Claim for Retirement Benefit
What this is For:Claim for Retirement Benefit
Where to File:nearest SSS branch
How to File:
The consolidated Death, Disability and Retirement Claim Form (DDR-1) can be used by an SSS member to claim for retirement benefits. The member-claimant must be at least 60 years old and no longer employed, or 65 years old, whether employed or not.
You must fill up Form DDR-1 using black ink and submit one copy in person to the nearest SSS branch. See the second page of the form for the supporting documents you will need to submit with your application. The member must also submit a Certification of Separation from last employer if he is less than 65 years old (if certification portion of retirement application is not accomplished by last employer). In the absence of employer's Certification of Separation, he must accomplish an Affidavit of Separation from Employment (if last employer no longer exists). This document is not required for voluntary members.
Other Documentary Requirements:
What is the retirement benefit
It is a cash benefit paid to a member who can no longer work due to old age.
Who may qualify for a retirement benefit
1. A member who is 60 years old and unemployed and has paid at least 120 monthly contributions prior to the semester of retirement.
2. A member who is 65 years old, whether employed or not. If employed he should have paid 120 monthly contributions prior to the semester of retirement, whether employed or not.
What are the types of retirement benefits
1. the monthly pension, and
2. the lump sum amount.
The monthly pension is a lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement.
The lump sum amount is granted to a retiree who has not paid the required 120 monthly contributions.
How much monthly pension will a retiree receive
The monthly pension will be the highest of:
1. the sum of P300 plus 20 per cent of the average monthly salary credit plus two per cent of the average monthly salary credit for each credited year of service in excess of 10 years; or
2. 40 per cent of the average monthly salary credit; or
3. P1,200, provided, that the monthly pension is paid for not less than 60 months.
The lowest monthly pension is P1,200 if the member has 120 monthly contributions; P2,400 if he has at least 20 credited years of service.
A retiree has the option to receive his first 18 monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the SSS. The option should be exercised upon filing of the first retirement claim. Only advance payments shall be discounted on the date of payment. The dependents' and 13th month pensions are excluded from the 18-months lump sum pension.
Should there be an increase in the monthly pension within the 18-month period, the discounted interest rate will be applied.
The member will receive his monthly pension on the 19th month.
The advanced amount will be deducted from future pensions.
What happens when the retirement pensioner resumes employment
The monthly pension of a retirement pensioner who resumes employment and is less than 65 years old will be suspended. He and his employer will again be subject to compulsory coverage.
How much is the monthly pension of a member who retires after age 60 with 120 monthly contributions
The monthly pension of a member who retires after age 60 and has paid the required 120 monthly contributions, will be the higher of either:
1. the monthly pension computed at the earliest time he could have retired had he been separated from employment plus all adjustments;
2. the monthly pension computed at the time when he actually retires.
A member who retires more than once shall be entitled to the higher of:
1. the monthly pension computed for the first retirement claim; or
2. the recomputed monthly pension for the new claim.
How is the monthly pension paid
The monthly pension is paid through the member's designated bank.
A member who becomes a pensioner starting Sept. 1, 1993 is allowed to choose the bank nearest his residence through which he wishes to receive his pension benefits under the "Mag-Impok sa Bangko" Program.
A benefit claimant who has a single savings account that he wants the SSS to use for payment of his pension should submit his savings account number and a photocopy of the passbook's first and second pages to the SSS upon filing of application for retirement claim. He should also show the original passbook during the filing of his application for authentication.
Upon approval of the claim, the SSS will mail a notice-voucher to the claimant informing him when he can withdraw his benefit from the bank.
Can a member receive his retirement claim on the actual date of retirement
Yes. The retirement benefit will be paid to the qualified member on the actual date of technical retirement provided that he submits the necessary documents six months before the actual date of retirement.
How much is the lump sum amount
The lump sum amount is equivalent to the total contributions paid by the member and his employer, plus interest.