THE onset of a new year is a time of fresh beginnings, with a clean slate waiting to be filled with exciting feats and personal milestones for the next 12 months. New—or admittedly neglected, but now renewed—commitments to lose weight, quit smoking, sleep early, go to the gym, spend more time with family, learn a new skill and travel more are often just some of the usual resolutions that are prompted by the start of another year.
Saving more and paying off debts, which are also among the classic examples New Year’s resolutions, would be ideal for Social Security System (SSS) members to give them and their loved ones peace of mind and financial support over the long term.
Save more
Employees, self-employed individuals and voluntary members, including overseas Filipino workers (OFWs) are encouraged to build up their savings for retirement and future contingencies through an active SSS membership.
On top of their regular remittances for SSS contributions, members are urged to further expand their savings by enrolling in the SSS Personal Equity Savings Option (Peso) Fund, a voluntary provident fund and pension plan introduced by the SSS last year. OFW members have their own version of this savings facility called the SSS Flexi-Fund Program. It was launched back in 2001 and its success—with over half-a-billion pesos in members’ equity and over 46,000 OFW participants at present—had paved the way for the creation of the SSS Peso Fund Program that caters to local SSS members.
Both SSS programs provide enrolled members a safe haven for their hard-earned income. Their SSS savings generate guaranteed and tax-free earnings, on top of Annual Incentive Benefits that are granted as a reward for members who maintain their investments under these two SSS programs. Their SSS savings can be released in lump sum or as monthly pension, depending on the members’ preference, at the end of their working years. Part of their funds can also be tapped for other purposes such as medical emergencies, payment of children’s tuition, and as capital for jump-starting their own business.
Pay off debts
SSS loans are offered as a privilege of actively paying members. However, there are borrowers who are granted this privilege but then abandon their obligation to promptly pay their SSS loans. Members who fail to pay their loan amortizations on time are charged monthly penalties, as well as continuing interest, and this only leads to ballooning loan obligations as the years roll by.
Members can mistakenly assume that they can get away with paying their delinquent SSS loans, but this would eventually catch up with them by the time they would need to avail themselves of final benefit claims such as retirement and total disability. For example, a member with unpaid loan obligations would have to wait longer before receiving his retirement benefits, as his monthly SSS pension would be first used for payment of his outstanding loan balance.
Shirking one’s loan obligations can also affect the benefits for the eligible beneficiaries of delinquent SSS loan borrowers, for the SSS also has the option to deduct the overdue loan payments from SSS death and funeral benefits. This 2016 is the perfect time to commit to finally paying that overdue SSS loan.
Borrowers with unpaid amortizations under the SSS Stock Investment Loan Program (SILP) and the Privatization Fund Loan Program (PFLP) are offered the Option to Sell Shares Program. Under this ongoing program, delinquent borrowers can authorize the SSS to sell the member’s shares of stocks that were acquired through the SILP or the PFLP at the prevailing market price. The net proceeds from the sale of shares would then be used as payment for the overdue SSS loan.
For more details on SSS programs, members can drop by the nearest SSS branch, visit the SSS web site (www.sss.gov.ph), or contact the SSS Call Center at 920-6446 to 55 which accepts calls from 7 a.m. on Mondays all the way to 7 a.m. on Saturdays.
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Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to susiebugante.bmirror@gmail.com.