Social Security Board Records $50 Million Surplus

The Social Security Board (SSB) recorded a surplus of fifty million dollars in revenue for the financial year 2024. The board’s financial reports were a key item at today’s annual SSB Connect Forum, an annual event where stakeholders are apprised of the activities for the past year and learn about future plans. This is the second consecutive year that SSB has seen a $50 million surplus. Acting SSB CEO Jerome Palma says that there are various factors contributing to the surplus, including better economic performance and an increase in contributors. The primary driver, however, is the increase in contribution rates, which took effect back in 2023.

Jerome Palma, Ag. CEO, Social Security Board: “The most important highlight I would say is because of the contribution reform we had an increase in our contribution income and we have a surplus of almost 50 million at the end of the year, which goes towards an increased fund. We are very mindful that over the next few years we will continue to expect an increase and then by 2028, 2029, that’s when our period of equilibrium will take effect and we’ll have to make some adjustments sometime before that. But the main highlight is that it was a good year in terms of contribution. We ended up with a surplus meaning that by the time we were done with the contribution revenue, the investment income, paying out benefits, administrative expenses, we were left with almost 50 million in surplus that goes towards the long-term fund for the most part. The key contributor was the increase in the contribution rate. You would have recalled that there was contribution reform and in 2024 now the full increase to the 10%. So we saw an increase in that regard and that was the main driver in terms of actually the surplus for the year. It means in the long term that we have an increased fund, an increased reserve which increases our ability in terms of the investment income for us to actually place a bit more and contribute in investing in the wider society and to generate additional returns. It also is a more direct match in terms of our increase for benefits for insured persons, that we remain sustainable in the long term because we can more directly match the reality of more persons now nearing retirement age that are participating in the scheme. The scheme having been around from 1981 we’re at that point of greater maturity where people may have been contributing 20, 30, 40 years that are now going to be entitled for benefit. So the increase in the contribution creates a direct match in terms of that payout as we’re looking ahead.”

At the forum, the SSB highlighted new services being offered, including the online sickness claim submission and the retirement benefit claim submission. The SSB also unveiled its 2025-2029 strategic plan, which focused on priority areas such as fund sustainability.

Jerome Palma, Ag. CEO, Social Security Board: “Some of the other highlights include good governance which is essentially our starting point.  Without good governance we can’t do anything else. That is one of the pillars of our strategic priorities. The other pillar is scheme modernization. We recognize where we need to improve the legislation. We need to adjust to have better benefits, wider scope, to adjust to some of the new mediums of work that perhaps were not envisioning when the legislation was first constructed.  And also for scheme modernization to more utilize technology. There’s a lot of technology out there. The AI has just evolved tremendously. We have to take time to see how we can include that. And finally, operational excellence. We want that all the insured persons can go into SSB and have a good experience. Operationally, that has to be our focus. How do we improve our service delivery? How do we improve and reach to all corners, everybody? But how do we improve in terms of people who may walk in?  People who may submit online and to all our stakeholders. So operational excellence is the third one.”

The event was held at the Grand Resort and Estates near Haulover Bridge.