The Social Security System (SSS) has launched a save-and-earn initiative exclusively for Overseas Filipino Workers (OFWs) in a new program called SSS Flexi Fund. This program is particularly beneficial for OFWs looking to get the best value for every hard-earned peso, especially after their retirement.
We should know that we can’t be working abroad forever that’s why it’s good to save and let our money grow. It’s good that the government is offering new options for us to invest our money and make it work for us so we have something to hold on to when we retire or go home to the Philippines. Read about the flexi-fund program below:
What is SSS Flexi Fund?
SSS Flexi Fund is better-yielding provident fund scheme exclusively designed to help OFWs supplement their pension benefits – via secure savings and earnings – under the regular SSS program. This is offered to all OFWs who qualifies under the following terms:
- Recruited in the Philippines by foreign-based employers for work abroad
- With source of income in a foreign country
- Residing permanently in a foreign country
Under the program, the funds are added to a Flexi Fund account and invested in short-term fixed income government securities (Treasury Bills). It is not mandatory to add funds monthly to the Flexi Fund account, hence the term “flexi” which means flexible.
Why should OFWs invest in the SSS Flexi Fund
Judy Frances A. See, SSS Senior Vice President of Account Management Group, said: “Saving should be a priority because once they come back home and their income stops, they would likely have to live off whatever amount they have set aside. It is, therefore, important that they accumulate funds for a reserve, such as their SSS savings to mitigate loss of income.”
See also said:
“Saving even a small amount on a regular basis is a good start. It can soon add up to big gains over the long run especially if put into a safe investment vehicle.”
This is what makes the SSS Flexi Funds particularly good for OFWs.
Unlike other investments, these funds are not so risky so earnings are guaranteed. It is tax-exempt so OFWs can earn better. The earnings are computed based on average rates of SSS’ short term placements or 91-day TB (Treasury Bills), whichever is higher. It is subject to quarterly re-pricing which reflects current market conditions in the Philippines and the earnings (compounded interests) are credited every month-end. This will allow OFWs to build their equity in the long run, and eventually retire happily with higher pension.
How can OFWs use the benefits of the SSS Flexi Fund
There are three ways to use and enjoy the benefits of investing in the Flexi Fund Program.
1. Early Withdrawal
Members who invests in the SSS Flexi Fund have the option to withdraw funds from the Flexi Fund account anytime. The only catch is, there exists a pre-termination fee if contributions stayed on the fund in less than one year.
2. Annual Incentive Benefits (AIB)
AIB may be declared and posted on the accounts of members without full withdrawal claims/benefits for the year. The amount will depend on the fund’s year-end net income and is distributed based on shares to total equity of all qualified members.
3. Retirement, Disability and Death benefits
In the event that the member retires, gets disabled, or dies, he/she may receive amount disbursement in either monthly pension, lump sum, or combination of both upon contingency.
SSS Flexi Fund is a mashup of SSS Benefits and Provident Fund rolled into one. This means, if you are an OFW with an account under this fund, you get to enjoy all the benefits of SSS members, and at the same time save and earn money by adding up funds into your Flexi Fund whenever you wish.
Not such a bad idea, is it? Watch this and learn more: