GUIDE: SSS Flexi-Fund Program for OFWs

(SPOT.ph) It’s always important to have money saved up for any future plans, or as a buffer for emergencies and whatever else life might throw your way. Granted, keeping your bank account loaded is no walk in the park—but Overseas Filipino Workers can opt to get more out of their income abroad with the help of what’s called the SSS Flexi-Fund program. This convenient and flexible savings scheme lets you invest part of your earnings into fixed-income securities, thereby giving you a safer and hassle-free way to save and earn. More money stashed, more freedom!

Also read:
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Retirement Benefits in the Philippines: A Guide for Seniors

Here’s your guide to the SSS Flexi-Fund Program

What Is the SSS Flexi-Fund Program?

This provident-fund scheme provides additional pension benefits to the regular SSS program. Your funds are invested in safer fixed-income securities—giving you more peace of mind.

Earnings are tax-exempt and guaranteed. You can get higher returns than other savings options, as interest rates are based on average rates of SSS’ short-term placements or 91-Day Treasury bills (whichever’s higher). This is subject to quarterly repricing, so as to match the current market conditions in the Philippines.

It’s also very convenient as you can contribute any amount P200 above with flexible payment date options, paid in excess of required SSS contributions. There’s no initial deposit or maintaining balance required, nor a ceiling on contribution amounts.

Benefits

The funds you accumulate—including interest earnings—get disbursed as tax-free benefits that you can get upon your retirement, or in the event of total disability (either in lump sum, pension, or combinatio or death (lump sum equivalent to the benefit amount or cash value of the remaining pension, for their beneficiaries).

Early withdrawal is also available for more urgent cash needs; just note that you’ll have to pay pre-termination fees if you’re at less than one year retention.

Members who file no benefit or withdrawal claims in the are granted their Annual Incentive Benefits, which are automatically credited to their Flexi-Fund accounts and form part of their accumulated funds.

Eligibility 

The SSS Flexi-Fund program is available for all Overseas Filipino Workers (OFWs) not older than 60 years of age. They must have been recruited in the Philippines by foreign-based employers for overseas employment, have a source of income abroad, or be residing in a foreign country permanently.

How to Register for the SSS Flexi-Fund Program

If you're registering for the first time as an OFW with no SSS number, you'll need to fill out SSS' Personal Record form (SS Form E-1) either at your nearby SSS branch or online. Print and fill out the form—specifically parts I-A, B, C and D for OFWs—and submit it to your nearest branch, along with any of the following documents:

• Birth Certificate
• Baptismal Certificate or its equivalent
• Driver’s License
• Passport
• Professional Regulation Commission card
• Seaman’s Book

From there, you can download the Flexi-Fund Enrollment Form for Overseas Filipino Worker Members form online. Fill out the form and submit it to your nearest SSS branch, service office, or representative office (local or foreign) along with the following:

• Your UMID or SS ID card, or a valid passport
• If you’re enrolling locally, you’ll also need an original copy and photocopy of a valid Overseas Employment Certificate (OEC) or E-receipt issued by POEA as proof of pending deployment.
• Validated proof of payment of your latest maximum contribution, if it hasn't been posted yet.

You can also opt to send your forms and requirements via snail mail to this address:

OFW Contact Services Section (OFW-CSS)
International
Operations Group, SSS Building, East Avenue, Diliman, Quezon City

Or, you can send it attached via e-mail to ofw.relations@sss.gov.ph.

Your membership takes effect once you pay your first Flexi-Fund contribution.

Paying Flexi-Fund Contributions + Other Points to Keep in Mind

You can pay your contributions wherever you are—in the Philippines or abroad. SSS accepts electronic payment through overseas offices and SSS-accredited collecting partners.

There are also auto-debit arrangements available at selected banks. Alternatively, you can have your relatives in the Philippines remit at SSS branch tellers.

You can pay your contribution to the Flexi-Fund program monthly, quarterly, annually or intermittently, however you're able to save.

Note that SSS charges a fixed annual Management Fee to cover the investing and managing of your Flexi-Fund. This is equivalent to 1% of your individual accumulated funds—that is, contributions plus interest earnings. These will be deducted from the member's individual Flexi-Fund account at the end of the month.

Even if your overseas employment is terminated, you can keep paying your Flexi-Fund contributions—just note that you’ll have to continue to pay the required maximum monthly contribution. Payment of contributions cease when you file a final claim under the regular SSS program.

How to File Benefit and Withdrawal Claims

Download the Death, Disability, Retirement and Early Withdrawal for Flexi-fund Program form (SS Form DDR-2), fill it out, and submit to any SSS foreign representative office or local branch for processing and settlement.

You can opt to file early withdrawal claims, full or partial. Should you opt for full withdrawal, you can continue membership in Flexi-Fund afterwards by re-enrolling in the program.

See a list of SSS-accredited collecting partners and SSS branches in the Philippines. For more information, check out SSS' website.

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