The Social Security System (SSS) teamed up with the Department of Social Welfare and Development (DSWD) to provide social security protection to 4.4 million beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).
SSS president and chief executive Rolando Ledesma Macasaet and DSWD Secretary Rex Gatchalian signed a memorandum of agreement (MOA) that will allow 4Ps beneficiaries nationwide to become SSS members and have access to social security benefits.
Macasaet said that under the agreement, SSS and DSWD would work together to protect the welfare of the most vulnerable sectors of society, including those families benefitting from the Philippine conditional cash transfer program.
“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,” Macasaet said.
Macasaet said SSS would develop an AlkanSSSya program specifically designed for 4Ps beneficiaries. The program was established in 2011 as a micro-savings scheme for self-employed workers with irregular income, such as tricycle drivers, market vendors, farmers, fisherfolks and other workers in the informal economy.
“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.
Macasaet said SSS is exploring several options to help 4Ps beneficiaries pay the 120 monthly contributions required to qualify for a lifetime pension when they reach retirement age.
“It is important for 4Ps beneficiaries to have SSS contributions. Once they have paid at least 120 monthly contributions, they will no longer need financial support from the government because they will become qualified to receive a monthly pension from SSS upon reaching 60 years old,” Macaset said.
Macasaet said SSS would discuss corporate social responsibility programs with businesses to subsidize the SSS contributions of 4Ps beneficiaries.
“We have a Contribution Subsidy Provider Program (CSPP), wherein a private or government individual or group can subsidize the monthly contributions of identified SSS members. We will pitch to companies willing to sponsor SSS contributions to subsidize the monthly premiums of 4Ps beneficiaries,” Macasaet said.
He said the SSS would also study the possibility of reducing the minimum monthly SSS contribution from P570 to a much more affordable amount.
“Our SSS actuarial team will check out if it is possible to have a lower monthly contribution specifically for 4Ps beneficiaries. 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.
Macasaet said, however, a reduced monthly premium would result in lower benefit.
“Currently, SSS members who paid the minimum monthly premium of P570 for 120 months or 10 years will receive a lifetime pension of about P2,200 monthly. 4Ps beneficiaries who will be paying at a reduced monthly premium, let’s say for 120 months, will get a lifetime pension much lower than P2,200 per month,” he said.
Macasaet said another option is to pay a reduced monthly premium for a longer period than usual to receive a lifetime pension.
“SSS members who paid the minimum of P570 monthly contributions for 120 months shall receive a lifetime pension of P2,200 monthly. For 4Ps beneficiaries, we could lower their monthly premiums, but they must contribute much longer so they get the same amount of benefit. For example, 4Ps beneficiaries have to contribute for 180 months to get the minimum monthly pension of P2,200,” he said.
He said all these options were at the exploratory stage, adding, “SSS and DSWD will still work on the implementing guidelines for the social security coverage of 4Ps beneficiaries.”
“We will immediately work on the appropriate mechanism for registration, contribution collection, benefit claims, and other essential details needed to implement the program knowing the importance of SSS membership to 4Ps beneficiaries,” he said.
Gatchalian said the 4Ps beneficiaries’ contribution to the SSS would be voluntary because the cash grants could not be used to pay their SSS contributions because they were intended for health, education and the rice subsidy.
He said the DSWD would integrate the value of SSS membership during the 4Ps Family Development Sessions (FDS), an activity attended by 4Ps parents every month.
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