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

All About SSS – Part 3 SSS Retirement Benefit Requirements for Self-Employed

Since my main objective is that my father should receive a pension once he files for retirement, I am also learning how to file and what are the retirement requirements as well. Hehehe. Kahit papano kasi malaki ang maitutulong nito sa parents ko. Sayang, my mother never had an SSS since in her early short years of employment, she was at a government agency. Sayang din kasi wala rin siyang GSIS. 

I called the SSS hotline for several times hoping to get a clearer picture of how to and what are we going to expect. Nung inayos kasi namin ang SSS ng father ko, hindi siya nakakuha ng SSS ID because ang nasa record ng SSS is middle initial lang ang nakaindicate sa full name ng father ko. Ang requirement ng SSS is to indicate the full middle name to avoid any issues with claiming. Kaya, after filling up forms, we were advised to call in or visit the nearest branch in 6 months to identify if the changes were reflected. If the changes were reflected, my father can now process his UMID ID. But then, until now, I haven’t had the chance to accompany him. I am a bit busy with other things pa. Eh ayaw naman niya na gawin mag isa. The usual reasons na madaming gagawin na hindi daw niya maintindihan. Okey, I do understand naman talaga. Because he is impatient na sa long lines and questions plus yung pupunta pupuntahang sections. Kaya I am hoping before the year ends I can make a time for this.

Anyway, so I have been researching how to file for retirement with SSS. For my father to qualify for the retirement benefit, he should be 60 years old, separated from employment or ceased to be self-employed, and has paid at least 120 monthly contributions prior to the semester of retirement. Right now, his total contribution is 109. That will be 11 contributions to go. However, he may continue to contribute until the age of 65. At age 65, a member is provided the SSS retirement benefit whether employed or not, and has paid at least 120 monthly contributions prior to the semester of retirement.

This retirement benefit is a cash benefit either in monthly pension or lump sum paid to a member who can no longer work due to old age.

Since, my father is categorized as Self-employed, we will be needing the following documents:

1. SSS Retirement Claim Application (SSS Form DDR-1) . Can be downloaded in the website or we can get the copy at the nearest branch.

2. SSS ID card and 2 valid IDs (at least one ID has photo), original and photocopy. We will process the UMID ID before the year ends.

3. If we are to process the retirement benefit before he turns 65, we will have to provide the following:

  - Certificate of Cessation of Business, issued by the barangay where his business is located or where he is residing

  - Notarized Affidavit of No Earnings from Self-Employment

  - or Notarized Affidavit of Cessation of Business

There is no need for all of this, if we are to process his retirement benefit by the time he is 65 years old – the mandatory age of retirement.

4. SSS DDR Signature Card

5. His passbook or ATM card with his name on the card, or copy of deposit slip with machine markings (original and photocopy)

6. His Latest 1x1 picture

8. SSS may require other documents. We will have to see for those other requirements.

And since, we can accompany him to file for this benefit, there is no need for Special Power of Attorney. Special Power of Attorney is needed if he will ask for someone who will process the retirement benefit in behalf of him. Nor there is a need for other documents since he is not residing abroad. 

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

All About SSS – Part 2 - Understanding Table of Contributions, Deadlines of Payment and Where to Pay

Here we go with the part 2 of all about SSS. Hm, I was trying to understand the contribution table for the longest time too. Hehehe. Pardon me, hindi naman po kasi talaga ako super into details na tao. I have always leave it to HR kasi I have been employed ever since. But then, there are twist and turns nga naman in each one of us. So when I have been faced to personally to learn the facts for my father's SSS, I dove in, in order to understand how things works with SSS. Ang dami ko palang hindi alam. Hehehe.

Buti na lang, internet forums and blogs are available. Plus, phone calls with SSS hotlines are very helpful to validate what I have just read. Yun lang mga ilang beses na validation. Hehehe.

1) I am employed for the longest time and did not even bother my contribution with SSS. I know that my employer deducts a portion of my salary na napupunta sa SSS. And that's it. Ni hindi ko na rin inaalam how much as long as nakikita ko na reflected yung monthly contributions sa SSS online. Until I need to determine kung magkano ang kailangan namin bayaran para sa contributions ng tatay ko. And the contribution actually depends dun sa salary bracket ng isang individual. 

Example, if I am receiving a monthly salary of 12,200 pesos, then I belong to the 12,000 pesos monthly salary credit (salary range is 11,750 up to 12,249 pesos) which means na ang contribution ko as an employee is 436pesos. At ang contribution ng employer ko sa SSS is 884 pesos. Kaya ang total contribution na makikita ko online as ‘my’contribution is 1320pesos. 

Eh paano kung ang salary ko is 15,800 per month? Ibig sabihin, I will belong to 16, 000 pesos monthly salary credit. Ito ay dahil over 15,750 pesos ang compensation ko. Ang monthly na deducted sa salary ko is 581.30 pesos. Ang contribution naman ng employer ko is 1,178.70 pesos. Kaya ang makikita ko online as ‘my’contribution is yung maximum na 1,760.00 pesos. Yung maximum contribution. 

This is actually based sa current SSS contribution rate which is 11% of the monthly salary credit not exceeding P16,000 and this is being shared by the employer (7.37%) and the employee (3.63%).

In one year, 21,120 pesos overall rin yun kung asa maximum na contributions. If voluntary, malaki na rin ang 21, 120 pesos na kailangan mo i-allot in a year for SSS, kaya depende na rin sa kakayanan ng individual ang pagbayad sa SSS. 

On my part, ang iniisip ko na lang are the benefits that comes with paying the SSS contributions.

2) If employed, there are no worries with paying the SSS contributions or loans, kasi ang gagawa na nun is ang employer. But if, self employed, voluntary, or OFW, kailangan natin malaman ang mga deadlines of payment for contributions or sa loans to avoid any penalties.

We will have to focus as a self employed or voluntary payee of SSS contributions muna since ito yung mas marami akong tanong dati while processing the SSS of my father. Payments can be done monthly or quarterly. Note that we are talking about the contributions. This is based on the prescribed schedule of payment depending on the 10th or the last digit of the SSS number.

Example: Ang last digit ko is 2 sa SSS number na 1234547502, ang deadline ng payment ko for the June contribution is the 10th day of July.

If 9 naman ang last digit ko sa SSS number 1234547509 and I am paying for the month of August, and deadline ko is the last day of September.

If I am not able to pay on the last day of September and decided to pay on October 1st for the month of August, hindi na siya makakasama. Malalaktawan na yung August ko. SSS do not accept retroactive payments.

For quarterly payment naman:

 

Thus it is very important to be mindful of the deadlines of schedules.

Sa loan payment naman monthly payment ang kailangan so as not to incur any penalties.

3) Iba rin ang schedule of payments for OFW. Payment of contributions for the months of January to December of a given year may be paid within the same year; contributions for the months of October to December of a given year may also be paid on or before the 31st of January of the succeeding year.

4) Payments can be made via the SSS branch mismo na malapit sa inyo. Or pwede rin via banks through e-payment. Or some institutions. Please see below po.

SSS Payment Facilities

• SSS Main Office – Cashiering Department
• SSS Branch Tellering Counters
• CIS Bayad Centers
• SM Business Centers
• SSS-accredited Commercial Banks

 

For Members Abroad

• I-Remit
• PNB Overseas Payment System
• Ventaja

For further inquiries, the SSS hotline is 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

Source: https://www.sss.gov.ph/ 


Disclaimer: I am not affiliated with SSS.For further inquiries, the SSS hotline is 920-6446 to 55.Or you can visit your nearest branch.
 

All About SSS – Part 1 - Understanding The Basic

I have been heavily involved lately processing the SSS of my father as well as for my husband who is now in between jobs. More likely, I am either on the phone or on the branch itself looking for answers on what and how to proceed further. Honestly, madaming vague information for me even when I read over and over again the SSS website. Kaya, I've been dedicating few times reading some sites which contains information about SSS. It helps too that I visit some forums where I found some related situations as mine and verified it with the SSS themselves.

My father has been employed before with an SSS loan that went unpaid in the 80’s. Oo, 1980s pa. Sobrang tagal na. Yung loan niya was 300 pesos during that time. His contribution listed in the website is 35.70 pesos only per month na hindi na rin natuloy. I have been contemplating for the longest time before kung kaya ng budget ko na ipagbayad siya ng monthly contribution until I finally was able to allocate a portion from my monthly budget. My purpose is that nanghihinayang ako dun sa dati nilang contributions. Only few months left na lang to complete the 120 contribution at pwede silang mag karoon ng pension once nakapagfile na ng retirement. If you have been reading my previous posts, part ng monthly budget ko ang monthly stipend sa parents ko eventhough I am married na. It’s a promised I made before to myself na hangga’t kaya ko, magbibigay ako ng kaya ko. Since, aging is inevitable plus, dumarami na rin ang gastusin as we age, kaya naisip ko na ituloy na rin para pandagdag na rin sa budget nila by that time. He is 57 years old turning 58 this coming month.

So, July last year, we went to an SSS branch and queued for ‘General’ questions. Dun namin nalaman na 4500plus pesos na yung loan amount niya earning an interest over the last 3 decades. We decided to pay the amount plus the contribution nung nagpunta kami. Sabi nung sa SSS, we can start at the smallest and gradually increase it monthly. At yun nga ginawa namin, from 110 na contribution starting July 2014, hanggang sa naging 990 nung April this year. And then I was stuck with 990 per month na until now. Malaki na rin kasi ang 990 pesos per month for someone like me.

So, let me try to enumerate few information I have learned from SSS for this post:

1) If you are a student or simply hindi pa naging employed ever at nagapply ka for SSS number and wanted to start making contributions, ang category mo is self employed and will have to provide the proof of your source of income that you are earning at least 1000pesos. 1000 kasi ang minimum monthly salary credit so one can start to contribute 110 per month. If mas mataas ang declared salary range, tataas din ang SSS contribution. Magbabago yung category mo once you become employed. It will become covered employee. But, iisa lang ang SSS number natin for the rest of our lives.

2) If naging OFW ang nagcocontribute, it will be to change to OFW. Ang minimum monthly salary bracket for an OFW is 5000. Ang minimum contribution nun is 550 pesos. 

3) Looking at the SSS website (https://www.sss.gov.ph/) ang nakalist sa father ko is self-employed siya since 1997. Ang ruling kasi ng SSS, kapag dati kang employed and nagstop from paying the contribution for sometime, kapag magstart kang magbayad ulit, self employed ang category mo. Sa case ng husband ko, who went unemployed and we started immediately to pay his contribution, ang category niya is Voluntary contribution. The contribution amount will depend kung magkano ang kaya ng individual. 

4) I made a phone call with SSS a month ago, asking if I can still increase the contribution of my father. Ang sabi nila, hindi na pwede per rules. They have changed the rules kasi ang alam dati, if someone increased his contribution for the last 5 years to maximum prior to retirement, maximum din ang pension na makukuha. Now, hindi na po. Once, an individual reach the age of 55, per year na po ang increase ng contribution. So since my father’s contribution ngayon is 990 (2015), next year na pwedeng magdagdag. He will be 58 and the contribution he can make is 1045. By the time na 59 na siya, he can contribute 1100. By 60, 1155 naman.

5) Earliest retirement age is 60. Kapag 65 ka na, mandatory na ang retirement whether self employed ka pa.

Hopes this helps.

God Bless. :)

Disclaimer: I am not affiliated with SSS.For further inquiries, the SSS hotline is 920-6446 to 55.Or you can visit your nearest branch.