Sss Workers Investment And Savings: A Guide To The Program

The Worker's Investment and Savings Program (WISP) is a strategic scheme introduced by the Social Security System (SSS) in January 2021 to augment the retirement savings of its members. As a compulsory provident fund, the program aims to enhance the financial security of Filipino workers by providing benefits such as retirement pensions, total disability, and death benefits. The program is designed for members with a Monthly Salary Credit (MSC) exceeding ₱20,000. Contributions to WISP are tax-free, ensuring that members' savings grow without deductions. Following the success of WISP, SSS introduced WISP Plus, a voluntary retirement savings scheme open to all members, offering flexibility in saving and investing with a minimum contribution of ₱500. Both programs are part of SSS's commitment to fostering a culture of saving and investing among Filipino workers, providing robust options for a stable and secure retirement.

WISP and WISP Plus are now called MySSS Pension Booster

The Worker's Investment and Savings Program (WISP) and WISP Plus are now called MySSS Pension Booster. Introduced by the Social Security System (SSS) in January 2021, the WISP is a provident fund program for SSS members whose contributions to the regular program under the Monthly Salary Credit (MSC) exceed ₱20,000. It is a safe and convenient way to contribute to one's retirement fund or savings plan.

The SSS implemented WISP as a compulsory provident fund program as part of the SS Law amendment in 2018. The program aims to enhance the financial security of Filipino workers by providing a supplementary layer of protection through benefits such as retirement pensions, total disability, and death benefits. Its tax-free nature ensures that the contributions of the members grow without any deductions, promoting a more efficient accumulation of retirement funds.

Following the success of WISP, the SSS introduced WISP Plus, a voluntary retirement savings scheme open to all SSS members, offering the flexibility to save and invest with a minimum contribution of ₱500, irrespective of their income level or last posted MSC. This program allows partial or full withdrawals after a year of membership, granting members greater control over their savings.

In June 2024, the SSS rebranded WISP and WISP Plus to MySSS Pension Booster. The rebranding repositions WISP to cater to corporate managers and executives, lawyers, doctors, Filipino expats, OFWs, seafarers, and young professionals who want to invest more and boost their savings and retirement funds. MySSS Pension Booster is composed of two retirement savings schemes for members: mandatory and voluntary.

The Mandatory MySSS Pension Booster is the new name for WISP. It caters mainly to employed members who contribute to the regular SSS program at an MSC that exceeds ₱20,000. Any contributed amount exceeding the MSC of ₱20,000 is automatically contributed to the member's Mandatory MySSS Pension Booster account. Monthly contributions are divided between the employee and the employer. However, self-employed, voluntary, and OFW members must shoulder WISP contributions on their own.

The Voluntary MySSS Pension Booster, the new name of WISP Plus, is open to all SSS members, including those applying for their Social Security Numbers, regardless of their MSC. It is a voluntary retirement savings program for SSS members in addition to the regular SSS program. It allows members to save and invest in an affordable, tax-free savings scheme while enjoying additional social security protection. The minimum contribution for the Voluntary MySSS Pension Booster is ₱500 per payment.

The program is for SSS members with a Monthly Salary Credit (MSC) of over ₱20,000

The Worker's Investment and Savings Program (WISP) is a strategic scheme introduced by the Social Security System (SSS) in January 2021. It is designed to augment the retirement savings of SSS members with a Monthly Salary Credit (MSC) of over ₱20,000. As a compulsory provident fund, WISP aims to enhance the financial security of Filipino workers by providing benefits such as retirement pensions, total disability, and death benefits.

The program is particularly notable for its tax-free nature, ensuring that members' contributions grow without any deductions. This promotes a more efficient accumulation of retirement funds, making it an attractive option for those seeking to boost their retirement savings.

WISP is a safe and convenient way to contribute to your retirement fund, with the added benefit of protecting your principal investment. The program is mandatory for SSS members whose contributions to the regular program exceed the specified MSC threshold.

Self-employed individuals, voluntary members, and overseas Filipino workers (OFWs) under the age of 60 have the option to participate in WISP voluntarily. To be eligible, they must be active SSS members and make their contributions in a timely manner.

The overall monthly contribution rate for employed SSS members enrolled in WISP is 14%, with the employee paying 4.5% and the employer contributing the remaining 9.5%. For self-employed individuals, voluntary members, and OFWs, the contribution rate is also 14%, which they pay themselves.

One of the key advantages of WISP is that it offers additional benefits beyond those provided by the standard SSS program. These include retirement pensions, total disability benefits, and death survivorship benefits. By making contributions above the regular amount, WISP members can accelerate their retirement savings.

WISP is a government-regulated initiative, ensuring the security of members' funds. It also allows members to receive their savings in a lump sum or through monthly annuity payments. It's important to note that the minimum reimbursement period for annuity payments is 15 years.

While WISP offers significant benefits, it's important to consider its limitations as well. The total accumulated account value (TAV) will serve as the basis for calculating any additional payments, meaning that the compensation received will depend on the amount contributed. Additionally, WISP does not permit early withdrawals, and benefits are only payable after submitting the final application for benefits.

MySSS Pension Booster consists of mandatory and voluntary schemes

The MySSS Pension Booster is a retirement savings program introduced by the Social Security System (SSS) in the Philippines. It is composed of two schemes: a mandatory scheme and a voluntary scheme.

The mandatory scheme, formerly known as the Worker's Investment and Savings Program (WISP), is designed for SSS members whose contributions to the regular program under the Monthly Salary Credit (MSC) exceed ₱20,000. It is a compulsory provident fund that serves as an additional layer of financial protection for members, offering benefits such as retirement pensions, total disability, and death benefits. Contributions are shared between the employee and the employer, except for self-employed, voluntary, and overseas Filipino worker (OFW) members, who must shoulder the contributions on their own.

On the other hand, the voluntary scheme, formerly WISP Plus, is open to all SSS members, regardless of their MSC. It is a voluntary retirement savings program that allows members to save and invest in an affordable, tax-free scheme while enjoying additional social security protection. The minimum contribution for the voluntary scheme is ₱500 per payment, and members can contribute anytime, depending on their capacity to save.

Both schemes aim to provide SSS members with robust options to secure their financial future and ensure a stable and comfortable retirement. By participating in the MySSS Pension Booster, members can boost their retirement savings and receive higher returns compared to regular savings accounts.

The SSS continuously enhances its programs to better serve its members. For instance, in June 2024, the SSS rebranded WISP and WISP Plus as the MySSS Pension Booster to cater to a wider range of professionals, including corporate managers, executives, lawyers, doctors, Filipino expats, OFWs, seafarers, and young professionals.

The program offers a projected 7.2% annual return rate

The Social Security System (SSS) in the Philippines has introduced a strategic scheme to augment the retirement savings of its members. The Worker's Investment and Savings Program (WISP) is a compulsory provident fund for members with a Monthly Salary Credit (MSC) of over ₱20,000. The program offers a projected 7.2% annual return rate, providing a faster accumulation of individual funds and contributing to the long-term viability of the SSS Fund.

The 7.2% return rate is a competitive interest rate that compounds until retirement, ensuring members' savings grow efficiently over time. This rate is higher than what is typically offered by conventional bank savings accounts, allowing members to potentially accumulate a more substantial retirement fund.

The program's tax-free nature further enhances the overall value of members' savings. Contributions and earnings within the program are exempt from taxes, resulting in greater financial security for Filipino workers.

WISP provides members with the flexibility to receive benefits in a lump sum or as an annuity, aligning with their preferences and financial needs. It is a safe and convenient way to contribute to one's retirement fund, with the added benefit of protecting the principal amount.

The program's significance lies in its ability to address multiple objectives simultaneously. It not only boosts members' retirement savings but also provides an additional layer of security through retirement, total disability, and death benefits.

WISP's enhanced version, WISP Plus, further underscores the agency's commitment to providing comprehensive financial security. WISP Plus is a voluntary retirement savings scheme open to all SSS members, offering the flexibility to save and invest with a minimum contribution of ₱500.

The introduction of WISP and WISP Plus marks a significant milestone in the SSS's efforts to provide attractive retirement savings options. With competitive interest rates, tax advantages, and flexibility, these programs offer robust options for Filipino workers to secure their financial future.

The program is safe, convenient, and tax-free

The Worker's Investment and Savings Program (WISP) is a safe, convenient, and tax-free initiative. It is a compulsory provident fund for SSS members with a monthly salary credit (MSC) of over ₱20,000. It is a secure and convenient way to enhance your retirement fund or savings plan.

WISP is a government-regulated initiative, so you can rest assured that your funds are secure. The program also allows you to receive your savings in a lump sum or monthly payments, giving you flexibility. The tax-free nature of the program ensures that your contributions grow without any deductions, allowing for more efficient accumulation of retirement funds.

The MySSS Pension Booster, formerly known as WISP, is a safe, convenient, and tax-free investment opportunity. SSS Vice President for Benefits Administration Division, Joy A. Villacorta, assures members that their contributions and earnings are in safe hands. The SSS manages the accounts, ensuring that contributions and interest earnings are securely placed.

The program's voluntary scheme, MySSS Pension Booster, offers flexibility in savings. Members can contribute any amount, with the minimum set at ₱500 and the maximum based on limits. This scheme is available to all SSS members, providing an affordable, tax-free savings plan with additional social security protection.

WISP Plus, now known as the Voluntary MySSS Pension Booster, is also a tax-free program. It operates on a tax-free basis, allowing members to earn more over time, especially if they claim their savings after a few years of membership or upon retirement. This program is a great option for those seeking to boost their retirement funds and take advantage of the tax-free benefits.

In summary, the Worker's Investment and Savings Program, including WISP and WISP Plus, now rebranded as the MySSS Pension Booster, offers a safe, convenient, and tax-free opportunity to enhance your retirement savings. With government regulation, flexible withdrawal options, and tax-free benefits, members can securely plan for their future and make the most of their savings.

Frequently asked questions