SSS pushes for social security coverage of over 4M 4Ps beneficiaries

The Social Security System (SSS) today said it aims to provide social security protection to 4.4 million beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) nationwide through a 4Ps version of its AlkanSSSya Program.

SSS President and Chief Executive Officer Rolando Ledesma Macasaet (in front, right) and Department of Social Welfare and Development (DSWD) Secretary Rex T. Gatchalian (in front, left) recently inked a Memorandum of Agreement (MOA) that will allow 4Ps beneficiaries nationwide to become SSS members and have access to social security benefits.

Witnessing the agreement signing are (at the back, from left to right) DSWD Director and 4Ps – National Program Management Office National Program Manager Gemma B. Gabuya, DSWD Assistant Secretary for the 4Ps Marites M. Maristela, DSWD Undersecretary for National Household Targeting System and 4Ps Vilma B. Cabrera, SSS Executive Vice President for Corporate Services Sector Elvira G. Alcantara-Resare, SSS Executive Vice President for Branch Operations Sector Voltaire P. Agas, SSS Investments Sector Concurrent Acting Head Ernesto D. Francisco, Jr., and SSS Account Management Group Concurrent Acting Head Carlo C. Villacorta.

Macasaet said that through the agreement, SSS and DSWD will work together to protect the welfare of the most vulnerable sectors of society, including those families benefitting from the Philippine conditional cash transfer program.

“SSS aims to provide these vulnerable sectors with the mechanism to become active SSS members and thereby secure their future through the range of SSS benefits,” Macasaet said.

Under the agreement, Macasaet explained that SSS shall develop an AlkanSSSya Program specifically designed for 4Ps beneficiaries. The program was established in 2011 as 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 P570,” Macasaet said.

SSS exploring contribution payment options

Macasaet disclosed that SSS is exploring several options to help 4Ps beneficiaries pay the 120 monthly contributions required to qualify for a lifetime pension when they reach retirement age.

“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 SSS will 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 explained.

He also said that the SSS will study the possibility of reducing the minimum monthly SSS contribution from P570 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.

However, Macasaet noted that a reduced monthly premium will 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, let’s say for 120 months, will get a lifetime pension much lower than P2,200 per month,” he explained.

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.

SSS contributions will be voluntary

Gatchalian 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 added that DSWD will integrate the value of SSS membership during the 4Ps Family Development Sessions (FDS), an activity attended by 4Ps parents 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, among others.