SSS PHILIPPINES ONLINE

According to Atty Marichelle Reyes, OIC Voluntary Provident Fund of the SSS in an interview back in May 2015, the SSS PESO Fund (Personal Equity and Savings Option) is a voluntary provident fund offered exclusively to SSS members. This is not part of the regular savings program just like the Pag-Ibig MP2. This low risk investment is offered to provide a secured and guaranteed earnings where the capital is also guaranteed. Plus the best benefit of this investment is that the earnings is guaranteed tax-free. Meaning, you can get the full amount of earnings without any tax deductions by the government.

The PESO Fund option is intended to open up additional diversified investment vehicle option wherein SSS members can invest their excess earnings intentionally for retirement or pension later. Apart from the regular Social Security savings program that uses monthly salary credit, the SSS PESO Fund has an investment limit to avail of tax-free benefit. It’s like a timed deposit with a bank except that this new investment option offers fixed return on investment based from treasury bonds or treasury bills where the fund is invested making it one of the safest place to put your excess money today.

Benefits of the SSS PESO Fund

All government programs have their pros and cons. Social Security System investment options are not exempted form this fact. But in order to convince members that this investment vehicle is a good option for those who can afford to step up their future retirement fund value, below are the benefits of enrolling in this program.

1. Tax-free earnings
2. Guaranteed earnings based from Bureau of Treasury interest declarations for treasury bills and treasury bonds
3. Contributions are placed in sovereign guaranteed investments

Who Can Avail and Join the Program?

The SSS PESO Fund investment program is open to all SSS members whether employed, self-employed, voluntary paying members or OFWs who meet certain qualifications as stated below.

• below 55 years of age
• have paid contributions in the regular SSS program for at least 6 consecutive months within the 12-month period immediately prior to the month of enrollment
• self employed, voluntary and OFW members should be paying the maximum amount of contribution under the regular SSS investment program

How Do Members Join the SSS P.E.S.O. Fund Program?

Interested and qualified SS members can enroll in the program over the counter at any SSS branch. Enrollment via SSS will be announced so do stand by for this press release.

What is the Frequency that A Member Can Contribute to PESO Fund?

Basically, a qualified member can contribute in any preferred frequency at any convenient time with any amount comfortable as desired. But there is a ceiling of minimum of Php 1,000 per contribution and a maximum Php 100,000 per year.

Self-employed, voluntary members and OFWs however must have regular SSS contributions based on the maximum salary credit (MSC) on the month of payment before they can contribute to the P.E.S.O. Fund.

Why SSS PESO Fund is Ideal for Low Risk Profile Investors

The SSS PESO Fund is ideal for low risk type of profile investors. This being so is because the money you put in the fund is invested in government securities is 100% guaranteed and the capital investment is safe and non-devaluating. This type of investment option is not like in the stock market or equities or some types of mutual fund investments like Pag-Ibig that have high volatility in terms of stock or capital price appreciation. The risk is also high while PESO Fund gives the investor or saver the guaranteed interest with peace of mind.

How Does the Investment Work and Where is it Placed for Disbursement Allocation?

Everytime a member contributes to the SSS PESO Fund, 65% of the total amount is placed or invested in 5-year T-Bond instruments for retirement and disability. The 25% will be invested in guaranteed 5-year T-Bill instrument rates and is intended for medical purposes. While the remaining 10% will be placed where the 25% is but is intended for general purposes like educational fund, housing, livelihood and unemployment. This being said, you cannot withdraw the 65% portion of this investment prior to its maturity period which is 5 years. The purpose of this policy is to make sure that upon retirement, the SSS member gets an assured fund. This also means that you have the option to take out or withdraw the 35% part at any period but with incurred penalties. Take note that the earnings of this particular investment is based from whatever the interest rates the Bureau of Treasure declares. This is also what the investor receives on a monthly basis.

For 5-year T-Bond instruments, its a whooping average of 3.75% per month and for T-Bill instrument, it’s an average of 1.8%. Take note that this investment is voluntary, meaning whatever amount at whatever frequency you want to add up or top up, it’s up to the SSS member.

How Much is the Minimum and Maximum Contribution or Top Up?

Minimum contribution is Php 1,000 while the maximum amount can be as high as Php 100,000 per year. This means that you can invest as much as 1M worth of capital in the SSS PESO Fund in a span of 10 years. This to me is a very limiting policy because there are some SS members who can absolutely afford to invest more than Php 100,000 in a year.

Are Pre-matured Withdrawals Allowed?

No withdrawals are allowed in the retirement or total disability account part which is also the 65% portion as stated above in the disbursement allocation option. However, withdrawals from the fund shall be allowed only in the portion of the medical (25%) and general purpose accounts share (10%). As explained above, the purpose of this policy is teach discipline and help the member make sure that upon arrival to retirement age, there will be funds the SSS member can turn to for use.

Take note that withdrawals made within the accumulation or holding period of 5 years will come with corresponding penalty and service fees just like any other investment vehicles out there.

Availment of Benefits of SSS PESO Fund

• The member can avail benefits upon filing a retirement / total disability / or death claim under the regular SSS program
• Retirement or total disability benefit consisting of member contributions and earnings from PESO Fund may be received in the form of monthly pension, lumpsum or combination of both if member prefers that.
• Death benefit shall be paid in the form of lumpsum to the member’s stated beneficiaries in his account.

Estimated Projected Retirement Cash Benefit in PESO Fund Upon Reaching 20 Years of Regular Php 100,000 Contribution Per Year

Please take note that this is just an estimated projected value based from current fixed figures. Interest earnings is not guaranteed exact value and is subject to increase or decrease based from rates as announced by the Bureau of Treasury.

A 20 year regular top up of maximum of Php 100,000 will yield a 2M fund at age 60 if you start your contribution at age of 40.

Assuming that as per in the stated interview with Atty Marichelle Reyes above, base figure of 3.75% and 1.85% interest per annum is used (may be higher or lower) for retirement part, medical part and general purpose part, respectively, the member will earn 500,000 in 20 year span. With these figures on hand, the total retirement fund of the member will reach 2.4M at age 60 all in all without any tax.

Where to Contact SSS for the PESO Fund Investment Option

For more information, please send your email concerns to member_relations@sss.gov.ph or you may call the SSS hotline number here – 9206446 to 55 or visit the nearest SSS branch in your area.

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