CLARK FREEPORT – Beginning December 1, members of the Social Security System (SSS) can opt for a voluntary provident fund program called, the SSS Personal Equity and Savings Option (SSS PESO), as an additional way of saving for their retirement.
During the “Balitaan” media forum organized by the Capampangan In Media, Inc. (CAMI) in cooperation with the Clark Development Corporation and the SSS at the Bale Balita here last Friday, Luisa “Louie” Sebastian, assistant vice president for media affairs, said the SSS-PESO fund is open to all members below 55 years old with six consecutive SSS contributions within the last 12 months prior to enrolment and have not yet filed final claims with the same government financial institution.
Sebastian distributed a statement from SSS President-CEO Emilio S. de Quiros, Jr. where he said the new retirement savings scheme is an alternative and tax-free investment that would help members accumulate adequate income in retirement and earn a reasonable rate of return.
“SSS PESO savings can be used to supplement the benefits available under the regular SSS program. It offers guaranteed earnings based on rates higher than those at brick-and-mortar banks,” De Quiros explained. Qualified members can participate for a minimum contribution of P1,000 up to a maximum of P100,000 per year.
“One’s membership will start upon receipt of the first contribution. Succeeding SSS PESO Fund contributions can be made anytime as long as there is a corresponding SSS contribution on the month of contribution,” De Quiros said.
He also said that self-employed, voluntary and OFW members should be paying the maximum SSS contribution to qualify. “They will also need to pay the maximum SSS contribution for the month they are to save in the SSS PESO Fund,” he added.
Savings in the SSS PESO Fund are invested in sovereign guaranteed investments, where 65 percent of the total fund is allocated for retirement, and 35 percent is for medical and general purposes. SSS PESO accounts will be charged a one-percent administration fee annually.
“The portion for retirement is guaranteed to earn income based on interest rates of fiveyear treasury yields, while earnings of the fund allotted for medical and general purposes will be based on 364-day treasury bill rates,” De Quiros also explained in his statement.
Aside from the guaranteed earnings, he said SSS PESO Fund members may also get excess earnings, which will be credited automatically to their accounts, depending on the actual year-end performance of the SSS PESO Fund.
Savings in SSS PESO fund can be withdrawn upon the member’s effective date of retirement or total disability with the SSS either in monthly pensions over a minimum period of 12 months and P1,000 payment per month, in lump sum, or combination of both.
“In case they incur a need to withdraw funds early, they may only touch the portion of their equity allocated for medical and general purposes, and it will be subject to penalties and service fees if withdrawn earlier than five years,” De Quiros said, adding that if a member died before the maturity of his SSS PESO savings or expiration of the pension period, the member’s beneficiaries will receive the savings in the form of death benefit to be paid in lump sum.
The SSS PESO Fund was created in accordance with Sec.4(a)(2) of the Social Security Law on September 25.
