SSS profit falls by 60%

EDITOR’S NOTE: We’re reposting this article to reflect that the figures cited are in Philippine pesos, not in US dollars as reported earlier.

The profit of state-run pension fund Social Security System (SSS) slid by 60 percent to P6.56 billion in the first half on the back of the additional P1,000 monthly cash benefit extended to pensioners.

The latest SSS data showed that its net revenue in January to June this year dropped from P16.281 billion last year.

First-half revenue rose to P96.98 billion from P87.16 billion a year ago, as members’ contributions, and investment and other incomes rose to P78.64 billion and P18.34 billion, respectively.

Expenditure rose to P90.422 billion from P70.885 billion last year as both benefit payments and operating expenses grew.

End-June benefit disbursements jumped to P86.03 billion from P66.5 billion a year ago, as retirement, death, maternity, disability, funeral grant and sickness benefits rose despite decline in expenditures on members’ medical and rehabilitation services.

To recall, the SSS released the additional benefit to pensioners starting March after President Duterte approved the pension increase in January.

As such, retirement benefit payments rose to P49.857 billion from P40.118 billion in the first six months of last year.

From January to June, death benefits grew to P26.923 billion; maternity, P3.011 billion; disability, P3.103 billion; funeral grant, P1.873 billion and sickness, P1.262 billion.

Disbursements for medical and rehabilitation services declined to P6.505 million and P514,543, respectively.

Total operating expenses slightly rose to P4.387 billion from P4.375 billion a year ago, as expenditures on personnel services increased to P3.091 billion.

Meanwhile, maintenance and other operating expenses went down to P1.295 billion.