The Philippines’ state-run Social Security System (SSS) earned 53.1 billion pesos (US$950 million) revenue from investments last year, beating its target by nearly 50% in spite of volatile markets.
The investment revenue was up 18.8% from 44.7 billion pesos in 2022. Its goal was to earn 36.3 billion pesos from investments last year, the SSS says in a statement on February 14.
Total revenue, which includes contributions from the fund’s 16 million private sector members, hit a record 362.2 billion pesos, nearly 10% higher than its 330.8 billion peso target.
The better than expected revenue “indicates that the SSS investment portfolio is being managed well and that we continue to perform well in our investment activities whatever the prevailing market conditions”, according to President and Chief Executive Officer Rolando Ledesma Macasaet.
“Our 2023 financial performance is indicative of the efforts of the SSS management and employees in intensifying collection activities and the prudent management of our investments,” he says in the statement.
Members’ mandatory contributions totalled 309.1 billion pesos or over 85% of the fund’s total investment revenue, better than its 294.5 billion peso target, and up 18.2% from 261.4 billion pesos in 2022.
Voltaire Agas, executive vice president for branch operations at the SSS, attributes the increase to a one-percentage point hike in the contribution rate to 14% that took effect in January 2023, which generated an additional 27.8 billion pesos, as well as to 1.4 million new paying members who added 10.5 billion pesos. It was also due to improved collections from previously delinquent employers, he says.
Total expenditures rose 6.7% to 270.5 billion pesos. The spending was mainly on sickness, maternity, disability, retirement, unemployment, death and funeral benefits for members.
Benefit payments also increased 6.7% to 259 billion pesos, while operating expenses “remained below the allowable limit under the SSS Charter”, Macasaet says.
