SSS and OWWA

It is about two months ago when I read from the papers of the administration’s plan to make the SSS coverage for overseas Filipino workers mandatory. I thought then that probably this again is one of those ideas which the administration would usually float to test the waters, so to speak. They did it very recently when they floated the idea of using the OWWA funds to rescue the ailing Philippine Postal Savings bank, in the guise of converting it into an OFW bank. When on the first instance they got a flood of negative reactions both from OFW communities and migrant organizations, the idea, seemingly, was shelved.

But I think the GMA think tank is adopting a new strategy.

A few days ago, I was told that representatives from government agencies, including the SSS, were in Hong Kong selling the idea of a mandatory SSS coverage among the overseas Filipinos there. As expected, the GMA technocrats met a lot of objections from their target audience. That was no surprise at all, and the government officials who went there should have known that well in advance.

The argument of those who favor this proposal is that majority of overseas Filipino workers do not have a retirement or pension fund to look up to as a source of additional income when they finally go back home for good. This is true especially for those who are under domestic employ, or those whose contracts are for short period of time and are non-renewable, like those deployed in Taiwan.

Those who oppose the idea argue that there are some host countries that already require mandatory provision of retirement benefits. They point out that Saudi Arabia’s labor law, for example, already require companies to provide for their employees end of service benefits, which an employee can avail of after serving a company for at least two years. And for most, that is on top of medical insurance.

From where I sit here at Pitstop, I believe what the government should do is to make each departing overseas Filipino worker be aware of the savings and retirement vehicles available for him to choose from. One of the options of course is through membership in SSS, another is membership with Pag-Ibig Fund, and other options are buying one’s own retirement insurance or pension plan, or simply adopting a personal savings program.

Speaking of savings, retirement and insurance brings to mind the outstanding clamor from various OFW groups for an increase in OWWA benefits. Perhaps this is the right time to look again closely on the merits of those suggestions.

It is a known fact that with the implementation of the OWWA Omnibus Policies in September 2003, OWWA has become a subscriber-based institution catering primarily to the life and disability insurance and loan guarantee needs of its captive clients – the overseas Filipino workers. The insurance premium is USD 25 or Php 1,300 for two years coverage. Just like any term insurance, the insured, in this case the OFW, loses the benefits stated in his insurance policy when he fails to pay the renewal premium when the expiry date is reached.

It is this term-based characteristic of the OWWA membership that OFW complain about. While the annual premium of Php 650 is not really that expensive for a Php 100,000 life insurance (double in case of accidental death) plus other benefits, or compared to the Php 900 annual premium charged by PhilHealth, many OFW wants OWWA to provide them benefits which they can avail of even after retiring as an OFW. At present many OFW complain that they have to die or be incapacitated first before they could benefit from OWWA.

If the real reason why government is pushing for the mandatory SSS coverage of OFW is to provide them with a vehicle for their savings and retirement plan needs, why not just expand the services of and benefits from OWWA to cover what are supposedly to be provided for by SSS? This will not only be in consonance with what have long been suggested by many OFWs, but will also limit the number of agencies OFWs will have to transact with.

A savings program, a retirement plan, and a medical and life insurance roll up into one package will surely be more attractive to OFWs even if the annual or monthly contributions is increased a bit.

Repatriation, OWWA, and the OFW

It did not surprise me at all when Secretary Ermita said that Malacanang was not insulted with the comment of the Lebanese ambassador to the Philippines. The Lebanese ambassador said the representatives of various government agencies charge with the evacuation of overseas Filipinos in war-torn Lebanon should stop bickering and quarreling about funds, but should concentrate on their job. Ermita was right, why should Malacanang be insulted with that simple statement of fact when it has ignored more serious accusations before?

What surprised me was Ermita’s admission that there was really some problem in the availability of funds for the evacuation. That admission plus the comment made by Ambassador Al Francis Bichara that his office is running out of funds caused the Senate and several cause oriented groups and individuals to call for an investigation into the use and status of the OWWA funds.

The Senate for its part called its own hearing on the matter which, as usual was snubbed by Malacanang. Senator Miriam Santiago ended filing a resolution calling for the filing of plunder case against former President Fidel Ramos, for having directed the investment of Five Hundred Million pesos in OWWA funds in the Smokey Mountain Project which up to now is has not yet been fully recovered. Atty. Frank Chavez also filed with the Office of the Ombudsman charges against several government officials, including GMA, for the unauthorized transfer of OWWA funds to the PhilHealth. The transfer enabled GMA to distribute PhilHelalth insurance cards to thousands of Filipinos in the rural areas before the 2004 elections.

All the charges filed are premised on the fact that the OWWA fund is a trust fund. As such it cannot be used for purposes other than those mandated by law. The same principle was also the premise of a case filed by a group of migrant and OFW oriented groups headed by the Philippines Migrants Rights Watch, against the Board of OWWA seeking to nullify the OWWA Omnibus Policy which said Board adopted in 2004. Among the most contested provision of said policy was the requirement for every overseas worker to pay $25 every two years. This provision, the petitioners said, shifted the burden in the payment of contribution from the employer to the worker. It also made access to benefits from the Fund member-based, as those who do not renew their membership contribution, by paying $25 every two years, will not get any benefit from the Fund, other than burial expense.

With the OWWA Fund now being used in the evacuation of OFW in Lebanon (including non-OFW Filipinos who are married to Lebanese nationals), most of whom are undocumented, meaning they did not go through the POEA, and therefore did not pay the mandatory contribution, it is ironic that some OFW as well as non-OFW organizations are questioning whether the use of said Fund, which is now supposed to be member-based is not against the OWWA omnibus policy. Why should those who did not contribute to the Fund be first to benefit from it? was the singular question being asked.

While the law provides that OWWA leads the repatriation efforts in case of emergency, it did not say that OWWA Funds will be used. What the law provided is the establishment of an Emergency Repatriation fund coming from a yearly appropriation of at least 100 million pesos by Congress. But Congress, while taking care of their annual “country side development fund” failed to provide for the emergency need of those it loves to call modern day heroes.

Overseas Filipinos in Saudi Arabia, it is high time to think of establishing your own emergency repatriation fund. You have seen that our government is not ready to provide the required assistance in the event of an emergency. Many of you will have died before they will be able to make a decision. Decide for yourselves, now.