The Philippines’ Social Security System (SSS) is crafting a new pension scheme that will allow members to build bigger retirement savings, according to a report by CNN Philippines, citing SSS President Rolando Macasaet.
Macasaet says the new scheme will not require approval from the Philippine Congress since contributions won’t be mandatory.
“This is voluntary. If the employers want to share [the contribution], they can share especially if they want to retain the employees,” Macasaet is quoted as saying in the report published on June 7.
He says the SSS aims to roll out the new scheme in three months.
Spokespersons for the pension fund did not immediately respond to questions from Asia Asset Management.
The SSS is a compulsory pension fund for private sector employees and the self-employed, with more than 40 million members. Employees contribute 4.5% of their monthly salaries while employers contribute 9.5%. Members stand to get between 4,000 pesos (US$71) and 20,000 pesos a month after retiring.
The SSS had 710.43 billion pesos of assets as of end-June 2022.