The Social Security System (SSS) will launch its Pension Reform Program (PRP) this September, following the directive of President Ferdinand R. Marcos Jr. and discussions with Finance Secretary Ralph Recto.
The PRP introduces a structured, three-year pension increase, the first multi-year adjustment in SSS’s 68-year history. Over 3.8 million pensioners will benefit, including 2.6 million retirement and disability pensioners and 1.2 million survivor pensioners. The program is expected to inject PHP92.8 billion into the economy from 2025 to 2027.
Unlike the PHP1,000 pension hike in 2017, the PRP will not require any contribution increase. Approved under Social Security Commission Resolution No. 340-s.2025, the reform is anchored on the Social Security Act of 2018 (RA 11199), which empowers the SSC to adjust pension benefits.
“We’ve heard the clamor for higher pensions loud and clear,” SSS President and CEO Robert Joseph De Claro said. “With the guidance of Finance Secretary and SSC Chairperson Ralph Recto, and after careful actuarial review, we are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness.”
The increases will be implemented in three annual tranches every September until 2027: a 10% increase for retirement and disability pensioners and a 5% increase for death or survivor pensioners. By the end of the program, pensions will have increased by about 33% for retirement/disability pensioners and 16% for death/survivor pensioners.
SSS said the PRP focuses on three goals: uplifting all pensioners through inclusive adjustments, protecting purchasing power against inflation, and promoting the value of working, saving, and investing.
According to SSS’s chief actuary, the reform will result in a manageable reduction of fund life from 2053 to 2049, which will be offset by stronger cash flows from contribution reforms and improved collections.
“Our actuarial team confirms that the fund remains financially sound,” De Claro said. “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.”
