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Tuesday, January 18, 2011

Retirement system for OFWs proposed

Overseas Filipino workers (OFWs) may soon look forward to lucrative businesses when they retire from work.

A party-list lawmaker has filed a bill which proposes a retirement system designed to provide OFWs with funds enough to run a business or other productive endeavors.

Rep. Rodante Marcoleta (Party-list, Alagad) filed House Bill 1334 establishing the Overseas Filipino Workers Social Security and Retirement System, which shall cover all documented OFWs who are duly registered with the Philippine Overseas Employment Administration (POEA).

Under the bill, the Overseas Filipino Workers Social Security and Retirement System or the "System" shall be responsible for providing retirement benefits and welfare assistance to OFWs and their dependents.

Marcoleta said the System shall also develop a savings plan by which OFWs can be encouraged collectively to contribute part of their earnings in order to protect them against the hazards of old-age, disability, sickness, and death.

"Under the System, a trust fund shall be establish which will constitute the contributions of OFWs," said Marcoleta.

The bill provides that when a covered OFW is separated from employment, the obligation to pay contributions from that employment shall cease at the end of the month of separation but he shall be credited with all contributions paid and shall be entitled to all benefits under this Act.

It further provides that all covered OFWs who had paid at least 120 monthly contributions prior to the semester of retirement and who has reached the age of 45 years shall be entitled to a monthly pension.

Upon the death of the retired OFW pensioner, his primary beneficiaries as of the date of his retirement shall be entitled to 80 percent of the monthly pension and his dependents to the dependent's pension as provided under the bill. (MRS-PRIB/PIA-NCR/sdl)

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