Social Security System (Philippines)

Last updated

Social Security System
Native name
Paseguruhan ng mga Naglilingkod sa Pribado
Company type Government-owned and controlled corporation (GOCC)
Industry Insurance
FoundedJune 3, 1957;67 years ago (1957-06-03)
HeadquartersSSS Building, East Avenue, Diliman,
Quezon City
,
Philippines
Key people
Voltaire P. Agas (OIC) [1] [2] (President and CEO)
Services Pension, Loan
RevenueIncrease2.svg₱362.2 billion [3]  (2023)
Increase2.svg₱83.13 billion [3]  (2023)
Website www.sss.gov.ph

The Social Security System (SSS; Filipino : Paseguruhan ng mga Naglilingkod sa Pribado) [4] is a state-run social insurance program in the Philippines to workers in the private, professional and informal sectors. SSS is established by virtue of Republic Act No. 1161, better known as the Social Security Act of 1954. This law was later amended by Republic Act No. 8282 in 1997. Government employees, meanwhile, are covered under a separate state-run pension fund by the Government Service Insurance System (GSIS).

Contents

History

Historical marker installed in 2008 at the SSS head office in Quezon City NHI-2008-Social Security System.jpg
Historical marker installed in 2008 at the SSS head office in Quezon City

President Manuel Roxas, to give relief to the people who were facing difficulties in the post-war period, called on the legislators to create a social security program in his State of the Nation Address in January 1948 but he died without passing the bill. [5] [6]

On July 7, 1948, President Elpidio Quirino succeeded Roxas and created the social security study commission through Executive Order No. 150. [7] The commission drafted the Social Security Act that was submitted to Congress. In 1954, Representative Floro Crisologo, Senators Cipriano Primicias and Manuel Briones introduced bills to the Congress that were eventually enacted as Republic Act 1161 or the Social Security Act of 1954 during the term of Ramon Magsaysay. [8] [9] [10] The law was also called the Social Security Law (SSS Law).

However, its implementation was delayed by objections made by business and labor groups. It was only in 1957 bills were presented in Congress creating the Republic Act No. 1792, amending the original Social Security Act. On September 1, 1957, the Social Security Act of 1954 was finally implemented under Carlos P. Garcia's term (Magsaysay died March that year). [5]

SSS, Fairview, Quezon City 3026Fairview, Novaliches, Quezon City Landmarks Roads 22.jpg
SSS, Fairview, Quezon City

On September 7, 1979, the Presidential Decree No. 1636 amended the Republic Act No. 1161 and extended compulsory coverage to people who identified as self-employed. The new rules which took effect on January 1, 1980. [11] [12] New rules allowed farmers and fisherfolks to be included in the coverage in 1992 and the year after, household helpers earning at least ₱1,000 monthly. The SSS, in 1995, covered laborers in informal sector earning the same wage monthly. [8]

On May 1, 1997, President Fidel V. Ramos signed Republic Act No. 8282, also known as Social Security Act of 1997. The law amended the SSS [13] and provided better benefit packages, expansion of coverage, flexibility in investments, stiffer penalties for violators of the law, condonation of penalties of delinquent employers, and the establishment of a voluntary provident fund for members.

SSS transferred the administration of its Medicare program, which gave benefits for the healthcare purposes of members, to the Philippine Health Insurance Corporation (PhilHealth) when Republic Act No. 7875 or the National Health Insurance Act of 1995 was enacted. [14] In 2017, about 2.2 million people receiving pension from the SSS saw their take-home benefits increased by ₱1,000 with the approval of President Rodrigo Duterte. [15]

Starting with a fund of ₱500,000 from the government, SSS' total assets grew to ₱474.7 billions and served 34.2 million members in 2016. [5] In 2018, the Republic Act No. 11199 or the Social Security Act of 2018 was passed, providing mandatory inclusion of Filipinos working domestically and internationally. [16]

Services

SSS provides death, funeral, maternity leave, permanent disability, retirement, sickness and involuntary separation/unemployment benefits. [17] The Employees' Compensation (EC) Program which started in 1975 provided double compensation to workers who had illness, accident during work-related activities, or died. EC benefits are granted only to members with employers other than themselves. [18]

SSS members can make 'salary' or 'calamity' loans. Salary loans are calculated based on a member's particular monthly salary credit. Calamity loans are for instances when the government has declared a state of calamity in the area where an SSS member lives, following disasters such as flooding and earthquakes. [19]

PESO Fund

The SSS PESO (Personal Equity Savings Option) Fund is a voluntary savings program that members can utilize to augment their retirement benefits from the regular membership. [20] Launched in September 2014, it is a provident fund that gives tax-free returns and it can be made available effective upon the retirement of the members or when certain conditions are met, such as permanent disability. [21] [22] The fund gives members the power to choose beneficiaries, and it provides three account options: medical expenses, retirement and disability, and other needs. [23]

Flexi Fund

Flexi Fund is a voluntary savings program offered by SSS. [24] Launched in 2001, it is a provident fund that is invested in fixed income securities and whose returns are determined by SSS' short-term placements or 91-day Treasury bills. [25] [26] It is open to overseas Filipino workers (OFW) who are not older than 60 years old. [27]

WISP

WISP carried a 5.33% annual rate of return.

WISP Plus

WISP carried a 6.87% annual rate of return.

MySSS Pension Booster

On June 10, 2024, SSS President Rolando Ledesma Macasaet re-branded the 'Worker’s Investment and Savings Program' (WISP) to 'MySSS Pension Booster', which offers a 7.2% annual rate of return to upgrade retirement and savings in line with Social Security Act of 2018 reforms. Formerly, WISP and WISP Plus carried a 5.33% and 6.87% return, respectively. The Booster is composed of both mandatory and voluntary schemes. [28]

Membership requirements

Branches

SSS' offices are located in 291 branches all over the country. There is an option to email or make a call to SSS’ branches. [30] Members can utilize the toll-free number that is open on weekdays and online services for transactions such as securing SSS identification number and applying for loans, sickness and retirement benefits. [5]

SSS Monthly Contribution

The SSS calculates monthly contributions differently for employers, employees, and self-employed people. Every payout is required for everyone in order to be in conformity with governmental labor standards, and this is shown to the employee on the payslip. The concept behind the monthly deductions is that, in the long run, the person may receive just compensation for all the years or months of payment that have been actually paid in, notwithstanding how inconvenient they may first seem. Currently, both the employer (8.50 percent) and the employee each contribute 13 percent of the monthly salary credit up to P25,000 for SSS (4.50 percent).

List of chairpersons

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References

  1. ↑ Gonzales, Anna Leah (October 28, 2024). "BBM names Voltaire Agas as new OIC of SSS". Philippine News Agency . Retrieved October 30, 2024.
  2. ↑ Cordero, Ted (October 12, 2024). "De Claro named as SSS officer-in-charge". GMA Network . Retrieved October 12, 2024.
  3. 1 2 Social Security System (February 24, 2024). SSS net income in 2023 soars to P83 billion (Report). Retrieved April 4, 2024.
  4. ↑ Narvaez, Eilene Antoinette; Macaranas, Edgardo, eds. (2013). Mga Pangalan ng Tanggapan ng Pamahalaan sa Filipino (PDF) (in Filipino) (2013 ed.). Komisyon sa Wikang Filipino. p. 6. ISBN   978-971-0197-22-4. Archived from the original (PDF) on March 29, 2017. Retrieved October 26, 2024.
  5. 1 2 3 4 Bugante, Susie (August 30, 2016). "59 years of faithful service to the nation". BusinessMirror. Retrieved June 30, 2019.
  6. ↑ "Social Security System (SSS) — Davao Corporate". March 25, 2024. Retrieved March 25, 2024.
  7. ↑ "Third Republic". Official Gazette of the Republic of the Philippines. Retrieved June 30, 2019.
  8. 1 2 "SSS Guidebook" (PDF). Page 2 of the Social Security System of the Philippines. Retrieved May 18, 2017.
  9. ↑ "Crisologo Museum". Vigan.ph. Retrieved May 18, 2017.
  10. ↑ "A Study of Services at Social Security System Makati Processing Center" (PDF). www.ijesc.org. Retrieved August 10, 2021.
  11. ↑ "Presidential Decree No. 1636, s. 1979". Official Gazette of the Republic of the Philippines. September 7, 1979. Retrieved June 30, 2019.
  12. ↑ "SOS: The state of the SSS". Manila Standard. Retrieved June 30, 2019.
  13. ↑ Honeyman, Neil (November 15, 2015). "Honeyman: The SSS pension scheme". SunStar. Retrieved July 1, 2019.
  14. ↑ "The Revised Implementing Rules and Regulations of the National Health Insurance Act of 2013 (RA 7875 as amended by RA 9241 and 10606)" (PDF).
  15. ↑ "Duterte at the halfway mark: The Filipino's gamble". Rappler. Retrieved July 1, 2019.
  16. ↑ Cu, Rea. "SSS: Law requires protection for Filipinos here and abroad". BusinessMirror. Retrieved July 1, 2019.
  17. ↑ "SSS: Higher contribution means more benefits". GMA News. Retrieved July 1, 2019.
  18. ↑ "Self-employed join gov't compensation program". BusinessWorld. Retrieved July 1, 2019.
  19. ↑ "Summary of SSS Benefits" (PDF). sss.gov.ph. Retrieved August 29, 2019.
  20. ↑ "How to earn passive income through SSS P.E.S.O Fund". July 12, 2019. Retrieved May 1, 2021.
  21. ↑ "SSS unveils provident fund program for members". ABS-CBN News. September 25, 2014. Retrieved April 18, 2021.
  22. ↑ Bugante, Susie (April 19, 2016). "Enrollment to the SSS Peso Fund made easier | Susie Bugante". BusinessMirror. Retrieved April 18, 2021.
  23. ↑ Padin, Mary Grace. "SSS partners with GCash for Peso Fund contributions". Philstar.com. Retrieved April 22, 2021.
  24. ↑ "Flexi Fund: For $3.73 per month, OFWs can start investing". gulfnews.com. July 3, 2018. Retrieved May 1, 2021.
  25. ↑ "SSS reports P6.23 billion in disability benefits in Q4 2020". pia.gov.ph. April 8, 2021. Retrieved May 1, 2021.
  26. ↑ "SSS Flexi-fund's annual incentive benefit up by 12.3%". pia.gov.ph. July 11, 2018. Retrieved May 1, 2021.
  27. ↑ "SSS Benefits for OFWs". Department of Foreign Affairs. Retrieved May 1, 2021.
  28. ↑ "SSS rebrands saving schemes as boosters with 7.2 percent returns". The Philippine Star. June 12, 2024. Retrieved June 12, 2024.
  29. ↑ "Republic of the Philippines Social Security System". Sss.gov.ph. Retrieved October 3, 2018.
  30. ↑ "How To Get SSS ID Number Online". Cashcat.
  31. ↑ "De la Paz: There's more behind resignation". ABS-CBN News. July 10, 2008. Retrieved September 17, 2021.
  32. ↑ JMR/Sunnex (August 23, 2010). "Aquino swears in 36 new officials". SunStar. SunStar Publishing Inc. Retrieved May 21, 2020.
  33. ↑ Ranada, Pia (February 12, 2018). "Duterte fires SSS chairman Valdez and commissioner La Viña". Rappler. Manila, Philippines: Rappler Inc. Retrieved May 21, 2020.
  34. ↑ de Vera, Ben (March 4, 2019). "SSS: Increase in contribution to 12% likely to start by April or May". Philippine Daily Inquirer. Retrieved May 21, 2020.
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