THE Social Security System (SSS) pension reform program (PRP) will start in September in line with the directive of President Ferdinand Marcos Jr. and following discussions with Finance Secretary Ralph Recto.
Backed by actuarial studies, the PRP features a structured three-year increase in pensions for all SSS pensioners — the first multi-year adjustment in the institution’s 68-year history.
The PRP will not require a contribution increase, unlike the P1,000 additional benefit given to pensioners in 2017, which required immediate contribution hikes to restore fund stability.
The reform will benefit more than 3.8 million pensioners, including 2.6 million retirement and disability pensioners and 1.2 million survivor pensioners. It is projected to inject P92.8 billion into the economy from 2025 to 2027.
The Social Security Commission (SSC) approved the PRP through Resolution 340 on July 11, 2025.
Increases in tranches
Anchored on Republic Act (RA) 11199, or the Social Security Act, particularly Section 4 that empowers the SSC to adjust pension benefits, the reform answers the long-standing call for higher pensions while ensuring the fund’s long-term stability.
“We’ve heard the clamor for higher pensions loud and clear,” SSS President and Chief Executive Officer Robert Joseph De Claro said in a statement.
“With the guidance of Finance Secretary and SSC Chairperson Ralph Recto, and after careful actuarial review, we are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness.”
The increases will be implemented in three annual tranches every September until 2027: a 10 percent increase for retirement and disability pensioners and a 5 percent increase for death or survivor pensioners.
“Uplifting all pensioners”
After three years, pensions will have increased by about 33 percent for retirement and disability pensioners and 16 percent for death and survivor pensioners.
SSS said the PRP is guided by three principles: uplifting all pensioners through inclusive adjustments; recovering from inflation to protect purchasing power; and promoting the value of working, saving, investing, and prospering, as mandated by RA 11199.
The SSS chief actuary said the reform will result in only a manageable reduction of fund life from 2053 to 2049, offset by stronger cash flows from previous contribution reforms and enhanced collection efforts.
“Our actuarial team confirms that the fund remains financially sound,” De Claro said. “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.” / PR VIA PNA