Changes To Srrv

[ancienrocka]

As some of you may be aware there are proposed cahnges to the SRRV - it will now be the SMILE visaI went to the PRA in Cebu today to better understand the changes to the SRRV and this what I learned. No responsibility is taken if this information turns out to be incorrect!!!!1. The new system will take effect at the end of January 20112. Those wishing to join under the old rules have until about 14th January to register.3. SRRV members rights and obligations under the old system will not change but they have the right to "update" to the new system or remain as they are - NO RETRO-ACTIVITY.4. Under the new system all members will have to deposit $20,000 into one of their accredited banks - this will benefit the younger applicants but disadvantage those over 50 with a pension who currently need to deposit only $10,000.5. This money cannot be withdrawn to buy a Condo, Golf Shares, etc.6. There will be an annual $500 fee. The application fee will drop from $1400 to $800.7. All other benefits seem to remain the same as under the old scheme but there will be new benefits that the representative was not able to tell me about.Paul

[Old55]

As some of you may be aware there are proposed cahnges to the SRRV - it will now be the SMILE visaI went to the PRA in Cebu today to better understand the changes to the SRRV and this what I learned. No responsibility is taken if this information turns out to be incorrect!!!!1. The new system will take effect at the end of January 20112. Those wishing to join under the old rules have until about 14th January to register.3. SRRV members rights and obligations under the old system will not change but they have the right to "update" to the new system or remain as they are - NO RETRO-ACTIVITY.4. Under the new system all members will have to deposit $20,000 into one of their accredited banks - this will benefit the younger applicants but disadvantage those over 50 with a pension who currently need to deposit only $10,000.5. This money cannot be withdrawn to buy a Condo, Golf Shares, etc.6. There will be an annual $500 fee. The application fee will drop from $1400 to $800.7. All other benefits seem to remain the same as under the old scheme but there will be new benefits that the representative was not able to tell me about.Paul

Great information Paul, thanks!You would be able to provide guidance and advice at a reasonable fee to those interested to proceed with this option?

[ancienrocka]

As some of you may be aware there are proposed cahnges to the SRRV - it will now be the SMILE visaI went to the PRA in Cebu today to better understand the changes to the SRRV and this what I learned. No responsibility is taken if this information turns out to be incorrect!!!!1. The new system will take effect at the end of January 20112. Those wishing to join under the old rules have until about 14th January to register.3. SRRV members rights and obligations under the old system will not change but they have the right to "update" to the new system or remain as they are - NO RETRO-ACTIVITY.4. Under the new system all members will have to deposit $20,000 into one of their accredited banks - this will benefit the younger applicants but disadvantage those over 50 with a pension who currently need to deposit only $10,000.5. This money cannot be withdrawn to buy a Condo, Golf Shares, etc.6. There will be an annual $500 fee. The application fee will drop from $1400 to $800.7. All other benefits seem to remain the same as under the old scheme but there will be new benefits that the representative was not able to tell me about.Paul

Great information Paul, thanks!You would be able to provide guidance and advice at a reasonable fee to those interested to proceed with this option?

As always mate, my advice is free and I only charge if I have to do something for you. However this visa is in a state of flux at the moment so I can only tell you what I've been told not what I know for a fact.Always willing to help.Paul

[MikeB]

Since I'm single I was seriously considering this option rather then constantly having to deal with BI but doubling the required deposit and raising the annual fee 50x is a little ridiculous unless these new benefits are really worthwhile. Interesting they make all these changes without saying (knowing?) what the benefits are.

[Mr Lee]

Wow much higher fees and deposits, and I hope it is not partially my fault. I sent some emails to the president Aquino last year making some suggestions for the SRRV and suggesting that the deposit amount be dropped totally for those who have larger monthly retirements than the minimum required, so the increase part would not be my fault and they obviously did not listen to me, but I also suggested that they provide some type of health insurance, or work out a way for the PHL hospitals to be connected to accept foreign health insurance, and if at all possible also accept US Medicare, because I felt that health insurance would be an important part for those retiring and might draw more foreigners to live in the PHL, so I hope for the added fee that they will be providing a form of health insurance or it would seem that the ten fold raise will only chase more foreigners away since many would not be able to afford that, and most would not be able to afford the $20,000 deposit either. Possibly they have decided that they only want a richer grade of retiree living in their country and that would suck IMHO. While I know that most in the PHL govt do not wish to listen to foreigners such as myself, I titled my email to him "possible ways to close the budget gap" and I made a few suggestions that I felt might help a little and the main one involved the above while pointing out to him or whoever reads his emails, that having tens of thousands more pensioners living in the PHL would go a long way to closing the budget gaps due to the amount of value added tax they would be paying, tax on the income they earn from money in their bank accounts, and other taxes brought about by the $1000 to $2000 average per month that the average foreigner spends while living full or part time in the PHL and with many spending much more than that and some spending less. Maybe Paul or someone else could tell us what an average year fees staying on a visitors visa might cost the average long staying tourist and possibly that is where they came up with the new fee which would equal those amounts? Does it cost about $500 a year to stay on a visitor visa with all the charges added in? I do not know because my wife and I always stay on a Balikbayan stamp but I suspect it cost a lot less than that to do it the visitor way?

[Art2ro]

It seems that the SMILE aka SRRV program caters to the well to do young and old family members and single foreigners with a business in mind or already have potential employment waiting for them. I think the deposit amounts are still too high! I bet too getting ones deposit back would be another matter too! What if the retiree kicks the bucket? I bet you, their beneficiaries will go through a lot of red tape getting that deposit back intact with interest knowing how the Philippines government works when they have your money tied up some where! I noticed once on a TV documentary, that a lot of Japanese and Koreans use the SRRV program just because the SRRV program has interpretors to do everything for them due to the language barrier! They even showed an entire subdivision with all the amenities, round the clock care or assistance provided for Japanese or Korean senior citizens who can't fend for themselves! I guess some retirees already have the mindset that they plan to die in the Philippines as long as they know they can afford it and knowing that they wouldn't be a burden to their families that they will leave behind upon their death! Different Strokes for Different Folks!

[MikeB]

I have the same concerns that Art articulated ie. getting the deposit back and what kind of hoops you would be required to jump through. $500 is not an unreasonable annual fee for not paying the BI renewals and not having to deal with them at all but tying up $20k is a different matter. I think the $500 is comparable if doing the 59 day extensions but, hopefully, Paul can answer that. I have heard that some of the services they were pushing were translation and help with driver's license so it would make sense that Japanese and Koreans would want that. Anyway, it's all Lee's fault.

[mike]

It seems that the SMILE aka SRRV program caters to the well to do young and old family members and single foreigners with a business in mind or already have potential employment waiting for them. I think the deposit amounts are still too high! I bet too getting ones deposit back would be another matter too! What if the retiree kicks the bucket? I bet you, their beneficiaries will go through a lot of red tape getting that deposit back intact with interest knowing how the Philippines government works when they have your money tied up some where! I noticed once on a TV documentary, that a lot of Japanese and Koreans use the SRRV program just because the SRRV program has interpretors to do everything for them due to the language barrier! They even showed an entire subdivision with all the amenities, round the clock care or assistance provided for Japanese or Korean senior citizens who can't fend for themselves! I guess some retirees already have the mindset that they plan to die in the Philippines as long as they know they can afford it and knowing that they wouldn't be a burden to their families that they will leave behind upon their death! Different Strokes for Different Folks!

Sad to say the SMILE project was announced prior to it being officially approved.The proposals have come under intense scrutiny and not a lot of favourable comments have been made. The scheme is one of the poorest value retirement schemes in See Asia and may therefore be the reason why less than 6000 members have taken up the option in over 25 years of operation.Many of the members are sub classed ie Korean students added to the main visa so artificially boosting visa holder numbers whilst not adding any value, this is be9ng addresed.The real concern is the lack of appreciation that the retirees bring in substantial investment monthly spent in the Philippines and so incurring an annual tax on this investment is not attractive. business people who set up prior to the new business visas being available have even more concerns as their investments are not recognized even though many local s are employed. The PRA would rather acknowledge Golf shares as an investment, so it appears they believe all retirees are either golfers or stay at home 'inactives'!!A lot of good value work has been undertaken by joint representatives of the main retiree groups for Korean, Japanese and English speaking members who are united in their belief that the scheme can be more equitable and if it is to prosper must take on some of the successful SE Asia competitor benefits subject to being allowable under present constitutional law.There is a fixation within the PRA that there must be heavy annual fees and life time deposits. This is classic shortermism and many a high value presentation to show that this approach does not work has gone ignored. Indeed one of the most respected of the retirees working with the PRA is now talking of receiving death threats for his efforts!There are now more people leaving the scheme than joining. many who did join are now married and transfer to the far cheaper and user friendly 13A . After all why leave the older scheme version to release y your deposit and pay 400$ a year when you can pay about that for a one off 13a and an annual renewal for 10$ . This believed to be a major cause of migration away from the scheme.m

[ancienrocka]

Doing extensions every 2 months as a tourist would cost around 23,000p a year - just over $500. Then you need to factor in a trip overseas every 16 months!

[Mr Lee]

Doing extensions every 2 months as a tourist would cost around 23,000p a year - just over $500. Then you need to factor in a trip overseas every 16 months!

Thank you Paul. The I guess the fees for the SRRV are not unreasonable but the 20k deposit might put it out of many peoples reach. As for getting the money back, I have known a couple of people already who have gotten their money back without a big hassle, yet that does not say anything about what the future might hold for others trying to get theirs returned.