CoA flags P40 billion in unrealised investment losses at Philippine SSS
The Philippine Commission on Audit flagged nearly P40 billion in unrealised investment losses at the Social Security System, along with P490.21 million in pension overpayments to deceased beneficiaries. The 2025 audit report also highlighted underused properties, weak risk management, and 44 unimple
THE COMMISSION on Audit (CoA) flagged nearly P40 billion in unrealised investment losses at the Social Security System (SSS), along with P490.21 million in pension overpayments to deceased beneficiaries, citing weaknesses in risk management and benefit monitoring.
In its 2025 annual audit report, state auditors said unrealised losses in the pension fund's equity portfolio surged more than three times to P40 billion from P11.6 billion in 2021, raising concerns about the protection of its Investment Reserve Fund (IRF). The SSS lacked formal stop-loss thresholds that would trigger corrective action when investments declined in value, CoA said.
Auditors recommended establishing enforceable stop-loss limits, procedures for rebalancing investment portfolios and regular stress tests to strengthen the pension fund's risk management. The commission also questioned the SSS's 4.75% equity stake in a domestic casino and gaming company, warning that the investment could expose the agency to regulatory scrutiny and reputational risks.
The audit also flagged P8.5 billion in contracts with external fund managers, citing deficiencies involving contracting authority, service classification and investment strategies. Additionally, CoA found that 24 SSS investment properties valued at P98.75 billion were underused, idle or physically deteriorating, depriving the pension fund of potential revenue and investment returns. The commission urged the agency to prepare plans for disposing of vacant properties and resolve agrarian reform claims and legal disputes affecting its real estate holdings.
Meanwhile, pension overpayments to deceased beneficiaries rose to P490.21 million in 2025 from P453.59 million a year earlier, exposing deficiencies in the SSS's system for verifying pensioner eligibility. CoA recommended reviewing the Annual Confirmation of Pensioners policy, which requires pensioners aged 80 and older to confirm their eligibility each year, and urged the SSS to consider mandatory verification for all pensioners regardless of age.
Despite the deficiencies, CoA issued an unmodified audit opinion on the SSS's financial statements for 2025 and 2024, indicating that they were fairly presented in accordance with applicable accounting standards. The report also noted P1.397 trillion in insurance contract liabilities, representing the present value of future benefit obligations. The SSS reported a net loss of P1.251 trillion in 2025, with total assets of P1.254 trillion and liabilities of P11.5 trillion. Revenue increased by P76.047 billion to P491.047 billion, partly reflecting higher contribution rates and an increase in the maximum monthly salary credit used to calculate contributions.
CoA also reported P943.51 million in outstanding audit disallowances as of the end of 2025. Of the 70 recommendations in the previous year's audit report, 44 remained unimplemented, auditors said.
