Computing the SSS pension

in the previous post, i mentioned there will be a separate post on computing the SSS pension so this is it.

as detailed in RA 8282

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) Forty 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.
Some terms Monthly Salary Credit - MSC  The compensation base for contributions and benefits as indicated in the schedule in Section Eighteen of this Act. as mentioned, the current maximum MSC is 15,000.00 the minimum for OFWs is 5,000.00 those OFWS participating in the Flexifund should be paying for the maximum.   this is 1,560.00 for 15,000.00  Average Monthly Salary Credit - AMSC The result obtained by dividing the sum of the last sixty (60) monthly salary credits immediately preceding the semester of contingency by sixty (60), or the result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of monthly contributions paid in the same period, whichever is greater: Provided, That the injury or sickness which caused the disability shall be deemed as the permanent disability for the purpose of computing the average monthly salary credit. in short, get the total MSC for last 60 months prior to the semester of contingency and divide by 60 or sum of payments prior to semester of contingency and divide by number of payments for same period Credited Years of Service - CYS For a member covered prior to January nineteen hundred eighty five (1985) minus the calendar year of coverage plus the number of calendar years in which six (6) or more contributions have been paid from January nineteen hundred eighty five (1985) up to the calendar year containing the semester prior to the contingency. For a member covered in or after January nineteen hundred eighty five (1985), the number of calendar years in which six (6) or more contributions have been paid from the year of coverage up to the calendar year containing the semester prior to the contingency: Provided, That the Commission may provide for a different number of contributions in a calendar year for it to be considered as a credited year of service. CYS is the number of years that contribution was paid, depending on the years covered currently CYS is computed by dividing the number of months paid by 12. so, in the course of say a 30-year payment period, the CYS may be differently computed for some years. Contingency - The retirement, death, disability, injury or sickness, and maternity of the member a small example:
say your AMSC is 15K for the last 5 years prior to semester of retirement, and your CYS is 20 . your pension computation are as follows under option 1 -      300 + (20% X 15,000) + (2% X 15,000 X (20-10)) = 300 + 3,000 +  3,000 = 6,300.00 under option 2 40% X 15,000 = 6,000 pension is the higher of the 2, so it will be 6,300.00