Finance leader directs Social Security System to launch three-year increase in pension benefits
The Social Security System (SSS) in the Philippines has announced a three-year pension reform program, aimed at providing significant increases to retirement, disability, and survivor pensions. The reform program has been designed to be "rational and sustainable," according to SSS President and CEO Robert Joseph De Claro.
Under the reform program, both retirement and disability pensions will see a 10% annual increase, starting from September 1, 2021, and lasting until 2027. Death and survivor pensions, on the other hand, will increase by 5% each year during the same period. This means that death and survivor pensioners will see a 16% increase in their pensions, while retirement and disability pensioners can expect a 33% increase.
The SSS has emphasized that the pension increases will not compromise the fund's actuarial soundness. In fact, De Claro stated that the pension increase will not require higher contribution rates. The Department of Finance (DOF) also predicts that the pension hike will help alleviate around 3.8 million families from poverty.
The MySSS Card, which is set to replace the Unified Multi-Purpose Identification (UMID) card as the SSS' official ID, will also be rolled out as part of the reform program. The MySSS Card is intended to help pensioners receive their benefits faster.
However, the DOF has not specified the exact number of pensioners that will benefit from the 10% and 5% annual increases. Additionally, no information has been provided about any potential impact on contribution rates or the timeline for the MySSS Card rollout.
It's worth noting that the finance chief serves as the ex-officio chair of the Social Security Commission. As for the Economic Secretary during the announcement of the pension reform program, no direct information was found about who replaced the Economic Minister in that context as of 2025.
The SSS has not announced any changes in the pension increase's description as "rational and sustainable." The organization has also not revealed any potential compromises to the fund's actuarial soundness due to the pension increase.
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