World Bank2016-07-122016-07-122016-06-23https://hdl.handle.net/10986/24671This report was prepared at the request of the Philippines Social Security System (SSS) to analyze key challenges and propose reform options to improve the sustainability and expand the coverage of old age income protection for private sector workers. A simulation employing the Pension Reform Options Simulation Toolkit (PROST) found that the SSS scheme will face outflows greater than inflows in about 20 years and depletion of its assets in about 28 years. Fortunately, its medium-term financing issues can be addressed through the gradual introduction of parametric reforms that shield workers and retirees from abrupt changes in contributions and benefits. At the same time, the Philippines faces a challenge to improve the defacto coverage of workers by Social Security, and to increase the income protection coverage of the elderly. Options suggested include SSS measures to leverage its identification system and introduce a special instrument for informal workers. Rather than introducing matching contribution subsidies to expand coverage, it was suggested to broaden the scope of beneficiaries eligible for social pensions. Beyond the scope of the SSS, additional measures were suggested including those to improve the access and efficiency of contributions and payments systems, strengthening mobile-money platforms and efforts to improve access to savings instruments, particularly for small and isolated savers. The report points out that the key means of improving coverage lies beyond the scope of social security or pensions, namely, to improve the quantity and quality of wage-based employment.en-USCC BY 3.0 IGOREPLACEMENT RATESINDIVIDUAL ACCOUNTSRETIREMENT ACCOUNTLABOR INCOMEPENSION SYSTEM PARAMETERSRETIREESNOMINAL WAGERETIREMENTINFORMAL SECTOROLD-AGE PENSIONPENSION FUND INVESTMENTSSOCIAL PENSIONSLIFE INSURANCEMANDATORY RETIREMENTCONTRIBUTION INCREASEBENEFIT FORMULASINFLATION RISKPENSION SYSTEMSAGING POPULATIONLABOR FORCEPENSION CONTRIBUTIONSELF- EMPLOYMENTWELFAREHEALTHPRICE INDEXATIONINFLATION RISKSMULTI-PILLAR SYSTEMBENEFIT ADJUSTMENTSSOCIAL SECURITY BENEFITSLABOR FORCE PARTICIPATIONPENSION SYSTEMCONTRIBUTION RATESPENSION SERVICESOCIAL ASSISTANCEPRIVATE PENSIONPENSIONWAGE GROWTHRETIREMENT AGESLIFE EXPECTANCYBENEFIT SCHEMESBENEFIT PAYMENTSPENSION PROVISIONSPILLAR SYSTEMRETIREESUPPLEMENTARY SCHEMESPERSONAL PENSION PLANSREPLACEMENT RATERETIREMENT PLANSRETIREMENT PENSIONSPENSION AGERETIREMENT ACCOUNTSPENSION CONTRIBUTIONSRETIREMENT AGEDEFINED-BENEFIT SCHEMENATIONAL PENSIONSOCIAL INSURANCEPENSION PAYMENTSPENSION REFORMSOCIAL SECURITYSOCIAL PROTECTIONPUBLIC SCHEMESDEPENDENCY RATIOPENSION SAVINGSDEPENDENCY RATIOSPENSION FUNDSMORTALITYPENSION INCOMEPERSONAL PENSIONSELDERLYAGE SUPPORTBENEFIT SCHEMEDEFINED BENEFITBENEFIT LEVELSACCRUAL RATETAX RATETAX ADVANTAGESANNUITIESPENSIONSCONTRIBUTION RATEREPLACEMENT RATE TARGETMINIMUM BENEFITLIFE EXPECTANCIESSOCIAL PENSIONPENSION PROGRAMSWORKER CONTRIBUTIONSCONTRIBUTION INCREASESRETIREMENT BENEFITSTAX RATESBENEFIT FORMULAPAYROLL TAXESINVESTMENT RETURNSBENEFIT LEVELRETIREMENT INCOMESSOCIAL WELFAREINFLATION INDEXATIONRETIREMENT SAVINGSFUNDED BASISPAYROLL TAXWORKER CONTRIBUTIONCONTRIBUTION PERIODPENSION POLICYMUTUAL FUNDPENSION SCHEMEANNUITYOLD AGE SUPPORTPERSONAL PENSIONSOCIAL CONTRIBUTIONPENSION BENEFITPENSIONERSOLDER PERSONSPENSION DEBTEMPLOYEEPENSION BENEFITSRETIREMENT PROGRAMSPENSION SCHEMESSOCIAL SECURITY SYSTEMPENSION COVERAGEVOLUNTARY PENSIONFUTURE PAYMENTSPENSION FUNDDEFERRED ANNUITIESINSURANCE COMPANIESFERTILITYMONTHLY CONTRIBUTIONDEFINED BENEFIT SCHEMESFUNDED SCHEMEPENSION PLANSPENSION ARRANGEMENTSRETIREMENT SAVINGS ACCOUNTSSELF-EMPLOYMENTPENSION PROGRAMEMPLOYEESReportWorld Bank10.1596/24671