|
Manila: A lawmaker is seeking the creation of a pension fund distinctly aimed at providing retirement benefits for Filipinos working abroad.
Two out of every ten Filipinos are working abroad and given their size and relative contribution to the economy, it is but proper that the government provides a pension facility distinctly for them, Rep Edgar Chatto of the first congressional district of the province of Bohol said.
The situation of overseas Filipino workers, collectively referred to as "OFWs" are peculiar compared to other workers.
They earn more compared to their local counterpart and consequently contribute more to the country's economy. Yet, at the same time, they are exposed to the vagary of working abroad such health hazards or sudden termination by their employer.
Payable on termination
Chatto said House Bill 4898, which creates the Overseas Filipino Workers' Pension Fund, provides that termination of employment shall be deemed sufficient ground for crediting all contributions made by the employee to avail the pension benefits.
The Overseas Filipino Workers' Pension Fund requires all OFWs who are duly registered with the Philippine Overseas Employment Administration (PEOA) and the Committee on Filipinos Overseas, to remit 5 per cent of their gross monthly income to the fund for a period of five years, Chatto said.
Chatto, chairman of the house committee on tourism, said the fund shall be administered by the Overseas Filipino Workers' Pension Fund Board to be composed of the secretary of labour and finance as chairman; and the secretary of finance, governor of the Bangko Sentral ng Pilipinas (central bank of Philippines), the administrator of the POEA, and one representative of the OFWs.
On the death of an OFW, his primary beneficiaries shall be entitled to the monthly pension and dependents' pension, provided that the deceased has paid at least 36 monthly contributions in the semester prior to his death.
The proposal says that the funds will be guaranteed by the government and that all OFWs will be covered by the fund starting from their first working day.
|
