Susie G.

Bugante, vice president for public affairs and special

events of the SSS in her column in Business Mirror dated February
21, 2017, explains a simple computation of retirement pension
according to Section 12 of the SSS Act of 1997.

SEC. 12. Monthly Pension - (A) The monthly pension shall be the
highest of the following amounts:
Notwithstanding the preceding graphics, 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.

Using three computations above, assuming the case of someone

who contributed for 25 years based on the AMSC of P16,000.
Using the first formula, we have P300 + 20 percent (16,000) + [2
percent (16,000) x (25-10)]=P300 + P3,200 + [320 x15]=P8,300.
The basic pension amount in this case is P8,300.

The second formula, which is 40 percent of the AMSC, will be 40

percent of P16,000=P6,400.

Applying the third formula would yield P2,400 as the basic pension.
Since the law provides that the highest amount shall be granted as
the pension, this means that the basic pension shall be P8,300.

For example, the cases of Juan and Pedro. Juan has a monthly
salary credit of P1,000 (the lowest salary level subject to the SSS
contribution) and contributes to SSS based on this salary for 25
years, while Pedro has a monthly salary credit of P16,000 (the
maximum salary as of to-date) and also contributes for 25 years.
Juans monthly contribution of P110 would total P33,000 after 25
years of contribution to the SSS, while Pedro, whose monthly
 contribution of P1,7650, would sum up to P528,000 after 25 years.

If they both file for retirement pension at the same time and receive
pensions for 25 years, Juan, whose pension will amount to P2,400
per month, would have received a total of P780,000, while Pedro,
whose monthly pension is P8,300, would have received P2,699,500
after 25 years.

Furthermore, if they both pass away and are survived by their legal
spouses, their pensions will cross over to their spouses as their
primary beneficiaries.

Now that you have an idea how much you will be received in case
you will retire, it is in your hands how much would you like to
contribute for your retirement.
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Read more: http://www.jbsolis.com/2017/02/how-much-will-your-sss-pension-based-on-your-

contributions.html#ixzz4h7Mt7hNc