Did you know that as an SSS and or Pag-IBIG member, you have the option to begin a small investment that is easy on the budget but earns more than when you keep your money in the bank? Through the SSS PESO Fund and the Pag-IBIG MP2 Program, you can!
I summarized the highlights of both programs to help you decide which would work better for you. This is highly recommended to those who have only started working and have paid the prescribed number of contributions for their SSS and Pag-IBIG membership. Remember that this is apart from the regular monthly contributions you make out of your salary.
SSS PESO FUND: (https://www.youtube.com/watch?v=gCmHpprbfec)
What is the SSS PESO Fund?
PESO stands for Personal Equity and Savings Option. It is an own-account voluntary provident fund offered exclusively to SSS members in addition to the Regular Coverage Program. With a minimal amount of P1,000, an SSS member can activate his PESO account and begin a separate savings account with higher benefits.
Who can avail of the SSS PESO Fund?
- SSS members who are 54 years old and below;
- With at least 6 months consecutive contributions in the regular SSS program within the 12-month period immediately prior to the month of enrollment;
- Self-employed, voluntary, and OFW members should be paying the maximum amount of contributions under the regular SSS program;
- Have not filed any final claim under the regular SSS program.
How to Apply?
- Download and fill out the online PF Enrollment Form from the MySSS portal (www.sss.gov.ph)
- Bring the duly accomplished form to any SSS branch near you.
- Your membership to the SSS PESO Fund account will be activated as soon as you make your first contribution.
How much to activate my account?
- A member is allowed to make a maximum of P100,000.00 contribution per year or
- A minimum monthly contribution of P1,000.00. Any amount below the minimum contribution amount shall not earn interest and be subject to automatic refund.
- Payments should be made in multiples of P100.00.
Your contributions to the PESO fund are invested in sovereign guaranteed investments with earnings based on:
- 5-year T-Bonds
- 364-day Treasury Bill rates
- Earnings are tax free
- Retirement and Total Disability Benefits – this may be paid in monthly pension, lump sum, or combination of both upon contingency.
- Death Benefits – this shall be paid in lump sum
- Early Fund Withdrawal – 35% of the equity may be withdrawn.
Pag-IBIG MP2 (http://www.pagibigfund.gov.ph/pop/mp2.htm)
The MP2 program took effect in 2010, earlier than the SSS PESO Fund. It is an alternative savings scheme for Pag-IBIG members with an opportunity to earn higher interest rates compared with the Pag-IBIG membership program.
- Minimum contribution of Php 500.00 per month
- Terms of 5 years, renewable
- Flexible dividend rates but always higher than Pag-IBIG 1
- Contributions and earnings are government guaranteed.
- You can save as much as you can; unlike with SSS PESO Fund where you are limited to Php 100,000.00 per year.
- For Voluntary, Self-employed, and OFW members, you need to have paid at least Php 200.00 to your regular Pag-IBIG savings for the month before making your first payment for your MP2.
- For Employed members, you need to pay at least Php 100.00.
- You may claim your total MP2 savings and dividends after 5 years. You may also renew and continue your savings for another 5 years.
- There is no maximum age limit set by Pag-IBIG for MP2 registration and an individual can have more than one MP2 account.
Similar with the SSS PESO Fund, contributions to the MP2 Program are apart from your monthly PagIBIG contributions. Earnings from the MP2 are tax-free. The program is open to non-OFWs and OFWs who are Pag-IBIG members.
If you are interested to begin your own MP2 account, you may enroll online via the Online MP2 Enrollment System, right here: http://www.pagibigfund.gov.ph/memserv/