Finance Secretary Ralph G. Recto was credited by the Social Security System (SSS) for the success of the Worker’s Investment and Savings Program (WISP), which was created under the Social Security Act of 2018 that he sponsored during his tenure as legislator.
Established in January 2021 as part of Republic Act 11199, WISP is a mandatory provident fund scheme that serves as another savings for private-sector workers and other individual paying members of the SSS.
This safe, convenient, and tax-free individual retirement savings plan allows members to invest and earn returns from their contributions, embodying the core principle of “Work, Save, Invest, and Prosper.”
As of December 31, 2023, WISP contributions amounted to PHP 79.51 billion from 6.02 million members.
The program covers private-sector employees, self-employed individuals, overseas workers, and voluntary members who have no final claim and have contributions to the regular SSS program, and have a monthly salary credit that exceeds PHP 20,000.
WISP contributions are paid together with regular SSS contributions. In addition to those provided by the regular SSS program, members are entitled to disability and death benefits, as well as a retirement fund.
Due to the success of the mandatory provident fund scheme, the SSS launched the WISP Plus in December 2022––a voluntary retirement savings program offered exclusively to SSS members. It serves as an additional layer of support apart from regular retirement benefits.
WISP Plus contributions amounted to PHP 391.63 million from around 30,536 members as of December 31, 2023.
WISP and WISP Plus actual investment portfolios as of November 2023 amounted to PHP 76.34 billion and PHP 1.41 billion, respectively. The annualized return on investment of WISP was recorded at 5.33%, while WISP Plus was at 6.87%.
The Social Security Act of 2018 rationalized and broadened the powers and responsibilities of the Social Security Commission (SSC) to ensure the long-term viability of the SSS and make it more responsive to the evolving needs of its stakeholders.
The law ensured that all employees including domestic workers, overseas Filipino workers, as well as those self-employed, are included in the SSS pension system for their protection in case of disability, sickness, maternity, old age, death, and other contingencies that may result in financial loss or burden.