SSS Flexi-Fund vs. Pag-ibig MP2 — Which Is a Better Investment?

Updated June 2, 2014:

Both SSS Flexi-Fund and Modified Pag-ibig 2 (MP2) are savings programs offered by government agencies.

Both offer interest rates higher than those offered by banks for savings accounts and time deposits.

Both programs are guaranteed by the Philippine government.

Both are tax-free. Total savings plus their dividend or interest earnings are tax-free.

Both are SAFE savings plans. You will never lose your money in case you lose your job or business and you are not able to continue making your monthly payments.  With many pre-need and insurance investment plans, you will lose all or a big portion of your money if you fail to continue paying.

Here are the differences between the 2 programs:

Membership:

MP2 is offered to all Pag-ibig 1 members.

Flexi-Fund is offered ONLY to OFWs who are SSS members.

Minimum Monthly Contribution:

The minimum monthly savings amount for MP2 is 500 pesos.

The minimum for Flexi-Fund is 200 pesos.

Mandatory or Regular Savings and Optional Savings:

Under MP2, you need to continue paying at least 100 pesos to Pag-ibig 1.

Under Flexi-Fund, you need to continue paying the maximum monthly contribution, which is 1,760 pesos.

Member Nos.:

For Pag-ibig, you have 2 different Pag-ibig nos: one for MP2 and another for Pag-ibig 1.

For SSS, you use the same SSS no. for regular SSS and for Flexi-Fund.

Payment:

You pay MP2 and Pag-ibig 1 contributions separately. Remember, you have 2 different nos.

You pay Flexi-Fund and regular SSS as one item in a single receipt. SSS will be the one separating your payment. It will post 1,760 pesos to your regular SSS account, and will credit the excess to your Flexi-Fund account.

Pay at least 1,960 pesos (1,760 for your regular SSS account + 200 for your Flexi-Fund). For example, you want to contribute 1,000 to your Flexi-Fund, pay 2,760 pesos (1,760 for your regular SSS and 1,000 for your Flexi-Fund).

If you want to save 2,000, you pay 3,760 (1,760 for your regular SSS and 2,000 for your Flexi-Fund).

Term of Savings:

For MP2, you choose a term of 5 years or 10 years. Or choose a term of 5 years then renew for another term. Default term is 5 years, if term is not chosen.

For SSS Flexi-Fund, choose a term of any number of years, from 1 year to 30 years.

Earnings Rate:

For MP2, the dividend rate is decided by the Pag-ibig board every year, based on total Pag-ibig earnings the past year. MP2 is always higher than that given to P1 contributions. In 2010, the dividend rate for MP2 was 5.5% and the rate for Pag-ibig 1 was 5%.

For SSS, the interest rate is also repriced and quoted every year. It is based on the current average 91-day Treasury bill rate.

Example of Earnings shown at the Pag-ibig and SSS websites:

Monthly Total in Total TOTAL
Savings 5 years Dividends SAVINGS
MP2 2,000 120,000 19,687 139,687
FF 2,000 120,000 19,876 139,876

So if you can just save 5k a month for 5 years while abroad, you can see about 350,000 in your account the day after you arrive at the Manila airport.

One-Time Deposit:

SSS Flexi-Fund has a One-Time Deposit option, just like a time deposit at a bank. You can contribute 100,000 pesos or more as a one-time deposit.

You Can See your Money Growing:

For Flexi-Fund, enroll in Online SSS, so you can see your Flexi-Fund contributions anytime online.

For MP2, as of today, online checking of contributions is offered to OFws only.

Withdrawal:

Under MP2, you can now withdraw your money anytime before your 5-year term. Previously, you could not. This policy change was announced this January 2013. But always expect a 5-year term, so you will not be frustrated in case their withdrawal policy changes again.

Flexi-Fund is also flexible — you can withdraw anytime, in full or in partial amount.
But if you withdraw savings that have stayed with SSS for less than a year, you will be charged with pre-termination fees (10% or 20% of net earnings).

How to Start:

For SSS Flexi-Fund, fill up the OW-1 form and submit to the SSS Representative at the Philippine consulate where you are, or send to the SSS address written in the form:

SSS
International Operations Division
SSS Building, East Avenue, Diliman, Quezon City
1100 Philippines

If you’re in the Philippines, you can submit your OW-1 form at any SSS branch. Bring your Overseas Employment Certificate (OEC) and IDs.

For MP2, enroll at the Pag-ibig website: pagibigfund.gov.ph, click E-Services, then MP2 Enrollment.
If you don’t have yet a Registration Tracking Number or POP Temporary Number, get first your Transaction no. and Pag-ibig MID No. by going back to E-Services, click Membership registration.

Note:

For members of POP (Pag-ibig Overseas Program — the original US dollar, Canadian dollar and peso savings program for immigrants, OFWs and other types of overseas Filipinos),  you can continue saving under this POP program, or you can also start saving under MP2.

POP members can stop their POP membership as long as they have completed paying their housing loans taken under POP.

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  1. Hi Amira, so sad to know of SSS inefficiency. You can have this corrected — it’s just so frustrating that you have to spend time to correct this. You can write a letter addressed to SSS on a bond paper with Subject: Correction of Posting to Regular Contributions and Flexi-Fund. Bring this letter to SSS with a copy of your receipt. Bring also your original receipt for verification. Write something like “Please correct the posting of the 20,280 that I paid on __ for the quarter Jan-March 2016 for regular premiums and Flexi-Fund. I found out that the whole 20,280 was incorrectly posted to my regular premiums. Please post my payment as follows:
    Jan 2016 — 1,760 to regular premiums
    Jan 2016 — 5,000 to Flexi-Fund
    Feb 2016 — 1,760 to regular premiums
    Feb 2016 — 5,000 to Flexi-Fund
    Mar 2016 — 1,760 to regular premiums
    Mar 2016 — 5,000 to Flexi-Fund
    Total —–20,280
    Xerox your letter and have it received by SSS. I hope you can comment again about your experience with SSS. Thanks

  2. Thank you very much for your advised ate Noors, I will try to do it as per your instructions above, and will give you feedback as soon as I got result from them..

  3. Hello po Ms. Nora, is it okay if our monthly payments vary, like 500 for january, then 1000 for feb, then mar-april none, again 2000 for may. and how much is the maximum amount that we can save per month with Pag-ibig MP2 account? Thanks po.

  4. Hi jhoy, yes, you can do that. You can have gaps and you can vary your monthly MP2 savings. There’s no maximum limit for monthly savings. You can save as much as you can save. There’s a minimum limit, which is 500.

  5. Hello Nora. I have MP2 na and I am paying P3,000.00 a month and that’s the amount that was input by the officer sa system. Would it be possible if next time I’ll add more amount, say, from 3k pesos to 5k pesos a month? Thanks a lot for this blog. Very helpful.

    Jade

  6. Hi Jade, I called Pag-ibig and they said yes, you can increase, but when you pay, tell the cashier that the full amount is for MP2, so they won’t think that the difference will be posted to your Pag-ibig 1.

  7. Thanks a lot Nora! I just posted several questions in your other blog. I am an OFW and it’s not easy to queue the whole day just for some inquiries in SSS counter or PAG-IBIG counter here in abroad. You’re a savior! Sending you love.

    Jade

  8. Hi po mam nora,tanong ko po sana kung pano simulan sumali sa MP2 at flexi fund.ako po ay isag ofw dito sa khamis saudi at member na po ako ng PAgibig at SSS nung anjan pa ako sa pinas mam. Mahigit 2years nadin ako nakahulog sa Regualr SSS fund. pano po ba pagsali jan mam at ano ang guidnline jan para po maumpisanhan sa pagsali po jan mam?

  9. I’m Ricardo T.Sarming, an Ofw and member of pagibig fund mp2 since March.11,2013. I want to know how I can check my monthly payments to mp2

  10. Hi Ms. Nora, I would like to ask if my mother can get her lump sum even if she worked before for just 3 years in the year 1980’s & stop her monthly contribution.
    She’s 59 right now & asking if she can still avail the said lump sum. Thank you.

  11. Hi Sheraceveda, yes, your mother can get back what she paid to SSS or Pag-ibig plus interests or dividends, but she needs to wait till she turns 60 before she can claim her lump sum.

  12. Hello MS.NORA good day. ask about my child’s sss. It’s been 5 months I have not paid since January 2016. Can I still pay 5 months from January 2016 to may 2016? I wish to pay for the whole year from January to December 2016. He’s not OFW. thank you po. more blessings to you.

  13. Hi evangeline, sorry, no. Only OFWs have that flexible deadline. This month, what you can pay is from April to December, or up to any month you want. Here are SSS payment deadlines. Or to make it easier, just commit to paying for a certain quarter before the last day of the quarter.

  14. Hi,Nora! Pano ko mababago yung status at surname sa sss ko? I am living in abroad na kc and i want to continue my sss contribution maybe 3 years na since i stopped my remittance. At nakalimutan ko na kng voluntary ba or self-employed ba yung sss ko. And pwede paba humabol sa pag.apply sa SSS kng ang age is 55yrs old na?

  15. Hi Musu, you need to file this form: SSS Member Data Change Request form. Download and print it, then accomplish it, scan and email it to ofw.relations@sss.gov.ph, with a scan of at least 2 of your IDs and a scan of your marriage certificate attached to your email. Write your request in the body, plus your personal info (complete name, birthdate, SSS no.). Mention that a copy of your IDs and marriage cert are attached. You can enroll in SSS online service so you can track your records.
    About enrolling at age 55: Yes, any Filipino can, pero it’s doubtful if this person can qualify for the SSS pension later on, at age 65, after accumulating 120 monthly contributions. In the latest policy change they released, there was a requirement that the person should have started paying before age 55, but legislators opposed it (I can’t find updates yet). But the 55-year-old person planning to be a member can start paying asap, and hope for the best. Anyway, the money won’t be lost, as all money paid will be returned if pension is not granted. This prospective member should also enroll correctly: Use the self-employed form or the OFW form to register. How to enroll as self-employed

  16. Hi Ms. Nora. What if I invest one time, say P1,500,000.00 now, how much will I get after 10 years?

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