The state pension fund Social Security System (SSS) announced last Thursday that it had extended its fund life by a further 22 years due to contribution rate increases since 2019.
SSS President and CEO Michael G. Regino said that after the introduction of the P1,000 P supplemental pension benefit (about $18.10 at current exchange rates) in 2017, the lifespan of the SSS fund would only have lasted until 2032.
With the help of incremental contribution rate increases under Republic Act 11199 (Social Security Act of 2018), the life of the fund has been extended by a further 12 years or until 2044.
Recently, the latest SSS actuarial assessment showed that the fund’s lifespan was extended by an additional 10 years, which Regino attributed to the pension fund’s efforts to increase its membership and coverage.
SSS now forecasts an extension of the fund’s lifespan to 2054.
From January 1st, SSS will implement the third step of its four-stage fee increase. The SSS contribution rate would be 14 percent, an increase of 1 percentage point from the current 13 percent.
Regino said the SSS is still working to further extend the life of the fund to fulfill its mandate to provide social protection to its stakeholders that should transcend generations.
“It is important to us to implement the contribution rate increase alongside other social reforms so that we can achieve this goal and ensure we have sufficient funds to meet the short- and long-term benefits, including immediate financial needs, of our members and retirees, especially in times of emergencies,” Regino said.