SSS to hike pensions from Sept 2025, fund life impact `manageable'

Insider Spotlight

• SSS to begin three-year pension hikes starting September 2025
• Retirement/disability pensions to rise by 33 percent after 3 years
• Fund life trimmed only slightly, remains financially sound

The Social Security System (SSS) will roll out its Pension Reform Program in September 2025, granting annual increases to all types of pensioners over three years. The plan marks the first structured, multi-year benefit hike in the institution’s 68-year history.

In a recent statement, SSS President and CEO Robert Joseph de Claro said the increases answer long-standing calls for higher pensions.

“With the guidance of Finance Secretary and social security commission chair 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,” he said.

Annual adjustments

The hikes will be implemented in three tranches every September:

• 2025: 10 percent increase for retirement and disability pensioners, 5 percent for survivor pensioners.
• 2026: Additional 10 percent and 5 percent increases, respectively.
• 2027: Another round of 10 percent and 5 percent.

Robert Joseph de Claro

The chief of the state-administered private pension fund assured that the impact on its actuarial life will be manageable.

By 2027, retirement and disability pensions will be higher by about 33 percent, while death and survivor pensions will be up 16 percent.

Minimal impact on fund life

According to SSS chief actuary Edgar Cruz, the reform will reduce the pension fund’s actuarial life only slightly—from 2053 to 2049. The impact will be offset by stronger cash flows from earlier reforms and better collection efficiency.

“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.”

Economic impact

The reform will benefit 3.8 million pensioners, including 2.6 million retirees and disability pensioners and 1.2 million survivor pensioners. SSS estimates the program will inject P92.8 billion into the economy between 2025 and 2027, with no additional contribution increases required from members.