If you are an SSS member or pensioner, your feed has probably been full of scary headlines this week. The Commission on Audit (COA) flagged nearly ₱40 billion in unrealized investment losses at the SSS, and a new SSS chief was named days later. Here is what happened, what SSS says, how the stock market backdrop looks, and what it means for your contributions and pension.

What did COA actually flag?

In its 2025 annual audit report, COA said the SSS’s unrealized equity losses rose to ₱39.994 billion from ₱11.6 billion in 2021, a 245% surge. The affected shares were acquired for ₱121.467 billion and had a market value of ₱81.473 billion at year-end 2025, a decline of 32.93% from cost.

The reason COA gave matters most. State auditors attributed the losses to the lack of formal stop-loss thresholds that would trigger corrective action and protect the Investment Reserve Fund (IRF). In other words, the issue is about risk controls, not only about prices going down.

Where the losses sit

COA did not name the companies. It labeled them by industry, and these are the six biggest, as reported:

• A telecom company led with ₱17.615 billion in paper losses, with SSS holding 11.055 million shares worth ₱13.929 billion at end-2025.
• A food and beverage company followed with ₱5.068 billion, and a bank with ₱3.735 billion. The food and beverage loss was nearly twice the position’s remaining market value of ₱2.836 billion.
• An energy company lost ₱1.935 billion, a holding company ₱1.876 billion (as property demand weakened), and a gaming and leisure firm ₱1.179 billion.

Together these six add up to about ₱31.4 billion, or roughly 79% of the total (our addition). COA also challenged SSS’s explanation that the losses mostly reflected a weak stock market, saying the declines may reflect underlying business conditions rather than short-term price volatility.

Other findings in the same audit

COA flagged ₱490.21 million in pension overpayments to deceased beneficiaries, and 24 investment properties valued at ₱98.75 billion that were underused, idle, or deteriorating. It recommended enforceable stop-loss limits, portfolio rebalancing procedures, and regular stress tests.

What is a “paper loss,” really?

A paper loss (unrealized loss) is a drop in the market value of a stock you still hold. SSS explained that no cash is lost unless the asset is sold below its purchase price. If prices recover, the loss shrinks. If SSS sells below cost, it becomes real.

Both sides have a point. SSS is right that a paper loss is not cash leaving the fund today. COA is right that a large and persistent one is a warning sign. The auditors said a high and persistent unrealized loss means a security has lost significant value and has yet to recover sustainably, even after a long holding period.

SSS’s side of the story

SSS pointed to a major telecom holding with at least ₱36 billion in realized gains against a ₱17.6 billion unrealized loss, plus an estimated 8% dividend yield. It also cited ₱3.7 billion and ₱9.7 billion in realized gains from two other major holdings. Across its listed holdings, SSS says its investments have contributed ₱204 billion in gains and income since 1968. SSS also said two independent committees, the Investment Oversight Committee and the Risk Management and Actuarial Oversight Committee, meet monthly to monitor performance and risks.

The fund’s latest numbers: first-half 2026 investment income of ₱27.157 billion, an investment reserve fund of ₱1.31 trillion, total assets of ₱1.35 trillion, and about ₱9 billion a year in equity dividends. Benefit payouts rose 19% to ₱173.45 billion, and the second tranche of the Pension Reform Program added ₱7.4 billion for 4.1 million pensioners. One number that got less attention: net income fell 28% to ₱48 billion in the first half, from ₱66.5 billion a year earlier.

The stock market backdrop

SSS says losses may recover, so the market’s direction matters. It has not been kind. The PSEi fell to about 5,580 on October 15, its lowest since May 2020, before bouncing 2.11% to 5,783 on October 16. Pressures include growth worries, inflation risk, high US yields, and net foreign selling. The IMF cut its 2026 Philippine growth forecast to 3.4% from 3.9%.

Zooming out, the picture is sobering:

• The PSEi’s record close was 9,058.62 in January 2018, so today’s level is about 36% below it. Getting back there would take roughly +57%.
• The index closed 2013 at 5,889.83, so it sits slightly below where it ended nearly 13 years ago. These are price-only figures, and dividends add to total returns.
• 2024 was the first year the PSEi closed higher year-on-year since 2019, and 2025 was down again.
• The 2013 sell-off did recover, with new records by April 2015, but the post-2018 slide has gone unrecovered for almost nine years.

By sector, the Philippine Stock Exchange classification places banks in Financials, food and beverage and energy in Industrial, and telecom and gaming in Services. Comparing index levels (Dec 2025 and Oct 16, 2026 closes), Financials are down about 11.8% this year but still about 12% above their end-2021 level. Industrial is down about 13.9% this year and about 29% below end-2021. Holding Firms are down about 11.2% this year and about 38% below end-2021. Property is the weakest, down about 20.6% this year and about 44% below end-2021. These percentages are our own computations from PSE index data.

Is the paper loss now bigger?

COA’s ₱39.994 billion figure is as of December 31, 2025. Since then, the PSEi is down about 4.5% and most sector indices are lower, so unless SSS’s holdings behaved very differently, the paper loss is probably larger today. This is our inference, not a reported number. As an illustration, a further 10% drop on the ₱81.5 billion market value would add roughly ₱8 billion to the loss.

For scale, the ₱40 billion is roughly 3% of the ₱1.35 trillion in total assets (our computation). That is significant, but it is not an immediate threat to this month’s pension payments. The bigger question is risk management over the next several years, especially as the Pension Reform Program spreads increases across 2025 to 2027. SSS’s chief actuary earlier said the reform would shorten the fund’s projected life from 2053 to 2049, with plans to restore it through coverage expansion and better collections.

A new SSS chief arrives

President Marcos appointed finance and investment veteran Victor Alfonso Limlingan as the new SSS President and CEO, succeeding Robert Joseph de Claro, who was named DICT Secretary. He is expected to prioritize expanding member loan programs, improving risk-adjusted returns on the investment portfolio, and relaunching the Pension Booster Program. “Risk-adjusted returns” is exactly where COA is pressing, so his first moves on investment policy are worth watching.

Calls for a probe

Former Bayan Muna Rep. Carlos Isagani Zarate called for a congressional probe, saying weak risk management could endanger the fund’s solvency. At the time of writing, this is a call and not an announced investigation.

What this means for you

• Pensioners: Your monthly pension is not affected by the paper loss. The scheduled September increases under the Pension Reform Program run through 2027.
• Working members: Your contributions sit in a fund with over ₱1.3 trillion in assets. Keep your contributions updated and check your records on My.SSS.
• Everyone: Watch for four things: whether SSS adopts formal stop-loss rules, whether Congress opens a probe, what the new CEO changes in investment strategy, and whether the stock market actually turns.

Frequently Asked Questions

Did SSS lose ₱40 billion in cash?

No. SSS and COA both describe it as an unrealized (paper) loss, meaning the stocks are still held. It only becomes a real loss if they are sold below cost.

Will my SSS pension be reduced or delayed?

There is no announced reduction or delay. SSS says the pension fund remains strong and able to meet its benefit obligations, and the scheduled pension increases continue.

Why is COA concerned if the losses are only on paper?

COA’s main point is the absence of formal stop-loss limits, rebalancing procedures, and regular stress tests, along with whether the holdings can recover sustainably.

Which stocks are involved?

COA did not name them. It labeled the biggest losses as a telecom company, a food and beverage company, a bank, an energy company, a holding company, and a gaming and leisure firm.

Is the loss bigger now than ₱40 billion?

COA’s figure is as of end-2025. Since then the stock market has declined, so the current paper loss is likely larger, though SSS has not published an updated number.

Who is the new SSS President and CEO?

Victor Alfonso A. Limlingan, a finance and investment veteran, replacing Robert Joseph de Claro.

Blogger’s Corner

Kuya Well here. COA didn’t name the stocks, so let me be clear that what follows is an assumption: the biggest loser, the telecom, is probably PLDT. The ₱17.6 billion loss SSS cited for PLDT in its own statement lines up with COA’s ₱17.615 billion telecom figure. If that’s right, the numbers look rough. SSS holds 11.055 million shares, which implies an average cost of about ₱2,853 per share (my estimate, from adding the ₱13.929 billion market value and the ₱17.615 billion loss). PLDT ended 2025 at ₱1,260, down from ₱1,812 in 2021, and was around ₱1,195 in mid-October. To get back to SSS’s cost, the stock would need to more than double (about +139%), which hasn’t happened in the five years of data I checked.

To be fair, PLDT pays ₱94 per share a year, so those 11.055 million shares earn roughly ₱1.04 billion annually. That’s good income, pero against a cost of about ₱31.5 billion, it’s only a 3.3% yield on cost. At that pace, dividends alone would take around 17 years to cover the ₱17.6 billion paper loss. My take: PLDT can be a decent income stock for someone buying today, but SSS’s entry price looks high, so calling the loss “temporary” is a hope, not a forecast. And with the PSEi still about 36% below its 2018 high, I wouldn’t count on the market to fix it quickly. The real fix is what COA asked for: clear stop-loss rules. As a member, I’m not panicking, but I’m watching. Keep your contributions updated, check My.SSS once in a while, and don’t rely on SSS alone for retirement. Mag-ipon at mag-invest din tayo on the side, kahit maliit lang muna.

This article is for general information only and is based on news reports and agency statements as of October 18, 2026. The PLDT discussion is an assumption, since COA did not name the companies. This is not financial or legal advice, and figures may change as new information is released, so please verify with official SSS, COA, and PSE sources.