SSS starts early rollout of pension hike amid high inflation

MANILA, Philippines — The Social Security System (SSS) has begun an early rollout of the second tranche of its Pension Reform Program (PRP), moving forward an increase originally scheduled for September and extending relief to about 4.1 million pensioners.

In a statement, Finance Secretary and Social Security Commission Chair Frederick Go and SSS President and chief executive officer Robert Joseph de Claro said the agency will release roughly P6 billion in additional pension benefits from June to August this year in a bid to ease pressure from inflation and higher energy costs.

Under the revised schedule, pensioners on record as of May 31, will start receiving the higher benefits beginning June 1. Meanwhile, those whose contingencies occur between June 1 and Aug. 31, will get the adjusted pension starting Sept. 1.

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Go said the early implementation is intended to provide faster support to retirees and their families facing persistent cost-of-living pressures.

Financial burden

De Claro said the move ensures more timely relief for pensioners as households continue to contend with day-to-day financial constraints.

Under the second tranche of the PRP, retirement and disability pensioners will receive a 10-percent increase in their monthly pensions, while death and survivor pensioners will receive a 5-percent increase.

READ: SSS considers relief plans for employers, members

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

Unlike the 2017 pension hike, which immediately triggered contribution increases to shore up the fund’s finances, SSS said the phased adjustments will not require higher fees from active members. SSS said this is the first multiyear adjustment of its kind in the institution’s 68-year history, adding that the increase was “supported by comprehensive actuarial studies.”

According to the SSS chief actuary, the reform will result in “only a manageable” reduction of fund life to 2049 from 2053. This will be offset by “stronger cash flows from previous contribution reforms and enhanced collection. /cb