THE Social Security System (SSS) has reassured its members that their contributions are being managed with care to protect the pension fund and sustain the timely payment of benefits.
According to the SSS in its statement emailed to The Manila Times on Wednesday, it invests only in companies with strong earnings track records and stable business performance and avoids placing members’ money in risky or speculative ventures.
The state pension fund said its portfolio is spread across different asset types, a strategy that helps reduce risk because gains in some investments can offset losses in others.
The reassurance comes after the Commission on Audit (COA) earlier this month flagged nearly P40 billion in unrealized investment losses at the SSS along with the P490.21 million in pension overpayments to deceased beneficiaries, citing weaknesses in risk management and benefit monitoring.
In its 2025 annual audit report, the COA said unrealized losses in the pension fund’s equity portfolio had more than tripled to P40 billion from P11.6 billion in 2021, raising concerns about the protection of its Investment Reserve Fund.
While stock prices may fluctuate, it continues to earn dividend income from its equity holdings, contributing an estimated P9 billion to its net income each year. Dividends are part of the earnings distributed to stockholders, the SSS explained.
It also clarified that a paper loss refers to an unrealized decline in the market value of an investment that has not yet been sold.
“No cash is actually lost unless the asset is sold below its purchase price. Such a loss does not mean members’ contributions have been used or that pensions are at risk,” the SSS said as it noted that market prices may recover over time.
The pension fund’s strong financial performance has allowed it to increase benefit payouts. From January to June 2026, benefit disbursements rose 19 percent to P173.45 billion from P145.73 billion in the same period in 2025, it revealed.
The agency said it also rolled out the second tranche of its Pension Reform Program, releasing P7.4 billion in additional pension benefits to 4.1 million pensioners to help them cope with inflation and higher energy costs.
The SSS said it regularly reviews its investment strategy and strictly complies with the Social Security Act of 2018 and its internal policies to safeguard the pension fund.