SSS readies new retirement savings program

MANILA, Philippines – The Social Security System (SSS) is now ready to implement its new retirement savings program called Personal Equity and Saving Option (PESO) fund.

Launched in September 2014, SSS PESO is an alternative and tax-free investment that offers guaranteed earnings higher than the rates offered in a savings account or bank deposit.

The provident fund is open to all members below the age of 55 with six consecutive SSS contributions within the last 12 months prior to enrollment and have not yet filed final claims with the state pension fund.

Self-employed, voluntary and OFW members are qualified to join the program provided they pay the maximum SSS contribution.

Qualified members can participate for a minimum contribution of P1,000 up to a maximum of P100,000 per year.

Membership will start upon receipt of first contribution to the PESO fund.

For the pilot implementation of the SSS-PESO Fund, inter-ested members may apply at the following branches in the National Capital Region: Diliman, Cubao, San Francisco Del Monte, Pasig-Shaw, Mandaluyong, Taguig, Makati-Gil Puyat, Alabang, Legarda, Pasay-Roxas Boulevard.

Members are required to personally appear before an SSS authorized representative to sign the accomplished forms for confirmation.

“This procedure allows us to verify the authenticity of the document and the identity of the applicant,” said Agnes San Jose, SSS Vice-President for Benefits Administration Division.

By September 2015, all SSS branches nationwide will accept applications to the SSS-PESO Fund. Eventually, enrollment may be done online through the My.SSS portal.

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, which cover education, housing, livelihood and unemployment.

Early termination of membership is not allowed while refunds, withdrawals or benefit claims will be credited to the member’s single savings or current account with an SSS depository bank.

Only the portions allotted for medical and general purpose can be withdrawn before the member’s date of retirement, the SSS said. –Zinnia B. dela Peña (The Philippine Star)