The Commission on Human Rights (CHR) is throwing its weight behind the initiation of a retirement system specifically tailored for Overseas Filipino Workers (OFWs). The move is seen as a stride towards upholding the right to social security for all citizens as outlined in House Bills 00176 and 8574, also known as the Overseas Filipino Workers Retirement System Act and the Kabayan OFW Pension Act respectively.
In a recent statement, the CHR highlighted the pivotal role these bills could play in promoting social justice and offering much-needed protection to OFWs and their families against numerous risks including old age, disability, sickness, unemployment, and death. The organization stressed that the proposed measures align with the government’s duty to guarantee the populace’s right to social security.
Under the contemplated legislation, OFWs will gain access to retirement benefits, a pension for dependents, and voluntary separation benefits. To facilitate these provisions, a dedicated retirement fund is set to be established, intended to sustain the various benefits and similar gratuities offered.
The CHR noted that the current savings landscape for OFWs is far from satisfactory, with a mere 1% of their earnings going to personal cash savings, and only about 5% being utilized as capital for business. The commission further emphasized that existing schemes are insufficient, failing to address the unique challenges and vulnerabilities encountered by the OFWs.
Existing structures like the Social Security System have been criticized for not accommodating the distinct needs of the OFWs, with features such as a voluntary participation policy, and benefits that only mature at the age of 60 without options for early retirement or voluntary separation benefits.
