The Social Security System (SSS) said that paper losses on its stock investments do not affect the benefits of members and pensioners, and that payouts to eligible claimants continue.
In a press release, the agency said it manages member contributions with care to protect the pension fund and ensure the continued payment of benefits. SSS defined a paper loss as an unrealized decline in the market value of an investment that has not been sold.
According to the agency, no cash is lost unless an asset is sold below its purchase price. It added that a paper loss does not mean members’ contributions have been used or that pensions are at risk, and that market prices may recover over time.
SSS is the state-run pension fund for private sector workers in the Philippines. Its assets stood at ₱1.35 trillion as of August 2026, according to a Manila Bulletin report published on August 11.
SSS said it invests only in companies with strong earnings records and stable business performance, and that it does not place members’ money in risky or speculative investments. The agency said its portfolio is spread across different asset types, so gains in some investments can offset declines in others. SSS described itself as a long-term investor and moderate risk-taker that invests with skill, care, prudence and diligence, and only in companies with a record of profitability and dividend payments.
The agency said it continues to receive dividend income from its equity holdings despite price swings. It estimated that dividends add about ₱9 billion to its net income each year. SSS also said it has earned ₱204 billion in realized gains since it began investing in the Philippine stock market in 1968. In the first eight months of 2026, it earned ₱6.78 billion in dividends and ₱799 million from the sale of profitable stocks, according to the agency.
SSS said its financial performance has allowed higher payouts. From January to June 2026, benefit payouts rose 19 percent to ₱173.45 billion, from ₱145.73 billion in the same period of 2025. The agency also implemented the second tranche of its Pension Reform Program, releasing ₱7.4 billion in additional pension benefits to 4.1 million pensioners. The release said the increase was meant to help pensioners cope with inflation and higher energy costs.
The agency said that the pension increase scheduled for 2027 will be released as planned and that there will be no increase in the contribution rate.
The statement did not disclose the size of the paper losses or identify the holdings affected.
SSS said it reviews its investment strategy regularly and complies with the Social Security Act of 2018 and its internal policies to safeguard the pension fund.
