SSS disburses P2.49T in total benefits

The growth in SSS’ benefit disbursements can be attributed mainly to the gradual addition of benefits, increase in the number of its members, and expansion of membership coverage

The Social Security System has disbursed a total of P2.49-trillion in benefits through a total of 45 million claims it has received from September 1957 at the start of its operations, up to August 2022, an official said on Tuesday. “If the total amount of SSS benefit disbursements for the said period is adjusted for inflation, this would amount to P3.77 trillion, with long-term benefits totaling P3.33 trillion and short-term benefits coming to P433.25 billion,” SSS president and chief executive officer Michael Regino said in a statement.

The private sector pension fund made this disclosure as it reached its 65th year of service to Filipino employees in the private sector.

“Long-term benefits accounted for almost 90 percent of said disbursements with Retirement Benefits at nearly P1.33 trillion, Death Benefits at P792.92 billion, and Disability Benefits at P119.18 billion for a total of around P2.24 trillion,” Regino said.

Short-term benefits, on the other hand, made up the remaining 10 percent with Maternitys Benefit at P120.91 billion, Funerals Benefit at P68.17 billion, Sickness Benefits at P56.92 billion, Unemployment Benefits at P3.69 billion, and Employees’ Compensation Medical or Rehab Services at P1.77 billion for a total of some P251.47 billion, the SSS chief added.

Benefit disbursements

“From 1957 up to 2021, we recorded annual increases in the amount of benefit disbursements, except only for 2020 due to the Covid-19 pandemic. Our P223.98 billion benefit disbursements for 2021 are an all-time high,” Regino said.

“This year, we are on track to exceed this amount as for the first eight months of 2022 we have already disbursed P165.04 billion benefits, which is 7.1 percent more than the P154.05 billion disbursed for the same period last year,” he added.

The growth in SSS’ benefit disbursements can be attributed mainly to the gradual addition of benefits, increase in the number of its members, and expansion of membership coverage.

Regino said that some of these factors are the scheduled reforms provided under the Social Security Act of 2018.

“This includes the increase in the contribution rate, and minimum and maximum monthly salary credit every other year starting 2019 until 2025, which, besides strengthening the SSS fund life would gradually raise the minimum and maximum benefit a member may receive,” he added.