3RD MEETING

The SSS is a pay-as-you-go system -->

thats the system of the Social Security.
Thats the main.
The opposite of that is pay-first-beforeyou-go. When you reach your retirement
age, you are paid. But it is the system that
absorbs the payment. The present
members pay for the ones who retire now.
Tomorrows members will in turn be paid
by those who will be contributing to the
system. So the system right from the start,
bcoz there are those who began retiring
right from the beginning of the system, is
already paid by those contributing at
that time. So, what does that mean? It
means that the system begins with a
DEBT. And just to stay in place, it must
run. Sugod ug uutang ba. Kay sige naman
ug bayad bisag wa pa makapundo para
ibayad. PAY--AS-YOU-GO man. When
you have to go, you are paid. Nagsugod na
ang system with an utang.
Situation: Contribute for retirement
benefit. After retirement, get a lumpsum
retirement benefit (e.g. 7M php).
Question: Is that a pay-as-you-go system?
NO! You pay first b4 you retire. You
finance your own retirement. That is not
a pay-as--you-go system. SSS is not like
that. There are already those who retired
even if they did not contribute because its
granted. It is aid precisely for low income
wage earners. Thats why it is called a
SAFETY NET.
All wage earners are walking on a tight
wire. Why? Trabaho ka, kayod ka, naa kay
sweldo, buhi ka. Wa ka nay sweldo, di ka
na mabuhi, mahulog ka na, kinsa may
musalo nimo? SSS. Mabuti na lng, may
SSS (dba noh, commercial). Thats it.
Thats why, it is also called a SAFETY
NET. It is assumed that you pay for your

own ____. Kinahanglan man ka mukaon.

Kinsa man ang mangita anang imong
pagkaon? Ikaw. Naa man kay pamilya na
buhion, kinsa may maningkamot niana?
Ikaw. Daw beh kung ikaw di na
makahimo niana, hulog ka. The SAFETY
NET is SSS. Katong mga nahulog, saluon sa safety net. So its a safety net.
Now, what Im saying is that, that is not
enough. If you rely on the SSS, you might
be putting more reliance on something
that cannot respond in full to your needs
with the contingencies. So you must really
try to provide for your own retirement -->
an alternative. Something else that you
set aside. Because we presume, SSS will
not be enough.
Story: Husband and wife worked in the
USA went back here in the Phils. to retire.
They feel that their retirement benefit in
the USA is not enough thats why they
went back here. --> thats good because
their retirement has a comparative benefit
here. Kita muadto ug SSS asa man ta muretire? Asa man ta mudagan?
SPECIFIC BENEFITS PROVIDED BY
THE SSS:
1.) Retirement benefit- cash benefit,
either in MONTHLY PENSION or
LUMPSUM paid by a ember who can no
longer work due to old age.
Who qualifies for retirement benefit?
Member who is 60yrs old,
separated from employment or
ceased to be self-employed and
has paid at least 120 monthly
contributions prior to the
semester of retirement.
120 monthly contributions = 10 yrs.
10 yrs ka ga-contribute, broken or

continuous.
120 months, you qualify for retirement
benefits.
Member who is 65 yrs old
whether employed or not and has
paid at least 120 monthly
contributions prior to the
semester of the retirement.
-Bcoz the maximum retirement
age under the Labor Code is 65
for ordinary workers.
-If the company does not have a
peg retirement age, then at 60,
you can already retire under the
SSS. Bcoz retirement benefits
under the LC is 1/2 month for
every year of service -- that is the
retirement benefit. And for
somebody who has worked for at
least 5 yrs and must reach the
retirement age of the company
policy, which in no case shall be
more than 65 yrs of age. So thats
the
maximum
age.
Your
retirement benefits under the LC
vests in 5 yrs. You are entitled to
the retirement benefit of 1/2
month for every year of service,
plus 1/12 of 13th month for every
year of service, plus 5 days
service incentive leave (SIL)
which equals 22.5 days wages per
year of service. Mao na imong
madawat sa imong employer over
and above SSS. SSS is separate.
Now, there are special workers
which have a lower retirement
age. Who are those workers?
UNDERGROUND
MINE
WORKERS who have reach
the age of 55, underground

mine worker for at least 5 yrs,

either
continuous
or
accumulated prior to the
semester of retirement, but
whose actual date of retirement
is not earlier than March 30,
1998, or separated from
employment or in case of selfemployed, has ceased to be selfemployed and has paid at least
120 monthly contributions
prior to the semester of
retirement.
Is it possible to be an
underground mine worker and
you are self--employed?
WHY NOT?! If yoou are in
Diwalwal and you own a tunnel
and ikaw ra say nagsu-ong suong didto? Unya 5 ka ka-tuig
nagsu-ong
su-ong
didto.
Underground
worker,
selfemployed ka.
Kinsa may mu--certify ana na naa
ka sa underground? Muadto ka sa
brgy. Captain, detachment
commander
or has reached 60 yrs old,
whether employed or not and
has paid at least 120 monthly
contributions prior to the
semester of retirement
TYPES OF
BENEFITS:

RETIREMENT

1.) Monthly pension- is a

lifetime cash benefit paid to a
retiree who has paid at least 120
monthly contributions to the SSS
prior to the semester of
retirement.
2.2.) Lumpsum amount- is

granted to a retiree who has not

paid the required 120 monthly
contributions. It is equal to the
total contributions paid by the
member and by the employer,
including interest.
So, sa ato pa kung naka-contribute ka ug 9
yrs and a half, pila man? 114 monthly
contributions. Kulang man kag tunga sa
tuig. Unya ang tunga sa tuig 6 months
man na. So retire ka, abot na ka ug 60 or
65, muingon ka na sayang man akong
kuan, kulang ugg 6 months, padayon lng
usa ko ug contribute, di lng usa ko
muretire. Mahimo? Diba once you are
severed from employment, you can still
continue your membership on a
VOLUNTARY BASIS. Pwede ba ka
muingon na SSS, stop, huwat kay
magpadayon ko ug bayad for 6 months
aron maka full benefits ko. Mahimo? I
would surmise that if you are below 65,
the absolute age for retirement, pag mga
60 ka na mga voluntary continue pa ka for
6 months para kaabot jud ka sa retirement
benefits. After that, 120 nna, full benefits
na. But if you are already 65 and you still
have 6 months, the maximum retirement
age is 65, so you cannot continue
anymore.
Now, if you are less than 120 months
contribution, what happens? You are just
given a LUMPSUM. How much is that?
The sum total of your contribution plus
interest.
Now, take note, GSIS retiree ka, you are
qualified sa GSIS, your retirement
benefits is completed and you are given a
choice to get a lumpsum of 5 yrs on the
date of your retirement --- ihatag na imung
5 yrs saimo madawat. And then, if you
survive, until the end of the 5th year,
magsugod na imung monthly na

retirement benefit. Pero ihatag daan imung

5 yrs. Mamatay ka within that 5 yrs,
alkanse and GSIS, gihatag naman niya
ang 5 yrs nimo na lumpsum. Mao na
almostt everybody elects a lumpsum.
Unhan na lng nato kay tingali ba naman
ug mukirig pa ta, ma-heart attack, edi
sayang. GSIS ana.
Now, assuming you have paid 120, how
much will monthly pension of the SSS
retiree will receive? The monthly pension
will depend on the members paid
contributions, including the credited years
of service and the number of dependent
minor children but not to exceed 5. The
amount of monthly pension will be the
highest of (now this is the formula):The
sum of P300 + 20% of the average
monthly salary credit + 2% of the average
monthly salary credit for each credited
year of service in excess of 10 yrs or 40%
of the average monthly salary credit or
P1200, provided that the credited years of
service is less than 20 or P2400, if the
credited years of service is 20 or more, the
monthly pension is paid for not less than
60 months.
The retiree has the option to receive the
first 18 monthly pension in lumpsum.
Discounted at the preferential rate of
interest to be determined by the SSS.
So, lumpsum for full benefits of SSS is
only 18 monthly ___. Pagretire nimo
daan, qualified ka, kuha ka ug lumpsum
18 months, kwentahon na nimo daan,
mamatay ka within that 18 months,
alkanse ang SSS kay patay naman ka.
Mabuhi ka pa, 18 months, magsugod ka
ug kuha ug monthly pension benefits. The
highest
being
P2400/month.
The
gargantuan sum of P2400.
The option shall be exercised upon filing

of the first
25.40