Transcript Social Security Protection of OFWs thru the Social

Social Security Protection of OFWs
through the Social Security System
ATTY. JOSE SONNY G. MATULA
Social Security Commissioner
Presentation to the FFW Symposium on Migration, February 10, 2007,
Regency Inn, Davao City
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Outline of Presentation
• SSS Mission and Vision
• Reaching out to OFWs
– Bilateral Agreements
– Voluntary OFW Coverage
• SSS Foreign Representative Offices
• OFW Coverage and Collection
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The SSS Mission
• To promote social justice and provide
meaningful protection to members
and their beneficiaries against hazards
of disability, sickness, maternity, old
age, and death resulting in loss of
income or financial burden through a
sound and viable social security system
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The SSS Vision
• Viable
• Universal
• Equitable
• World-class service
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Reaching out to OFWs
• SSS’ two-pronged approach:
Social Security
Bilateral
Agreements
Voluntary
OFW Coverage
Program
Voluntary
Flexi-Fund
Program
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Bilateral Agreements
• Existing Agreements
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–
–
–
–
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Austria (1982)
United Kingdom (1989)
Spain (1989)
France (1994)
Canada (1997)
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–
–
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Quebec (1998)
Netherlands (2001)
Switzerland (2001)
Belgium (2001)
South Korea (2005)
Bilateral Agreements
• Salient Features
– Mutual assistance
– Equality of treatment
– Export of social security benefits
– Totalization of membership periods
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Voluntary OFW Coverage Program
• Milestones
– Started Voluntary OFW Coverage in 1995
– Forged MOA with DFA/DOLE in 1997
– Started deployment of SSS representatives
in foreign countries in 1998
• Who are covered?
– Any OFW not over 60 years old, whether
previously an SSS member or not
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Voluntary OFW Coverage Program
• First-time Registration
 Secure an Overseas Worker Record Form (OW1) from an SSS office or download the form from
the SSS website (www.sss.gov.ph)
 Submit the form with any of the following
documents (original and photocopies):
• Birth Certificate
• Baptismal Certificate
• Valid Passport
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l
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Driver’s License
Seaman’s Book
PRC Card
Voluntary OFW Coverage Program
• No need for OFW registration if already a
prior member with an existing SS number
– OFW registration needed only for those who
wish to join the Flexi-Fund Program
• Effectivity of Coverage
– Upon payment of first monthly contribution
• Basis of Monthly Contribution
– Monthly earnings, set minimum of P5,000
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Voluntary OFW Coverage Program
• Monthly Contribution Rate
– 10.4% of the OFW’s salary, not exceeding
P15,000 per month
• Minimum: P 520
• Maximum: P1,560
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Voluntary OFW Coverage Program
• Accredited Collecting Banks / Tie-ups
- Allied Bank
- Asiatrust Bank
- Bank of the Phil. Islands
- Equitable-PCI Bank
- Export and Industry Bank
- International Exchange Bank
- Land Bank
- Chinabank
- Asia United Bank
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- LBC Bank
- Metrobank
- Philippine National Bank
- RCBC
- Security Bank
- United Coconut Planters Bank
- Bank of Commerce
- Development Bank of Phils.
- East-West Bank
Voluntary OFW Coverage Program
• Benefits
– Retirement
– Disability
– Death
– Funeral
– Sickness
– Maternity
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Voluntary OFW Coverage Program
• Retirement
– Cash benefit, in either monthly pension or lump sum,
paid to a member who can no longer work due to old age.
Qualifications:
1) 60 years old, separated from employment or ceased to be
self employed.
2) 65 years old, whether employed or not.
3) Has paid at least 120 monthly contributions before
semester of retirement.
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Voluntary OFW Coverage Program
• Disability
- Cash benefit, in either monthly pension or lump sum, paid to a
member who becomes disabled, either partially or totally.
Qualifications:
1) suffering from partial or total disability.
2) with at least one month contribution paid to SSS prior to
the semester of contingency.
Less than 36 premium payments = LUMP SUM
36 or more premium payments = PENSION
Dependent’s Pension is given to qualified minor children of a
totally disabled pensioner
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Voluntary OFW Coverage Program
• Death
– Cash benefit, in either monthly pension or lump sum,
paid to the beneficiaries of the deceased member.
• Pension - payable to primary beneficiaries of a member
who has paid 36 or more premium payments prior to the
semester of contingency.
• Lump sum - payable to primary beneficiaries of a
member who has paid less than 36 premium payments.
Payable also to the secondary beneficiaries.
• Dependent’s Pension - payable to qualified minor
children (not more than five) of a death pensioner.
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Voluntary OFW Coverage Program
• Funeral
– a funeral grant of P20,000 is given to whoever
paid the burial expense of the deceased member.
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Voluntary OFW Coverage Program
• Sickness
– A daily cash allowance paid to a member for the number
of days he is unable to work due to sickness or injury.
– The cash allowance is equivalent to 90% of average daily
salary credit, for a maximum of 120 days per year.
Qualifications:
1) Unable to work due to sickness or injury.
2) Confined at home/hospital for at least 4 days.
3) With at least 3 premium payments within the last 12
months before the semester of contingency.
4) Must have notified the SSS.
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Voluntary OFW Coverage Program
• Maternity
– A daily cash allowance granted to a female member who
is unable to work due to childbirth or miscarriage.
– The cash allowance is equivalent to 100% of member’s
average daily salary credit granted for 60 days for normal
delivery or miscarriage or 78 days for caesarian delivery
(for first 4 deliveries/miscarriages only)
Qualifications:
• Must have notified the SSS.
• With at least 3 premium payments within the last 12
months before the semester of contingency.
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Voluntary OFW Coverage Program
• Loans
– Salary
– Housing
– House Repair & Improvement
– Business Development
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Voluntary OFW Coverage Program
• Flexi - Fund (National Provident Fund)
– Provident Fund for OFW-members that allows them to
save part of their earnings abroad for future needs
– Offers flexible payment terms, high-interest and taxexempt earnings through secure/risk-free investments
Benefits:
• Retirement
• Disability
• Death
• Early Withdrawal
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Foreign Representative Offices
Foreign Office
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1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Hong Kong
Rome, Italy
Riyadh, KSA
Jeddah, KSA
Al-khobar, KSA
Taipei, Taiwan
Brunei
Kuwait
Abu Dhabi, UAE
Doha, Qatar
Milan, Italy
San Francisco, USA
Sydney
Singapore
London, United Kingdom
Location
Phil. Consulate General
Phil. Embassy
Phil. Embassy
Phil. Consulate General
Tahwee Aj-Rajhi Bank, Al-Shamalia Dist.
Metrobank Bldg., Chiung Hsiao East Rd.
Phil. Embassy
Phil. Embassy
Phil. Embassy
Phil. Overseas Labor Office
Phil. Consulate General
San Pedro Road, Daly City
Blacktown, New South Wales
Phil. Embassy
Orchard House, High St., Kensington
Chart 1: No. of Registered OFWs (Cumulative)
700,000
592,778
600,000
500,000
400,000
300,000
658,551
699,814
525,778
455,692
380,358
260,483
200,000
100,000
0
2000 2001 2002 2003 2004 2005 2006*
*Jan-Sept. only
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Chart 2: OFW Collections for the Year
In Million Pesos
1,010.5
1,200
1,000
772.9
641
800
430.4
600
400
853.6
499
285.2
200
0
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2000
2001
2002
2003
2004
2005
2006*
*Jan-Sept. only
End of Presentation
THANK YOU!!!
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