Phl, SoKor ink social security agreement

State-run Social Security System (SSS) said more than 60,000 Filipinos in South Korea would benefit from the recent signing of a Social Security Agreement (SSA) between Manila and Seoul.

In a statement, SSS president and chief executive officer Aurora Ignacio said the Social Security Agreement signed by the two countries last Nov. 25 on the sidelines of the ASEAN-Republic of Korea Commemorative Summit would enable overseas Filipinos to enjoy social security protection from both their host and mother countries.

Likewise, Ignacio said this would address the social security coverage of Koreans living in the Philippines.

“After almost 15 years, we are very glad that we have finally secured an agreement with South Korea that will ensure the protection of social security rights for the benefit and welfare of the respective nationals of both countries,” Ignacio said.

“The long wait is over, and we are now confident that we are nearing our goal to protect all Filipino workers inside and outside the Philippines from the hazards of the sudden loss of income due to unexpected contingencies,” she said.

This is the 16th SSA that the Philippines has successfully negotiated since 1982.

Signed by Foreign Affairs Secretary Teodoro Locsin and Korean Foreign Minister Kang Kyung-wha, the renegotiated SSA addressed the concerns of overseas Filipino workers (OFWs) in South Korea, particularly the non-transfer of contributions from Korea’s National Pension Service (NPS) to the SSS.

Ignacio said the renegotiated agreement provides an option for OFWs to refund their NPS contributions at the end of their overseas employment contract.

“We listened to the calls of our OFWs before, that’s why this is allowed even if it is believed that the other option of leaving behind their contributions under the National Pension Act of Korea for future benefit entitlement is more beneficial. We want our OFWs to understand that we are very much willing to listen to their concerns and if we could make ways to meet their demands, we’ll do it. In the end, it is really their welfare that we care much about,” Ignacio said.

She said OFWs who opted for the lump-sum refund are encouraged to become active SSS members and pay their contributions on a voluntary basis to ensure their eligibility for SSS pension benefits in the future.

Under the agreement, covered members and their beneficiaries may file their claims with the designated liaison agencies of the Philippines and South Korea.