All About SSS – Part 4 SSS Retirement Benefit - Pension

Now on the monetary part of the retirement benefit. I have been thinking how much nga ba ang magiging pension ng tatay ko? I know there is a news na magincrease ng 2000 across the board yung minimum na pension na nakukuha ngayon, which is from 1200. 

“House Bill 5842 seeks to amend Republic Act 1161, as amended by RA 8262, otherwise known as the “Social Security Act of 1997,” increasing the present minimum monthly pension of P1,200 to P3,200 for retirees with at least 10 years of credited service.”

Read more: http://newsinfo.inquirer.net/700016/house-approves-sss-pension-hike-bill#ixzz3pAqPmx4o

Although as of this writing, this bill is not yet implemented, I will be happy if this pushes through. Ano na lang ba kasi ang kayang bilhin ng 1200 per month na pension ng mga elderly di ba? 

Anyway, so ngayon pa lang nag iisip na rin ako kung magkano nga kaya ang pension ng tatay ko. Since, we will try to complete the120 contributions prior to the semester of his retirement, pwede siya dun sa monthly pension. Yung lumpsum amount kasi is only granted to a retiree who has not paid the required 120 monthly contributions. It is equal to the total contributions paid by the member and by the employer including interest.

Paano nga ba nacocompute ang monthly pension? Remember, I mentioned in one of the SSS blog that ang alam dati is that pwede kang magincrease ng contribution for the past 60 months prior to retirement para yun ang basis ng amount ng pension mo. Well, SSS has clarified that and been stricter to the rules since then.

The monthly pension depends on the member's paid contributions, his credited years of service (CYS), and the number of his dependent minor children that must not exceed five. Right now, wala na kaming minor siblings. 

Per SSS website, the monthly pension will be the highest amount resulting from either one of these three pension formulae:

1.the 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 (CYS) in excess of ten years; or

2.forty (40) percent of the average monthly salary credit; or

3.P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or more.  

Computing the possible monthly pension ng tatay ko na ang average monthly salary credit is 9000 (Monthly Salary Credit) as of this writing:

1. 300 + (20%*9000) + (2%*9000*(10-10) = 2100 ; Ten minus ten kasi 10 years lang yung contribution years if magretire siya at exactly 60 years old 
2.      40%*9000 = 3600
3. 1200

So from the above, and getting the highest amount, it looks like he will be getting the 3600 per month. Granted that this will be the average monthly salary credit by the time he retires. Yes, we are planning to increase the contribution before he actually retires. If the SSS bill will push through, adding the 2000, that will be 5600 per month. 

We have yet to know if this will be the case. For the meantime we are hoping that it is actually close to 3600 amount per month.

Source: https://www.sss.gov.ph/ 

Disclaimer: I am not affiliated with SSS. For inquiries, please call their hotline 920-6446 to 55.

The SSS Customer Service Call Center is open from 7:00am on Monday all the way to 7:00am on Saturdays. It's closed during weekends and on holidays. SSS Email: member_relations@sss.gov.ph; SSS Facebook: https://www.facebook.com/SSSPh