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Philippine audit report says pension fund SSS’ net loss widens 31.5% in 2020

SSS recorded a net loss of 427.27 billion pesos of net loss in 2020, versus 324.85 billion pesos of net loss in 2019
By Goh Thean Eu   
December 16, 2021

The Philippines’ Social Security System (SSS) incurred a net loss in 2020 that was almost one-third wider than in 2019, primarily from lower contributions in the wake of the coronavirus crisis and its adoption of new accounting standards, according to a newly published audit report.

The SSS manages retirement savings of private sector employees.

The fund’s net loss increased 31.53% to 427.27 billion pesos (US$8.3 billion) from 324.85 billion pesos in 2019, the Commission of Audit, which audits the accounts of all government funds and properties, says in the report posted on its website.

Income from premium contributions fell to 205.70 billion pesos from 222.75 billion pesos in 2019. The number of active contributing SSS members dropped to 16.18 million from 17.64 million.

In addition to the impact of Covid-19, the SSS’ adoption of new accounting standards also resulted in “significant liability amounts and negative equity”, the report says.

The fund also incurred higher expenses last year. “On the expenditure side, SSS posted an increase of 13.33% in 2020 mainly due to increase of expenses related to the recognition of provision for insurance contract liability,” the report says.

According to the report, the SSS had 639.99 billion pesos of total assets as of end-2020, up 6.4% from 2019.