OFWs generate P16.4-M income from investments

MANILA, Philippines - More than 35,000 overseas Filipino workers (OFWs) generated P16.4 million in additional income from their investments in the Social Security System’s Flexi-Fund program.

The SSS Flexi-Fund is a voluntary provident fund and pension-plan scheme offered exclusively to OFW members.  It allows OFW members to  build up their funds which they may use upon retirement or to supplement their benefits under the regular SSS program.

Judy Frances A. See, SSS senior vice-president and head of the International Operations Division said the Flexi-Fund earned P7.24 million in annual incentive benefits (AIBs) last year.  This was on top of the P9.16 million credited as guaranteed earnings, bringing the fund’s effective rate of return to 4.2 percent for 2013.

The total AIB, which amounted to 79 percent of total guaranteed earnings, was distributed to the accounts of qualified members last July 31.

“The Flexi-Fund program remains to be a profitable investment instrument available for OFWs wanting to increase their private savings and retirement income.  Aside from enjoying the benefits of a risk-free investment, they may also get an additional income at the end of the year,” See said.

Flexi-Fund savings are invested in fixed-income government securities and earn interest based on the average rates of SSS’ short-term placements or 91-day treasury bills, whichever is higher.

“In 2012, the SSS revised the program’s policies to help OFW members earn more from their Flexi-Fund savings. Prior to that, there were no AIBs and the 91-day Treasury bill rate was the sole basis for determining Flexi-Fund’s guaranteed earnings,” See said.

See explained that AIBs may be declared depending on the Flexi-Fund’s actual year-end income. Individual Flexi-fund accounts of qualified active OFW members (or those with no full withdrawals and benefit claims within the applicable year) will be automatically credited with AIBs based on the member’s share to total Flexi-Fund equity.

As of 2013, members’ equity stood at P391.86 million with the maximum AIB amount of P57,098 credited to a member’s account.

Among those qualified to join the program are OFW members paying the maximum contribution amount of P1,760.

Any amount not less than P200, paid in excess of the required contribution will be posted to the member’s Flexi-Fund account and earn interest.