The Social Security System Launches new guidelines for provident fund

Makati, Philippines - SSS Provided new guidelines for enrolment of its members in a mandatory, The Workers' Investment & Savings Program or WISP is a "safe, convenient, and tax-free individual retirement savings plan," State pensioner said in a presentation during a virtual briefing. This will be launched this month, January 2021.

President and Chief Executive officer Aurora Ignacio said: "It allows faster accumulation of a worker's  savings because of the employer share in the contribution., Moreover, WISP contributions will be invested following the principles of safety, high yield, and liquidity, and as provided under the SSS Act of 2018, which will yield additional pension income for contributing members," in a statement.

W.I.S.P will cover all employees in the private sector, self-employment individuals, overseas Filipino workers, and voluntary members with monthly salary credit or MSC over ?20,000 and have no final claim in the regular SSS program. They must also have contributions to the program.

With this, an employee with an MSC (Monthly Salary Contribution) of  ?25000, the provident fund at a contribution rate of 13%, will be mandated to remit P3,250,  the amount P2,600
will go to a regular social security fund and ?650 to the WISP fund. The Basis of a member's benefits is their total accumulated account value or AV at the time of claim approval, the institution claimed.

The government pensioner likewise reminded early withdrawal of contributions or its earnings is prohibited. Also, Members who fail or are late in the payment of contribution will get a 2% per month penalty rate in their total contribution.

A "Significant" portion or at least 75% of investments made under WISP will be invested in risk-free government securities, while around 10% up to 20% will be invested in blue-chip corporations. The principal is always protected, SSS added.

SSS Commission Chairperson Sonny Dominguez said the increase ensures the social pension funds' long-term viability.