SSS assures members pension fund remains secure

The Social Security System (SSS) on Friday assured members that their contributions are being managed prudently to protect the pension fund and sustain benefit payments, amid possible concerns over fluctuations in investment values.

In a statement, SSS said it invests in companies with established earnings records and stable business performance, avoiding risky or speculative investments. Its portfolio is diversified across asset classes to spread risk and offset declines in some investments with gains in others, it added.

SSS said it continues to earn dividends from its stock holdings despite fluctuations in share prices, generating an estimated P9 billion in annual income. Dividends are portions of corporate earnings distributed to shareholders.

The pension agency also clarified that a paper loss refers to an unrealized decline in an investment’s market value before the asset is sold. Such a decline does not result in an actual loss from a sale unless the investment is sold below its purchase price, it said.

SSS added that changes in market prices do not necessarily mean members’ contributions have been lost or that pension payments are at risk, as investment values may recover over time.

The agency cited its financial performance in explaining its capacity to pay benefits. From January to June 2026, benefit payouts rose 19 percent to P173.45 billion from P145.73 billion in the same period last year.

SSS also said it had implemented the second tranche of its Pension Reform Program, releasing an additional P7.4 billion in pension benefits to 4.1 million pensioners to help them cope with inflation and higher energy costs.

The agency said it regularly reviews its investment strategy and complies with the Social Security Act of 2018 and its internal policies to safeguard the pension fund.