Getting your deceased spouse's pension

Someone texted me asking for clarification regarding the transfer of a deceased spouse's pension.

They thought the pension of the deceased member would be transferred to the spouse if only if  the spouse was also retired.

So.  This is not correct.

If a member is married, and dies - after contributing at least 36 monthly contributions, the spouse would get a pension.  If a member is married, and is already a pensioner, the spouse gets his pension in full if there is no minor children.

Asking someone to pay for your SS Contributions

A reader asked why her mother's contribution payments were not being displayed upon inquiry...

well, first of all, i hope that whoever they asked to pay her contributions was honest and trustworthy.

Given that the actual payor is honest, perhaps they should check the receipt and marked  (or in ye olde days, franked)  SBR that the SS number is correct.

If the SS number placed in the SBR is wrong, the payment would be unposted, that is - it will not be recorded as part of the member records.  If this happened, all is not lost, as the SBRs can be brought to SS as proof of payment, and SS will post the payments.  Make sure that you give SS copies only and that you keep the originals.  Never give up your originals.

This is the reason that I inform everyone that when you make payments, make sure that they are posted.  Even if you correctly wrote the number, you have to make sure SS posted it correctly.

Now, if there was no real payment - then, the question becomes - can she still pay.  If she is currently 59, then she still pay, since she is below 60.  Her pension will be given after she has paid 120 contributions, that is - after 10 years.  So her pension will start when she is 69.

If she had been 60 - then she can no longer be eligible.

I hope this clarifies matters.

SSS UPDATE

Atty. Emmanuel F. Dooc is the new  SSS President and CEO.

It remains to be seen if the new PCEO will change things around in the SSS.  He may make changes that will address issues in the existing system.  No institution is perfect, and if there is something to change or improve, I hope that he does address it.

If you were he, what would you change .......  and why?

Losing a friend

Last Saturday, I was zonked from an acupuncture treatment for insomnia when i found a text from a classmate friend  - it said
Are you going to the wake of lbert mom?

I texted back-
Who?  Albert?
Mom?

and she said -
His mom

and his brother

Queenie said Alex passed away last Friday morning, 18 November 2016.  He suffered from hypopituarism.


Now Albert was our highschool classmate but his older brother, Alex was one of my people at Anscor Insurance Brokers, Inc.  a subsidiary of A. Soriano   He was my best programmer - at the time I was at AIB.

And funnily enough, I was able to attend both of their weddings....

Condolences to all loving kin, friends, and
acquaintances -

Once again, the pension computation

Here is a question this blog has answered several times but bears repeating since sss is primarily a pension fund -

My question is, how is Pension credit calculated after completing 120 monthly contribution. Example, paying 1000+ for 7 years, then may gap na 10 years, then continued paying for the maximum MSC in the last 3 years to complete the 120 months. Q2. if you continue paying maximum for the next 5 years, how is the Pension credit calculated?

there are 2 important things in the existing pension formula -
one is the AMSC or average monthly salary credit that the member's payments are based on -
the other is the number of CYS  or credited years of service of the member -

the pension computation can be found in Section 12 of RA 8282 -      
"(a) The monthly pension shall be the highest of the following amounts:

  (1) The sum of the following:                                                                                  
       (i)     300 hundred pesos plus
       (ii)     20% of the average monthly salary credit; plus
       (iii)    2% of the average monthly salary credit for each credited year of service in excess of 10 years;    
             
                 300 +  (20% X AMSC)  +  (2% X  AMSC  X ( CYS - 10)

OR

  (2) 40% of the average monthly salary ;  OR

  (3)  1,000 provided that the monthly pension shall in no case be paid for an aggregate amount of less than 60 months


(b) notwithstanding the preceding paragraph, the minimum pension shall be 1,200 for members with at least 10 credited years of service and 2,400 for those with 20 credited years of service

AMSC is "the result obtained by dividing the sum of the last 60 MSC immediately preceding the semester of contingency by 60"  (in this case, the contingency is the retirement date) "    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."

CYS has changed its definition since RA 8282 was ratified but ....

"For a member covered prior to Jan 1985 , it is 1985 minus the calendar year of coverage PLUS the number of calendar years in which 6 or more contributions have been paid from Jan 1985 to the calender year containing the semester prior to the contingency.  For a member covered in or after Jan 1985, it is the number of calendar years in which 6 or more contributions have been paid from the year of coverage up to the calendar year containing the semester prior to the contingency."

This is not in RA 8282, in 2002,  the Commission changed the definition of CYS to mean number of months paid divided by 12.

So, the answer to the question posed by a reader, it depends.

Some SSS benefits are privileges, not rights

one lady posted to complain about their sickness claim application, saying they did a lot of things to comply with the requirements only to find out the claim was denied because of ineligibility.

it must be remembered that sss is mainly a retirement benefit, all other benefits are privileges, or just add-ons, thanks to the goodness of SSS.  people keep bad mouthing SSS, but really, there are many benefits tacked on to the original retirement plan.  imagine, the pension even passes on to the spouse. for example,  you dont see this happening, say in the US.

being granted a loan is another privilege. there are rules regarding loans.  eligibility, and payment terms. eligibility requires at least 36 months for a month, and 72 for 2 months - and the basis is the MSC (monthly salary credit).  payment terms include when a loan can be renewed. just as a refresher, one can renew a loan only after 50% of the loan has been paid, or at least 50% of the term has passed - whichever is longer.  it cannot be shortened by double paying - and the payments must already be posted by SSS - which is different from when it was actually paid.  SSS is NOT a bank, therefore, its transactions are NOT online, real-time.  SSS transactions are BATCHED.

because many of these benefits are privileges, they are available only for active members.  Active members are currently paying members.  also, as sss members - you MUST know your rights, and your privileges and do not confuse either, or both.

know the requirements, and do not blindly do things - and then be angry if you do unnecessary things.