A Social Security System member is always curious to know how much will he receive for his monthly pension when he retires. This has been the top question SSS members often ask. Do you want to know how much will be your monthly pension?
SSS release a series of Educational Materials to educate the SSS members of the privileges and benefits they will receive come retirement time. The official SSS Facebook page dubbed the project as, “The Value of SSS Membership”.
The said info-materials caught the attention of SSS contributors, citing comparison of two members Juan and Pedro, who both started as Social Security members and retirees at the same time. But Juan and Pedro’s monthly contribution is different, same as their projected monthly pension upon retirement.
SSS CONTRIBUTION VERSUS MONTHLY PENSION
Sample computation:
Monthly Contribution Annual (12 months)
- Juan P 110 P 1,230
- Pedro P 1,760 P 21,120
MONTHLY: Every month Juan contributes P 110, while Pedro chooses the maximum monthly contribution of P 1,760.
YEARLY: In a years time, Juan’s total contribution is P 1,230, while Pedro is P 21,120.
20 YEARS TOTAL CONTRIBUTION: Based on the P 110 per month, Juan’s total contribution is P 26,400 for 20 years, while Pedro’s total contribution is P 422,400 (P 1,760/month).
Now comes retirement period, it’s time for Juan and Pedro to enjoy their Pension. An illustrated graph here from SSS shows how much pension both members can avail.
MONTHLY: Juan will receive a monthly pension of P 2,400, while Pedro receives P 6,700 monthly.
YEARLY: The total amount Juan will get for annual pension inclusive of 13th-month pay is P 31,200, while Pedro gets a total of P 87,100.
20 YEARS TOTAL PENSION: For 20 years, Juan’s total Pension is P 624,400, while Pedro receives from SSS total pension of P 1,742,400.
The issue caught the attention of some members, claiming that the computation is unfair to those who are contributing the maximum amount monthly to SSS versus members with P 110 minimum monthly contribution only. The rate of SSS pension is not proportional to the member contribution.
Members under the maximum salary credit (MSC) now are asking if they can choose to pay for the lowest bracket. Others also wish SSS membership will be optional. Currently, Philippine Law requires everyone who is earning income either employed or as self-employed to become active members of the Social Security System.
How Much Is My Monthly Pension?
SSS Facebook page Officer-in-charge replied with the information on how to computes the monthly pension of each member. The following taken into consideration:
* Number and amount of contributions paid by the member
* Number of credited years of service (CYS)
* Date of contingency; and
*Number of minor children qualified for the dependent’s pension.
Members monthly pension depend upon the total paid contributions, including the credited years of service (CYS), and the number of dependent children but not to exceed five. The monthly pension will be highest of:
1. The sum of P 300 plus 20 percent of the average monthly salary credit plus 2 percent of the average monthly credit for each accredited year of service (CYS) in excess of 10 years; or
2. 40 percent of the average monthly salary credit; or
- P 1,200 provided that the credited years of service (CYS) is at least 10 years or more, but less than 20 or P 2,400, if the CYS is 20 years or more.
The officer further stated that the SSS applies methods that are beneficial to its members while implementing the existing rules and regulations.
For more questions and information on SSS Pension and Contribution, you may visit the nearest branch of this government agency, or you can also contact SSS Call Center Hotline at (02) 9206446 to 9206455 from Monday to Friday.
You can also send an email message to SSS Member Relations Department at member relations@sss.gov.ph. Don’t forget to indicate full details of your request or concerns. State your complete name and 10 digit SSS number and attached valid ID to email.
Who Can Avail the SSS Pension Hike Increase?
Upon the approval of the increase for pension, the following members are the recipient of the March 2017 pension hike:
- Retired Pensioners
- Survivor Pensioners
- Disability Pensioners
- Total Permanent Disability Pensioners
- Permanent Disability Pensioners
Hoping the information we shared here could be the answers to your questions, prove helpful and beneficial to you, your family and friends.