Aside from the contribution increase, the Social Security System (SSS) will also be implementing a mandatory provident fund (MPF) dubbed the Workers’ Investment and Savings Program (WISP) starting January 2021.
“It’s a provident fund, it’s another layer, it’s your second layer of protection. Additional benefits ito to supplement your pension benefits,” SSS vice-president for benefits administration Joy Villacorta stated.
A safe, convenient, principal-protected, and tax-free individual retirement savings plan, WISP intends to augment members’ savings from the regular program. Coverage under the WISP is mandatory for all private-sector employees, self-employed individuals, overseas Filipino workers, and voluntary members who have no final claim in the regular SSS program and have an MSC that exceeds P20,000.
“It allows faster accumulation of a workers’ savings because of the employer share in the contribution. Moreover, WISP contributions will be invested following the principles of safety, high-yield, and liquidity, and as provided under the Social Security Act of 2018, which will yield additional pension income for contributing members,” SSS President and CEO Aurora Ignacio said.
Benefits claim under WISP
Contributions in WISP is paid together with contributions under the regular SSS program.
The annuity shall be given in the form of a fixed amount of monthly pension, to be paid until the members’ accumulated value (AV) is fully settled, covering at least 15 years. The member’s total AV at the time of the approval of the claim shall be the basis of his or her benefits.
In the event of the pensioner’s death, any remaining balance in the accumulated AV will be paid in a lump sum to the eligible beneficiary. A member’s beneficiaries under the WISP are the same as those identified as such under the regular SSS program.
According to the SSS, a significant portion of the investments will be in risk-free Government Securities, 75 percent at the minimum, and a modest portion, around 10 to 20 percent, will be invested in blue-chip corporations.