The Social Security System (SSS) in the Philippines is set to extend its social security protection to millions of families under the Pantawid Pamilyang Pilipino Program (4Ps) through a tailored version of its AlkanSSSya Program.
This initiative aims to provide 4.4 million 4Ps beneficiaries nationwide with access to SSS membership and benefits, bolstering the financial security of some of the most vulnerable sectors of society.
In a significant move, SSS President and CEO Rolando Ledesma Macasaet, together with Department of Social Welfare and Development (DSWD) Secretary Rex T. Gatchalian, signed a Memorandum of Agreement (MOA) to facilitate the inclusion of 4Ps beneficiaries in the SSS system.
Through this collaboration, SSS and DSWD will work closely to ensure that families benefiting from the country’s conditional cash transfer program are also covered by social security.
Macasaet emphasized the importance of this initiative, stating, “SSS is committed to providing these vulnerable sectors with the opportunity to become active SSS members, securing their future through the range of benefits that the SSS offers.”
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Customizing the AlkanSSSya Program for 4Ps
Under the agreement, SSS will develop a version of its AlkanSSSya Program specifically designed for 4Ps beneficiaries. Originally launched in 2011, the AlkanSSSya Program serves as a micro-savings scheme tailored for self-employed individuals with irregular income, such as tricycle drivers, market vendors, and farmers.
The adaptation for 4Ps beneficiaries will account for their unique financial situations.
Macasaet noted that the SSS is considering creating a special contribution table for 4Ps beneficiaries, aligning the payment structure with their financial capacity. Given that the current minimum monthly contribution is set at PHP 570, SSS is exploring ways to make this more affordable for 4Ps members.
Exploring Payment Flexibility and Support
SSS is investigating various options to assist 4Ps beneficiaries in meeting the 120-month contribution requirement to qualify for a lifetime pension. “It’s crucial for 4Ps beneficiaries to have SSS contributions,” Macasaet explained. “Once they reach the 120-month milestone, they will no longer need government financial support, as they will be eligible for a monthly pension from the SSS upon retirement at age 60.”
The SSS also plans to engage with businesses on potential corporate social responsibility programs that could subsidize SSS contributions for 4Ps beneficiaries. Through the Contribution Subsidy Provider Program (CSPP), companies can sponsor the monthly premiums for these beneficiaries.
Macasaet further mentioned that the SSS is examining the feasibility of reducing the minimum monthly contribution to a more manageable amount, specifically for 4Ps beneficiaries. However, he cautioned that a lower contribution would result in a reduced pension benefit.
For example, a 4Ps member who contributes PHP 570 monthly for 120 months currently receives a lifetime pension of around PHP 2,200. A lower contribution would lead to a proportionately lower pension.
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Another potential approach could involve extending the contribution period while maintaining a lower monthly premium, allowing 4Ps beneficiaries to still reach the PHP 2,200 monthly pension mark, albeit over a longer timeframe.
Voluntary Contributions and Education
DSWD Secretary Gatchalian clarified that 4Ps beneficiaries’ contributions to the SSS will be voluntary, as the cash grants provided by the government are earmarked for health, education, and rice subsidies, and cannot be diverted to SSS payments.
To further support this initiative, DSWD plans to integrate the importance of SSS membership into the 4Ps Family Development Sessions (FDS). These sessions, held monthly, focus on educating 4Ps parents on various topics, including financial literacy, disaster preparedness, and good parenting practices.
As the SSS and DSWD continue to refine the program’s implementation guidelines, they remain focused on establishing the necessary mechanisms for registration, contribution collection, and benefit claims, ensuring that 4Ps beneficiaries can fully access and benefit from their SSS membership.
