Philippine pension fund Social Security System (SSS) had been destined to end life in ten years, but higher contribution rates, greater coverage and increased membership has extended it to 2054.
Covering private sector employees and the self-employed, the SSS had over 40.5 million members at the end of 2021, and 710.43 billion pesos (US$12.84 billion) of assets as of end-June 2022.
According to SSS President and Chief Executive Officer Michael Regino, the life of the fund would have ended in 2032 after it began providing members with an additional 1,000 pesos of benefits in 2017.
He says gradually higher contribution rates mandated by the Social Security Act of 2018 has helped increase the life by 12 years to 2044, while the fund’s push to extend membership and coverage has added another ten years.
The contribution rate is currently 13% after increases in 2019 and 2021, and will rise again to 14% on January 1.
“The SSS now projects the fund life to be extended until 2054. This means an additional 22 years wherein all SSS members and pensioners can enjoy their various benefits,” Regino says in a statement recently.
“It is important for us to implement the contribution rate increase together with other social reforms so we could achieve this goal and ensure that we have sufficient funds to provide the short- and long-term benefits, including the immediate financial needs, of our members and pensioners especially in times of contingencies,” he adds.
