(Updated: July 23, 2024)
Estimated reading time: 6 minutes
This is an in-depth guide on getting SSS Pension Requirements
Welcome to our blog, where we aim to shed light on one of the most vital aspects of retirement planning—the Social Security System (SSS) pension. As we embark on this journey together, we will navigate the intricate world of SSS pension requirements, demystify the application process, and explore the numerous benefits that await you in your golden years.
However, many individuals find themselves bewildered by the complex set of requirements and procedures associated with claiming their SSS pension.
Table of contents
Who is Qualified for SSS Retirement Benefits?
SSS Pension turns in as cash payment that members will receive when they cannot work due to old age. To qualify for retirement benefits, the SSS member must be:
- 60 years old, neither employed nor self-employed; with at least 120 monthly SSS contributions around the time of retirement
- 65 years old, employed or not, with at least 120 monthly SSS Contributions around the time of retirement.
List Of SSS Pension Requirements
Before filing for retirement benefits, prepare the SSS retirement claims that you will be providing:
- Completed Retirement Claim Application (RCA) Form or Application for DDR Benefit Form (Under the Portability Law, if applicable)
- SSS ID, UMID card, or SS Form E-6 Acknowledgment Stub with two valid IDs (at least one with a photo and signature).
If someone else will be filing for a retirement claim on behalf of the retiree, prepare the following requirements for the SSS Pension application:
- Authorized representative’s primary ID (SSS ID, UMID, PRC card, Seaman’s book, or Alien Certificate of Registration) or two secondary IDs
- Letter of Authority (LOA) With the SSS Member’s signature or Special Power of Attorney (SPA) that specifically states the authority to file on behalf of and sign for the member.
SSS will require additional documents for special cases (like members aged from 60 to 64, SSS employees, underground mineworkers, and more).
All the retirement benefit claims could be filed in any SSS branch or representative office.
SSS Pension Application
SSS members have two options for filing a retirement claim. They can either do the over-the-counter application or online application using the My.SSS portal.
If a member applies personally or uses a representative, they must submit every requirement at the nearest SSS branch.
Conditions for Filing an SSS Retirement Claim Online
The SSS also has conditions before members may apply through an online server:
- They should have a disbursement account enrolled in My. SSS’s bank enrollment module (via UMID-ATM, UBP Quick Card, or any PESONet-accredited bank).
For the SSS members applying for a monthly pension:
- At least 120 monthly SSS contributions before the semester of claiming
For SSS members filing for a lump sum benefit:
- At least one posted monthly contribution
- No dependent child/children
- No severe loan balance under the Vocational Technology Loan, Educational Loan, Stock Investment Loan, or Privatization Fund Programs.
- No canceled or multiple SSS numbers
SSS Online Pension Application
Here are the steps in filing for a retirement claim using My.SSS portal:
Step 1. Visit the SSS website and log in to My.SSS.
Step 2. Click “Member Account.”
Step 3. Click “Submit Retirement Claim Application” which is under the E-Services tab.
Step 4. For Covered Employees, enter the date of separation.
Step 5. Make sure that your address, contact information, employment history, and other data you have inputted are correct.
Step 6. Answer the questions that are regarding employment and having dependent children.
Step 7. If you are qualified, you will see the “Proceed in your UMID-ATM or bank account enrolled in the Bank Enrollment Module” message on the screen.
How Will You Receive Your SSS Pension?
When you are making an SSS retirement claim, you will be required to open one savings account and submit a photocopy of the passbook, ATM card, initial deposit slip, bank statement, or VISA Cash Card enrollment form.
The SSS will address the pension through a designated bank (usually the branch nearest to where the member lives). The receivable benefits of SSS can be done in two ways:
- Lifetime Monthly Pension. Once applied for a retirement benefit, SSS will begin the distribution of the monthly pension. But if the member reaches 60 and decides to work again, the pension will be suspended until they are 65.
- Lump-sum Payment. Members may also choose to receive the first 18 months of pension since it will be at a discounted rate that will be determined by SSS. Then, the monthly pension will resume on the 19th month and onwards.
Possible Deductions in SSS Retirement Benefit
Some members might not receive the monthly pension fully because SSS deducts for the following reasons:
- All unpaid SSS loans
- Overlapping SSS sickness and partial disability benefits
- Overpaid pension due to dependent’s death, employment, or marriage
Other SSS Retirement Benefits in the Philippines
The SSS Retirement Program does not only provide pensions. Retirees may also receive other benefits such as:
- 13th-month pension every December
- Automatic PhilHealth membership if the member is not already 65 years old
- PhilHealth hospitalization benefits for the member and their dependents (only if 120 PhilHealth contributions have been made)
- Dependents’ allowance equals 10% of the pension or 250 pesos. The allowance will be limited to five children. The children will be receiving an allowance until they are turned 21 years old.
Upon the death of the member, their listed beneficiaries will receive 100% of the pension.
Suppose the member passes away 60 days before the start of the monthly pension and has no listed beneficiaries; the secondary beneficiaries will receive the lump-sum SSS benefit.
SSS Pension FAQs
Here are the following questions members commonly ask regarding the SSS benefits:
How many months of contributions do you need to avail of the SSS pension?
You need at least 120 paid monthly contributions before your scheduled retirement to receive a monthly pension. If the contributions are not met, the member will receive the lump-sum amount.
How much is the maximum SSS pension?
It will be based on monthly salary credit and the number of years you paid SSS contributions. Retirees in the Philippines can receive as much as P18,495. The minimum monthly pension will be around P2,000.
When is the best time to claim your SSS pension?
Doing this at age 65 or older will be better because you can increase your contributions toward SSS until then.
However, there are benefits to applying sooner, as qualified dependents will receive 1-% of the retiree’s pension. In case of the pensioner’s death, the dependents will receive 100% of the monthly pension.
Closing Thoughts
Retirement should be a time of relaxation and fulfillment, where you can enjoy the fruits of your labor without worrying about financial constraints. The SSS pension program in your country provides a safety net, ensuring that you have a steady income stream during your retirement years. – WhatALife!/Zain
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