What Is SSS P.E.S.O. Fund?

SSS PESO Fund, a voluntary provident fund for members.

Save Now! Invest In Your Future!
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Why Is Saving For The Future Important?

Saving for the future allows us to enjoy a comfortable retirement by enabling us to:

• Cover daily expenses.
• Fund what we love to do.
• Prepare us for emergencies.

The future, however, is getting more expensive as family dynamics are changing, people live longer, and an active lifestyle is adopted. 

When Should A Person Start Saving?

Saving should be done consistently and it is a priority, as early as possible, even in small amounts. Time is of the essence, especially if the retirement fund offers compound interest, such as the SSS P.E.S.O. Fund​

What Is The SSS P.E.S.O. Fund?

The SSS P.E.S.O. Fund (Personal Equity and Savings Option) is a voluntary provident fund offered exclusively to SSS members in addition to the Regular SSS program.

Through this program, members who have the capacity to contribute more are given the opportunity to save more in order to receive higher benefits in the future.

Why Is The SSS P.E.S.O. Fund A Good Investment?
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The program provides an option for SSS members to save for their retirement through:
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• Enjoyment of tax-free earnings and benefits;
• Investment of contributions in risk-free instruments;
• Grant of guaranteed earnings;
• Use of the power of compound interest.

Who Can Join The SSS P.E.S.O. Fund?

​The program is open to all employees, self-employed (SE), voluntary (VM), and OFW members who have met the following qualifications:

• 55 years of age and below;
• Have paid contributions in the Regular SSS program for at least six (6) consecutive months within the 12-month period immediately prior to the month of enrollment;
• SE, VM, 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 Can An SSS Member Join The SSS P.E.S.O. Fund?
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SSS members can enroll in the program over-the-counter at any SSS branch, or online via My.SSS at www.sss.gov.ph.

When Does Membership In The SSS P.E.S.O. Fund Start?

Membership begins with the payment of the first contribution to the P.E.S.O. Fund.

How Will A Member Contribute In The SSS P.E.S.O. Fund?
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​Contributions to the program may be made by the member any time, ensuring only that a corresponding contribution in the Regular SSS program is also made for the same month.

For SE, VM, and OFW members, said contribution in the Regular SSS program should be based on the maximum Monthly Salary Credit (MSC).

Each member shall be allowed a maximum contribution of P100,000 per annum and a minimum of P1,000 per contribution

How Is The SSS P.E.S.O. Fund Allocated?

The contributions and earnings of a member shall be allocated to three (3) types of accounts:​

ACCOUNT TYPE	PERCENTAGE ALLOCATION
​Retirement/ Total Disability	​65% with guaranteed earnings based on 5-year T-Bond rates
​Medical	​25% with guaranteed earnings based on 364-day T-Bill rates
General Purpose (education, housing, livelihood, unemployment)	​10% with guaranteed earnings based on 364-day T-Bill rates

Are Withdrawals From The SSS P.E.S.O. Fund Allowed?

No withdrawals are allowed from the retirement/total disability account. Withdrawals from the fund shall be allowed only from the Medical (25%) and General Purpose (10%) Accounts.

Withdrawals within the 5-year retention period shall be charged with corresponding penalty and service fees.

When Can A Member Receive Benefits From The SSS P.E.S.O. Fund?​

The member will receive benefits upon filing a retirement, total disability or death claim under the regular SSS program.

Retirement or total disability benefits, which consist of the member's contributions and earnings from the SSS P.E.S.O. Fund, may opt to receive this in monthly pension, lump sum or a combination of both.

Death benefits shall be paid in lump sum to the member's beneficiaries.​

Comparison Of Earnings (for illustration purposes only)

The table shows a comparison of earnings from contributions made by three (3) SSS P.E.S.O. Fund members with the following details:

• Ana invests Php 12,000 per year beginning at age 25. At age 34, she stops. She has invested for 10 years with a total contribution of Php 120,000.
• Brian invests the same Php 12,000 but begins at age 35 and continues the annual investment until age 59. He has invested for 24 years with a total contribution of Php 288,000.
• Carlo is the most diligent saver. He invests Php 12,000 per year beginning at age 25 and continues investing until age 59. He has invested for 34 years with a total of Php 408,000.
• ​Ana, Brian, and Carlo shall all retire at age 60. All their investments shall earn interest up to the date of their retirement.
• The assumed fund growth rates are at 3.75%, 1.85% and 1.85% per annum for Retirement Account, Medical Account and General Purpose Account, respectively.

Source: Corporate Communications Department (SSS)

Brian has invested more than twice as much as Ana, yet Ana’s earnings are higher. She saved for just 10 years while Brian saved for 24 years.This is the power of compound interest: the investment earnings of Ana in her 10 early years of saving is working to her advantage. Brian can’t equal the earnings of Ana, even if he saves for an additional 20 years.

The best scenario is that of Carlo, who begins saving early and doesn’t stop until retirement. Note how the amount he has saved is higher than that of Ana’s or Brian’s. Slow and steady annual investment and most importantly, beginning at an early age, is the key to a more secured future.

Compound interest works well for those who start early. It pays to start saving now.

My Personal Opinion: Like Modified  PAGIBIG II (MP2), SSS P.E.S.O. Fund is one of the good money builders for savings especially for retirement purposes.