Higher expenditures mainly due to an increase in benefit payments pulled down the net income of state-run pension fund Social Security System (SSS) last year by over a fifth to P32.005 billion.
Based on the latest unaudited SSS data, its net profit in 2016 declined 21 percent from P40.695 billion in 2015.
Total expenditures jumped to P142.456 billion last year from 2015’s P121.407 billion.
Benefit payments—including for death, disability, funeral grant, maternity, medical services, rehabilitation services, retirement and sickness of members as well as pensioners—rose to P132.979 billion in 2016 from P112.561 billion in the previous year.
Disbursements for retirement, which accounted for nearly three-fifths of total benefit payments, increased to P78.106 billion in 2016 from P63.085 billion in 2015.
Death benefit payments went up to P39.205 billion; maternity, up to P5.289 billion; disability, up to P4.514 billion; funeral grants, up to P3.583 billion; sickness, up to P2.268 billion; and rehabilitation services, up to over P1.559 million.
Payments for medical services, meanwhile, declined to P13.119 million in 2016 from 2015’s P15.973 million.
The SSS’ operating expenses—which include expenditures for personnel services as well as maintenance and other operating expenses—also increased to P9.477 billion from P8.846 billion during the previous year.
Maintenance and other operating expenses rose to P3.203 billion last year, while those for personnel services also climbed to P6.274 billion.
Revenues grew in 2016 to P174.461 billion from P162.102 billion in 2015, but were not enough to offset the increase in expenses.
In particular, members’ contributions increased to P144.365 billion from the previous year’s P132.615 billion, while investment and other income inched up to P30.096 billion from P29.487 billion a year ago.