SSS to grow reserve fund to P2 trillion

THE SOCIAL Security System (SSS) expects its reserve fund to reach P2 trillion before the end of the current administration.

“My dream is to, before the end of the administration, reach P2 trillion… As you know, we came from the pandemic and the growth has been exponential, but I think the road to P2 trillion is getting nearer. We are on track to reach P2 trillion within the next three to four years,” SSS President and Chief Executive Officer Robert Joseph M. De Claro said in a press conference on Thursday.

Last year, the SSS’ reserve fund breached the trillion mark for the first time, ending at P1.065 trillion.

The state pension fund is also looking to increase the share of its investment income to total revenues as it targets higher premium contributions, driven by growth in its members and expanded offerings.

“With our programs, the intention is to have more members contributing more to the institution,” Mr. De Claro said.

The SSS recorded a net income of P142.97 billion in 2025, surging by 58.4% from P90.248 billion in 2024.

Finance Secretary Frederick D. Go said at the same event that the state pension fund was the most profitable government-owned or -controlled corporation last year.

It booked P460.761 billion in revenues last year, with P377.6 billion sourced from members’ contributions, which grew by 15.6% year on year, and the remaining P83.161 billion coming from investment income, up 571%.

Mr. De Claro said that following their positive financial performance last year, they are now looking at international investment opportunities for further growth.

“Because today, all of SSS’ investments are local. In our charter, it is allowed that we can invest up to 7.5% of the IRF (Investment Reserve Fund) in foreign investments. Maybe this will jumpstart our foreign investments, but with the objective of attracting also investors going to the Philippines,” he said.

“I think the life of the fund is also dependent — really, more than anything else — on the quality of the investments. So, the key is the quality of the investments of the fund which are being well taken care of,” Mr. Go said.

The SSS chief added that they hope to recoup the three years’ worth of fund life that was lost to the pension reform program announced in 2025 by this year, backed by the programs they plan to launch and expand.

“But again, the fund life is safe today at 25 years.”

The SSS in September implemented the first tranche of its three-year pension reform program, which will raise the pension for retirement and disability pensioners by 10% every September until 2027, while the pension for death or survivor pensioners will be increased by 5%.

When the reform program ends, pensions will have increased by approximately 33% for retirement/disability pensioners and 16% for death/survivor pensioners.

Mr. De Claro previously said the reform program will shorten the fund’s lifespan to 2049 from 2053 previously.

He added that the SSS has plans to increase contributions after the lifting of its moratorium once the reform program ends in 2027 until 2029.

“By 2029, the SSS will be 10 years old. So, it’s up to Congress probably to review at that point in time whether or not there could be increases in contribution. But as of today, we do not foresee an increase in contribution,” he said.

The pension fund on Thursday also announced that it plans to launch a micro loan program next quarter with an annual interest rate of 8% in partnership with banks.

Mr. De Claro said the SSS has already tapped five partner banks that will offer the micro loan through their respective mobile banking apps.

Mr. Go told reporters that the loanable amount for the program will range from P1,000 to P20,000.

The SSS will also launch more loan programs this year for micro, small, and medium enterprises and overseas Filipino workers. — Aaron Michael C. Sy