How to Apply for SSS Retirement Benefit

How to Apply for SSS Retirement Benefit? Are you qualified for a monthly pension or a lump sum? 

The SSS Retirement Benefit is a cash benefit paid either in monthly pension or as a lump sum to an SSS member who can no longer work due to old age.

There are two types of retirement benefit:

1. Monthly pension – a lifetime cash benefit paid to a retiree on a regular monthly basis. The SSS member must have at least 120 months contribution upon prior to the semester of application to qualify in the monthly pension.
2. Lump sum amount – is a one time payment granted to a retiree, if he/she hasn’t reached the required 120 monthly contributions. The lump sum amount is equal to the total contributions paid by the member and/or by his/her Employer, including interest earned.

Other benefits aside from the monthly pension?

1. Dependents Allowance
   • The legitimate, legitimated or legally adopted, and illegitimate children, conceived on or before the date of retirement of a retiree will each receive dependents’ allowance equivalent to 10 percent of the member’s monthly pension, or P250, whichever is higher.
   • Only five minor children, beginning from the youngest, are entitled to the dependents’ allowance. No substitution is allowed.
   • If there are more than five dependents, the legitimate, legitimated or legally adopted children shall be preferred.

   The dependents’ allowance stops when the child reaches 21 years old, gets married, gets employed, or dies. However, the dependents’ allowance is granted for life for children who are over 21 years old, if they are incapacitated and incapable of self-support due to physical or mental defect that is congenital or acquired during minority.

2. The retiree is entitled to a 13th month pension payable every December.
3. All retiree pensioners prior to the effectivity of RA 7875 on March 4, 1995 are automatically considered members of PhilHealth and, along with their legal dependents, are entitled to PhilHealth hospitalization benefits. On the other hand, retirees effective March 4,1995 up to the present will be entitled to PhilHealth hospitalization benefits only if they have contributed 120 monthly Philhealth/Medicare contributions. The counting of 120 monthly contributions shall start in 1972, when the Medical Care Act of 1969 started implementation.A copy of the DDR print-out indicating the type of claim is retirement in nature and the effectivity date of the pension, or in its absence, a copy of retiree-pensioner certification iss

Who are qualified for a retirement pension?

A member should have at least 120 monthly contributions prior to the semester of retirement. A member has an option to avail to optional retirement at age 60 or the technical retirement at age 65. However, for underground mine workers, optional retirement age is 55 and technical retirement age is 60.

A member who is 60 years old and above, but not yet 65, with 120 contributions or more may continue paying as a Voluntary member up to 65 years old to avail of the higher amount of benefits.

If a member has less than 120 monthly contributions and is filling for a retirement benefit, he/she shall be given an option to continue paying the contributions as a Voluntary Member to complete the 120 months to avail the full benefits thru monthly pension.

How is the monthly pension computed?

For the reader’s guidance:

• AMSC in the formula below is the Average Monthly Salary Credit
• CYS is the Credited Years of Service

The monthly pension amount shall be the highest of:

1. 300 + (20% x AMSC) + (2% x AMSC) x (CYS – 10); or
2. 40% x AMSC
3. The minimum pension of P1,200, if with at least 10 CYS; or P 2,400 if with at least 20 CYS, whichever is applicable.

Update: As of March 2017, SSS has approved a Php 1,000 pension increase across the board. SSS Pensioners are expected to have an additional Php 1,000 on top of their originally computed SSS Pension.

Related Articles

• SSS Simulated Retirement Benefit Calculator
• Check my SSS Contributions Online
• How to Create an SSS Online Account

What is the 18^th months advance pension?

A retiree has the option to receive in advance the first eighteen (18) months pension in lump sum, discounted of a preferential rate of interest to be determined by the SSS. Intent to receive the 18 month pension in advance should be declared during retirement claim application. However, the Dependent’s Pension and 13^th month pension are excluded from the advanced 18^th months pension.

Requirements for SSS Retirement Benefit

1. Valid ID Cards or documents which is accepted as a Primary ID cards
   • SSS ID Card
   • SSS UMID Card
   • PRC ID Card
   • Passport
   • Driver’s License
   • Seaman’s Book

   All equivalent ID cards/documents with English translation issued by the government shall be accepted.

   If above Primary IDs are not available, Supplemental list of Documentary Requirements for Retirement Benefit can be found on the later part of this post.

2. SSS Forms
   • SSS Retirement Claim Application (RCA) Form; or Application for DDR Benefit under the Portability Law
   • Affidavit of Separation from Employment
   • Member’s Photo and Signature Card
3. Single Savings Account Passbook/ATM/UMID Card enrolled as ATM/accomplished debit/cash card enrollment form.

If name of member and/or savings account number is not indicated in the ATM card, submit either: – Copy of duly-validated deposit slip; or – Copy of bank statement/certificate If ATM card of married female member is still under her maiden name, submit Marriage Contract/Certificate.

If member cannot open a savings account or cannot apply for debit/cash card, submit a written request for exemption from the Pensioner’s Remittance Program stating reason for the request.

If the retirement benefit application will be filed thru a Representative:

All items above are required, plus:

1. Valid ID cards/ documennt of the representative; and
2. Letter of Authority (LOA) signed by the member; or Special Power of Attorney (SPA) specifically stating the authority to file and sign for and in behalf of the member.

LOA/SPA should be valid within six (6) months if issued in the Philippines or one (1) year if issued abroad. All equivalent ID cards/documents with English translation issued by a foreign government shall be accepted. Refer to Supplemental List of Documentary Requirements for Retirement Benefit for the additional supporting documents for special cases.

Filing Procedure

Applications for retirement benefit are filed at any SSS branch or representative office.

Source: SSS Guide Book, SSS Website