Manila: Proposed legislation that will make it mandatory for overseas Filipino workers to become members of the state pension fund is now awaiting President Rodrigo Duterte’s signature for it to become law.

Following approval by the Senate of the proposed “Social Security Act of 2018”, the measure only needs to be cleared by the President for the law to take effect in a few weeks.

Once passed the measure will, among other things, also make it mandatory for overseas Filipino workers to contribute to the state-run private sector provident fund, the Social Security System (SSS).

“The reforms to programmes and services of the SSS are one step closer from enactment into law as the Senate ratified last November 28, 2018 the bicameral conference committee report on the bill overhauling the SSS charter,” a statement released by the Senate only recently, said.

The Senate version of the bill was passed on the third reading on October 8, 2018 following a similar move by the House.

Senator Richard Gordon, chairman of the Senate Committee on Government Corporations and Public Enterprises and author and sponsor of Senate Bill 1753, said the measure would repeal the 21-year old Social Security Law, and expand the powers of the SSS to ensure the long-term viability of the system.

“The bill is an enhancement of the previous laws; it ensures hope that the people would not be a burden to the country, that they are partners of the government not by way of exaction of taxes but by their contribution so that their welfare is assured,” Gordon said.

Gordon said one of the salient features of the coming law is the compulsory coverage of both land-based and sea-based OFWs to the SSS, “provided that they are not over 60 years of age.”

Currently, membership into the SSS is voluntary.

Membership to the SSS means OFWs can continue contributing to the fund. Its benefits include loan and emergency pension in case of disability of temporary inability to work.

The impending law is expected to broaden the coverage of the SSS from the present 500,000 OFWs to more than two million and a half members in the OFW sector.

“Even the Filipinos who became naturalised Americans and retired in the United States may be invited to invest in the provident fund,” he said.

Gordon also added would also authorise the SSS Commission to determine the salary credit and monthly contributions of members, which would now allow the commission to increase contributions “depending on the actuarial survey.

He said that the expanded powers are needed since it would allow the SSS management to increase the salary credit and monthly contribution of employees “considering that at present it is only limited to P1,600 (Dh112) which yields very little benefit.”