Retirement

Who may qualify for a retirement pension?

1. Member must have paid at least 120 monthly contributions prior to the semester of retirement and is any of the following, whichever is applicable:

• •  at  least  60  years  old  and  separated  from  employment  

  •  at least 65 years old whether still employed/SE, working as OFW/Household Helper or not (technical retirement);

  •  at least 55 years old and separated from employment or has ceased to be an SE, if an (technical retirement); or

  • a total disability pensioner who has recovered from disability and is at least 60 years old 

2.  A former retiree-pensioner whose monthly pension was suspended due to re-employment/self-employment and is now separated from employment or has ceased to be an SE.

3. 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 benefit.

Who may qualify for a lump sum retirement amount?

• at least 60 years old for optional retirement,

•  at least  65 years old for technical retirement,

•  has paid less than 120 monthly contributions

A member filing for a retirement benefit and has paid less than 120 monthly contributions shall be given the option to continue paying the contributions as a voluntary member to complete the 120 months to avail the full benefits thru a monthly pension.

Who are considered dependents of a retiree-member and what benefits are they entitled to?

Dependents of a retiree-member are entitled to Dependent’s Pension, which is equivalent to ten percent (10%) of the member’s monthly pension or P250, whichever is higher. This is paid for each dependent child conceived/legally adopted on or before the  date  of retirement of the member, but not exceeding five (5) in number beginning with the youngest and without substitution. Those considered dependents are as follows:

1. Legitimate, legitimated, legally adopted and illegitimate child who is

• unmarried;

• not gainfully employed; and

• has not reached 21 years of age, or if over 21 years old, he/she is congenitally incapacitated or while still a minor was permanently incapacitated and incapable of self-support, physically or mentally.

2.  A child who has entered into a common-law relationship and has not attained the age of eighteen (18). However, upon reaching the age of 18, the child shall stop receiving dependent’s pension.

In cases where there are five (5) or more dependent legitimate, legitimated, legally adopted and illegitimate children, the dependent legitimate, legitimated, and legally adopted children shall be preferred. Where there are less than five (5) legitimate, legitimated, or legally adopted children, the illegitimate children shall be considered to complete the maximum five (5) dependents.

For how long will the dependent child receive the pension?

Payment of the dependents’ pension shall stop if the dependent:

dies;

• • reaches 21 years old, unless congenitally incapacitated, or while still a minor was permanently incapacitated and incapable of self-support, physically or mentally;

  • is gainfully employed;

  • marries;

  • enters into a common-law relationship upon attaining at least 18 years of age; or

  • attains the age of 18 while having a common-law relationship.

How is the monthly pension paid?

The monthly pension is paid thru the designated bank account opened by the member under the “SSS Pensioner’s Remittance thru Bank” Program. This became mandatory effective September 1, 1993.

A member must open a single savings account (or use an existing one, if any) and submit to the SSS the savings account number and a photocopy of the passbook upon filing of application, or he/she may accomplish the Visa Cash Card Enrollment Form. The original passbook must be presented for authentication purposes. For ATM accounts, the name of the member must be embossed and the savings account number must be indicated in the ATM card; otherwise, a copy of the deposit slip must be submitted.

Aside from the retirement benefit, what else can a retiree receive?

The retiree is entitled to a 13th Month Pension payable every December.

Moreover, retiree pensioners prior to the effectivity of RA 7875 on March 4, 1995 are automatically considered members of PhilHealth, and they and their legal dependents are entitled to its hospitalization benefits. On the other hand, retirees effective March 4, 1995 up to the present will be entitled to hospitalization benefits under PhilHealth only if they have contributed 120 monthly Medicare contributions. The counting of 120 monthly contributions shall start in 1972, when the Medical Care Act of 1969 started implementation.

What is the 18-months advance pension?

A retiree has the option to receive the first eighteen (18) months pension in lump sum, discounted at a preferential rate of interest to be determined by the SSS. This option can be exercised only upon filing of the first retirement claim, and only advance payments shall be discounted on the date of payment. The Dependent’s Pension and 13th Month Pension are excluded from the advanced 18 months pension. Should there be an increase in the monthly pension within the 18-month period, the same shall also be subjected to interest.

What are the possible deductions in the retirement benefit?

All unpaid short-term member loans of members claiming for retirement benefit, whether or not the term of payment has expired as of contingency date, shall be deducted in full from the proceeds of the benefit payments. The date of contingency shall be the cut-off date for charging interest and penalty. Also to be deducted are overlapping sickness and partial disability benefits, if any. If there is overpaid pension due to dependent’s death, employment or marriage, these shall also be deducted from the monthly pension.

What happens when the retiree pensioner resumes employment?

The monthly pension shall be suspended upon the re-employment or resumption of self- employment of a retired member who is less than 65 years of old. The member shall again be subjected to compulsory coverage. At 65 years old, whether employed or not, he/she can file a claim again for retirement benefit.

Aside from the retirement benefit, what else can a retiree receive?

The retiree is entitled to a 13th Month Pension payable every December.

Moreover, retiree pensioners prior to the effectivity of RA 7875 on March 4, 1995 are automatically considered members of PhilHealth, and they and their legal dependents are entitled to its hospitalization benefits. On the other hand, retirees effective March 4, 1995 up to the present will be entitled to hospitalization benefits under PhilHealth only if they have contributed 120 monthly Medicare contributions. The counting of 120 monthly contributions shall start in 1972, when the Medical Care Act of 1969 started implementation.

What will happen to the monthly pension of a retiree in case of death?

Upon the death of a retiree pensioner, the primary beneficiaries shall be entitled to 100 percent of the monthly pension and the dependents to the dependent’s pension. If the retiree pensioner dies within 60 months from the start of the monthly pension and has no primary beneficiaries, the secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the dependent’s pension.