Types of SSS Retirement Benefits for Filipinos

Retirement, according to Philippine Labor Code, is when an individual decides to leave the workforce permanently at the age of 60. It is no longer mandatory, so it is possible to continue working beyond the retirement age. But if you’ve already worked for most of your life, then you’re probably looking forward to enjoying your golden years with your SSS pension plan.

The retirement benefit is, perhaps, the most significant program offered by SSS. Not only is it considered the most accessible pension plan in the Philippines, but it is also the easiest to maintain especially for private company employees since it is mandated by law and is automatically deducted from your salary. It is offered to all SSS members, regardless of status.

So, if you are an active SSS member nearing your retirement age or one of the dependents of a soon-to-retire SSS member, get yourself ready to learn more about the SSS retirement benefits and its different types and provisions with this guide.

SSS-Retirement-benefit-types
Photo by Huy Phan from Pexels.

What is SSS Retirement Benefit

The Social Security System (SSS) retirement benefit refers to the cash benefit paid by SSS to retired members. It was meant to replace part of their income and help pay for their monthly expenses when they stop working due to old age. As one of the many benefits that come with an SSS membership, it is offered to those SSS members who satisfy the criteria required for retirement.

The SSS Retirement benefits come in two forms: the monthly pension and the lump sum amount. Both are paid to qualified SSS members and their dependents upon reaching the retirement age. The benefit is paid through the designated bank account opened by the member, though there might be different requirements depending upon the type of SSS retirement benefit that they are receiving. 

Also Read: How to Claim SSS Retirement Benefits While Living Abroad

Types of SSS Retirement Benefits

The SSS Retirement Benefits are offered in two distinct types: the monthly pension and the lump sum amount.

Lump Sum Amount

The lump sum amount payment is the other form by which the SSS retirement benefits are paid. Under this type, a retiree receives in cash, the full amount plus interest of the total contributions that he or she has paid to SSS. It is a one-time payment of benefits made available specifically to SSS members who have not reached the minimum required number of monthly contribution payments equivalent to 120 before the semester of their actual retirement.

Monthly Pension

The monthly pension is a type of SSS retirement benefit payout where the qualified SSS retiree receives cash benefits for a lifetime or no less than 60 months. This type of SSS retirement benefit is offered to retirees who have paid at least a minimum of 120 monthly contributions to SSS prior to the semester of retirement. 

The amount of cash payout for this type of retirement benefit may change, and it could vary depending on the monthly contributions paid by the SSS member as well as the credited years of service (CYS) and the number of dependents. 

Monthly Pension + Lump Sum (Advance Payment of Monthly Pension)

Retirees who are qualified recipients of the SSS monthly pension are offered the option to receive a lump sum amount plus a monthly pension. 

Under this option, a retiree may claim in lump sum the full amount equivalent to the first 18 months of their pension minus the preferential rate of interest as determined by the SSS. This option becomes available upon filing of the first retirement claim, though only advance payments shall be discounted on the date of payment. When availed, the retiree will only start receiving their regular monthly pension on the 19th month but they will receive it every month afterwards. Note that this option for advanced 18 months pension does not include the dependent’s and 13th month pension. 

Also Read: Social Security System (SSS): What You Need to Know

SSS Retirement Benefits

SSS retiree pensioners are entitled to the following benefits courtesy of the SSS Retirement program:

For retirees who are receiving lump sum amount

    • A lump sum amount equivalent to the total contributions paid plus interest

For monthly pensioners

    • A monthly pension calculated as follows:
      • The sum of Php300.00 plus 20 percent (20%) of the average monthly salary credit (MSC) plus two percent (2%) of the average MSC for each credited years of service (CYS) in excess of 10 years; or 
      • 40 percent (40%) of the average MSC; or 
      • Php1,200.00 if with at least 10 CYS; Php2,400.00, if with at least 20 CYS
    • A 13th Month Pension payable every December
    • For retirees prior to March 4, 1995: PhilHealth membership and automatic hospitalization benefits via PhilHealth, for the SSS members and their legal dependents
    • For pensioners who retired from March 4, 1995 up to the present: Hospitalization benefits under PhilHealth if they have made at least 120 monthly Medicare contributions
    • Dependent’s pension for five (5) minor children, equivalent to 10 percent (10%) of the member’s monthly pension or Php250.00, whichever is higher 

Qualifications for the SSS Retirement Benefit

To be able to enjoy the perks of the SSS retirement benefits, interested availees must meet any of the following criteria:

  • Must be an SSS member
  • For Retirees who want to Avail Lump Sum Amount: Must have paid at least one but less than 120 monthly contributions and satisfy any of the following conditions:
    • Must be at least 60 years old (or 55 years old, if an underground mine worker) for optional retirement, 
    • Must be at least 65 years old (or 60 years old, if an underground mine worker) for technical retirement.

Note: An SSS member filing for retirement benefit and has paid less than 120 monthly contributions may continue paying the contributions as a voluntary member (VM) and complete the 120 months to be eligible for the full retirement benefits thru monthly pension if he or she so desires.

  • Have no canceled or multiple SS number/s
  • Have no outstanding loan balance under the:
    • Stock Investment Loan Program
    • Privatization Fund Loan Program
    • Educational Loan Program, or
    • Vocational Technology Loan Program
  • Have no dependent child/ren
  • For online application via my.SSS: Must have disbursement account enrolled in the Bank Enrollment Module of My.SSS such as:
    • UMID-ATM
    • UBP Quick Card
    • Any PESONet-accredited bank
  • For Monthly Pension Availees: Must have paid at least 120 monthly contributions prior to the semester of retirement and is any of the following, whichever is applicable:
    • At least 60 years of age and was separated from employment or has stopped being self-employed or stopped working as an OFW or Household Helper (for optional retirement);
    • At least 65 years of age, whether still employed, self-employed, working as OFW/Household Helper or not (for technical retirement);
    • At least 55 years old and has stopped being self-employed or was separated from employment (for optional retirement);
    • At least 60 years old, regardless of whether they are still employed or self-employed (technical retirement); or
    • A former total disability pensioner who has recovered from disability and is at least 60 years old (or at least 55 years old, if an underground mine worker);
    • A former retiree-pensioner whose monthly pension was suspended due to re-employment or self-employment, but is now already separated from employment or has stopped being self-employed;

Note: An SSS member who is 60 years old or older, but has not yet turned 65, with 120 contributions or more has the option to continue paying as a voluntary member (VM) until they reach the age of 65 to avail of the higher amount of retirement benefit.

Also Read: This SSS Pension Computation Guide Can Help You Plan Financially for Retirement

Requirements

The following document are required from members who wish to claim any of the two types of SSS retirement benefits: 

    • Any of the following Retirement Application Forms
      • SSS Retirement Claim Application (RCA) Form
      • For members applying for retirement claim under the Portability Law: Retirement Claim Application under Portability Law Form
  • For members applying for retirement claims under the Bilateral Social Security Agreement (SSA): Liaison Forms
    • Member’s Photo and Signature Form
    • Any of the following:
      • Single Savings Account Passbook/ATM
      • UMID Card enrolled as an ATM card
      • Accomplished debit or cash card application form
      • Validated deposit slip
      • Bank certificate or statement bearing the name, savings account number, bank address, and signature of the bank’s authorized representative
    • Any one (1) of the following valid government-issued ID/primary ID:
      • UMID
      • Social Security (SS) ID card
      • Alien Certificate of Registration (ACR)
      • Driver’s License
      • Firearm Registration
      • License to own and possess firearms
      • National Bureau of Investigation (NBI) Clearance
      • Passport
      • Permit to Carry Firearms Outside Of Residence
      • Postal Identity Card
      • Seafarer’s Identification and Record Book (Seaman’s Book)
      • Voter’s ID Card
    • Photocopy of two (2) secondary IDs
    • Copy of Retiree-Pensioner Certification issued by SSS
    • Copy of DDR print-out indicating the type of claim is retirement in nature and the effectivity date of pension 
  • For members who are 60 years old or older but below 65: Any of the following Proof of separation from work or cessation of business operations:
  • For employed members or household service workers: Certification of separation from last employer or Certificate of Employment (COE) with employment period
  • For self-employed members: Certificate of non-renewal of business or professional practice or cessation of business
  • For members of cooperative or registered associations: Certification of termination of membership signed by the company’s authorized representative
      • Affidavit of separation/cessation of self-employment with undertaking
  • For members who are underground or surface mine worker or racehorse jockey: Any of the following:
      • Certification of employment for those employed for five (5) years or longer
      • Affidavit with employment period from two (2) colleagues attesting to at least five (5) years of employment as an underground or surface mine worker or race jockey
  • For members applying for retirement claim under the Portability Law: Certificate of total contributions from GSIS with contribution period
  • For those with minor dependent not declared in the SSS member records: Any of the following:
      • Birth certificate of legitimate, legitimated, legally adopted, or illegitimate children issued by LCR or PSA
      • Birth certificate with English translation if issued by a foreign government (for those who were born abroad)
      • Report of Live Birth from the Philippine Embassy or Consulate (for those who were born overseas)
      • Marriage Certificate of member issued by the LCR or PSA
    • Decree of Adoption or Certificate of Finality for minor dependents who were legally adopted
    • Marriage Certificate of member issued by the LCR or PSA
  • For disabled member under the care of a guardian or custodian: The following additional documentary requirements:
      • Guardian’s photo and signature form
      • Medical Certificate from Attending Physician or SSS Medical Specialist
      • In-Trust-For (ITF) Savings Account
      • Affidavit of Guardianship of Incompetent Pensioner if the caregiver is the member’s spouse
    • Application for Representative Payee and Guarantor’s Bond Form if caregiver is another person other than the member’s spouse
  • If the member has minor dependents under the custody of a guardian: The following documents are required:
    • Claims for Dependent’s Pension (SS BPN 106 Form)
    • Photo and Signature Form of Guardian
    • Medical Certificate from Attending Physician or SSS Medical Specialist
    • In-Trust-For (ITF) Savings Account
  • If the retirement claim is filed by an authorized representative: The following documents are required:
    • Valid ID of the authorized representative
    • Letter of Authority (LOA) signed by the member or Special Power of Attorney (SPA) allowing the representative to file and sign the retirement claims form on behalf of the member.

Note: The SPA must be valid for at least six (6) months if issued in the Philippines and at least one (1) year if issued overseas.

Application Procedures

Applying for the SSS Retirement benefits is simple. One just needs to register a my. SSS account and follow these steps:

    • Check if you meet the eligibility requirements.
    • Log in to your my.SSS online account using your my.SSS username and password.
    • Once logged in, go to “Apply for Retirement Benefit” under the E-services tab on the menu.
    • Key in your separation date, last day of work, or date of retirement, if employed. For self-employed, key in your retirement date or the date of your last monthly contribution.
    • Review your SSS retirement claim information and contact details.
    • Check your employment history for any discrepancy.
    • Answer some questions for verification including information about your dependents.
    • Indicate your preferred bank account for SSS Retirement Pension disbursement.
    • For members who are eligible for monthly pension and do not have 15 months of accrued pension, indicate whether you will avail the option for 18 months advance pension.
    • Confirm your submission for retirement and keep the SSS Retirement benefit application notice.
    • Verify the status of your claim by logging in to your SSS online account, and check if the claim has been processed and the benefits have been released. 

Also Read: 13th Month Pay for SSS Pensioners

Important Reminders

For SSS Retirement Benefits availees, here are a few reminders to keep in mind:

  • An SSS member filing for retirement benefit regardless if he or she has paid 120 monthly contributions or less may continue paying the contributions as a voluntary member (VM) until the mandatory retirement age of 65 years old.
  • Recipients of SSS monthly retirement pension may opt to receive the first 18 months of their pension as a lump sum amount.
  • In cases when a retiree chooses the advance pension option, the computation and payment of the advance pension will not include the dependent’s pension and the 13th month pay.
  • The SSS retirement benefits include a 13th month pay.
  • The SSS Retirement benefits come with a dependent’s pension for up to five (5) minor children, starting from the youngest.
  • Retirement claims may be temporarily suspended when retiree is below 65 and he or she gets re-employed or restart self-employment.
  • Legitimate, legitimated, legally adopted, and illegitimate minor children may all receive the dependent’s pension when an SSS member retires, provided that they satisfy the qualifying criteria.
  • The dependent’s pension may be suspended due to several circumstances including the death of the dependent.

Video: How to Apply for the SSS Retirement Benefits Online

For a quick guide on how to apply for the SSS Retirement benefits offline, you may check out this Youtube video from MYSSSPH.

Also Read: How to Apply SSS Pension Loan Online for OFWs

Frequently Asked Questions (FAQs)

For more information, here are some common questions and answers about the SSS Retirement benefits:

1. How is the SSS monthly pension paid?

The SSS monthly pension is paid via remittance to the retiree’s designated pensioner’s bank account or ATM card. The pension is released after the retiree processes and gets an approval for their retirement benefit and the SSS sends a notice voucher to the member. This notice contains information about the date when the pensioner can withdraw their cash benefit.

2. What is the mandatory retirement age in SSS?

SSS members who reach the age of 60 may already apply for retirement benefits, but they may also choose to still work or contribute to the SSS. The actual mandatory age for retirement for SSS members is 65. Once a member reaches 65 years old, they must file their SSS retirement benefits, regardless of whether they are working or not.

3. Who may receive a Dependent’s Pension from the SSS?

The Dependent’s Pension is paid out to legitimate, legitimated, legally adopted, and illegitimate children, regardless of whether they were conceived or adopted on or before the SSS member retires due to their old age. The qualified dependents of each SSS retiree may each receive a dependent’s pension. Only five (5) minor children, beginning from the youngest to the eldest, are entitled to receive a dependent’s pension.

4. Until when is the Dependent’s Pension paid out? 

The payment of the Dependent’s Pension will start upon successful processing of the SSS retirement benefits and will continue until the dependent meets the following conditions:

  • Dies; 
  • Reaches 21 years old, unless congenitally incapacitated, or while still a minor, was permanently incapacitated and became incapable of self-support, physically or mentally; 
  • Becomes gainfully employed; 
  • Marries; 
  • Enters into a common-law relationship upon attaining at least 18 years of age; or 
  • Attains the age of 18 while having a common-law relationship.

5. What will happen to an SSS retiree’s monthly pension when he or she dies?

When an SSS retiree pensioner dies, the primary beneficiaries will be entitled to 100% of the monthly pension and the dependents will receive the dependent’s pension.

If the retiree pensioner dies within 60 months from the start of the release of their monthly pension and he or she has no primary beneficiaries, the secondary beneficiaries will be eligible for a lump sum benefit equivalent to the full amount of the total monthly pensions corresponding to the balance of the five (5) year guaranteed pension period, minus the dependent’s pension.

6. What will happen if the SSS pensioner is employed again?

When an SSS pensioner who are below 65 years of age decides to work again, whether as an employee or a self-employed individual, the monthly pension they are already receiving will be temporarily suspended. Once he or she reaches 65, however, the member will be subjected to compulsory coverage, whether employed or not, and can already claim retirement benefits again.

7. Can I withdraw my SSS contribution after 10 years?

Members cannot withdraw their SSS contributions after 10 years like that of HDMF (Pag-ibig Fund) because SSS is a retirement fund with insurance and social security benefits while HDMF is a mutual fund. SSS aims to provide retirement benefits to old-age pensioners and their eligible dependents.

8. How long is the processing period for the SSS retirement claim?

When the SSS member completes his or her retirement claim applications online, he or she will receive a confirmation email with a transaction number within a few minutes upon submission.. The retirement claim will then start to process. The average processing time to receive the approval and result ranges from around ten (10) to fifteen (15) working days.

9. What are the possible deductions in SSS Retirement benefit?

Some members may not receive the monthly pension in full because of the following SSS deductions:

  • All unpaid SSS loans
  • Overlapping SSS sickness and partial disability benefits
  • Overpaid pension due to the dependent’s death, employment, or marriage

10. Can I withdraw my SSS membership?

No. SSS only offers lifelong memberships. Even if you have missed contributions, you may still be eligible for benefits and privileges that come with the membership as long as you meet the eligibility requirements.

Summary

The SSS Retirement benefit, though helpful, is not meant to cover for the full needs of the retiree. In fact, this is only meant to supplement whatever retirement fund they already have. That said, some SSS retirees who reaches the age of 60 opt to continue working to maximize the benefits they may receive later on. Nevertheless, the SSS Retirement benefit is quite a useful privilege, especially since it also offers a dependent’s pension for up to five (5) minor children of the retirees. It is also quite easy to process a retirement claim, which can be done online via the my.SSS online platform. By simply creating an account and completing the requirements, one can easily apply for this claim and wait for ten (10) to fifteen (15) working days for approval.

In cases of inquiries or concerns, you may reach out to SSS via the following:

Social Security System (SSS) Philippines

Address: East Ave, Diliman, Quezon City, Metro Manila, Philippines
E-mail address: duplonel@sss.gov.ph, information@sss.gov
Telephone Number: (02) 7917 7777 / (02) 921-0550
Website: https://sss.gov.ph/
Facebook Page: https://www.facebook.com/SSSPh

For other inquiries and concerns:
SSS Hotline: 1455 or 81 455 for Landlines
SSS Email: General inquiries – member_relations@sss.gov.ph
E-services queries – onlineserviceassistance@sss.gov.ph
OFW concerns – ofw.relations@sss.gov.ph

Also Read: Complete List of SSS Branches Overseas