SSS Retirement Benefit Explained
Any SSS member who can no longer work due to old age will receive their retirement benefit in two ways: lump-sum payments or monthly pensions.
- Lump-sum Payment – computed based on the total amount of employee and employer contributions plus the total interest earned.
- Monthly Pension – a lifetime of pension benefit paid regularly.
Qualification Criteria
For the SSS member to qualify for the retirement benefit, he or she must have paid a minimum of 120 monthly contributions before the retirement semester and must also be any of the following:
- At least 60 years and ceased to work with his/her employer (optional retirement)
- At least 65 years old while still working with his/her employer (technical retirement)
- At least 55 years old and ceased to work with the employer or stopped being self-employed, optional retirement if an “underground miner”
- At least 60 years old while still working with the employer or self-employed, technical retirement if an “underground miner”
- At least 60 years old fully recovered from disability pensioner (at least 55 years old if underground miner)
- A pensioner whose monthly pensions were previously suspended due to employment has now stopped being self-employed or ceased being employed.
SSS Pension Loan Program (PLP)
This loan program addresses the short-term financial needs of SSS pensioners for whatever reason they may need the financing, including business purposes. Upon loan application, the pensioner can get the approval within the day.
Upon approval, the borrower will receive the loan proceeds within five working days. SSS can credit the funds to the Cash Card of the pensioner or UMID Card enrolled as an ATM card at the Union Bank Philippines.
SSS will deduct the monthly amortization from the pension, starting in the second month from when the loan was approved.
Who Can Apply?
The pensioner may apply for the SSS Pension Loan Program if they meet the following criteria:
- Not more than 85 years old upon the loan maturity.
- There is no current deduction on the monthly pension, an existing loan balance with SSS, or a benefit overpayment due to SSS.
- No advance pension from the SSS Calamity Assistance Package
- A monthly status pension is “active” and is receiving his/her monthly pension for at least a month
Loan Features
Loan Amount: up to 6 times the sum of the basic monthly pension plus the ₱1,000 additional benefit, the maximum amount of ₱32,000
Interest Rate: 10% per annum (computed on a diminishing principal balance)
Loan Tenure: 3 to 12 months
Requirements
Present the original and submit a photocopy of any of the following:
- SSS ID
- Unified Multipurpose ID (UMID)
- Alien Certificate of Registration (Bureau of Immigration)
- Driver’s License
- NBI Clearance
- Passport
- PNP Permit to Carry Firearms Outside of Residence
- PNP Firearm Registration
- Postal ID
- Seaman’s Book
- Voter’s ID
- Two (2) valid ID cards with a signature and at least one with a photo
Benefits of SSS Pensioner Loans
Faster and More Convenient Loan Application
When the pensioner initiates the loan application at the nearest SSS branch or online, the loan approval process is done within the same day. Once approved, the loan proceeds shall be made available to the pensioner’s UMID-ATM Card or Cash Card within five days.
Competitive Interest Rate
The annual interest charged is only 10% per annum or only 0.083% per month, which is highly beneficial for borrowers who do not have the wiggle room for more monthly expenses paid each month.
Opportunity to Pursue Other Income Generating Activities
Because of this loan program, pensioners no longer have to be limited to a monthly pension that they receive per month. They can create another revenue stream by setting up their small businesses or adding capital to their existing businesses.
Conclusion
Pensioners looking at pursuing their entrepreneurial careers may do so through the SSS Pension Loan Program which offers valuable benefits to pensioners, especially with its low-interest rate. And because the processing is fast and easy, the pensioners do not have to worry about waiting a long time in uncertainty to get approved. Before long, pensioners can already start funding their own businesses.