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When a person working their whole life could not pay for the 120 monthly contributions in SSS Retirement Plan, they will have to use the lump-sum amount benefit. With this benefit, you can still pay the monthly payments until completed to avail the full benefits of the monthly pension. 

For the SSS Lump Sum claim requirements, the member will receive the first 18 months of pension at a discounted rate by SSS, then continue the monthly pension on the 19th month and onwards.

Types of Retirement Benefits

There are two types of retirement benefit:

• Monthly Pension – a lifetime cash benefit paid to someone who has retired and has paid at least 120 monthly contributions to the SSS prior to retirement.
• Lump-sum Amount – granted to someone who has retired and has not paid 120 monthly contributions. It is equal to the total contributions paid by the member and by the employer, including interest.

Monthly Pension

This is a lifetime cash benefit paid to a retiree who made at least 120 monthly contributions before their time of retirement.

The amount of the member’s monthly pension will depend on the number of dependent children, who should not exceed five, and the amount of contributions made over the member’s credited years of service. The highest outcome of the following calculation will be the pension:

• Sum of P300 plus 20 percent of the average monthly salary credit plus two percent of the average monthly salary credit for each credited year of service in the span of 10 years.
• 40 percent of the average monthly salary credit
• Or P1,200 with at least 10 credited years of service or P2,400 with at least 20 credited years of service. 

The retired member has the choice to receive the first 18 months pension in lump sum, which will be discounted to the rate SSS will determine. This option can be chosen upon filing the first retirement claim, and only advance payments will be discounted on the day of the payment. 

The retired member will continue to receive the monthly pension from the 19th month onwards.

If a retired member that has filed for optional retirement at the age of 60 decides to become re-employed and then apply for retirement at the age of 65, the member’s monthly pension will be higher.

Other Benefits

Those who are retired are also eligible for 13th-month pension pay every December.

Those who were retired prior to the effectiveness of RA 7875 on March 4, 1995 automatically become members of PhilHealth, and their legal dependents will also be able to receive the benefits of the hospitalization. However, retirees, effective after March 4, 1995, will also receive the benefits of PhilHealth only if they have contributed to 120 monthly Medicare contributions. 

Dependent’s Pension

The legitimate, legitimated, or legally adopted, and illegitimate children. – conceived or adopted on or before the date of retirement of a retiree will receive the dependent’s pension around 10 percent of the retiree’s monthly pension or P250.

Only five children, beginning from the youngest, are able to receive the dependent’s pension. If there are more than five dependents, the legitimate, legitimated, or legally adopted children will be the ones receiving the pension. 

Those who are so-called “dependents” are the following:

• Legitimate, legitimated, legally adopted, and illegitimate child who is unmarried, not gainfully employed, and has not reached over 21 years of age.
• A child who entered into a common law relationship and has not reached the age of eighteen.

Payment for the dependents will end when:

• The dependent dies
• Reaches 21 years of age unless congenitally incapacitated
• Is gainfully employed
• Marries
• Enters into a common-law relationship while being at least 18 years old

Those who are “gainfully employed” are those who are employed or self-employed, where the person renders regular work and receives compensation or derives income for six continuous months at any time of the year.

Lump Sum Amount

To be qualified for a lump sum retirement plan benefit, a member should be at least 60 years old (or 55 years old, if an underground mine worker) for optional retirement or 65 years old (or 60 years old, if an underground mine worker) for technical retirement, and has paid less than 120 monthly contributions.

Members who have not paid 120 monthly contributions have the option to continue paying as a VM to complete the 120 months to have the full benefits of a monthly pension available to them.

Since May 2016, members have had the option of receiving their lump sum SS and EC Disability, SS Death, and SS Retirement benefits directly into their bank accounts rather than having to wait for a check to arrive in the mail each time. Upon the installation of the benefits processing system, payment through the bank program will be required. 

Upon filing the application, the member will be required to open a single savings account (or use an existing one, if any) and submit a photocopy of the following to SSS:

• Savings account passbook
• ATM card bearing the member’s name and account number
• A validated initial deposit slip
• Bank statement or certification
• Visa Cash Card Enrollment Form

The original copy of the passbook or ATM card must be presented for authentication purposes.

For the members who do not have an existing savings account, the SSS will issue a Letter of Introduction (LOI) form to be presented to the member’s chosen SSS-accredited bank for the sole purpose of opening a single savings account.

Upon approval, SSS will mail a notice voucher to the member telling them when to withdraw the benefits from the bank.

Online Application of Retirement Benefit thru My.SSS

Below are the SSS members who can apply for retirement benefit online:

• Overseas Filipino workers and voluntary members who are at least 60 years old upon the date of submission of retirement claim application.
• Employee members who are around the age of 60 to 64 years old and separated from employment. Underground or surface mineworkers and racehorse jockeys are excluded.
• Members who are at least 65 years old upon the date of filing the claim online.

Qualifying Conditions

• Must have a registered account in the My.SSS facility in the SSS website.
• Must have disbursement account enrolled in the Bank Enrollment Module of My.SSS as:
  • UMID-ATM
  • UBP Quick Card
  • Any PESONet-accredited bank

When filing for monthly pension:

Applicants must at least have 120 posted monthly contributions prior to the time of submitting the online retirement application.

When filing for lump sum benefit:

• They have at least one posted monthly contribution
• Have no canceled or multiple SS numbers
• Have no outstanding loan balance under:
  • Stock Investment Loan Program
  • Privatization Fund Loan Program
  • Educational Loan Program
  • Vocational Technology Loan Program
• Have no dependent child/children 

– WhatALife!/Zain

Source: (1), (2)

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Also read: GUIDE: How to Check Your SSS Contribution