Part Three
Overseas Filipino workers (OFWs) continue to demonstrate their economic value and power as their remittances help fuel our country’s economic growth. As an important segment of Social Security System (SSS) membership, OFWs, likewise, help boost contribution collections. From 2010 to 2015, a total of P17.76 billion in contributions from these workers were collected, while membership also continued on a steady upward pace, after hitting the 1-million mark in 2014. By December 2015, OFW membership totaled 1,120,493.
The key to coverage and collection drive in the OFW sector is providing overseas-based members easy access to their membership records and services. Initiatives—such as enhancing web-site services, opening a 24-hour, five-day call center; establishing representative offices abroad; uploading instructional YouTube videos; and having an official SSS Facebook page—were all pursued with the goal of reaching out to them.
Equally important is meeting OFWs face-to-face, and providing them firsthand information on the value of active membership and continuous contributions as their savings for the future. Inasmuch as coverage of OFWs remains on a voluntary basis under the social-security law, it is important to convince them on the benefits of active membership, even when they are overseas. This is the primary reason for the OFW Information Coverage Drive—a program launched in 2011 to widen SSS coverage, especially in the Middle East and Europe, where many OFWs are based.
This drive has since become an annual event, with management primarily negotiating or finalizing bilateral social-security agreements with OFW host-countries. The coverage drive teams, then conduct “Kapihan” events to generate greater awareness about the importance of SSS coverage and provide on-site services, such as member registration; online verification of contributions and claims status; and data capture for those applying for the Unified Multipurpose Identification card. Moreover, this provided an opportunity to visit and check on SSS representatives and offices, and directly communicate related concerns to the Philippine ambassador or consulate.
The SSS also helps OFWs plan their financial future through the Flexi-Fund Program. Launched in August 2001 as a supplementary voluntary provident fund and adopted in July 2002 as the National Provident Fund for OFWs, the Flexi-Fund doubles up as a savings program that yields high returns. To build up their Flexi-Fund during active overseas employment, OFW-members must contribute to the regular SSS program at the maximum monthly salary-credit level, with any excess amount of not less than P200 credited to their Flexi-Fund account. All amounts accumulated in the fund, including interest, accrue solely to the Flexi-Fund member. The program provides guaranteed returns and tax-free benefits.
To further add value to savings of Flexi-Fund members, the basis of the guaranteed yield was improved and is now based on whichever is higher of two investment yields: 1) the average rates of the SSS’s short-term peso placements; or 2) the average rate of 91-day T-bills.
A new feature, called Annual Incentive Benefit (AIB), was launched in July 2012 to encourage Flexi-Fund members to maintain their deposited savings in order to maximize earnings. For 2015, those eligible for the AIB earned a 4.7-percent interest, as compared to the guaranteed yield of 1.8 percent.
The number of paying members (those with at least one contribution posted) increased from 34,075 in 2010 to 47,506 in 2015—an increase of 39 percent. Meanwhile, members’ equity nearly doubled, from P269.06 million in 2010 to P531.6 million in 2015. More important, the growth of the Flexi-Fund has helped boost the OFWs’ awareness on the need to save while they are still actively employed and earning higher incomes.
In 2010 the SSS had 13 foreign representative offices (FROs) in countries with large concentrations of OFWs, and one representative office at the Philippine Overseas Employment Administration building in Mandaluyong City to service departing and returning OFWs. By 2015, the number of FROs had risen to 22. Normally manned by just one SSS personnel, the current FROs are now staffed with roving officers who are able to reach out to OFWs assigned in far-flung areas.
To be continued
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.
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.