Guidelines on Voluntary Payment of Contributions for Members 65 Years Old or Over with Less Than 120 Monthly Contributions

March 27, 2013

SSS CIRCULAR NO. 003-13

 

Pursuant to Social Security Commission Resolution No. 979-s. 2012, dated 5 December 2012, approving the policy on voluntary payment of contributions for members who are 65 years old or over, with less than the required 120 monthly contributions to qualify for retirement pension, the following guidelines are hereby issued:

I. Policy

A. Members who are 65 years old or over prior to 01 April 2013 shell be allowed to continue paying contributions until they complete the required 120 monthly contributions for retirement pension subject to the following conditions:

1. Members must signify their intention to pay the lacking contributions by filing the Application for Voluntary Payment of Contributions for Members Aged 65 years old or over from 1 April 2013 to 01 July 2013.

2. Failure to file the required application form within the prescribed period shall bar the member from paying the lacking contributions to qualify for retirement pension. Thus, members shall only be entitled to lump sum retirement benefit. Those who will receive the lump sum retirement benefit shall not be entitled to other benefits except for funeral upon death. CDAcIT

3. Members shall pay contributions based on the last paid monthly salary credit (MSC) bracket up to the time they complete the 120 months requirement for retirement pension.

a. Decrease in the approved MSC shall be considered as stoppage of contribution payment. Hence, members shall be paid lump sum retirement benefit.

b. Payments in excess of the approved MSC shall be refunded to the member.

4. Members shall continuously pay without gap until the completion of the required 120 monthly contributions for retirement pension. Otherwise, lump sum retirement benefit shall be paid.

5. For members who are currently receiving partial permanent disability pension benefit, the payment of the voluntary contributions shall start on the month after the last partial permanent disability pension (i.e., after the duration of the partial permanent disability benefit).

B. Members who will turn 65 years old on or after 01 April 2013 shall be allowed to pay the lacking contributions to complete the required contributions for retirement pension subject to the following conditions:

1. Members should have been initially covered at age 55 or less.

2. Members must have contributed at least 80 monthly contributions, including deemed paid contributions, at age 65. TSHIDa

3. Members must signify their intention to pay the lacking contributions by filing the Application for Voluntary Payment of Contributions for Members Aged 65 Years Old or Over within the month following the 65th birthday of the member, e.g., 65th birthdate is 01 May 2013. Deadline for filing of application is 30 June 2013.

4. Failure to file the required application form within the prescribed period shall bar the member from paying the lacking contributions to qualify for retirement pension. Thus, members shall only be entitled to lump sum retirement benefit. Those who will receive lump sum retirement benefit shall not be entitled to other benefits except for funeral upon death.

5. Members shall continuously pay without gap until the completion of the required 120 monthly contributions for retirement pension. Otherwise, lump sum retirement benefit shall be paid.

6. Members shall pay contributions based on the last paid monthly salary credit (MSC) bracket up to the time they complete the 120 months requirement for retirement pension.

a. Decrease in the approved MSC shall be considered as stoppage of contribution payment. Hence, members shall be paid lump sum retirement benefit.

b. Payments in excess of the approved MSC shall be refunded to the member.

7.  For members who are currently receiving partial permanent disability pension benefit, the payment of the voluntary contributions shall start on the month after the last partial permanent disability pension (i.e., after the duration of the partial permanent disability benefit).

C. The option to pay voluntarily ceases upon completion of the required number of contributions. Payments in excess of 120 monthly contributions prior to the semester of contingency shall be refunded. DHITSc

D. No contributions shall be applied retroactively.

II. Form

The Application form for Voluntary Payment of Contributions for Members Aged 65 Years Old or Over may be downloaded at the SSS Website: www.sss.gov.ph.

This Circular shall take effect on 01 April 2013.

 

(SGD.) EMILIO S. DE QUIROS, JR.President and CEO