When it comes to retirement, understanding how your Social Security System (SSS) benefits are paid is essential to ensure a smooth and worry-free process. Whether you're opting for a monthly pension or a lump sum payment, knowing the available modes of payment, possible deductions, and additional benefits can help you make an informed decision. Below, we break down everything you need to know.
💳 Mode of Payment: How Will You Receive Your Retirement Benefit?
Upon claiming your retirement benefit, the payment will be credited using one of the following methods:
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Through Your UMID Card as ATM
- If your Unified Multi-Purpose Identification (UMID) card is enrolled as an ATM, the retirement benefit will be credited directly to your account.
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Through Your Preferred Disbursement Account
- If you do not have a UMID card or it’s not enrolled as an ATM, your benefit will be credited to your preferred disbursement account.
- This account must be registered via the Disbursement Account Enrollment Module (DAEM) under the E-Services menu of the My.SSS Portal.
✅ Important Reminder:
If you don’t have a UMID card enrolled as an ATM, make sure to register your disbursement account through DAEM before filing your claim—whether online or over-the-counter.
👉 Tip: Need help enrolling your account? Check out our guide:
How to Enroll an Account in the Disbursement Account Enrollment Module
💸 Advance 18 Months Pension: Get It in Lump Sum
Did you know you can receive your first 18 monthly pensions in advance? This option allows you to get a lump sum amount, discounted at a preferential rate determined by the SSS. To avail of this, you must exercise this option when filing your initial retirement claim.
🏢 Special Cases: For Retirees in Institutions
For retirees confined in institutions such as:
- Penitentiary
- Correctional Institution
- Rehabilitation Center
👉 The monthly pension or lump sum benefit will be paid through check.
📉 Deductions from Your Retirement Benefit: What to Expect
Several deductions may be applied to your retirement benefit. Here's a breakdown:
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Unpaid Short-Term Loans
- Any outstanding short-term loans will be deducted in full from your benefit.
- The date of contingency is considered the cut-off for charging interest and penalties.
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Settled Unemployment Benefit
- If you previously claimed an unemployment benefit, it may be deducted if:
- You filed a complaint and the final resolution showed due process was followed.
- You were reinstated with back wages.
- You were rehired or re-employed within two (2) months from the date of involuntary separation.
- If you previously claimed an unemployment benefit, it may be deducted if:
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Overlapping Sickness and Disability Benefits
- Any overlapping benefits will be deducted to avoid duplication of payments.
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Overpaid Pension
- In cases of overpaid pensions due to a dependent’s death, employment, or marriage, the excess amount will be deducted from the monthly pension.
🎁 Additional Perks: Beyond Your Monthly Pension
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13th Month Pension
- All retirees are entitled to receive a 13th-month pension, payable every December.
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Additional ₱1,000 Monthly Benefit
- Effective January 1, 2017, an additional ₱1,000 is provided on top of your monthly pension.
👶 Dependent’s Pension: Extra Support for Your Children
A retired member’s dependent children may be entitled to a Dependent’s Pension, which amounts to 10% of the member’s monthly pension or ₱250, whichever is higher.
✅ Eligible Dependents:
- Legitimate, legitimated, legally adopted, and illegitimate children who are:
- Unmarried
- Not gainfully employed
- Below 21 years of age (unless incapacitated)
🚨 Dependent’s Pension Ends When:
- The child dies.
- The child reaches 21 years old unless congenitally or permanently incapacitated.
- The child becomes gainfully employed.
- The child marries or enters a common-law relationship upon reaching 18 years old.
👉 Note: If there are more than 5 eligible dependent children, preference is given to legitimate, legitimated, and legally adopted children.
🔄 Resumption of Suspended Dependent’s Pension
In case a dependent’s pension was suspended due to employment, it can resume once proof of separation or cessation of self-employment is submitted. The dependent must still meet the eligibility requirements to continue receiving the pension.
📝 Final Thoughts: Plan Ahead for a Smooth Retirement
To ensure hassle-free receipt of your retirement benefit:
- Enroll your disbursement account via DAEM if you don’t have a UMID card as ATM.
- Consider the Advance 18 Months Pension option if you need an immediate lump sum.
- Be mindful of possible deductions to avoid surprises.
By staying informed and preparing ahead, you can enjoy a comfortable and stress-free retirement. 😊