IT may be difficult to collate the documents needed to get our retirement benefits or perhaps we’re a little concerned about our parents who have just turned 60 and are wondering if they qualify for a pension or any lump sum to help them survive their senior years.

Regardless of the reasons, here are the important must-dos and steps for availing benefits from the Social Security System (SSS) to ensure a smooth financial transition into retirement.



SSS Retirement Benefits

If your parents or seniors were previously employed by private companies or informal sectors, or voluntarily contribute to the SSS, they could be eligible to receive retirement benefits.

While our Filipino family culture often dictates that children must provide and look after their parents in their old age, having one’s own savings in our senior years will help us pay not only for R-and-R but also for typical old-age issues like maintenance medications and day-to-day sustenance. Thus, having our SSS records handy is necessary to access benefit claims and prevent financial hiccups upon entering retirement age.



Eligibility for SSS Retirement Benefits

Although SSS offers retirement benefits to its active members, our parents must pass the eligibility criteria to be able to claim a pension or a one-time cash award.

Basically, when a member reaches at least 60 years of age and is no longer employed or working, he is automatically eligible for retirement benefits under the SSS. However, some contributors, especially those in the informal sectors or microbusiness owners, may have extended their retirement age to 65 years, at which point it is mandatory that they stop working and would be eligible for a pension or lump sum amount.

Additionally, while they may have reached retirement age, they need to have made at least 120 monthly contributions to the SSS before the semester of retirement. The number of their contributions would be the basis for the amount they will receive as benefits.



Types of SSS Retirement Benefits

SSS offers two main types of retirement benefits upon entering post-employment age:

Monthly Pension. A lifetime cash benefit paid monthly to retirees who have paid at least 120 monthly contributions. This ensures consistent funds withdrawable from the SSS proceeds accounts.

Lump Sum Amount. A one-time payment given to retirees who have not accumulated the required 120 monthly contributions.



SSS Monthly Pension Computation

The monthly pension is calculated based on the retirees’ paid contributions, credited years of service, and the number of dependent minor children (which must not exceed a brood of five). Moreover, the retired folks’ monthly pension upon reaching 60 will be readjusted if they decide to re-enter the workforce or self-employment until 65 years old, which means they may get a higher amount per month as a pension.

The computation of the SSS monthly pension involves three formulas, with the pension amount being the highest result from these formulas:

· ₱300 + 20 percent of the average monthly salary credit (AMSC) + 2 percent of the AMSC for each credited year of service (CYS) beyond ten years + ₱1,000.

· 40 percent of the AMSC + ₱1,000.

· ₱1,200 if CYS is 10-20 years; ₱2,400 if CYS is more than 20 years + ₱1,000.



Sample SSS Monthly Pension Computation

Suppose the member has an AMSC of ₱25,000 and 30 years of service. Using the first formula, their monthly pension would be calculated as follows:

Monthly Pension = ₱300 + (20 percent of AMSC) + [2 percent of AMSC x 20 years] + ₱1,000 = ₱300 + ₱5,000 + ₱10,000 + ₱1,000 = ₱16,300



Additional Benefits

Automatic PhilHealth registration

Per Republic Act 7875, retirees are entitled to full coverage of primary PhilHealth-accredited services. And not only will they benefit from hospitalization benefits, but also their dependents who are not over 21 years old.

13th-month pay

Retirees surely won’t miss the fun of Christmas time with the ‘extra’ amount they’ll receive every December on top of their regular monthly pension.

Funeral benefits

While it’s too early to think about this, it’s comforting to know that insurance plans may be complemented with funeral benefits from the SSS.

Lump Sum Retirement Benefit

Alternatively, if retirees do not qualify for the monthly pension due to insufficient contributions, the lump sum amount would be their go-to fund. This is a one-time payment that equals the total contributions made by the member and their employer, plus interest.



How to Apply for SSS Retirement Benefits

Ensure our parent/grandparent meets the eligibility criteria.

Prepare the necessary documents, including a filled-out Retirement Claim Application (RCA) form.

Submit their application at the nearest SSS branch or through the SSS online portal.

Optional retirement: The retiree must be at least 60 years old and no longer employed.

Compulsory retirement: The retiree must be 65 years old, regardless of employment status.

Contribution Requirement. The retiree must have made at least 120 monthly contributions to the SSS before the semester of retirement to qualify for a monthly pension. Otherwise, he/she will be given the option of a lump sum amount instead, which is a one-time award.



Steps to Apply

Verify Eligibility. Confirm that they meet the age and contribution requirements.

Prepare Required Documents. Necessary documents typically include their SSS ID or two valid IDs (one with a photo and both with a signature), a completed Retirement Claim Application (RCA) form, and possibly additional documents depending on your situation (e.g., marriage certificate, birth certificates of minor children).

Submit Their Application. You can process their application along with them at the nearest SSS branch or via the SSS online portal for registered members. The online option offers convenience and accessibility for those unable to make a physical appearance at the SSS office.

Await Approval and Benefits Release. Once their application is submitted, it will be processed by the SSS. Upon approval, they should start receiving their retirement benefits, with the payment method being arranged during the application process.

Note that you can only receive either the monthly pension or the lump sum amount, not both.



Additional Tips

Consult the Official SSS Website. For the most accurate and up-to-date information on retirement benefits, application processes, and eligibility, always refer to the official Social Security System website or contact their helpdesk directly.

Stay Updated. Policies and procedures may change, so it’s important to stay informed about any updates regarding SSS retirement benefits to ensure a smooth application process.