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THE SOCIAL Security System <\/span>(SSS) is launching a significant pension reform initiative commencing<\/span> this September, which will systematically elevate the monthly pensions of all beneficiaries over a three-year timeline.<\/p>\n The Social Security Commission (SSC) ratified the SSS Pension Reform Initiative, which includes a phased, three-year enhancement in pensions for all SSS recipients, on July 11.<\/p>\n This marks the first multi-year modification of pensions in the SSS\u2019 68-year journey.<\/p>\n \u201cFollowing a meticulous actuarial assessment, we are implementing a feasible and sustainable pension upgrade that benefits all recipients without jeopardizing the fund\u2019s actuarial integrity,\u201d SSS President and Chief Executive Of<\/span>f<\/span>icer Robert Joseph M. De Claro stated in a release.<\/span><\/p>\n Beginning this year, all beneficiaries as of Aug. 31, 2025, will obtain annual pension enhancements each September until 2027.<\/p>\n The pension for retirement and disability recipients will be increased by 10% every September until 2027. The pension for death or survivor recipients will see a 5% rise.<\/p>\n \u201cAfter three years, pensions are expected to rise by about 33% for retirement\/disability recipients and 16% for death\/survivor recipients,\u201d the SSS noted.<\/p>\n Approximately 3.8 million recipients will take advantage of the pension reform. This encompasses 2.6 million retirement\/disability recipients and <\/span>1.2 million survivor beneficiaries.<\/p>\n The SSS conveyed that the pension reform initiative \u201cwill not require any increase in contributions.\u201d<\/p>\n Mr. De Claro mentioned that the actuarial team confirms that the pension fund \u201ccontinues to be financially robust.\u201d<\/p>\n Citing its lead actuary, the SSS indicated that the reform will marginally reduce the fund\u2019s lifespan \u2014 to 2049 from 2053 previously, but this is mitigated by strong cash flow from prior contribution modifications and improved collection efforts.<\/p>\n Mr. De Claro asserted their commitment to restoring fund life back to 2053 through expanded coverage and enhanced collection eff<\/span>iciency.<\/p>\n Finance Secretary Ralph G. Recto, who presides over the SSC, remarked that the pension increase will help stimulate economic growth as beneficiaries will possess greater purchasing power.<\/p>\n The SSS projected that the pension increase will inject approximately P92.8 billion into the Philippine economy from 2025 to 2027, while the Department of Finance (DoF) estimated this could soar to P117.2 billion.<\/p>\n \u201cFor retirement recipients aged 60-89 (99.4% of all retirement beneficiaries), around P4,923 is the average monthly pension just prior to the commencement of this reform initiative. This amount will rise to about P6,548 after the third tranche of the pension boost \u2014 an increase of P1,625 or 33%,\u201d the DoF stated.<\/p>\n