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Today marks the return of this column to share with you the good news from your pension fund. Thank you to BusinessMirror for this opportunity to reach out to our stakeholders through this column. Let me start our weekly discussion on the importance of social protection.
SOCIAL insurance is a basic human need that no modern society or government can do without. It provides citizens peace of mind and incentive to work productively, secure in the belief that their needs in times of contingencies today and even in the distant future will be met, in exchange for a small, regular monetary contribution to the system.
As the pension fund for the private sector, SSS has a social contract with its members from the time they joined the labor force. No government agency provides qualified members with a collective form of protection against seven types of contingencies through benefits that could be availed of in times of sickness, maternity, unemployment, disability, retirement, funeral and death of a spouse.
This guarantee of protection against life’s contingencies and a monthly pension to supplement the daily basic needs during old age is realized through the support of employers who pay for 70 percent of their workers’ contribution to SSS. As such, payment of regular contributions may not be a worry among covered employees, since they have their respective employers to do it for them as mandated by law.
However, regular payment of self-employed workers and voluntary members remains a challenge for SSS. There are many workers at the early stages of their productive years, such as the current millennial generation, who think that starting a retirement nest egg ranks low in their list of priorities, perhaps knowing that retirement is still several decades away and that they can just worry about it later in life. Building up one’s retirement and emergency fund can also be shelved in favor of more tempting options like buying trendy clothes, high-tech gadgets and leisurely travel.
Then, there are also workers in the middle or latter stages of their working life who forego saving up for retirement and future emergencies due to family obligations, such as paying for household expenses, children’s tuition and monthly rent or mortgage.
But with SSS, it is never too late to resurrect the habit of saving for the future through an active membership by paying monthly contributions regularly.
Unlike a regular private insurance policy that has termination features, SSS membership is lifetime. Sa SSS, may forever.
Whatever the circumstances or age one is in, saving for the future should ideally be a major priority, and this is where the SSS comes in. Workers covered by the pension fund benefit from a safe and secure means to financially prepare for their retirement, as well as other contingencies.
With the SSS, members can gradually add to their retirement or emergency funds and earn generous returns for what they contribute. At present, monthly SSS contributions range from P240 up to P2,400, which is based on 12 percent of reported earnings per month with the coverable income capped at P20,000.
To make it easy for members, the SSS offers a diverse menu of payment options. Members can remit their contributions over-the-counter at SSS branches and through various SSS-accredited partners, including banks, Bayad Centers, authorized cooperatives and microfinance institutions, to name a few. Members can even make online payments, or use their “virtual wallets” for those duly enrolled in Globe GCash—the latest in the SSS’s expanding list of payment options.
Next week, we will discuss the ongoing Contribution Penalty Condonation Program for delinquent employers.
Aurora C. Ignacio is SSS president and chief executive officer.
We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss.gov.ph for topics that you might want us to discuss.
2 comments
My mother is 64 years old and has not worked for a company as she was a stay-at-home mother all her life. Is it too late to make voluntary contributions now so she can have an SSS pension in 5-10 years time?
I’m 53 yrs old but had not contributed to SSS though I applied 26 years ago. Can I still contribute to SSS? And should I apply anew If it’s allowed to apply as I don’t know any longer my SSS number. Thank you