The market value of the Social Security Financial Stabilization Fund (FEFSS) portfolio surpassed 40 billion euros for the first time in June this year. This fund, which safeguards pensions, represents 13.9% of the gross domestic product (GDP), according to the government.
“The growth of the Social Security Financial Stabilization Fund (FEFSS), which serves to guarantee pensions for future generations, is largely due to the government’s decision to make the largest ever transfer to this fund, amounting to more than four billion euros,” stated the government in a post shared on Instagram.
According to an informational note from the Ministry of Labor, Solidarity, and Social Security, “the market value of the FEFSS portfolio amounted to 40.277 billion euros as of June 30, 2025.”
This value accounts for 13.9% of Portuguese GDP and 25.04 months of 2024 pension expenses from the contributory regime, highlighted the Ministry.
The portfolio’s profitability is 0.86% (or 314 million euros) since the beginning of the year, showing a positive annual return of +5.21% (or +1.772 billion euros).
The variation in the portfolio’s value over the year ending in June is positive at 4.398 billion euros, with allocations contributing +4.084 billion euros.
What is the Social Security Financial Stabilization Fund?
The Social Security Financial Stabilization Fund (FEFSS) is composed of various sub-portfolios, with Portuguese public debt being the most representative, followed by public debt from other OECD countries, large-cap stocks, and a sub-portfolio of real estate, small-cap stocks, and corporate debt.
According to the law, this fund aims at stabilizing the balances of the general social security regime.
“The FEFSS is an autonomous asset exclusively devoted to public stabilization capitalization, and its capital can be used for transfers to ensure the stabilization of the social security system,” it is also established.
The Public Finance Council (CFP) explains that “a portion between two and four percentage points of employee contributions is allocated to fund this pool, until it covers foreseeable pension expenses for a minimum period of two years.”
“The fund’s revenues also include the annual balances of the Provident System, revenues from asset disposals, or gains from financial investments,” it stated.
In February, it was reinforced with four billion
Recall that the FEFSS was reinforced with four billion euros, reaching a total value of about 40 billion euros in February, according to the Ministry of Labor, Solidarity, and Social Security.
The four billion euros transferred corresponds to the balance assessed for 2024 and is the “largest ever” transfer to the FEFSS, which acts as a financial cushion to pay pensions in case of system breakdown.
The Social Security Financial Stabilization Fund (FEFSS) was reinforced today with four billion euros, reaching a total value of about 40 billion euros, according to the Ministry of Labor, Solidarity, and Social Security.
Lusa | 18:23 – 03/02/2025
