DUMAGUETE CITY, Feb. 19 (PIA) – Social Security System (SSS) here is now accepting applications for Personal Equity Savings Option (PESO) fund program from its active members in the city.
PESO fund program is a new provident-fund scheme offered by SSS to its members that aims to increase their savings among their members, particularly for building their retiring fund.
The program was launched in March last year and piloted in several SSS branches in Metro Manila.
By September 2015, it was implemented in all SSS branches nationwide.
“This is an offer to all those who have extra income so they can save more. They can save it in the PESO fund,” SSS Branch Manager Lilani Benedian said in a Kapihan Forum here.
SSS Assistant Branch Manager Lynlee-Lu Dato said that this new program provides an opportunity for members to voluntarily contribute more in order to receive higher benefits in the future.
The PESO fund program is a tax-free fund in which contributions are placed in sovereign guaranteed instruments with sure earnings.
Sixty-five percent of it is allocated for retirement or total disability, 25% is for medical use, and 10% for general use.
The program is open to SSS members who are below 55 years old and have paid their contributions in the regular SSS program for at least six consecutive months for the past 12 months prior to the month of enrollment.
Aside from SSS members with employers, self-employed members, voluntary members and Overseas Filipino Workers who have paid the maximum amount of contributions under the regular program are also eligible to apply for said program.
“Minimum contribution is P1,000 per payment and the maximum contribution is P100,000 per annum. Contributions in excess of the minimum should be in the multiples of P100,” Dato said.
Dato presented an example during the forum to illustrate the benefits of investing in the PESO fund program.
She cited as example an SSS member who earns P45,000 per month and has extra savings of P8,300 per month. When he starts saving money under the PESO program at the age of 40, his annual contribution is estimated to be P100, 000. By twenty years, his contribution will reach P2 million.
The SSS member’s estimated PESO fund earnings by the time he reaches retirement is pegged at P497, 085 or almost P500, 000 assuming the that the fund growth rates are at 3.75%, 1.85% and 1.85% per annum for retirement account, medical and general purpose fund accounts, respectively.
To avail of the program, a member must enroll in any SSS branch offices with the assistance of the Member Services Section (MSS) Head, or on-line thru the My.SSS portal.
“For now, a member should go to our office to enroll personally,” Dato noted.
Once a member is enrolled in the program, they will have to personally go to the SSS office to pay contributions and fill-out separate payment form.
For now, SSS-Dumaguete is focusing on the information drive to raise public awareness about the program.
Benedian disclosed that the agency welcomes invitations from private companies in Dumaguete to conduct orientations on the PESO fund program.
For inquiries on the availment process, SSS-Dumaguete City Branch can be reached through their numbers 225-4340, 422-4634 and 225-6810. (rmn/ral/PIA7-Negros Oriental/This article was first published at PIA website on Feb. 19, 2016)