SSS suspends ruling on full retirement benefits for elderly

MANILA, Philippines - The Social Security System (SSS) halted  implementation of a ruling that would have allowed  its members aged 65 and above to enjoy full retirement benefits if they meet the required 120 months of contributions to the agency.

In a statement, SSS vice-president Agnes San Jose said the suspension of the new rule was intended to protect the state pension fund and ensure appropriate payment of benefits to members.

San Jose said the SSS would re-evaluate the current process and institute procedural controls to ensure the exercise of diligence and prudence in benefit payments.

“However, we are not insensitive to the issues being raised, and the Commission together with management agreed to revisit the guidelines which the System issued last April 2013,” San Jose added.

Under the new ruling, a member who is 65 years old or older who is short of the required monthly contributions should file an application for voluntary payment no later than July 1 in order to be eligible for retirement pension.

Failure to file the application would mean the member can only get a lump sump amount equivalent to the total amount remitted to SSS plus whatever interest the money had earned.

The Social Security Law states that members aged 60 and above must have at least 120 months of contributions to qualify for retirement pension.

De Quiros earlier said the new regulation would allow SSS to keep the fund viable by ensuring that retirement pensions are funded by the requisite contributions.

The new rule required members with approved  application to pay the contributions continuously every month or quarter based on their last monthly salary credit (MSC) bracket until they reach the required 120 contributions. A decrease in MSC bracket would result in the suspension of the contribution payments, while those who pay above the approved MSC would get a refund for their excess payments.