The state-run pension fund Social Security System (SSS) has offered to provide social security protection to 4.4 million beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) nationwide through a 4Ps version of its savings scheme.
The SSS and the Department of Social Welfare and Development (DSWD) have signed a memorandum of agreement allowing families benefiting from the government’s conditional cash transfer program to become SSS members and have access to social security benefits.
“SSS aims to provide these vulnerable sectors with the mechanism to become active SSS members and thereby secure their future through the range of SSS benefits,” Rolando Ledesma Macasaet, president and chief executive officer of SSS said in a statement on Thursday.
READ: MOA lets 4Ps beneficiaries join SSS for low monthly contribution of P570
Under the agreement, SSS will develop an AlkanSSSya program—a savings scheme inspired by a piggy bank concept —that is customized for 4Ps members.
“We may also craft a special SSS contribution table for 4Ps beneficiaries tailored to fit their paying capacity considering the current minimum monthly contribution of P570,” Macasaet said.
DSWD Secretary Rex Gatchalian stressed that 4P contributions to the SSS would be voluntary, adding that cash grants provided to them cannot be used for contributions since such funds were specifically allocated for health, education and rice subsidies.
Other options
For them to qualify for the lifetime pension, Macasaet said that they are considering to lower the minimum contribution from P570 to a more affordable amount, but pointed out that this would lead to a reduced benefit.
“For the poorest families like 4Ps recipients, paying P570 a month might already be a big amount. They might not be able to complete the minimum monthly contributions required to qualify for a lifetime pension,” he said.
Currently, members who pay the minimum amount for 10 years or 120 months will receive a pension of P2,200 monthly but for 4Ps beneficiaries, Macasaet said that they must contribute much longer, for 180 months, in order to get the same amount of pension.
He added that the SSS would discuss corporate social responsibility programs with businesses to subsidize the contributions of 4Ps beneficiaries under the Contribution Subsidy Provider Program.
“We will pitch to companies willing to sponsor SSS contributions to subsidize the monthly premiums of 4Ps beneficiaries,” Macasaet added.
Meanwhile, Macasaet said that all of these were still at the exploratory stage and would still work with DSWD to craft the guidelines.