The SSS main office in Quezon City. (File photo from the Philippine Daily Inquirer)
MANILA, Philippines —The Social Security System (SSS) posted a net income of P83.13 billion in 2023, exceeding by 62.8 percent its target of P51.06 billion for the year and the highest attained so far by the state pension fund.
Based on its unaudited financial statement, the SSS said the 2023 bottom line market a big jump from the P52.6 billion recorded in the previous year.
In a statement, SSS President and Chief Executive Officer Rolando Ledesma Macasaet said SSS’ income in 2023 grew by 15.6 percent to P353.82 billion from P306.16 billion in the previous year.
Macasaet said the bulk of SSS revenue in 2023 came from contribution collection, which rose by 18.2 percent to P309.12 billion from the P261.44 billion collected in 2022.
“Our record-high net income last year shows that we continue to strengthen our finances through programs and policies that increase new paying members and strengthen collection efforts,” he said.
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Expenses at modest levels
Expenses were kept at modest levels, providing a big boost to the fund’s profit for the year.
“SSS recorded lower-than-revenue expenses of P270.69 billion, wherein the lion’s share of the total expenditure in 2023 went to benefit payments to members and pensioners,” the statement quoted Macasaet as saying.
“Our 2023 expenses reflect how SSS has prudently kept its expenses at modest levels and ensure that every peso contributed by its members is well spent for the benefit of all its stakeholders,” he said.
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He said benefit payments last year stood at P259.03 billion, up by 6.7 percent from P242.81 billion in 2022, while operating expenses were at P11.65 billion, 8.4 percent higher than the P10.75 billion a year ago.
“Our operating expenses last year were only 30.32 percent of the allowed charter limit of P38.4 billion. Based on our charter, the operating expenses are 12 percent of the contribution collections and 3 percent of other SSS income such as investments and loans,” Macasaet explained.
Intensified collection efforts
Macasaet attributed the outstanding financial performance of SSS last year to the efforts of the SSS management and employees in intensifying its collection activities such as registering new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike.
“We implemented new initiatives in 2023 that resulted in an expansion of SSS membership and reaching more workers,” SSS Executive Vice President for branch operations sector Voltaire P. Agas said.
Agas also said the SSS, with its Run After Contribution Evaders (RACE) campaign, recorded high collection of delinquencies from employers who were not remitting their employees’ contributions.