Why OFWs should join the SSS Flexi Fund Program. Many have asked me to make a review of the new SSS Flexi Fund so we have put all the details you need to know about this fund especially if you are an Overseas Filipino Worker or related to one.
What is SSS Flexi Fund?
The SSS Flexi Fund is another Provident Fund program offered by the Social Security System specifically for Overseas Filipino Workers not over 60 years old, whether previously members of SSS or not.
How to Open SSS Flexi Fund?
The Program is open to all OFWs:
- Recruited in the Philippines by foreign-based employers for work abroad
- With source of income in a foreign country
- Residing permanently in a foreign country
You must enroll at the SSS to set up your Flexi Fund account. Once enrolled, you can start paying your contributions to your Flexi Fund or you can also pay it when you pay your SSS monthly contributions. Any amount, not lower than P200, paid in excess of your SSS contribution will automatically be posted to your Flexi Fund and will earn interest income.
You have the option to contribute to your SSS Flexi Fund monthly, quarterly of anytime you wish. That is why it is called FLEXI in the first place because saving is flexible.
Benefits of SSS Flexi Fund:
- Tax-exempt and guaranteed by the SSS
- Computed based on Average rates of SSS’ short term placements or 91-day TB (Treasury Bills), whichever is higher
- Subject to quarterly re-pricing, thus reflecting current market conditions in the Philippines
- Earnings are credited every month-end (compounded interest)
- Augmented by the granting of Annual Incentive Benefits to qualified members (the higher the equity, the higher the AIB amount)
That means as an OFW saves or adds funds to his Flexi Fund, the fund will be invested on T-Bills or short term fixed-income instruments. Unlike other investments, these funds are not so risky thus earnings are guaranteed. Hardworking OFWs can save better and earn better from the Flexi Fund while being a member of SSS at the same time also entitles SSS benefits.
3 Ways to Use Your SSS Flexi Fund:
- Early Withdrawal
- Annual Incentive Benefits
- Retirement, Disability and Death benefits
Early Withdrawal – you can withdraw your funds anytime you want or when you need them urgently. However, there is a pre-termination fee if contributions stayed on the fund in less than 1 year.
Annual Incentive Benefits – a.k.a. AIB, may be declared depending on the fund’s year-end net income with automatic posting of AIB amounts to accounts of members without full withdrawal claims/benefit for the year. This is distributed based on shares to total equity of all qualified members.
Retirement, Disability and Death benefits – may be disbursed in monthly pension, lump sum or combination of both upon contingency
SSS Flexi Fund Program Review
SSS Flexi Fund is SSS Benefits + Provident Fund rolled into one. If you have this fund, you will enjoy all the benefits given for SSS members plus you will be able to save and earn money by adding up funds into your Flexi Fund whenever you wish. Unlike other investments, earnings are guaranteed by SSS. You can build your equity in the long run and retire happy.