photo from: google

The Social Security System (SSS) implemented pension increases for 3.8 million retirees this month while warning the public against scammers impersonating agency officers to steal personal information.

SSS pensioners began receiving increases as part of President Ferdinand Marcos Jr.’s program to protect retirees’ interests. 

The pension reform program provides 10% annual increases for regular and disability pensioners and 5% annual increases for survivor pensioners through 2027.

The SSS hopes the additional income will stimulate economic growth through increased consumer spending, though some pensioners expressed dissatisfaction with the amounts, saying they are insufficient to offset inflation effects and cover maintenance medication costs. 

Under former President Rodrigo Duterte’s administration, pensioners received a 1,000-peso increase, while current increases may not reach P500 pesos.

Separately, the state pension fund warned members against fraudsters who contact them through text messages, phone calls and social media, requesting Social Security numbers, online account usernames and passwords, and other sensitive data. 

The agency advised the public to avoid providing personal information when uncertain whether the requester is a legitimate SSS employee and urged members to conduct transactions only through official channels.

Pension Reform Social Security System officials explained the rationale behind recent pension increases during a Thursday briefing.

Christopher Hapay, assistant head of SSS Tagbilaran, said the agency implemented the Pension Reform Program in September, providing substantial assistance to pensioners and survivor benefit recipients.

The program increases pensions by 10% for regular and disability pensioners and 5% for survivor pensioners, with additional increases scheduled for next year and 2027. 

The increases are reflected in this month’s pension payments.

Hapay acknowledged the increases will minimally impact the pension fund’s financial position. 

Without the increases, the fund was projected to last until 2053; with the increases, the fund life is shortened to 2049.

The SSS is working to restore the fund’s longevity to 2053 through efficient contribution collection and sound investments, Hapay said.

He said the SSS law mandates pension increases and fund managers determined the increases were necessary to follow Marcos’ directives. 

The agency decided survivor pensioners deserved only a 5% increase.

Despite the pension increases, the SSS will not raise member contributions. 

The third tranche of contribution increases took effect in January 2025, with no additional increases planned.

Hapay said the SSS has implemented reforms to accelerate transactions and reduce wait times.