What is the retirement benefit?
It is a cash benefit either in monthly pension or lump sum paid to a member who can no longer work due to old age. Who may qualify for a retirement benefit? 1. A member who is 60 years old, separated form employment or ceased to be self-employed, and has paid at least 120 monthly contributions prior to the semester of retirement. 2. A member who is 65 years old whether employed or not and has paid at least 120 monthly contributions prior to the semester of retirement. For Underground Mineworkers: 1. Has reached the age of 55 years old and is an underground mineworker for at least 5 years (either continuous or accumulated) prior to the semester of retirement but whose actual date of retirement is not earlier than March 13, 1998; separated from employment or in the case of self-employed, has ceased self-employment, and has paid at least 120 monthly contributions prior to the semester of retirement. 2. Has reached the age of 60 years old whether employed or not. What are the types of retirement benefits? They are: 1. the monthly pension, and 2. the lump sum amount. The monthly pension is a lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement. The lump sum amount is granted to a retiree who has not paid the required 120 monthly contributions. It is equal to the total contributions paid by the member and by the employer including interest. How much monthly pension will a retiree receive?
The monthly pension depends on the members paid contributions, including the credited years of service (CYS) and the number of dependent minor children but not to exceed five. The amount of monthly pension will be the highest of: 1. the sum of P300 plus 20 percent of the average monthly salary credit plus 2 per cent of the average monthly salary credit for each accredited year of service (CYS) in excess of ten years; or 2. 40 per cent of the average monthly salary credit; or 3. P1,200, provided that the credited years of service (CYS) is at least 10 or more but less than 20 or P2,000, if the CYS is 20 or more. The monthly pension is paid for not less than 60 months. A retiree has the option to receive the first 18 monthly pension in lump sum discounted at a preferential rate of interest to be determined by the SSS. The option should be exercised upon filing of the first retirement claim. Only advance payments shall be discounted on the date of the payment. The dependents pension and 13th month pensions are excluded from the 18 months lump sum pension. The member will receive the monthly pension on the 19th month and every month thereafter. What happens employment? when the retirement pensioner resumes
The monthly pension shall be suspended upon the reemployment or resumption of self-employed of a retired member who is less than 65 years old. The member shall again be subjected to compulsory coverage. At 65 year old whether employed or not, he can already claim for retirement benefit. How much is the monthly pension of a member who retires after age 60 and who has contributed the required 120 monthly contributions? The monthly pension shall be the higher of the following: 1. the monthly pension computed at the earliest time the member could have retired had been separated from selfemployment or ceased to be self-employed plus all adjustments thereto; or
2. the monthly pension computed at the time when the member actually retires. A pensioner who retires more than once shall be entitled to the higher of: 1. the monthly pension computed for the first retirement claim; or 2. the re-computed monthly pension for the new claim. How is the monthly pension paid? The monthly pension is paid thru the members designated bank. He is allowed to choose the bank nearest his residence thru which he wishes to receive his pension benefits under the Magimpok sa Bangko program. This became mandatory effective September 1,1993. A member must open a single savings account and must submit to the SSS his savings account number and a photocopy of his passbook upon filing of his application. The original copy of the passbook must be presented for authentication purposes. Upon approval of the claim, the SSS will mail a notice voucher to the claimant informing when to withdraw the benefit from the bank.