ILOILO CITY, Dec. 28 (PIA) - - The Social Security System (SSS) has launched a new individual retirement saving plan called the Workers’ Investments and Saving Program (WISP) which will be implemented starting January 2021.
SSS-Iloilo Acting Senior Communications Analyst Amiel Yang Genova said WISP is a safe and tax-free individual retirement saving plan intended to augment member savings from the regular program.
All private-sector employees, self-employed individuals, OFW, and voluntary members who have no final claim in the regular SSS program but have contributions in the regular SSS program are covered by the program.
Enrollment is automatic for those members who have a monthly salary credit (MSC) that exceeds P20,000.
Genova said contributions in WISP shall be paid together with contributions in the regular SSS program.
“SSS will put the WISP contributions in high yielding and liquid investments expected to yield additional pension income for contributing members,” he said.
Under WISP, the total accumulated account value of the member will be the basis of additional benefits, which will be given at the same time during retirement, total disability, and/or death benefits.
Also, Genova said beginning January, the new SSS contribution rate will increase by 1 percentage point, from 12 percent to 13 pursuant to Republic Act No. 11199 or the SS Act of 2018.
He added that the additional one percent will be equally divided between the employer and employee - the employer share will be at 8.5 percent from 8 percent while the employee share will be at 4.5 percent from 4 percent.
“The small increase in the contribution will redound to benefits of members such as when they avail of loans and in their subsequent retirement,” said Genova. (JSC/laf/PIA6 Iloilo
Source: Philippines Information Agency (pia.gov.ph)
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