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Attorneys of the Philippines Legal News

Welcome to our legal news pages. Here is where we provide updates about what's happening in Philippines legal news, and publish helpful articles and tips for Pinoys researching legal matters.

Steps To Claiming SSS Death Benefits

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

How Do Self-Employed SSS Members Enjoy Their Retirement Benefits?

Can self-employed Social Security System (SSS) members enjoy the same retirement benefits as members employed by companies?

The good news is, the retirement benefits are not only granted to SSS members who are employed because it is also given to self-employed members. This is according to Republic Act No. 8282 or the Social Security Law of 1997 .

What does it take to be qualified for retirement benefits?

A self-employed will only be qualified for these retirement benefits if they have made a payment of at least one hundred twenty (120) monthly contributions prior to the semester of the member's retirement. The benefits will be enjoyed the moment you reach the age of sixty years and have already ceased being self-employed, or you have reached the age of sixty-five years.

You also have an option to receive your first eighteen monthly pensions in lump sum discounted at preferential rate of interest and this will be determined by the SSS. However if the self-employed member failed to pay the required contributions upon reaching sixty years of age, the lump sum that will be received will be based on the total contributions already paid.

In the event of self-employed member's death, primary beneficiaries will be entitled to receive a monthly pension if the member had already been receiving the retirement benefit. Your secondary beneficiaries will be the ones to receive the lump sum if you pass away within sixty months from the start of your monthly pension, provided you do not have primary beneficiaries.

Additional details about the benefits and contributions of self-employed members are stipulated in Republic Act. No. 8282:

"SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coverage in the SSS shall also be compulsory upon such self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe, including but not limited to the following:

"1. All self-employed professionals;

"2. Partners and single proprietors of businesses;

"3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term "employee" in Section 8 (d) of this Act;

"4. Professional athletes, coaches, trainers and jockeys; and

"5. Individual farmers and fishermen.

"Unless otherwise specified herein, all provisions of this Act applicable to covered employees shall also be applicable to the covered self-employed persons.

"SEC. 10. Effective Date of Coverage. - Compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his employment: Provided, That the compulsory coverage of the self-employed person shall take effect upon his registration with the SSS.

"SEC. 11. Effect of Separation from Employment. - When an employee under compulsory coverage is separated from employment, his employer's contribution on his account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separation, but said employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act. He may, however, continue to pay the total contributions to maintain his right to full benefit.

"SEC. 11-A. Effect of Interruption of Business or Professional Income. - If the self-employed realizes no income in any given month, he shall not be required to pay contributions for that month. He may, however, be allowed to continue paying contributions under the same rules and regulations applicable to a separated employee member: Provided, That no retroactive payment of contributions shall be allowed other than as prescribed under Section Twenty-two-A hereof.

"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the highest of the following amounts:

"(1) The sum of the following:

"(i) Three hundred pesos (P300.00; plus

"(ii) Twenty percent (20%) of the average monthly salary credit; plus

"(iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess of ten (10) years; or

"(2) Forth percent (40%) of the average monthly salary credit; or

"(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in no case be paid for an aggregate amount of less than sixty (60) months.

"(b) Notwithstanding the preceding paragraph, the minimum pension shall be One thousand two hundred pesos (P1,200.00) for members with at least ten (10) credited years of service and Two thousand four hundred pesos (P2,400.00) for those with twenty (20) credited years of service.

"SEC. 12-A. Dependents' Pension. - Where monthly pension is payable on account of death, permanent total disability or retirement, dependents' pension equivalent to ten percent (10%) of the monthly pension or Two hundred fifty pesos (P250.00), whichever is higher, shall also be paid for each dependent child conceived on or before the date of the contingency but not exceeding five (5), beginning with the youngest and without substitution: Provided, That where there are legitimate or illegitimate children, the former shall be preferred.

SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred twenty (120) monthly contributions prior to the semester of retirement and who: (1) has reached the age of sixty (60) years and is already separated from employment or has ceased to be self-employed; or (2) has reached the age of sixty-five (65) years, shall be entitled for as long as he lives to the monthly pension: Provided, That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the SSS.

"(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided, That he is separated from employment and is not continuing payment of contributions to the SSS on his own.

"(c) The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than sixty-five (65) years old. He shall again be subject to Section Eighteen and his employer to Section Nineteen of this Act.

"(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the dependents' pension.

"(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: (1) the monthly pension computed at the earliest time he could have retired had he been separated from employment or ceased to be self-employed plus all adjustments thereto; or (2) the monthly pension computed at the time when he actually retires.

Unremitted SSS Contributions: Are Employers Liable?

Is there a penalty for employers who fail to remit employees’ SSS contributions? By strengthening Republic Act 8282, there will be stiffer penalties for delinquent employers. Problems with SSS contributions have created a negative effect on SSS pensioners and P1200 per month cannot support the pensioners’ daily needs. According to Neri Colmenares, the uncollected contributions should be used in increasing the pension of most SSS members, which include OFWs. There are thousands of cases where employers do not remit SSS contributions. While it reflects on the employee’s payslip, the anomaly remains unexplained and undiscovered until the employee resigns.

Section 28 of RA 8282 states that non-remittance of worker’s SSS contributions shall be punishable by:

“a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court: Provided, That where the violation consists in failure or refusal to register employees or himself, in case of the covered self-employed or to deduct contributions from the employees’ compensation and remit the same to the SSS, the penalty shall be a fine of not less Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.

"(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its managing head, directors or partners shall be liable for the penalties provided in this Act for the offense.

"(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or negligence, shall permit any other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or property, shall suffer the penalties provided in Article Two hundred seventeen of the Revised Penal Code.

"(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employee’s compensation, fails to remit the said deduction to the SSS within thirty (30) days from the date they became due, shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Article Three hundred fifteen of the Revised Penal Code.

"(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action may be filed by the SSS in the city or municipality where the SSS office is located, if the violation was committed within its territorial jurisdiction or in Metro Manila, at the option of the SSS.”

P2000 Pension Hike Rejected: Where Do We Go From Here?

Following the President’s veto of the bill, which proposed a P2000 hike, Speaker Feliciano Belmonte Jr. seeks approval for a P1000 increase for the Social Security System (SSS) pensioners. This proposal can be carried out following the executive action. The passage of the bill will also accompany the proposal using the same powers vested in SSS and GSIS board. The bill that Belmonte was referring to, has already been approved on third and final reading, and just awaiting approval at the Senate.

The amendments of Republic Act No. 1162 or the Social Security Law is outlined in Sec. 12-B of the Presidential Decree No. 1636.

“Sec. 12-B.    Retirement benefits. —

(a) A covered employee who had paid at least one hundred twenty monthly contributions prior to the semester of retirement; and who (1) has reached the age of sixty years and is not receiving monthly compensation of at least three hundred pesos, or (2) has reached the age of sixty-five years, shall be entitled for as long as he lives to the monthly pension: Provided, That his dependents born before his retirement of a marriage subsisting when he was fifty-seven years old shall be entitled to the dependents' pension.

(b)    A covered member who is sixty years old at retirement and who does not qualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf; Provided, That he is separated from employment and is not continuing payment of contributions to the SSS on his own.

(c)    The monthly pension shall be reduced upon the re-employment of a retired employee who is less than sixty-five years old by an amount equivalent to one-half his earnings over three hundred pesos. He shall again be subject to section eighteen and his employer to section nineteen of this Act.

(d)    Upon the death of the retired employee pensioner, his primary beneficiaries shall be entitled to eighty percent of the monthly pension and his dependents to the dependent' pension: Provided, That if he has no primary beneficiaries and he dies within sixty months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the smaller of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly pension and the total monthly pensions paid by the SSS excluding the dependents' pension."

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