The Social Security System (SSS) is exploring contributing payment options to help Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries qualify for a lifetime pension when they reach retirement age by paying the required minimum of 120 monthly contributions.
"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," SSS President and Chief Executive Officer Rolando Ledesma Macasaet said in a statement on Thursday.
Last month, the SSS and the Department of Social Welfare and Development (DSWD) signed a memorandum of agreement (MOA) allowing 4Ps beneficiaries nationwide to become SSS members and access social security benefits.
Under the agreement, the SSS shall develop an AlkanSSSya Program designed explicitly for 4Ps beneficiaries.
The AlkanSSSya Program is 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 PHP570," Macasaet 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.
The SSS will also study the possibility of reducing the minimum monthly SSS contribution from PHP570 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 noted, however, that a reduced monthly premium would result in a much 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, say for 120 months, will get a lifetime pension much lower than P2,200 per month," he said.
Macasaet said one option is to pay a reduced monthly premium for longer 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 to get the same benefit. For example, 4Ps beneficiaries have to contribute for 180 months to get the minimum monthly pension of P2,200," he added.
He said these options are still at the exploratory stage.
"SSS and DSWD will still work on the implementing guidelines for the social security coverage of 4Ps beneficiaries," said Macasaet.
"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.
DSWD Secretary Rex Gatchalian, for his part, earlier clarified that the 4Ps beneficiaries' contribution to the SSS will be voluntary because the cash grants cannot be used to pay their SSS contributions since it is intended for health, education, and the rice subsidy.
Gatchalian said the DSWD will integrate the value of SSS membership during the 4Ps Family Development Sessions, which 4Ps parents attend every month.
In these sessions, 4Ps beneficiaries share their knowledge and experience and promote learning on good parenting practices, financial literacy, and disaster risk preparedness.
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