In a groundbreaking move, the Social Security System (SSS) is ushering in a new era of retirement savings with the introduction of the Worker’s Investment and Savings Program (WISP) Plus.
This voluntary scheme, exclusively designed for SSS members, aims to redefine the landscape of retirement planning. SSS President and CEO, Michael G. Regino, unveiled the program during a press briefing, emphasizing its dual focus on saving and investing.
Understanding WISP Plus
WISP Plus, a visionary addition to the regular social security program, is more than just a retirement savings plan; it's a financial ecosystem that encourages members to work, save, invest, and prosper. Regino highlighted the affordability and tax-free nature of this scheme, making it an attractive option for SSS members looking to secure their financial future.
Key Features of WISP Plus
1. Affordable Contributions
For a nominal fee of as low as P500 per payment, SSS members gain access to WISP Plus. This affordability ensures inclusivity, allowing members to contribute to the program at their convenience.
2. Dual Benefit: Saving and Investing
WISP Plus is not just a savings program; it's an investment opportunity. Members contribute to the program, and their money generates earnings, providing a unique avenue for wealth accumulation.
3. Additional Layer of Security
Regino emphasized that WISP Plus acts as an additional layer of social security protection, complementing the retirement benefits offered by the regular SSS program. This ensures members have a robust safety net for their retirement years.
Who Can Join?
WISP Plus is open to all SSS members, irrespective of their membership type, declared monthly earnings, or last posted monthly salary credit (MSC). This inclusivity sets it apart from the previous WISP, which was mandatory only for members contributing over P20,000 to the regular program.
How to Enroll
Interested members can seamlessly join WISP Plus by accepting the program's terms and conditions through their My.SSS account. The application process is straightforward, and membership in the program has no expiration.
Eligibility Criteria
To qualify for WISP Plus, members should not have filed any final benefit claims, such as retirement or total disability benefits. This ensures that those actively contributing to their retirement fund can avail themselves of this innovative program.
Integration of Existing Programs
The current landscape of voluntary provident fund programs includes the Flexi-fund Program for Overseas Filipino Workers (OFWs) and the Personal Equity and Savings Option (PESO) Fund for members in the Philippines. Both these programs will eventually merge into WISP Plus, creating a unified platform for enhanced benefits.
Contribution Rate Adjustment
Starting January 1, 2023, SSS will implement a 1 percentage point increase in the contribution rate, bringing it to 14 percent. This adjustment, in line with the Social Security Act of 2018, promises higher benefits for SSS members.
Employer-Employee Dynamics
For employed members, employers will bear the 1 percent increase in the contribution rate, ensuring a fair distribution of the financial responsibility.
Individual Contributors
Individual paying members, including self-employed, voluntary, non-working spouses, and OFW members, will shoulder the entire contribution rate, reflecting the absence of employers in their contribution structure.
Monthly Salary Credit Adjustments
Concurrently, SSS will modify the minimum and maximum monthly salary credits (MSCs). The minimum MSC will increase to P4,000 from P3,000, providing a more realistic reflection of economic conditions. Simultaneously, the maximum MSC will be raised to P30,000 from P25,000, offering a broader spectrum for contribution calculations.
The introduction of WISP Plus and the subsequent adjustments in contribution rates and salary credits mark a pivotal moment in SSS's commitment to providing comprehensive retirement solutions. This initiative not only empowers members to secure their financial future but also positions SSS as a trailblazer in the realm of retirement savings programs. As the financial landscape evolves, WISP Plus stands as a beacon, guiding SSS members towards a more prosperous and secure retirement.
