SSS to increase pensions starting September

MANILA, August 2 ------ The Social Security System (SSS) said it was increasing pensions for 3 years starting September this year. In a statement, the SSS said retirement, disability, and survivorship pensions will increase in three yearly tranches starting 2025. Those who receive retirement and disability pensions will get a 10 percent increase in September, while survivor benefits will increase by 5 percent.

Their pensions will again increase by the same amount in September 2026, and again in September 2027. In order to be eligible for the increase, one must be a pensioner as of August of the same year. Below is a sample computation of what pensioners will receive with each increase, as released by the SSS.

The SSS said that while it implements these pension increases, there shall be a moratorium on contribution increases over the same period. Thus, the pension increases shall not require any contribution increase. "This is made possible by strong cash flows from the completed contribution rate hikes mandated by the Social Security Act of 2018—from 2019 to 2025—as well as positive financial performance from January to April 2025," it said.

The pension reform is expected to inject P117.2 billion into consumer spending through the pensioners, boosting economic growth over the next three years, the SSS added. "We are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness," SSS President Robert Joseph De Claro said.

Source: news.abs-cbn.com