Overseas Filipino workers (OFWs) will automatically become members of the Social Security System (SSS) if a measure that seeks to overhaul the SSS Charter becomes law.
Among the new powers and key reforms under Senate Bill (SB) 1753 is the compulsory SSS coverage of OFWs, “provided that they are not over 60 years of age.”
The bill may help expand the number of OFWs with SSS coverage from 500,000 to over 2.5mn, Sen. Richard Gordon said.
“Even Filipinos who became naturalised Americans and retired in the United States may be invited to invest in the provident fund,” the senator added.
The Senate ratified last week a bicameral conference committee report on the bill amending the SSS Charter to improve the pension fund’s financial standing and services.
The Senate on November 28 adopted the bicameral report on clashing provisions of SB 1753 and House Bill 2158 of the proposed Social Security Act of 2018.
The bill aims to repeal the 21-year-old Social Security Law, or Republic Act 1161, as amended by RA 8282 and expand the powers of the SSS to ensure the long-term viability of the system.
It is an enhancement of previous laws, according to Gordon, chairman of the Senate Committee on Government Corporations and Public Enterprises and author and sponsor of SB 1753.
“It ensures hope that the people would not be a burden to the country, that they are partners of the government not by way of exaction of taxes but by their contribution so that their welfare is assured,” he said.
The bill empowers the SSS Commission to determine the salary credit and monthly contributions of members.
It allows the commission to increase contributions depending on actuarial surveys.
Gordon said the expanded powers are needed to allow the SSS management to increase the salary credit and contribution of employees “considering that at present it is only limited to P16,000, which yields very little benefit.”
At the same time, the SSS would also be empowered to invest its reserve funds to “grow the wealth of SSS and ultimately yield higher income.”
He, however, said these investments must satisfy requirements of liquidity, safety/security and yield “to ensure the actuarial solvency of the funds of the SSS.”
“The SSS must be given a chance to do what they can for the people because the government could not base its policies on fear but on trusting the people, especially those with tremendous responsibility,” Gordon added.
“The bill does not promise an abundance of wealth but to secure people in case they would encounter unwanted situations in their lives through a lifeline that they themselves created through their contribution,” he said.