SSS Retirement Benefit Claims and Computation Guide [2024]

Moreover, there are two ways to claim your SSS benefits: as a lifetime cash benefit paid to you or as a lump sum amount.

Choosing the lifetime cash option means you will get your retirement benefit claims every month, like a salary.

Conversely, the SSS lump sum option allows you to withdraw your pension as a one-time payment in its entirety.

Determine your salary credits each month

Find your monthly income for the previous five years by reviewing your records. A system of income brackets is used to determine how many salary credits you are entitled to each month; the higher your monthly income, the more salary credits you are entitled to.

In order to calculate your monthly salary credits, you must know what income category your monthly income falls into. The monthly income categories are shown on the official SSS chart.

Calculate your credited service years

You must total the years you have paid into the SSS in order to determine your credited years of service. Additionally, you can see this data on your SSS contribution record.  

Other factors, in addition to the monthly salary credit and the credited years of service, influence the amount of your SSS pension.

Factor in your age of retirement

For SSS members, 60 is the retirement age. Nevertheless, you could choose to retire at age 65 to obtain a higher pension.

Consider your dependents

You are eligible for additional benefits if you have dependents like a spouse or children. Your dependents may be granted a lump sum benefit equal to 60 months of your pension or a monthly pension equal to 10% of your pension. 

An SSS monthly pension is mostly based on three things:

• contributions made
• number of years that a member has been actively contributing (CYS)
• the number of dependent kids they have

SSS provides three formulas to calculate pensions. But which one should you use? Generally, the formula that applies is the one with the greatest yield.

1. Based on creditable years of service (CYS)
   • a. If the CYS is between 10 to 20 years: Php 1,200
   • b. If the CYS is 20 years or more: Php 2,400 + Php 1,000
2. If more than ten (10) years: 20% of the average monthly salary credit (AMSC) + Php 300 and Php 1,000 + 2% of the AMSC for every credited year of service over ten years
3. Average AMSC: Php 1,000 + 40% of Average AMSC

Note the following in the SSS pension computation:

• AMSC is the average monthly salary credit in the last 60 months before retirement or disability
• CYS counts the number of years you have contributed to SSS (10 years maximum)
• The SSS pension percentage is based on a multiplier table that factors your age and CYS.

Suppose a senior citizen has the following:

• Php 50,000 salary
• SSS contributions for 15 years
• AMSC of Php 25,000

Monthly Pension = 300 + (20% of average monthly salary credit) + [2% of average monthly salary credit x 30 years (40 years – 10)] + ₱1,000

= 300 + (0.20 x 25,000) + (0.02 x 25,000 x 30) + ₱1,000

= 300 + ₱5,000 + ₱15,000 + ₱1,000

SSS Pension monthly = Php 21,300

Automatic PhilHealth registration

Retired members who are not currently PhilHealth members will be automatically registered in the program and have access to its benefits.

13th-month pay

Retired members who made at least one contribution in the calendar year are eligible for a 13th-month salary equivalent to one-twelfth of their annual retirement income.

Funeral benefits

The primary beneficiaries or closest living relatives will receive a one-time cash reward equal to the members-only pension times the number of years of service.

Here are the steps in filing for an SSS retirement claim online:

• Log into My.SSS by visiting the SSS website at www.sss.gov.ph. 
• Select Member Account. 
• On the E-Services page, click Submit Retirement Claim Application. 
• Put the date of separation for the covered employee. 
• Verify the accuracy of the address, contact data, employment history, and other personal information. Next, check to see if you qualify for the retirement benefit. 
• Answer the questions on having dependent children and working as a mineworker.
• If eligible, the funds will be deposited into your UMID-ATM or bank account listed on the Bank Enrollment Module. 

Members should also ensure the following before filing an SSS retirement claim:

1. They don’t have any SS numbers that have been canceled
2. They don’t have more than one SS number
3. They don’t have any dependents
4. There are no unpaid loan balances under the following:

• Privatization Fund Loan Program
• Stock Investment Loan Program
• Vocational Technology or Educational Loan Program

(Only calamity loans or unpaid SSS salaries, including those taken out through the Salary Loan Early Renewal Program, are permitted.)

The general SSS lump sum claim requirements in the Philippines include:

1. Membership Qualifications:
   • The member must be at least 60 years old, separated from employment, and has paid at least 120 monthly contributions prior to the semester of retirement.
2. Application for Retirement Benefits:
   • The member must file an application for retirement with the SSS.
3. UMID (Unified Multi-Purpose ID) or SSS biometrics ID:
   • Members need to present a valid UMID card or SSS biometrics ID.
4. Bank Enrollment for Payout:
   • The retiree needs to enroll their bank account for the monthly pension. The SSS prefers disbursing benefits through banks.
5. Retirement Claim Application (SSS Form DDR):
   • The retiree must accomplish and submit the Retirement Claim Application form (SSS Form DDR) to the nearest SSS branch.
6. If Member is Not Present:
   • If the member cannot personally claim the benefit, an authorized representative may do so. The representative must present an Authorization Letter, a valid ID, and the ID of the retiree.
7. Proof of Termination of Employment:
   • If the member is already separated from employment, a Certificate of Separation from the last employer or a duly notarized affidavit of cessation of business or professional practice is required.
8. Proof of Pensioner’s Bank Account:
   • A copy of the passbook or ATM card showing the pensioner’s name, account number, and bank branch is required.

You may also check with the official SSS website or visit an SSS branch to get the most accurate and up-to-date information. Additionally, consulting with an SSS representative directly can provide personalized guidance based on your specific situation.