Social Security System said Monday it posted earnings of P28 billion in 2021 from its operations, with contributions and investment income exceeding benefit payments and operating expenses.
Citing its 2021 unaudited financial statement, SSS said cash inflows of P262 billion surpassed cash outflows of P234 billion.
SSS in the last six years recorded cumulative earnings of P202 billion, even with a record-breaking P1.1-trillion benefit payments and P254-billion loan releases to members and pensioners.
SSS’ adoption of the Philippine Financial Reporting Standards (PFRS) 4, which recognizes Social Benefit Liabilities (SBLs) and the Margin for Adverse Deviation (MfAD), resulted in an increase in policy reserves of P872 billion that contributed to the accounting net loss of nearly P844 billion for 2021.
SSS president and chief executive Michael Regino clarified that the increase in policy reserves was not actual cash that went out of the fund in 2021. He said these were simply estimates of the “required reserves to fund future benefit claims.” Julito G. Rada