There is a voluntary provident fund being manage by SSS for its members and it’s called the SSS P.E.S.O. Fund or simply SSS Peso Fund.
‘PESO’ stands for Personal Equity and Savings Option which is being offered exclusively to SSS qualified members.
What’s great about signing up for SSS Peso Fund program is that your earnings and benefits are tax free as opposed to say depositing your excess money in a time deposit wherein the interest you earned will be subjected to documentary stamps and withholding tax.
Aside from tax-free earnings and benefits, the SSS P.E.S.O. fund will only place the contribution of the members in sovereign guaranteed securities, and the best advantage of all is that Earnings are Guaranteed.
You know that when you invest in private company’s mutual fund, UITFs, stocks, etc you are always reminded that your investment comes with risk, and that profit is not guaranteed, and that you may even lose your invested capital. This clause is even on the investment contract you’ll sign. But if you place your excess money in SSS PESO fund, you can relax because of guaranteed earnings.
The only caveat is the actual interest rate that will be given by SSS is lower than say stocks and mutual funds over time, but definitely higher than the interest rates of regular bank savings deposits accounts. With savings account, an interest of 1% is already considered ‘High’.
REQUIREMENTS TO REGISTER in SSS Peso Fund
If you have not paid your SSS contribution for the immediate 6 months prior to enrolling in this program, you are not qualified to join. These are the other requirements that must be met by SSS members who wants to join the P.E.S.O. Fund.
The SSS PESO Fund is open to all employees, self-employed (SE), voluntary (VM) and OFW members who have met the following qualifications:
- Age must be below 55;
- You have paid contributions in the regular SSS program for at least six (6) consecutive months within the 12-month period immediately prior to the month of enrollment in SSS P.E.S.O voluntary provident fund;
- SE, VM and OFW members should be paying the maximum amount of contributions under the regular SSS program;
- Have not filed claim under the regular SSS program.
ALLOCATION of the SSS P.E.S.O. Fund
SSS will invest the member’s contribution on these government-backed financial instruments: T-Bond and T-Bill, so risk is very minimal. Others would even go as far as claiming zero risk.
Participation in this SSS program will give you guaranteed earnings as the SSS PESO Fund will be allocated on government securities Treasury Bonds and Treasury Bills. Check the table below for the percentage of fund allocation:
Watch this video made by SSS about the PESO Fund Program:
FAMILY EMERGENCY! Can I withdraw my contribution in SSS PESO FUND?
You never know when emergencies hit you or your family; and on these trying times, you may not have any choice but to withdraw your already invested money in SSS but is this allowed?
Based on the SSS PESO FUND FAQs presented on the official website of this government institution at sss.gov.ph a registered fund member can withdraw funds but only from the Medical and General Purpose appropriations.
Check again the table above to see the account types and corresponding percentages of fund allocation.
Example: You’ve been contributing to the SSS P.E.S.O. Fund for 6 years already and your total contribution has reach P120,000. One day your family faced an emergency, and you want to withdraw your funds from the program. What is the maximum amount you can withdraw from the SSS Peso provident fund? You can withdraw only 35% of total invested money or P42,000 + part of the earnings or profits from your investment in this SSS fund.
WHEN WILL YOU RECEIVE THE BENEFITS FROM YOUR PESO FUND?
- The member will receive benefits upon filing a retirement, total disability or death claim under the regular SSS program.
- Retirement or total disability benefits, which consist of the member’s contributions and earnings from the SSS P.E.S.O. Fund, may opt to receive this in monthly pension, lump sum or a combination of both.
- Death benefits shall be paid in lump sum to the member’s beneficiaries.
I WANT TO ENROLL IN THE SSS PESOS FUND PROGRAM, How?
SSS Peso Fund application is easy. If you want to register and join this voluntary provident fund program, you must visit a branch of SSS to personally register and fill up the SPF Enrollment Form. You will also list your beneficiaries.
Online enrollment for SSS Peso Fund is not yet available, but you can already download the enrollment form via this link, fill it up, print, and bring this when you go to the office.
If you are a conservative risk taker type of investor this SSS voluntary provident fund program may work well for you.
If you have more questions not answered on this SSS Peso fund blog, it’s best to go talk to a customer service representative of our Social Security System as they know all the ins and outs of this investment / retirement program. Visit a branch today!
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