Are you planning for your retirement? Whether you are employed or not, it’s important to think about the future especially your retirement.
There are many different ways to save for the retirement and paying SSS monthly contribution is one of those. The Social Security System or the SSS offers retirement benefit to those members who completed the 10-year premium contributions.
A member of the SSS who can no longer work or retires from work will receive a cash benefit either as a lump sum or monthly pension.
Two ways to receive the SSS Retirement Benefits
- Lump sum amount – This is a one-time payment given to a retiree who has not reached the mandated 120 monthly contributions. The total contributions of the member or by his or her employer along with the interest earned is the lump sum amount that will be granted.
- Monthly pension – If the member had paid 120 monthly contributions, he or she is entitled to receive a monthly pension when he or she reached the retiring age of 60. The retiree will receive a monthly pension that will be paid for a lifetime.
Aside from the monthly pension, other benefits available are as follows:
- Dependent allowance
Each of the legitimate, illegitimate or legally adopted children of the retiree will receive an allowance equivalent to 10% of the monthly pension received by the member or the pensioner. However, only five minor children are entitled for the allowance.
The allowance for the dependents stops when the child is above 21 years old, gets employed or married, or dies. However, if the dependent child is incapable to support himself due to mental or physical defect acquired since birth, then he or she will receive an allowance for life.
- The retiree is also entitled to receive a 13th month pension every December.
- All retiree pensioners before the effectivity of RA 7875 promulgated on March 4, 1995 are considered PhilHealth members along with the legal dependents, thus they are entitled for the PhilHealth benefits. Otherwise, those who have retired after the effectivity of RA 7875 will only receive PhilHealth benefits upon completion of the 120 monthly contributions.
Who shall receive the SSS Retirement Benefits?
To qualify for the SSS Retirement benefits, the member must have completed the 120 monthly contributions. The retirement age for members is 60 or 65, but for underground mine workers, the retirement age is 55 or 60 for technical retirement.
However, a member who is below 65 years old and has paid 120 monthly contributions may opt to pay more as a voluntary member to receive a higher retirement benefit.
If the member has completed the 120 monthly contributions, he or she will receive a monthly pension of Php1,200. In case the member has paid 20 years, the monthly pension will be Php2,400.
Recently, the SSS has approved the Php1,000 increase for the monthly pension of the SSS members.