The Social Security System (SSS) pension reform program (PRP), which features a structured, three-year increase in pensions for all SSS pensioners, starts this month.
The PRP will not necessitate any contribution increase, unlike the P1,000 additional benefit allowance given to all pensioners starting 2017, which immediately required contribution increases to restore financial stability to the fund.
The reform will benefit over 3.8 million pensioners, including 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners. It is projected to inject P92.8 billion into the economy from 2025 to 2027.
The increases will be implemented in three annual tranches every September until 2027 – 10 percent increase for retirement and disability pensioners and 5 percent increase for death or survivor pensioners.
After three years, pensions will have increased by approximately 33 percent for retirement/disability pensioners and 16 percent for death/survivor pensioners. ||
