Important Details about the SSS Retirement Pension Including the Amount
SSS RETIREMENT PENSION – Here’s a guide on the important details that members of the Social Security System must know about the benefit offer.
The goal of most members of the Social Security System is to make sure that they qualify to the Retirement Benefit offer of the state-run social insurance giant. It is one of the benefit offers of the state-run entity apart from the SSS loans that provides financial assistance for short-term financial needs.
The Social Security System is one of the biggest state-run social insurance institutions in the country. Millions of Filipinos composed not only of Pinoys living in the Philippines but as well as abroad are members of the SSS.
To maintain an updated account to the Social Security System, a member must regularly post a monthly contribution. The rate depends on the SSS contribution set by the state-run social insurance giant as it implements different rates among the following:
- locally-employed individuals
- self-employed individuals
- voluntary members such as the non-working spouses of SSS members
- overseas Filipino workers (OFWs)
- Kasambahays or household helpers
With regards to the SSS Retirement Benefit which is a target of most members of the Social Security System, a retiring member who has posted at least 120 monthly contributions may qualify to the SSS Retirement Pension.
Before checking the amount of the pension, here are the qualifications set by the Social Security System in filing for a Retirement Benefit claim. The member must belong to any of the following:
- 60 years old and above and separated from employment or has ceased to be an SE/OFW/Household Helper (optional retirement)
- 65 years old still employed/SE, working as OFW/Household Helper or not (technical retirement)
- 55 years old and above and separated from employment or has ceased to be an SE, if an “underground mineworker” (optional retirement)
- 60 years old and above whether still employed/SE or not, if an “underground mineworker” (technical retirement)
- a total disability pensioner who has recovered from disability and is at least 60 years old (or at least 55 years old, if an underground mineworker)
With regards to the SSS Retirement Pension amount, it depends on which of the following formula will yield the highest result:
- Php 300 + 20% of average monthly salary credit (AMSC) + 2% of AMSC for each credited year of service (CYS) in excess of ten years + Php 1,000
- 40% of the average AMSC + Php 1,000
- Php 1,200 if CYS is somewhere between 10-20 years; Php 2,400 if CYS is 20 years or more + Php 1,000
If the first formula has the highest chance of getting the highest result, here is an example of how to make the computation. For example, if Jordan is earning Php 25,000, has contributed for 30 years and the AMSC is Php 26,000, here’s how to compute the SSS monthly pension:
- Monthly Pension (MP) = Php 300 + (20% of AMSC) + [2% of AMSC x 20 years (30 years – 10)] + Php 1,000
- Monthly Pension = Php 300 + (0.20 x 20,000) + (0.02 x 20,000 x 20 years) + Php 1,000
- Monthly Pension = Php 300 + P4,000 + Php 8,000 + Php 1,000
- Monthly Pension = Php 13,300
The above-mentioned computation is only a rough estimate based on the given situation. If the retiring member has not reached 120 monthly contributions, he/she may qualify for the SSS Retirement Lump Sum.