MAILBOX: SSS replies to retiree
Dear editor:
This refers to Mr. Rey Gamboa’s column titled “A retiree’s frustration about the SSS,†which quoted parts of Ms. Adoracion Garcia Naguit Agulo’s letter about the Social Security System (SSS) and appeared in The Philippine STAR on Nov. 26.
As required by law, SSS can only increase benefits if the actuarial soundness of the reserve fund is guaranteed. To address this, current SSS management is pursuing major reforms to correct limitations in the SSS contribution and pension design. By gradually putting these reforms in place, members will be able to remit higher contributions that will result in more meaningful benefits, and at the same time extend the SSS fund life.
With regard to Ms. Agulo’s retirement benefit, records show that her most recent contributions of P104 a month were based on the lowest monthly salary credit (MSC) of P1,000, which has affected the computation of her pension. The member’s average MSC, especially for the months near the member’s date of contingency, is a significant factor in determining the amount of benefits.
We also observed that Ms. Agulo’s monthly contributions stopped in April 1976. Her payments resumed in April 2011 and were based on the P1,000 minimum MSC. She continued paying the lowest amount of contribution until March 2013, enabling her to complete the minimum of 120 monthly contributions required by law to qualify for retirement pension. Her computed pension is P2,400 per month, which she is entitled to receive for life, as against the P4,098 total contributions she had remitted to SSS.
We wish to clarify that Ms. Agulo will receive P2,400 as monthly pension starting 2015 because she exercised her option to receive her 18-month pension in advance. The amount of P42,876 covers her pension from July 2013 – the month of her retirement as declared to SSS -- until December 2014.
Thank you for giving us the opportunity to provide our side.
Very truly yours,
(original signed)
MARISSU G. BUGANTE
Vice President
Public Affairs and Special Events Division
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