SSS sets up new retirement fund

THE SOCIAL Security System (SSS) has opened a new savings mechanism offering its members another way to build their retirement nest egg.

The SSS Personal Equity and Savings Option (PESO) Fund is a voluntary retirement savings fund that SSS members with extra money can contribute to, on top of their regular contributions as SSS members.

The minimum PESO Fund contribution is P1,000 per year, although members can put in as much as P100,000 annually. 

The SSS said the scheme offers guaranteed earnings at rates higher than what a regular savings bank account currently offers.

A larger portion of the fund, or 65%, is allocated for retirement savings and earns income based on five-year Treasury yields.

Asked whether there is demand for the product among SSS members, SSS president and chief executive officer Emilio S. de Quiros said: “We should be generating very good amounts here.”

The private pension fund has a total of 31.4 million members as of June. Of this, about 23 million are employees, 4.17 million are self-employed, 3.25 million are voluntary members, and 983,262 are OFWs.

source:  Businessworld

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