The Social Security System (SSS) has announced a new pension reform program aimed at increasing monthly benefits for pensioners without requiring any increase in member contributions. This program will be implemented in three phases, starting in September 2025. According to SSS officials, the increase will benefit over 3.8 million pensioners, including 2.6 million retirement and disability pensioners and 1.2 million survivor pensioners.
Key Details of the Reform:
– The pension increase will occur in three annual installments: a 10% hike for retirement and disability pensioners and a 5% increase for survivor pensioners each year.
– After three years, pension amounts are expected to increase by approximately 33% for retirement and disability pensioners and 16% for survivor pensioners.
– It is anticipated that this reform will inject about P92.8 billion into the economy between 2025 and 2027, thereby boosting economic activity and providing pensioners with increased purchasing power.
SSS President Robert Joseph De Claro confirmed that despite the increase, the fund’s life will be manageable, with projections extending to 2053, supported by measures to expand coverage and improve collection efficiency. The reform is seen as a response to inflation and aims to restore the purchasing power of the beneficiaries.
Furthermore, Finance Secretary Ralph Recto emphasized the program’s importance in promoting economic growth by providing additional financial support to the elderly and those unable to work due to disability. The SSS has assured that this pension increase does not necessitate contribution hikes, differentiating it from previous increases that required adjustments to member contributions, such as the P1,000 additional benefit allowance introduced in 2017.