Guide on SSS Lump Sum Amount for Member-Retiree
SSS LUMP SUM – Here’s a guide on how much a Social Security System member-retiree will get as a lump sum retirement.
Undeniably, the SSS Retirement Benefit is the goal of most members of the Social Security System. It provides an assurance that you will have something to turn to financially at the time when you decide to stop working. However, truth be told that not all members reach the required 120 monthly contributions at the time of separation from work for a pension grant.
Meanwhile, there is another retirement benefit offer that the retiring members may turn to — the SSS Lump Sum. It is a one-time cash payment provided to the retiring member who is at least 60 years old and has decided to stop working.
However, the question is, how much will a member-retiree get under the Lump Sum offer of the Social Security System?
According to the Social Security System, an SSS member who did not meet the 120 total monthly contributions required for a retirement pension may claim a lump sum that “is equal to the total contributions paid by the member and/or by his/her ERs, including the interest earned”.
The monthly contributions of locally-employed individuals in the private sector who are SSS members is partly paid by the employer. On the case of self-employed individuals, overseas Filipino workers (OFWs), and the voluntary individuals, the SSS has set different contributions rates which are fully shouldered by the members.
Although a member will get his/her savings under a one-time payment only, on the brighter side, it also gives the member an opportunity to invest or make use of the large amount in an area where it can grow. It can also be excellent emergency preparation as you have a huge savings at the bank.
There are documentary requirements that must be submitted to the Social Security System in filing for an SSS Lump Sum claim or the Retirement Benefit as a whole. It is best to prepare the documents early if you want to ensure a smooth processing of the benefit application processing.