SSS recently released the SSS Contribution Table for 2021 which will take effect on January 1. With the new table, there is also this new row for the Mandatory Provident Fund. Only individuals with a Monthly Salary Credit of Php 20,000 and above are required to contribute to this.
- What is SSS Mandatory Provident Fund?
- Why is the SSS P.E.S.O. Fund a good investment?
- Who can join the SSS P.E.S.O. Fund?
- How can an SSS member join the SSS P.E.S.O. Fund?
- When does membership in the SSS P.E.S.O. Fund start?
- How is the Provident Fund allocated?
- Are withdrawals from the Fund allowed?
- When can a member receive benefits?
What is SSS Mandatory Provident Fund?
SSS Mandatory Provident fund is also called the SSS Peso fund before. The SSS P.E.S.O. Fund (Personal Equity and Savings Option) is a voluntary provident fund offered exclusively to SSS members in addition to the regular SSS program.
Through this program, members who have the capacity to contribute more are given the opportunity to save more in order to receive additional benefits in the future.
It was established in 2014 under the PESO Fund/ Voluntary Provident Fund. But after the release of implementing rules and regulations of the Republic Act No. 11199 or the Social Security Act of 2018, Under Section 10, it becomes mandatory to individuals with a Monthly Salary Credit of Php 20,000
Why is the SSS P.E.S.O. Fund a good investment?
The program provides an option for SSS members to save their excess earnings and build a secure future through
• Tax-free earnings and benefits: • Contributions placed in sovereign guaranteed investments: and • Guaranteed earnings.
Who can join the SSS P.E.S.O. Fund?
The program is open to all employees, self-employed (SE), voluntary (VM), and OFW members who have met the following qualifications:
a. Below 55 years of age:
b. Have paid contributions in the regular SSS program for at least six (6) consecutive months within the 12-month period immediately prior to the month of enrollment:
c. SE, VM, and OFW members should be paying the maximum amount of contributions under the regular SSS program:
d. Have not filed any final claim under the regular SSS program.
How can an SSS member join the SSS P.E.S.O. Fund?
Interested and qualified SSS members can enroll in the program via My.SSS.
When does membership in the SSS P.E.S.O. Fund start?
Membership begins with the payment of the first contribution to the P.E.S.O. Fund.
How is the Provident Fund allocated?
The contributions and earnings of a member shall be allocated to three types of accounts.
|Account Type||% Allocation|
|Retirement/ Disability||65% with guaranteed earnings based on 5 year T Bond rates|
|Medical||25% with guaranteed earnings based on 364 T-Bill rates|
|General purpose (education, housing, livelihood, unemployment)||10% with guaranteed earnings based on 364 T-Bill Rates|
Are withdrawals from the Fund allowed?
No withdrawals are allowed from the retirement/total disability account. Withdrawals from the fund shall be allowed only from the Medical (25%) and General Purpose (10%) Accounts. Withdrawals within the 5-year retention period shall be charged with corresponding penalties and service fees.
When can a member receive benefits?
The member will receive benefits upon filing a retirement, total disability, or death claim under the regular SSS program.
• Retirement or total disability benefits, which consist of the member’s contributions and earnings from the SSS P.E.S.O. Fund, may opt to receive this in monthly pension, lump sum, or a combination of both.
• Death benefits shall be paid in lump sum to the member’s beneficiaries.