Poor Pension System

The Social Security System (SSS) just announced what it refers to as a landmark pension reform program beginning September this year.

- MARY ANN LL. REYES

The program features a structured, three-year increase in pensions for all SSS pensioners, the first multi-year adjustment in the institution's 68-year history.

According to the SSS, the increases will be implemented in three annual tranches. For pensioners as of Aug. 31, 2025, there will be a 10 percent increase for retirement and disability pensioners in September 2025 and a five percent increase for death or survivor pensioners. For pensioners as of Aug. 31, 2026, there will be an additional 10 percent increase in retirement and disability pensions beginning September 2026 and an additional five percent for death or survivor pensioners. The third and last tranche will be implemented in September 2027 for pensioners as of Aug. 31, 2027 and will involve an additional 10 percent increase for retirement and disability and an additional five percent for death or survivor pensioners.

After three years, pensions will have increased by around 33 percent for retirement/disability pensioners and 16 percent for death/survivor pensioners.

The SSS provided an example of the estimated pension increases over the three-year implementation period. In terms of the minimum rate, those receiving P2,000 as of today as retirement pension will receive the increased rate of P2,420 per month by September 2025, P2,662 by September 2026, and then P2,928.20 by September 2027. For survivorship pensioners receiving P2,000 as of today, they will be getting P2,100 by September 2025, P2,205 by September 2026 and P2,315.25 by September 2027.