Social Security System. INQUIRER PHOTO/GRIG C. MONTEGRANDE
MANILA, Philippines — Heeding public clamor for better benefits, the Social Security System (SSS) will implement a landmark Pension Reform Program that raises pension over a three-year period — without requiring members to contribute more.
After three years or by 2027, pensions will have increased by around 33 percent for retirement/disability pensioners and 16 percent for death/survivor pensioners.
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This is the first multi-year adjustment of its kind in the 68-year history of the SSS, and is in line with a directive from President Marcos and guidance from Finance Secretary Ralph Recto.
READ: SSS sets 3-year pension increase without contribution hike
Question: How will the pension reform be implemented?
The SSS announced that the pension increases would be implemented in three annual tranches every September, beginning this 2025.
By September 2025, for pensioners as of Aug. 31, 2025, there will be:
10 percent increase for retirement and disability pensioners
5 percent increase for death or survivor pensioners
By September 2026, for pensioners as of Aug. 31 2026, there will be:
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additional 10 percent increase for retirement and disability pensioners
additional 5 percent increase for death or survivor pensioners
By September 2027, for pensioners as of Aug. 31 2027, there will be:
Additional 10 percent increase for retirement and disability pensioners
Additional 5 percent increase for death or survivor pensioners
Q: How significant is the Pension Reform Program?
The reform will benefit over 3.8 million pensioners, including 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners.
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It is projected to inject P92.8 billion into the economy from 2025 to 2027.
The program is guided by three principles:
Uplifting all pensioners through inclusive benefit adjustments
Recovering from inflation to protect purchasing power
Promoting the value of working, saving, investing and prospering, as mandated by Republic Act 11199, “An Act Rationalizing and Expanding the Powers and Duties of the Social Security Commission to Ensure the Long-Term Viability of the Social Security System.”
Q: How will it affect the financial sustainability of SSS if there will be no corresponding increase in contribution?
According to the SSS Chief Actuary, the reform will result in only a manageable reduction of fund life from 2053 to 2049, which the institution expects to be offset by stronger cash flows from previous contribution reforms and enhanced collection efforts.
“Our actuarial team confirms that the fund remains financially sound,” SSS president and CEO Robert Joseph M. De Claro.De Claro said. “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.” – Doris Dumlao-Abadilla
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Sample pension increases
