FOR MONDAY ISSUE
State-run Social Security System (SSS) is exploring options to assist beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) in meeting the minimum monthly contributions needed for a lifetime pension upon retirement age.
Rolando Ledesma Macasaet, SSS president and chief executive officer said that one potential approach involves leveraging corporate social responsibility (CSR) programs from the private sector, as well as adjusting the minimum monthly contribution requirements.
Currently, SSS members must make at least 120 monthly contributions to qualify for a lifetime pension at retirement.
“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 that the SSS plans to discuss with companies their corporate social responsibility programs to support the 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,” Macasaet said.
“We will pitch to companies willing to sponsor SSS contributions to subsidize the monthly premiums of 4Ps beneficiaries,” he added.
He also said they are exploring the option of lowering the minimum monthly SSS contribution from P570 to a more manageable sum.
“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.
However, Macasaet pointed out that opting for a lower monthly premium would decrease the benefit.
Currently, SSS members who have been paying the minimum monthly premium of P570 for 120 months or 10 years will be entitled to a lifetime pension of approximately P2,200 per month.
Macasaet said that 4Ps beneficiaries who opt for a reduced monthly premium, for example, over 120 months, will receive a lifetime pension that is significantly less than P2,200 per month.
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 added.
He said all these options are still 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 added.