State-run pension fund Social Security System (SSS) announced its scheme on including beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) as its members.
According to a published article, SSS has recently inked a memorandum of agreement with the Department of Social Welfare and Development (DSWD) regarding the matter.
The scheme as discussed shall cover 4Ps beneficiaries across the country as its members which will be accessible using the modified version of its AlkanSSSya Program.
Established in 2011, the
AlkanSSSya Program is a micro-savings scheme for self-employed workers with irregular income including tricycle drivers, market vendors, farmers, fisherfolk, and other workers in the informal economy.
SSS president Rolando Macasaet added the feasibility of creating a special SSS contribution table for 4Ps beneficiaries which shall cater to their paying capacity, also highlighting the current minimum monthly contribution set at P570.
Macasaet also said that SSS is trying to find several options in helping 4Ps beneficiaries to pay the mandatory 120 monthly voluntary contributions in order to qualify for a lifetime pension upon reaching retirement.
There is also a study being conducted for a possibile decrease in the minimum monthly SSS contribution from P570 to a much more affordable amount.
Citing the negative side, lower monthly premium will also lower their benefits upon retirement. However, they may opt to pay the lower premium within a longer amount of time allowing them to receive P2,200 monthly in their retirement age.
It was clarified though that the options mentioned are still at the exploratory stage, stating that SSS and DSWD will still jump on the process of crafting the implementing guidelines for the social security coverage of 4Ps beneficiaries.
Do note as well that their contributions to the SSS shall be voluntary as cash grants cannot be used to pay their SSS contributions because they are allocated for health and education, among others.
As such, when 4Ps beneficiaries have paid at least 120 monthly contributions, they will be removed from the financial support from the government as they will now be eligible to receive a monthly pension.
The 4Ps is the government’s national poverty reduction strategy covering roughly 4.4 million people nationwide.