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.

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.

Not all pensioners are entitled to adjustments

Some pensioners think they are entitled to an adjustment just because they are pensioners.

For your information, not all pensioners are supposed to receive adjustments.
First of all, they should have been working during the years 1985-1989 to be entitled.
If they were already receiving a pension then, then they are NOT going to receive any adjustments.

Some pensioners received their pensions through a manually verified process. These pensioners would also not be eligible for any adjustments because their pensions have already been doubly validated and calculated.

Also, some pensioners although working during those years did not work sufficient number of months in any given year to be considered a year of contributions, and therefore any additional contributions will not add to the computation.

So, temper your expectations please.

Manual Verification Update

It seems the manual verification and subsequent realignment of pensions need more time so now it cannot be any earlier than April 2016.

So please extend your patience some more.

In the meantime, make sure you continue with your acop.


UPDATE:::  This may have been moved to May.

P-NOY vetos 2000-across-the-board-SSS-pension increase

It is official.  There is no across-the-board-increase for SSS pensioners.

P-Noy opted for the SSS long-term financial viability rather than the immediate relief of SSS pensioners.

on ACOP

Forgot to do your annual ACOP?

Well, once your pension gets suspended - you have to go visit the nearest SS branch.  Why? 

The nearest SSS branch is a better choice than the bank because you would not have to contend with the bank's schedule (whenever that would be) of informing SSS.

Now, if you finally get to do your ACOP, it will take a minimum of 2 months to reinstate this.  

The reason for the apparent length of time is SSS processes pensions a month ahead of time.  Thus, March pensions are generated and deposited to the banks by February.  So, if you do your ACOP say in January, the earliest your pension will be reinstated is March, and that is - if you are lucky enough to make the cut-off for encoding transactions prior to the processing.

Nothing will make this faster, not even if you complain.  It is a matter of batch processing and cut-offs.  Not even if you call SSS every hour. 

PNB loans for SSS pensioners.

here's the Star take on this piece of news

Did you hear about the SSS Pensioner loans - from PNB?

Here is the relevant press data or should i say picture
Basically, this loan is being offered by PNB so only pensioners whose pension accounts are with PNB can avail of this loan.  So please apply to PNB directly.

Pensioners who wish to transfer their pensions accounts to PNB must first inform SSS, get the new forms, open an account, inform SSS of the new account, and leave the old account open until SSS deposits to the new account.

PENSIONERS: Your pension account must contain only your pension

Some pensioners keep tons of money in their pension account.
First of all, i would like to suggest that your pension account be an ATM account, the easier to withdraw if you, as a pensioner, become incapacitated - for whatever reason.

make sure whoever you entrust your atm card with is a person of integrity. something that is in short supply these days.

did you know that SSS can get the monies in your pension account?
well, the institution can, so be alert.

better to keep a separate account where you accumulate your funds.
Just a suggestion.

SSS Advisory to Pensioners

Just keeping you abreast of news in the Social Security System

Processing times for some transaction types

Manual verification requests can take 3-6 months, sometimes so much longer
DDR - death, disability, retirement depends on whether your case is bad - meaning many corrections - this is why we suggest that you check the correctness of your records way before your retirement so that you will not have any problems when you finally get to retire

some people dont know if their names are spelled correctly  - you have to check or if there are several SS numbers.  there should be only one - just like the highlander

so check early.  check details - your employers, your contributions, your name, addy

btw.

For Pensioners -
Please be informed that there must be 120 contributions to be eligible for a pension.
a would-be pensioner would receive the minimum pension of 1,200.oo if he has at least 120 contributions, at least 10 CYS (Calendar year of service) and if his contributions was at the lowerst level.

The case cited by VP Marissu Bugante about Ms. Agulto is correct.  The lady has 20 CYS, at least 120 contributions at the minimum level so she got 2,400.oo minimum pension.

Note the lady has at least 20 years CYS.  Those who have only 10 CYS get only 1,200.oo
i hope this answers some of the queries SSS has been getting about the minimum pension.

On the 5% increase in the SSS pension due this August 2014

Pensioners who checked their pension differential found out early last Monday that only the August increase was included in the bank deposit and called the office of SSS's VP of Public Affairs, Ms. Marissu Bugante.

She said that differential will also be deposited this August, but will not necessary be deposited as the August pension.  Pensioners are advised to wait for the June-July differential.

Your SSS pension and You

If you are 60 or more and are still employed, you obviously cannot get your SSS pension yet.
If you are 60 and not employed, you can already apply for your SSS pension provided you meet the required 120-months contribution.
If you are 60 and more, and not employed, and lack the 120 contributions, you can still continue to your contributions IF you wish to have a pension.

If you worked in the government sector (and thus had contributions for gsis), dont forget that you can combine the years of contribution for totalization

HABAGAT 2013 - LAST WEEKEND. a time for loans?

i expect government institutions to offer loans, hopefully at a favorable rate for their constituency or their members that were affected by this last calamity. 

probably SSS will reactivate their SLERP - just in case you dont remember SLERP means Salary Loan- Early Renewal Program.  the terms will depend on how lenient SSS wants to be.

i can remember when one of the SLERP terms (was it Ondoy then?)  was a member in a calamity area could renew the SSS loan for as long as net proceeds were greater or equal to 1K, that is one thousand pesos. it doesnt matter when the loan is supposed to be renewable.

update:  i think the SSS offer will be similar to the above except that it even be more lenient, even if less than 1k, you can still renew.  And of course, you get a real estate loan break... specifics i dont have but it is good, and of course there is the 3-month advanced pensions for pensioners

i still havent seen the offer of the others.  

GSIS immediately offered 20K for members in calamity areas (i dont know how they know if a member lives in a calamitous area or not) through the kiosks or waps. the loan is payable in 3 years, renewal after one year. interest rate is 6%, the service is waived.

and GSIS promises quick processing. If you had applied yesterday, you would get the proceeds tomorrow, 24 August.  Nice, huh?  i just have to admire the first response of GSIS.  i am amazed by how absurdly ready they were. methinks they had a plan already in place.  and their delivery system is fantastic.

now, if only their records were as fantastically accurate.  still ......

after all, contingency plans MUST be developed asap before there is ever a need for it

get more details from the gsis website. 

click here

Circular 2013-003. Aged 65 and over members

hmmmm.  my discussion on this topic disappeared.  i got zapped by the Internet

DISCLAIMER :  I AM NOT A LAWYER NOR AN SSS  or  GSIS PROCESSOR.  DISCUSSIONS HEREWITH ARE FOR INFO ONLY.  THIS CIRCULAR IS SUSPENDED.

The Manila Standard  posted this last Saturday, the editorial post is called Machete attack

Click here for the Manila Standard editorial on this Circular

Here is Section 9 of the SSS Law

"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers: Provided, That in the case of domestic helpers, their monthly income shall not be less than One thousand pesos (P1,000.00) a month: Provided, further, That any benefit already earned by the employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employer's contribution to his private plan is more than that required of him in this Act, he shall pay to the SSS only the contribution required of him and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer's total contribution to his benefit plan and to the SSS shall be the same as his contribution to his private benefit plan before the compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or improvements in the benefits to be available under the remaining private plan, which may be necessary to adopt by reason of the reduced contributions thereto as a result of the integration, shall be subject to agreements between the employers and employees concerned: Provided, further, That the private benefit plan which the employer shall continue for his employees shall remain under the employer's management and control unless there is an existing agreement to the contrary: Provided, finally, That nothing in this Act shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act.

"(b) Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage, may be covered by the SSS on a voluntary basis.

"(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis.

"SEC. 9-A. Compulsory coverage of the Self-employed. - Coverage in the SSS shall 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 Sec. 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.

Notice that coverage is mandatory/compulsory prior to age 60, meaning that the employee has to be covered.  60 and above, however, it seems that a person can still be covered at the option of the member....


Here is Section 11 of the SSS Law  (RA 8282)

"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 DRemployee 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.

(red underlining is mine)
The reason why members were being told to continue is because of the provisions of the SS Law
under Section 11 above and Section 12-B on retirement benefits below -
Note that the Law says that the member may continue to pay the total contributions to maintain his full right to full benefit.  This sentence does not specify any age or any condition.

"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.

(red underlining is mine)


There is no mention of a MANDATORY RETIREMENT AGE. 
The  basis for this remark?  Consider this, A member who does not have at least 120 contributions and who has reached the age of 65 and is still employed..... then what?  isnt the employer obliged to pay SSS? No? why not?  the law only says he does not have to be compulsorily covered, not that he cannot be covered.  What i do not know for sure is whether the decision to be covered is done the employee although i rather think it should be his choice....

 so if this is true for the employee, it should be true for the self employed/voluntary member, correct?


*********************
If you do a  TRUTH TABLE for (a),
it goes like like this

( with 120 contributions is TRUE)  *and*  (age =60 is TRUE)  * (no employment = TRUE) =====>
                     (then) WILL GET PENSION

T * T * T ==> T                    T * T * F ==> F
T * F * T ==> F

(with 120 contributions is TRUE ) *and*  (age =65 is TRUE) =====>
                    (then)  WILL GET PENSION regardless of employment status



stands to reason that if  there are not enough contributions, and the person is STILL working, then he will continue to pay

******** to be continued ************

i suspect Circular 2013-003 will be suspended/withdrawn soon

More discussions on Circular 2013-003 and the AlkanSSSya program

if you readers are familiar with the Social Security System, Horace T. Templo is the former Chief Actuary and EVP of Operations.

Click here for Horace Templo's discussion of 2 SSS initiatives - Age 65 and over Circular 2013-003 and the AlkanSSSya program

There has been a lot of discussions about this Circular.

i suggest reading the following sections in the SSS Law (RA 8282)

Section 9 on Coverage.
Section 12-B on Retirement Benefits.
Section 13 on Death Benefits.

Let me know your conclusions.

Click here to read the SSS Law (RA8282) and the Sections

It is likely that this circular will be suspended/withdrawn.

HTT's Friday post: Pension comparisons

... he makes public point with points i have been trying to say forever.
there should be the same level of pensions, but even the tinny increase SSS was asking was shot down by Congress and the Senate so ..... will this come to pass?  dont know ,,,,,,,,,

Click here to view HTT's discussion on the private and public sector

Part 2. All member aged 65 and over who lack 120 contribs

This is part 2.








Click here to read SSS Circular-2013-003.pdf

please read as it will affect all would-be pensioners as above.
comment if you have questions