Becoming accredited by the Social Security System (SSS) provides cooperatives in the Philippines an opportunity to help their members by collecting contributions on their behalf.
This accreditation allows cooperatives to offer convenient payment services for their self-employed and voluntary members.
If your cooperative is interested in this opportunity, keep on reading to learn more about the accreditation process below.
Qualifications for Accreditation
To qualify for SSS accreditation, a cooperative must meet certain requirements.
Here are the primary qualifications:
Primary Cooperative Status
The cooperative must be classified as a primary cooperative.
This applies regardless of whether the cooperative operates as a credit, consumer, producer, marketing, service, or multipurpose cooperative.
The cooperative must demonstrate that it functions in its community as a primary cooperative.
Registration with the Cooperative Development Authority (CDA)
The cooperative must be officially registered with the CDA.
This is a basic requirement for all cooperatives operating legally in the Philippines.
Three (3) Years of Operation
Your cooperative must have been operating for at least three consecutive years prior to applying for accreditation.
This demonstrates that the cooperative is established and has experience in serving its members.
SSS Employer Registration
The cooperative must already be registered with the SSS as an employer.
Additionally, it should be making regular contributions to the SSS on behalf of its employees.
This shows that the cooperative is compliant with existing SSS regulations.
Financial Evaluation
The SSS will evaluate the cooperative’s financial stability.
This review will look into profitability, solvency, liquidity, and other financial measures.
It is important that the cooperative shows a solid financial track record.
The Accreditation Process
Once the cooperative meets the necessary qualifications, it can begin the accreditation process.
This process involves several steps:
Step 1: Submit the Application
Start by obtaining the Application for Accreditation form from any SSS branch.
Complete the form and gather the required supporting documents.
Submit the form and documents to the SSS branch that has jurisdiction over your cooperative.
Step 2: Prepare the Required Documents
The application needs to be accompanied by several documents, including:
- Articles of Cooperation
- By-laws
- Economic Survey
- Certificate of Registration with the CDA
- List of the Board of Directors
- Board Resolution approving the Collection Agency Agreement (CAA)
- Audited Financial Statements for the last three years
- Certificate of Compliance from the SSS
- Signed Collection Agency Agreement (CAA)
These documents are essential for the application, so be sure to prepare them carefully.
Step 3: Application Evaluation
The SSS branch will verify that the cooperative is an SSS employer and check that all documents are complete.
Once the initial review is done, the application is forwarded to the Investment Planning and Strategy Committee (IPSCOM) for further evaluation.
The cooperative’s financial status will also be reviewed during this step.
Step 4: Approval and Notification
If your cooperative’s application is approved, the SSS President and CEO will sign the Collection Agency Agreement (CAA).
You will then receive a formal notification, along with your accreditation number and other important information.
At this point, your cooperative is officially accredited by the SSS.
What to Do After Accreditation
After becoming accredited, the cooperative will need to fulfill certain duties to maintain its status and serve its members effectively:
Performance Security
The cooperative is required to submit performance security, either as a cash bond or surety bond.
This security guarantees the cooperative’s commitment to fulfilling its responsibilities under the CAA.
Handling Collections and Remittances
Once accredited, the cooperative can begin collecting SSS contributions from its members.
These contributions, including payments from self-employed and voluntary members, must be properly recorded and remitted to the SSS.
The cooperative is also required to submit collection reports to the SSS regularly.
Service Fees and Reporting
The SSS will pay the cooperative a service fee for processing the payments.
This fee will depend on the volume of transactions processed by the cooperative.
Timely and accurate reporting is key to maintaining a smooth operation and ensuring proper payments are made to the SSS.
Benefits of SSS Accreditation
Accreditation by the SSS offers several benefits to cooperatives and their members:
Convenience for Members
Members of the cooperative, especially those who are self-employed or voluntary SSS members, will have a convenient way to make their SSS payments.
This reduces the hassle of going to an SSS branch or payment center.
Increased Credibility
Accredited cooperatives build credibility in their communities.
By providing a service that supports the financial security of their members, cooperatives enhance their reputation and attract more members.
Service Fees
The service fees received from the SSS provide an additional source of income for the cooperative.
This income can be used to improve services, strengthen operations, or support cooperative growth.
Conclusion
Accreditation with the SSS allows cooperatives to offer a valuable service to their members while supporting their own financial growth.
The process may seem detailed, but it is an important step in creating a more efficient and supportive environment for your members.
By meeting the requirements, completing the application, and following through with the necessary procedures, your cooperative can become an accredited partner of the SSS.
This partnership benefits not only your cooperative but also the members who rely on you for their financial and social security needs.
Accreditation is a powerful tool for strengthening your cooperative’s relationship with its members and the wider community.