THE net income of the Social Security System (SSS) fell by nearly a quarter in the first three months of the year as benefit payments to private-sector members climbed.
The state-run pension fund’s latest financial statement showed its net income slipped by 23.27 percent to P25.3 billion from P32.976 billion a year ago. This comes after the SSS reported an 11.32-percent increase in its total income of P130.145 billion and a 24.92-percent rise in total expenses worth P104.844 billion in the first quarter.
Still, the growth in total income outpaced expenses, with benefit payments increasing by 16.65 percent to P85.383 billion, compared with P73.195 billion from a year earlier.
The SSS provides social security benefits, or replacement for loss of income due to death, disability, sickness, maternity, old age, and unemployment, to its members.
Despite higher benefit payments, SSS grew its revenue through stronger service and business income, as well as gains and other non-operating income.
The pension fund’s business income jumped to P119.850 billion in the first quarter, attributed to net investments and other income nearly tripling year-on-year to P27.692 billion from P10.213 billion.
Members’ contribution also inched up by 5.96 percent to P101.899 billion from P96.166 billion.
Moreover, SSS earned a total of P10.238 billion in gains from changes in the fair value of financial instruments, as well as from foreign exchange, sale/redemption/transfer of investments, among others.
The SSS recently rolled out the second tranche of its three-year pension hike program, which increases the pensions of retirement and disability pensioners by 10 percent and survivor pensioners by 5 percent.
While the pension reform will not necessitate any contribution increase, SSS said the move will shorten its fund life to 2049 from 2053.
However, this will be offset by stronger cash flows from previous contribution reforms and enhanced collection efforts, it said.
The SSS’s total assets stood at P1.303 trillion as of end-March 2026, up from P1.254 trillion a year earlier.