Sunday, January 18, 2015

How to Compute Your SSS Pension




note the following:


ER column - is your employer’s contribution


EE column - is your monthly contribution.


AMSC – you can see that in the second column of the SSS table. It is the average monthly salary credit. This will be applied in calculating your monthly pension.


Based on SSS computation, there are three formulas which we can use in calculating your monthly pension. The pension will be based on the highest computation from the 3 formulas.


Formula # 1


300 pesos


+ 20% of AMSC

+ 2% of AMSC x CYS in excess of 10


Let us suppose you are receiving an average of P 16,000 monthly salary with 12 years of service.


From the range of compensation, you are in the ( see table 15,750 – over), your employer’s contribution will be P 1,208.70 and your contribution is P 581.30, for a grand total of P 1,790.00.


Monthly Pension (MP) = P300 + (20% of AMSC first 10years) + (2% of AMSC 2 years)


MP = P300 + (20%*16,000) + (2% *16, 000* 2)


MP = 300 + 3,200 + 640


Monthly Pension = P 4,140


Formula # 2


P1,200, provided that the credited years of service (CYS) is at least 10 or more but less than 20


or P2,000, if the CYS is 20 or more. The monthly pension is paid for not less than 60 months.


Since you are a contributor for 12 years.


Monthly Pension = P 1,200.00


Formula # 3


40 per cent of the average monthly salary credit;


MP = 40% of AMSC


MP = 40% of 16,000


MP = 6,400


Monthly Pension = P 6,400.00


Based on above computations, the 3rd formula yields the highest monthly pension (P 6,400). Your monthly pension will be based on this amount.


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