The Social Security System (SSS) pension reform program (PRP) will start in September in line with the directive of President Ferdinand R. Marcos Jr. and following the discussion with Finance Secretary Ralph Recto.
Supported by comprehensive actuarial studies, the PRP features a structured, three-year increase in pensions for all SSS pensioners -- the first multi-year adjustment of its kind in the institution’s 68-year history.
The SSS news release said the PRP will not necessitate any contribution increase, unlike the P1,000 additional benefit allowance given to all pensioners starting 2017, which immediately required contribution increases to restore financial stability to the fund.
The reform will benefit over 3.8 million pensioners, including 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners. It is projected to inject P92.8 billion into the economy from 2025 to 2027.
The PRP was approved by the Social Security Commission (SSC) under Resolution No. 340-s.2025 dated July 11, 2025.
Anchored on Republic Act (RA) No. 11199 (Social Security Act), particularly Section 4 empowering 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 CEO Robert Joseph De Claro said in a previous statement.
“With the guidance of Finance Secretary and SSC Chairperson Ralph G. 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 -- 10 percent increase for retirement and disability pensioners and 5 percent increase for death or survivor pensioners.
After three years, pensions will have increased by approximately 33 percent for retirement/disability pensioners and 16 percent for death/survivor pensioners.
SSS said the PRP program is guided by three principles: Uplifting all pensioners through inclusive benefit 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.”
SSS PHOTO
