (READ: SSS invests P500 million in Century Properties) – Rappler.com
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