Death benefits refer to the cash benefit, which is paid as monthly pension or lump sum to the deceased member's primary beneficiaries. The primary beneficiaries can be the legitimate dependent spouse, dependent legitimate, legally adopted and illegitimate children of the SSS member who are not yet 21 years of age. In the event the primary beneficiaries cannot claim the benefit, the dependent parents will serve as the secondary beneficiaries. In the absence of secondary beneficiaries, any other individuals indicated in the member's records will be the beneficiary.
A member who had paid 36 monthly contributions before their death will be granted monthly pension. The primary beneficiaries will be entitled to the monthly pension in the event of the member's death.
The beneficiaries can also obtain a lump sum amount of the member who had paid less than 36 monthly contributions before their death. Even the secondary beneficiaries are also entitled to a lump sum benefit.
How is retirement benefit computed?
There are two types of retirement benefit:
monthly pension - 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.
lumpsum amount - 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.
Monthly Pension
Benefit Computation
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. The monthly pension will be the highest amount resulting from either one of these three pension formulae:
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
forty (40) percent of the average monthly salary credit; or
P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or more.
The monthly pension is paid for not less than 60 months.
A member who retires after age 60 with a total of 120 monthly contributions may be qualified to a monthly pension based on whichever is higher of the following:
the monthly pension computed at the earliest time the member could have retired had been separated from employment or ceased to be self-employed plus all adjustments thereto; or
the monthly pension computed at the time when the member actually retires.
A pensioner who retires more than once shall be entitled to the higher of:
- the monthly pension computed for the first retirement claim; or
- the re-computed monthly pension for the new claim
Dependents Allowance
The legitimate, legitimated or legally adopted, and illegitimate children, conceived on or before the date of retirement of a retiree will each receive dependents' allowance equivalent to 10 percent of the member's monthly pension, or P250, whichever is higher.
Only five minor children, beginning from the youngest, are entitled to the dependents' allowance. No substitution is allowed.
If there are more than five dependents, the legitimate, legitimated or legally adopted children shall be preferred.
The dependents' allowance stops when the child reaches 21 years old, gets married, gets employed, or dies. However, the dependents' allowance is granted for life for children who are over 21 years old, if they are incapacitated and incapable of self-support due to physical or mental defect that is congenital or acquired during minority.
Benefit Payment
The retiree-member has the option to receive the first 18 months' pension paid out in lumpsum, but discounted at a preferential rate of interest to be determined by the SSS. The member shall start receiving his pension on the 19th month, and every month thereafter. This option for advance payment shall be exercised only when filing the first retirement claim. It is only the advanced pension payments that are discounted on the date of payment; the dependent's allowance and 13th month pension are excluded from the advanced 18-month pension amount.
The monthly pension is paid thru the member's designated bank thru which he wishes to receive his pension benefits under the "Mag-Impok sa Bangko" program. This became mandatory effective September 1,1993.
Upon approval of the claim, the SSS will send the member a notice voucher indicating when to withdraw the benefit from the bank.
Other Benefits
The retiree is entitled to a 13th month pension payable every December.
All retiree pensioners prior to the effectivity of RA 7875 on March 4, 1995 are automatically considered members of PhilHealth and, along with their legal dependents, are entitled to PhilHealth hospitalization benefits. On the other hand, retirees effective March 4,1995 up to the present will be entitled to PhilHealth hospitalization benefits only if they have contributed 120 monthly Philhealth/Medicare contributions. The counting of 120 monthly contributions shall start in 1972, when the Medical Care Act of 1969 started implementation.
A copy of the DDR print-out indicating the type of claim is retirement in nature and the effectivity date of the pension, or in its absence, a copy of retiree-pensioner certification issued by SSS shall be required. They need to register under Philhealth for the issuance of a Philhealth ID card for non-paying members.
IMPORTANT!
Upon the death of a retiree pensioner, the primary beneficiaries shall be entitled to 100 percent of the monthly pension, and the dependents to the dependents' allowance.
If the retiree pensioner dies within sixty (60) months from the start of the monthly pension and has no primary beneficiaries, the secondary beneficiaries shall be entitled to a lumpsum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed pension period, excluding the dependents' allowance.
In case the retiree-member who is less than 65 years old resumes employment or self-employment, the monthly pension shall be suspended and the member shall again be subjected to compulsory coverage.
If the retiree-member is 65 years old and older, he can resume employment or self-employment without prejudice to his monthly pension and without need for compulsory coverage.
Application requirements
1. Death Claim Application (SSS Form DDR-1);
2. Affidavit of Death Benefit, if claimant is secondary beneficary (SSS Form CLD-1.3A)
3. Filer's Affidavit (Sinumpaang Sanaysay)
4. Other Affidavit, whichever is applicable
- Joint Affidavit of Two Disinterested Persons, if claimant is legal heir or designated beneficiary (SSS Form CLD-1.3)
- Application for Appointment as Representative Payeee, if claimant is guardian (SSS Form CLD-15)
5. Report of Death (SSS Form BPN-105), if death is work-related
6. Claimant's photo, signature form and valid IDs
7. If claimant is spouse of the deceased, marriage certificate and birth certificates of minor children (duly certified by LCR/NSO)
8. If single, the deceased member's birth certificate and marriage certificate of parents (duly certified by LCR/NSO)
9. Certified true copy of deceased member's death certificate
- certified/issued by LCR/NSO, if member died in the Philippines
- issued by vital statistics/census office or equivalent agency and certified by the Philippine Embassy/Consultat, if member died abroad
10. For pension - Single savings account passbook or ATM card with validated deposit slip or Cash Card Enrollment Form (photocopy and presentation of original for validation)
Note: Other documents may be required as they may be found necessary during the processing of the claim
B. Filing Procedure
Applications for death benefit are filed at any SSS branch or representative office. You can also watch our How-To video for a more detailed instruction.
Source:https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=deathapplication
