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KASAMMAKO STATEMENT ON THE
SSS-NPS SECURITY AGREEMENT
Philippine Social Security System and the Korea National Pension System
The Katipunan ng mga Samahan ng Migranteng Manggagawa sa Korea or
KASAMMAKO together with Filipino Employment Permit System (EPS) Workers
Association (FEWA) and other Filipino organizations in South Korea opposed
the eventual approval of the Philippine Senate of the Social Security
System (SSS) and National Pension System (NPS) Security Agreement. The
Philipine Senate’s approval of the SSS-NPS Security Agreement will
terminate the payment of lump sum refund of contributions of migrant
workers to NPS immediately after their three or five years employment in
South Korea.
The guide to South Korea’s National Pension for Foreigners has the
provision on lump-sum refund to wit:
In principle, a lump-sum refund is not paid to foreigners, however, in the
case of foreigners falling under any of the following items, when they
leave Korea, reach the age of 60, a lump-sum refund equivalent to the
amount of contributions paid plus the fixed interest is paid to them, or
to their survivors if they should die.
1. A foreigner whose home
country has concluded a social security agreement with Korea to secure
benefit rights by combining the insured period in each country.
2. A foreigner whose country
grants Korean a benefit corresponding to a lump-sum refund.
3. A foreign worker whose visa
falls under E8 (Employment for Training), E9 (Employment Permit System or
non-professional employment), or H2 (Visiting employment).
With NPS-SSS Security Agreement between the government of South Korea and
the Philippines, provision number 1 applies. This means that Filipino
migrant workers can no longer avail of the lump-sum refund of their
contributions to the NPS when their contract ends after three or five
years. Their NPS contributions will be combined with their SSS
contribution and if they are members of SSS they will benefit from it when
they retire either at the age of 60 (optional) or 65 (mandatory); if they
are not, their contributions are forfeited in favor of the government of
South Korea.
Without the NPS-SSS Security Agreement provision number 3 applies. This is
the present principle that applies to Filipino migrant workers whose visa
falls under E8 and E9. Migrant workers whether members of SSS or GSIS or
not can apply for lump-sum refund of their contributions to the NPS a
month before their three or five-year contract ends.
KASAMMAKO believes that NPS-SSS Security Agreement is impractical for OFWs
in South Korea because not all migrant workers are members of SSS, and if
they are members of SSS and would want to have an uninterrupted
contribution to ensure that they receive pension at their retirement, they
can still continue paying their monthly contributions through their family
members who are left in the Philippines.
Furthermore KASAMMAKO believes that the Filipino migrant workers in South
Korea deserve to personally receive their lump-sum refund of NPS
contributions and not through bureaucratic arrangements. The Philippine
Senate approval of the NPS-SSS Security Agreement is a disservice to the
migrant workers because it will forfeit the benefits that are due to them.
KASAMMAKO fears that once the
SSS-NPS bilateral security agreement is passed by the Philippine Senate,
migrant workers will not get their lump sum refund from NPS and that their
contributions remitted to SSS as a result of the equalization scheme will
be used for the whims and caprices of corrupt officials of the Philippine
government just like what happened to OWWA funds, GSIS and SSS funds. The
migrant workers who are the righful claimants of their pension
contributions should get their lump sum refund at the end of their
contract.
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