The Social Security System (SSS) said on Monday, June 27, 2022, the pension fund’s mandatory provident fund for its members, called the Workers’ Investment and Savings Program (Wisp), generated an income of 333 .77 million pesos with a corresponding return of 6.39% in the first year of its implementation.
SSS President and CEO Michael Regino said Wisp’s ROI outperforms key market metrics such as 10-year Treasury bonds, which averaged 4.1% in 2021.
“Despite the pandemic, SSS investments continued to perform well and provided higher returns compared to other major investment benchmarks while adhering to the principles of safety, good yield and liquidity. Members who have contributed to Wisp have already earned substantial revenue last year considering this is only the first year of program implementation,” Regino said.
Wisp is a provident fund scheme operated by SSS intended to be an alternative savings for private sector workers and other individual members.
It was implemented in January 2021 under the historic provisions of Republic Act No. 11199 or the Social Security Act of 2018.
The program aims to help members increase their savings for higher retirement benefits in the future.
The Provident Fund is a safe, convenient, principal-protected, tax-free individual retirement savings plan that will supplement a member’s savings in the regular Social Security program, Regino explained.
“All Private Sector Employees, Self-Employed, OFWs and Voluntary Members who do not have a final claim in the regular SSS program, have dues in the regular SSS program and have a Monthly Wage Credit (MSC) above P20,000 are automatically covered by the scheme,” he said.
He said Wisp’s contributions are paid for with regular SSS program contributions. Earnings made through Wisp will be distributed proportionately based on the member’s contribution.
As of April 30, 2022, the SSS has collected over 21 billion pesos in contributions from over four million members under the program. (PR)