Not everyone has been fully aware of the Provident fund that was launched by SSS. Provident fund will allow members to enjoy higher returns on their contributions. The tax refund is opened for employed and self- employed Filipinos here and overseas.Provident fund gives additional layer of protection to contributors.
Provident Fund Contributors Requirement:
- Available to members under 55 years of age
- Member must be paying maximum SSS Contributions of P1,560/month
- Maximum contribution for the fund is P100,000/year
According to Ms. Marissu Bugante, VP for Public Affairs of SSS, this provident fund will assure contributors of higher benefits in the future as this individual accounts will generate dividends depending on the amount of the contribution.
Provident Fund Benefits:
- Retirement fund and total disability fund (65%)
- Medical (25%)
- General Purpose Payments (10%)
Funds withdrawn for purpose of medical and general purpose payments before the 5-year retention period will be subject to penalties and charges. This provident fund will be a good choice for contributors who are earning more as this will give them a good savings options at their own benefit.
The main advantage of provident fund is the retiring contributor will have an option to withdraw the the fund in a lump sum or monthly pension. Other than this, SSS guarantees earnings based on 5-years treasury bond rate while the remaining 35% will be guaranteed to earn at 364-day treasury bill rate.
At the moment, SSS have 35,000 OFW members who registered in the program and are earning incentive bonuses for the last two years, The maximum amount that was earned by one of the flexi-fund member last year was over P130,000 not adding up the additional P60,000 earnings that was received this year.
The fund launched today will be available around February of next year, This will be used for investment in government and private sectors and loans for members.
The Provident Fund makes investing easier for filipinos while providing them with benefits. For those who relies in retirement,provident fund should be considered specially for those who do not have additional savings and investments.
Acknowledgement:
Content Credit: SSS and ANC/ Melissa Gecolea
Image Credit: www.philstar.com
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