More on the SSS-PESO Fund --- here's the brochure

 Read about the SSS Provident Fund.
SSS calls it SPF, not to be confused with SPA.

.. as for me, i'm going for the Pag-ibig fund. why, there are less restrictions
to be frank with you, readers - the return is supposed to be greater under the SPF than Pag-ibig 2

SSS Peso-Fund has started

Just wanted give a heads-up to members

The Peso-fund has started yesterday for some branches.  ASK TODAY.
Same rules.

HERE IS A COPY OF THE NEWS RELEASE;  with slight editing for readability purposes only

SSS voluntary provident fund opens enrollment

6 May 2015

SSS is now accepting enrollment applications for the Personal Equity and Savings Option (SSS-PESO) Fund program, a provident-fund scheme that aims to increase savings among SSS members, particularly for building their retirement fund.

The program is open to all members who are 54 years old and below, and have at least six consecutive contributions under the SSS regular program within the last 12 months prior to enrollment. The member’s effective date of membership commences at the month a contribution is first made to the SSS-PESO fund. “They can participate for an initial contribution of P1,000 with succeeding contributions of at least P1,000, in multiples of P100. An SSS-PESO member can contribute up to a maximum P100,000 per year,” SSS Vice President for Benefits Administration Division Agnes San Jose said. For the pilot implementation of the SSS-PESO Fund, interested members may apply at the following branches in the National Capital Region: Diliman, Cubao, San Francisco Del Monte, Pasig-Shaw, Mandaluyong, Taguig, Makati-Gil Puyat, Alabang, Legarda, Pasay-Roxas Boulevard. Members are required to personally appear before an SSS authorized representative to sign the accomplished forms for confirmation. “This procedure allows us to verify the authenticity of the document and the identity of the applicant,” San Jose explained. By September 2015, all SSS branches nationwide will accept applications to the SSS-PESO Fund. Eventually, enrollment may be done online through the My.SSS portal. The program’s guidelines which came out recently, stated that employed members, regardless of the amount of their current monthly contributions, could join the SSS-PESO Fund while self-employed, voluntary and OFW members should be paying the maximum SSS contribution to be able to contribute in the SSS-PESO Fund. The guidelines further explained that there has to be a corresponding SSS contribution on the month the member will make contributions to the SSS-PESO Fund account. Refunds, withdrawals or benefit claims will be credited to the member’s single savings or current account with an SSS depository bank. Early termination of membership is not allowed. In a previous statement, the SSS said members can enjoy higher return on their savings under the tax-free fund, which offers guaranteed earnings that are based on rates higher than those offered in a savings account or bank deposit. According to San Jose, SSS-PESO Fund contributions are invested in government securities to ensure safety and liquidity and are guaranteed to earn based on prevailing Treasury bill rates. SSS-PESO Fund savings are allocated to three accounts namely, retirement, medical, and general purpose, which covers education, housing, livelihood, and unemployment. Only the portions allotted for medical and general purpose can be withdrawn before the member’s date of retirement. A corresponding management fee will be charged for each SSS-PESO account while penalties will be charged for any withdrawals made before the fifth year of membership in the SSS-PESO Fund. SSS-PESO Fund members may also receive additional earnings depending on the actual income of the fund at the end of each year.

Provident Funds ....like the SSS Peso-Fund, Pag-ibig2 Fund

remember when SSS announced the SSS Provident Fund - that is - The SSS Peso Fund -
 wherein interest followed the 90-day T bill?
well, that fund is still not in play.  Yep, it has been postponed.  The fund is similar to the Flexi-fund offered to OFWs.  But there are many restrictions.

If you check the Pag-ibig website, there is a Pag-ibig 2 offer wherein contributions are voluntary, have a better interest rate than bank deposits, but the interest rates are not comparable to the SSS Provident Fund.

however, the Pag-ibig offer has less restrictions so if you want to invest now, and with less hassles, go with the Pag-ibig 2 fund.
also, did you know that you can also increase your pag-ibig 1 contributions.
i know, HR never said anything, right?

do you wonder if HR really cares about you?

well .....

P.E.S.O. FUND START POSTPONED

This is just to relay the news that the SSS PESO Fund start will be next year, not DEC 1 as initially announced.

more to shop with???

P. E. S. O. FUND - update

I got a few additional requirements for the PESO fund

first, you must open a bank account, and the peso fund starts DEC 1
i hope to have further updates for you - like the actual procedure before then....

also, a financial sample so you can see some of the products available in the market today

SALIENT POINTS OF THE SSS P.E.S.O. FUND

Items in blue are MY personal remarks and comments.

MEMBERSHIP

• All employees, self-employed (SE), voluntary members (VM), and OFWs who have not reached 55 years old and have not filed any final claim under the regular SSS program may enroll in the SSS PESO Fund. 
• For SE, VM and OFW members, they must be paying at the Maximum Salary Credit (MSC) for at least six consecutive months during the last 12 months immediately prior to the month of enrollment. 
• Membership in the SSS PESO Fund begins from the first contribution.
• Interested and qualified SSS members can enroll in the program through over-the-counter in any SSS branch. Online enrollment to the SSS PESO Fund will be announced soon.

CONTRIBUTIONS

• Each SSS PESO Fund member is allowed a maximum contribution of P100,000.00 per annum and minimum of P1,000.00 per contribution. Any amount below the minimum shall not earn interest and shall be subject to automatic refund. However, maximum and minimum amount of contributions may change upon determination of the Social Security Commission.
• Contributions may be made anytime, provided that for SE, VM and OFW members, such PF contribution has a corresponding SS contribution based on the maximum Monthly Salary Credit (MSC) on the month of contribution. 
• SSS PESO Fund contributions are allocated in three accounts: retirement/total disability (65%), medical (25%), and General Purpose (10%). 

GUARANTEED RATES AND INSURANCE

• SSS PESO Fund offers guaranteed rates for the various accounts. Guaranteed rate for retirement or total disability is based on the Five (5)-year T-bond, while medical and general purpose is based on the 364-day T-bill rates. 
• The monthly crediting of the guaranteed rate is based on the average of the past three (3) months. Crediting of actual earnings in excess of the guaranteed rate shall be made at the end of the year.

BENEFITS

• SSS PESO is a tax-free fund. 
• Members have the option to receive retirement or total disability benefit either through monthly pension, lump sum, or a combination of monthly pension and lump sum. 
• Effectivity of retirement/total disability is the same as the effectivity of retirement/total disability under the regular SSS Program. 
• Death benefit for beneficiaries of SSS PESO Fund members will be paid in lump sum. 
• In case the SSS PESO Fund member dies prior to the expiration of the pension period, his beneficiaries will be paid the remaining balance of his fund in lump sum.

FINANCIAL REPORT

• SSS PESO Fund members will receive a Statement of Account every month through electronic mail and may be viewed in their web account via My. SSS.

OPTION TO WITHDRAW                                            

• No withdrawals from the retirement account of the SSS PESO Fund are allowed. 
• Withdrawals on SSS PESO Fund are only allowed from the Medical (25%) and General Purpose (10%) accounts but corresponding penalty and service fees will be charged if the contributions are retained for less than 5 years. Penalty and service fees depend on the number of years the contributions are retained in the SSS PESO Fund as shown on the table below: 

FAQS

Can my SSS PESO Fund contribution vary every year? Yes. For example, you can place P100,000 in 2015 and P20,000 in 2016. This is a savings mechanism so it is up to you to save more so you can add on your SSS PESO fund.

Is there a difference between depositing my money in a savings account and putting it in the SSS PESO Fund? Yes.

A savings account earns minimal interest, usually about 1-4% annually. That much is pretty small potatoes for investment.  Also under PDIC, monies in a savings account are protected until half-a-million.  The Peso Fund carries a Sovereign Guaranty for the entire, by virtue of the SSS Law.

I am employed but I am not paying at the Maximum Salary Credit (MSC). Can I contribute P100,000 in my SSS PESO fund? Yes. The SSS PESO fund is a savings mechanism for those who have other sources of income so they can plan better for retirement.

UPDATE:  2015.07.07 

As a young person, you can start small, and make it bigger as you earn more.

If you are a voluntary member, then you are NOT allowed unless you are paying the maximum. or have paid the maximum 6 months prior to your enrollment.  Sorry, this is the biased portion i was referring to ---

Are my contributions in the SSS PESO fund taxed?

No. Both contributions and income from your SSS PESO Fund are tax free because your contributions had already been taxed from your salary.  Remember, we have the gross taxation scheme, a scheme guaranteed to bleed the blood out of its middle-class citizenry.

How are earnings credited?

Guaranteed earnings are credited monthly. Excess earnings, if any, are distributed at the end of the year.

Putting on my SSS member hat, I can see some inequities in this plan.  Can you spot them?  

There seems to be a bias against Voluntary and Self-Employed Members.

I will let you read, and let you know.  

Also, there are no instructions yet - on how to be a member. 

In the meantime, i will try and get the Pag-ibig proposal out here as well so we can evaluate things together.  

P.E.S.O. - FUND; AN SSS ANNOUNCEMENT

SSS announced today the launching of its Personal Equity and Savings Option (PESO) -fund.  It is similar to the OFW's flexi-fund, with similar provisions.

It is voluntary, and is open to members who are below 55 and are paying the maximum contribution for SSS for SEVMs and OFWs. Employed members may join even if they are not at the maximum levels.

Benefits  and Income are tax-free because this is earmarked for a retirement fund.  CONTRIBUTIONS to the fund are NOT tax-free, unlike the PERA fund discussed a few years, but never flew.

Income is guaranteed because it is pegged to the T-bill rate, same as the flexi-fund.

Details will follow at a later post.
If readers will remember, Pag-ibig also announced a similar, if smaller program that may appeal to the smaller-income would-be investor.  The Pag-ibig offer is also less restrictive.  However, I have yet to compare possible incomes and growth of fund.

A comparative post of the Flexi-fund, P.E.S.O. - Fund, Pag-ibig, and  PERA fund will follow at a later date.

If you read about it, and have questions. You can ask on this post.

NOTE:  RIGHT NOW I AM SEEING CERTAIN DISCREPANCIES IN THEIR ANNOUNCEMENT.  HENCE, I AM GIVING TIME TO CHANGE CERTAIN ITEMS BEFORE I START THE DISCUSSION.