Manila: The House of Representatives overseas workers’ panel is working to consolidate measures that would provide benefits for Filipino migrant labour including a proposal to create a retirement fund for them.
Representative Jesulito Manalo created a technical working group (TWG) to consolidate three measures.
The first bill seeks the creation of the Overseas Filipino Workers Social Security and Retirement System, written by Representative Rodante Marcoleta.
The second, proposed by Rep. Gary Alejano, seeks the creation of an Overseas Filipino Workers Pension Fund.
The third, proposed by Rep. Winston Castelo, aims to provide protection for dependents of overseas Filipino workers (OFWs) by setting up a special pension fund for their families in the event of income loss due to death or disability.
Limited pension benefits
Marcoleta said while OFWs presently are required to contribute to pension fund safety nets under the state-run Social Security System (SSS), such programmes provide limited pension benefits.
“It is unthinkable for them to wait until the age of 60 to receive their pension benefits under the SSS programme,” he said.
Under the Social Security System, members can only receive pension upon reaching the age of 60 or if incapacitated.
Marcoleta pointed out that in the case of OFWs such as maids and construction workers, it is less likely that they would get hired upon reaching the age of 45, thus, they would be saddled with continuing to pay for their pension fund even if they are unemployed.
“It does not have to be the end of the road for OFWs whose employment days may soon be over,” Manalo said.
Measures consolidated
This developed after the House committee on overseas workers affairs chaired by Rep. Jesulito Manalo (Party-list, ANGKLA) created a technical working group (TWG) to consolidate three measures, which seek to provide retirement benefits and welfare assistance to OFWs.
Castello said: “There has to be a state intervention whereby they are protected economically if this scenario occurs.”
Although such an endeavour to provide better retirement benefits to OFWs may still take years before it becomes reality, there is greater political will from the government leadership than before on matters concerning OFW welfare.
Under the current administration of President Rodrigo Duterte, the so-called OFW Bank has become a reality.
Overseas Filipino Bank
In October 2017, Duterte ordered the creation of the Overseas Filipino Bank (OFB) through the acquisition of the moribund Philippine Postal Savings Bank by the Land Bank of the Philippines. Both are government-owned and controlled corporations.
“There is need to establish a policy bank dedicated to provide financial products and services tailored to the requirements of overseas Filipinos and focused on delivering quality and efficient foreign remittance services,” Duterte’s Executive Order 44 said.
