1 social security protection of ofws through the social security system atty. jose sonny g. matula...
TRANSCRIPT
1
Social Security Protection of OFWs through the Social Security System
ATTY. JOSE SONNY G. MATULAATTY. JOSE SONNY G. MATULASocial Security Commissioner
Presentation to the FFW Symposium on Migration, February 10, 2007, Regency Inn, Davao City
2
Outline of Presentation
• SSS Mission and Vision
• Reaching out to OFWs
– Bilateral Agreements
– Voluntary OFW Coverage
• SSS Foreign Representative Offices• OFW Coverage and Collection
3
The SSS Mission
• To promote social justicesocial justice and provide meaningful protectionmeaningful 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
4
The SSS Vision
• VViable
• UUniversal
• EEquitable
• WWorld-class service
5
Reaching out to OFWs
• SSS’ two-pronged approach:
Social SecuritySocial SecurityBilateralBilateral
AgreementsAgreements
Voluntary Voluntary OFW CoverageOFW Coverage
ProgramProgram
Voluntary Voluntary Flexi-FundFlexi-FundProgramProgram
6
Bilateral Agreements
• Existing Agreements – AustriaAustria (1982)
– United KingdomUnited Kingdom (1989)
– SpainSpain (1989)
– FranceFrance (1994)
– CanadaCanada (1997)
– QuebecQuebec (1998)
– NetherlandsNetherlands (2001)
– SwitzerlandSwitzerland (2001)
– BelgiumBelgium (2001)
– South Korea South Korea (2005)
7
Bilateral Agreements
• Salient Features
– MMutual assistance
– EEquality of treatment
– EExport of social security benefits
– TTotalization of membership periods
8
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?Who are covered?– Any OFW not over 60 years old, whether
previously an SSS member or not
9
Voluntary OFW Coverage Program• First-time RegistrationFirst-time Registration
Secure an Overseas Worker Record Form (OW-1) 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 Driver’s
License• Baptismal Certificate Seaman’s
Book• Valid Passport PRC Card
10
Voluntary OFW Coverage Program• No need for OFW registration if already a No need for OFW registration if already a
prior member with an existing SS numberprior member with an existing SS number– OFW registration needed only for those who
wish to join the Flexi-Fund Program
• Effectivity of CoverageEffectivity of Coverage– Upon payment of first monthly contribution
• Basis of Monthly ContributionBasis of Monthly Contribution– Monthly earnings, set minimum of P5,000
11
Voluntary OFW Coverage Program
• Monthly Contribution RateMonthly Contribution Rate– 10.4% of the OFW’s salary, not exceeding
P15,000 per month
• Minimum: P 520
• Maximum: P1,560
12
Voluntary OFW Coverage Program
• Accredited Collecting Banks / Tie-upsAccredited Collecting Banks / Tie-ups- Allied Bank - LBC Bank- Asiatrust Bank - Metrobank- Bank of the Phil. Islands - Philippine National Bank- Equitable-PCI Bank - RCBC- Export and Industry Bank - Security Bank- International Exchange Bank - United Coconut Planters
Bank- Land Bank - Bank of Commerce- Chinabank - Development Bank of Phils.- Asia United Bank - East-West Bank
13
Voluntary OFW Coverage Program
• BenefitsBenefits– Retirement– Disability– Death– Funeral– Sickness– Maternity
14
Voluntary OFW Coverage Program
• RetirementRetirement– 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.
15
Voluntary OFW Coverage Program• DisabilityDisability- 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 SUM36 or more premium payments = PENSIONDependent’s Pension is given to qualified minor children of
a totally disabled pensioner
16
Voluntary OFW Coverage Program• DeathDeath
– 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.
17
Voluntary OFW Coverage Program
• FuneralFuneral
– a funeral grant of P20,000 is given to whoever paid the burial expense of the deceased member.
18
Voluntary OFW Coverage Program• SicknessSickness
– 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.
19
Voluntary OFW Coverage Program• MaternityMaternity
– 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.
20
Voluntary OFW Coverage Program
• LoansLoans– Salary– Housing– House Repair & Improvement– Business Development
21
Voluntary OFW Coverage Program
• Flexi - Fund (National Provident Fund)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 tax-
exempt earnings through secure/risk-free investments
Benefits:• Retirement• Disability• Death• Early Withdrawal
22
Foreign Representative Offices
1. Hong Kong Phil. Consulate General
2. Rome, Italy Phil. Embassy
3. Riyadh, KSA Phil. Embassy
4. Jeddah, KSA Phil. Consulate General
5. Al-khobar, KSA Tahwee Aj-Rajhi Bank, Al-Shamalia Dist.
6. Taipei, Taiwan Metrobank Bldg., Chiung Hsiao East Rd.
7. Brunei Phil. Embassy
8. Kuwait Phil. Embassy
9. Abu Dhabi, UAE Phil. Embassy
10. Doha, Qatar Phil. Overseas Labor Office
11. Milan, Italy Phil. Consulate General
12. San Francisco, USA San Pedro Road, Daly City
13. Sydney Blacktown, New South Wales
14. Singapore Phil. Embassy
15. London, United Kingdom Orchard House, High St., Kensington
Foreign Office Location
23
Chart 1: No. of Registered OFWs (Cumulative)
260,483
380,358
455,692
525,778
592,778658,551
699,814
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2000 2001 2002 2003 2004 2005 2006**Jan-Sept. only
24
Chart 2: OFW Collections for the Year
285.2
430.4 499641
772.9853.6
1,010.5
0
200
400
600
800
1,000
1,200
2000 2001 2002 2003 2004 2005 2006**Jan-Sept. only
In Million Pesos
25
End of Presentation
THANK YOU!!!THANK YOU!!!