Have you ever thought of saving and investing for your future?
Securing your future is something to think about especially after your retirement.
Maybe you are working with your first job and living in your 20’s with nothing much to worry about, but have you ever thought that investing in early age is advantageous for you when the time comes?
Plan your future now and start to secure your tomorrow
SSS Pension Plan is something to help you secure your future when you turn 60 and you can’t take jobs anymore. There are two types of retirement benefit:
- Monthly Pension – Monthly pension benefit the retiree for his lifetime wherein the member meet the one hundred and twenty (120) months contribution prior to the semester of retirement.
- Lump Sum Amount – Contrary to the monthly pension wherein the member contributed one hundred and twenty (120) months contribution, lump sum amount is granted to the members who did not meet the one hundred and twenty (120) months contribution, therefore equal to the payments given by the members with the employer, along with the interest.
How does monthly pension works and how to compute it?
Monthly pension depends on three factors: the contributions paid by the pensioner, his credited years of service (CYS), and the number of his dependent minor children but not more than 5.
- P300 + 20% of the average monthly salary + 2% of the monthly salary credit for each credited year of service (CYS) in excess of ten (10) years.
- From the average monthly salary credit, the pensioner receives forty (40) percent.
- 00 (if the CYS is at least 10 but less than 20) or P2400.00 (if the CYS is 20 or more)
The monthly pension needs to be paid for at least 60 months.
The qualification of monthly pension based on the retiree who is more than 60 of age, finished to contribute for one hundred and twenty (120) months wherein the monthly pension depends on whichever is higher on the following:
- Monthly pension that is computed during the SSS member retirees.
- Monthly pension that is computed at the earliest time before he could retire and get separated from employment or ceased to be self-employed plus all adjustments thereto.
Some pensioner retires more than once, therefore the pensioner will be entitled to the higher of the following:
- The monthly pension that was computed for the first pension claim; or
- The monthly pension that was re-computed for the second pension claim.
Dependents Benefits or Allowance
- Those who are conceived legitimate, legitimated or adopted child, and illegitimate children on or before the retirement date of the pensioner will receive 10% of the member’s monthly pension, or P250, whichever is higher between the two.
- The entitled for dependent’s allowance are the member’s five children starting from the youngest, but please take note that any substitution is not allowed.
- If you have more than five (5) dependent children, we take prior to the legitimate, and legitimated or adopted child.
Things to remember: If your dependent children turn 21, the benefit for their allowance will be legally stopped. However, there is an exception to the rule wherein, if the dependent is confirmed to be incapacitated and incapable of self-support because of chronic illnesses, disability, or mental defect, therefore, the dependent continue to receive the benefit for life.
When to Receive Your Retirement Benefit Payment
As the pensioner, he can opt to receive his first 18-month pension paid out in his lump sum, but the SSS will take a rate of the deposited pension.
The right time to receive the pension is on the 19th month and every month forward. Advanced payment shall be exercised only if he filed for first retirement claim.
Only the advanced payment for pensioner has the discounted rate, and also take note that the advanced payment does not include the 13th month pension and dependent’s allowance.
The member may request for the monthly pension through his designated bank under the “Mag-Impok sa Bangko” program. This became effective on September 1, 1993.
If the request is granted, the member will receive a notice voucher from SSS indicating that the benefit can be deposited from the bank.
Other Benefits from SSS
- The pensioner will also receive a 13th month pay every December.
- RA 7875 on March 4, 1995 indicated that all retiree pensioners are considered as part of members of Philhealth along with their legal dependent that will receive Philhealth hospitalization benefits. The retirees on March 4, 1995 will also receive benefits for Philhealth hospitalization only if they contributed and had payment for 120 monthly Philhealth/Medicare. When Medical Care Act of 1969 was implemented, retirees on March 4, 1995 can start contributing for 120-month rule on 1972.
Upon the death of the retiree pensioner, the benefit will be 100% entitled to the primary beneficiary, and the allowance shall be given to the dependent.
For more info about SSS pension, you may visit the official SSS website.
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