The Social Security Board expects contribution revenue to remain higher than benefit payments over the next three to five years, but says a sharp rise in pension payments is putting the fund under growing pressure.
SSB CEO Jerome Palma said on Friday that the Board recorded an additional $8 million in pension payments in 2025 alone. He said that figure is not a one-time cost but a recurring annual obligation for the rest of beneficiaries’ lives.
He said the fund is still in an “accumulation phase,” meaning contribution revenue currently outpaces what is paid out in benefits, a trend expected to hold for the next three to five years. But he cautioned that the trend will not last indefinitely.
“That does not mean that we should then be or feel like, ‘Oh we are safe,’ it will reach a tipping point because what we are also seeing is a significant increase in the retirement benefit particularly,” Palma told News 5.
He said the additional $8 million could quickly become a much larger obligation.
“Those are the streams we are seeing and if you really think about it in 3-5 years that would mean 8 million a year multiplied by 3, 4, 5 that turns into 35 to 40 million very quickly of additional benefits that the Social Security Board will be paying out,” Palma added. “We have to prepare for those.”
The warning comes as SSB prepares to discuss its financial performance and future plans at SSB Connect, including its investments and the measures needed to protect the fund.
“Pension payments won’t be for 3-5 years. According to Palma, some beneficiaries will draw payments for 10, 15, 20 years or longer.
