3RD MEETING

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-before-you-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, salu-on 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 mu-retire? Asa man ta mudagan?

SPECIFIC BENEFITS PROVIDED BY THE SSS:

) 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 self-employed, has ceased to be self-employed 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 su-ong didto? Unya 5 ka ka-tuig nagsu-ong su-ong didto. Underground worker, self-employed 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 RETIREMENT BENEFITS:

) 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.) 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

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