Pension hike drags down SSS earnings in H1
The Philippines' Social Security System (SSS) reported a 27.8 percent decline in net income for the first half of the year. This drop is attributed to increased benefit payouts, including a new pension hike program, despite growth in contributions.
Why it matters
Highlights the fiscal challenges of state-run pension funds balancing social welfare obligations with financial sustainability.
MANILA, Philippines - State-run pension fund Social Security System (SSS) reported a 27.8-percent drop in net income in the first half, as benefit payouts outpaced contributions and investment earnings.
The pension fund manager's latest financial statement showed its net income slipped to P48 billion from P66.45 billion a year ago.
This comes as total expenses ballooned by 26.8 percent to P206.8 billion at end-June from P163.10 billion in the same period last year.
Benefit payments stood at P173.45 billion, up by 19 percent from P145.73 billion.
SSS also reported that it paid P4.32 billion for personal services and P1.48 billion for maintenance and other operating expenses.
The SSS began the early rollout of the second tranche of its three-year pension hike program, where retirement and disability pensioners will receive a 10-percent increase in their monthly pensions, while death and survivor pensioners will get a five-percent increase.
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