SSS Retirement Benefit: Requirements, Application, and Computation

Are you a retired worker? Are you an SSS member?

• READ: 13th Month Pension ng SSS ngayong 2018, sino nga ba ang makakatanggap?

Do you need help paying the bills for your children who are still in college?

Did you come here to know more about the SSS Retirement Benefit?

Worry no more because in this article you will learn more about the SSS Retirement Benefit – how it works, how to apply for it and how much you will receive.

All the basic nooks and crannies will be covered in this article.

The SSS Retirement Benefit is a blessing and a gift from the government. After all the hard work that you put in while working, you are now finally getting compensation from it.

Not only that, but even your children are receiving a monthly allowance together with your pension.

However, such benefit should first be studied and learned about. You cannot go into an SSS office branch, not knowing what to do or how to do things.

You might even lose the opportunity if you are not careful. But don’t fret because you will learn the basics by the time you finish this article.

What are the two kinds of the retirement benefit?

Prior to popular belief, there are actually two kinds of the retirement benefit. Learn more about each one of them below and see which applies to your situation.

1. Monthly pension – a lifetime cash benefit paid to a retiree who has paid at least 120 months (10 years) of contribution before retirement
2. Lumpsum account – granted to a retiree who has not paid the 120 months (10 years) of contribution before retirement.

Who are qualified to avail of this benefit?

It is better to actually know the exact qualifications than trust what you hear from others.

We, Filipinos, have a tendency to cut down or add information when passing it by mouth. So to avoid misconceptions, here are the official qualifications.

If you are 60 years old:

1. You must be separated from employment or ceased from work; and
2. Have paid at least 120 months (10 years) of contributions before you retire

If you are 65 years old:

1. It doesn’t matter if you’re employed or not; and
2. Have paid the 120 months (10 years) of contributions

For underground miners:

If you are 55 years old:

1. You are an underground miner for at least 5 years before retirement,
2. You are separated from employment or ceased from work; and
3. Have paid at least 120 months (10 years) of contributions

If you are 60 years old:

1. It doesn’t matter if you are employed or not; and
2. Have paid the 120 months (10 years) of contributions

How can I apply for SSS Retirement Benefit?

Below is a step-by-step guide that covers the application process from the requirements to the completion of forms.

Application Requirements

Prepare the following files before applying for the SSS Retirement Benefit.

1. Retirement Claim Application (the form that claims that you wish to retire)
2. DDR Signature Card
3. DDR Savings Account Form
4. Certification of Separation from last employer (if you are less than 65 years old)
5. Passbook or ATM card (if pension)
6. Certified or true copies of birth or baptismal certificate of dependent children
7. Certified of cessation of business or practice of profession (for self-employed members who are less than 65 years old);
8. Certified true copy of marriage certificate
9. Proofs of filiation for illegitimate dependent children (if you have illegitimate dependent children)
10. UMID or SSS biometrics card or two (2) other valid IDs (both with signature)
11. At least one (1) photo and date of birth

*For Requirement #5, you must open a SINGLE savings account and submit your account number and a photocopy of your passbook or ATM to SSS. The original copy of your passbook or ATM must also be presented to SSS for authentication purposes.

*SSS might ask for other minor documents if needed.

Filing Procedure

To apply, you must visit the nearest SSS branch near you. DO NOT forget to bring all of the eleven requirements mentioned above. Tell the teller about your query and he/she will guide you to filing for the retirement benefit.

How much will I get from SSS Retirement Benefit?

Monthly Pension

To compute the amount that you will receive, there are three formulae. The highest amount that will come from any of the formula will be the amount that you will receive.

1. 300 PHP + 20% of your monthly average wage + 2% monthly average wage for each credited year of service (CYS) in excess of ten years
2. 40% of the average monthly salary credit; or
3. 1, 200 PHP (if the CYS is at least 10 but less than 20)

2, 400 PHP (if the CYS is more than 20)

Dependents Allowance

You will not only receive a benefit of your own, but your children (legitimate, adopted or illegitimate) will also receive a monthly allowance. It is determined by the conditions that follow below.

1. Children must be conceived on or before the date of retirement
2. Only five minor children (starting from the youngest) are legible for the allowance. No substitution is allowed. If there are more than five children, the legitimate is much preferred.

*This allowance will stop at 21 years old or if the dependent gets married, gets a job or dies. However, for children who are essentially crippled, this allowance is granted for life.

How much is it?

1. 10% of your pension; or
2. 250 PHP, whichever is higher

What are the other benefits?

Listed below are other benefits that you will receive aside from the main retirement benefit and the monthly allowance of your dependent children.

1. 13^th month pension that is to be received every December
2. If you are a retiree before the signing of RA 7875 on March 4, 1995, then, you are automatically a PhilHealth member and entitled to its benefits.
3. If you are a retiree after the signing, then, in order to become a PhilHealth member, you must pay at least 120 months (10 years) of contributions for PhilHealth.

Truly, we, Filipinos are blessed to such benefits given to us by the government.

However, we must know how to follow instructions and simple rules in order for things to go smooth-sailing. Otherwise, it will be hard for us and for the government as well. We hope this article taught you something. 

Click the link to read more about SSS Maternity Benefit, SSS Sickness Benefit, SSS Retirement Benefit, SSS Disability Benefit, SSS Death and Funeral Benefit or visit the SSS website for more info.