Difference Between SSS Death Claim and Pension Benefits in the Philippines

A comprehensive legal guide under the Social Security Act of 2018 (Republic Act No. 11199) and related issuances

Introduction

The Social Security System (SSS) provides a basket of statutory benefits designed to replace or supplement income when certain contingencies occur. Two of the most commonly confused benefits are (1) Death Benefits—claimed by a deceased member’s survivors, and (2) the various Pension Benefits (retirement or disability) that an SSS member personally receives while alive. Although both arise from the same law and share some procedural similarities, they differ fundamentally in triggering event, eligibility standards, documentary requirements, computation, payees, tax and estate treatment, and prescriptive periods.

I. Legal Foundations

Instrument	Key Provisions
Republic Act No. 11199 (Social Security Act of 2018)	§§13–16 (benefits), §24 (powers of the Commission)
SSS Circulars & Memoranda	Funeral Benefit increase (Circular 2024-011), Revised Implementing Rules (2021)
SSS Manual of Operations (Survivorship)	Step-by-step filing, hierarchy of beneficiaries
Civil Code & Rules of Court	Intestate succession rules (fallback for disputes), venue of estate proceedings

II. SSS Death Benefit (Death Claim)

A. Nature and Purpose

A death claim is survivor’s insurance: a one-time or continuing income replacement for qualified beneficiaries when an insured member dies, regardless of cause, as long as the contingency occurs while the member is covered or within the prescribed period after coverage ceases.

B. Types of Death Benefit

Type	When Granted	Monthly Amount / Lump-Sum Formula
Monthly Death Pension	If the deceased paid ≥ 36 monthly contributions prior to semester of death	Higher of (a) ₱1,200–₱2,400 base + 10 % of AMSC per credited year >10, or (b) 40 % of AMSC, but not less than ₱1,000; plus ₱250 fixed subsidy; plus ₱80 each qualified dependent** (max 5 and up to age 21/unlimited if incapacitated)
Lump-Sum Death Benefit	If < 36 contributions	Total contributions + 6 % annual interest, or computed 5-year guaranteed pension—whichever is higher

AMSC = Average Monthly Salary Credit (sum of the 60 higher MSCs within the last 5 years ÷ 60)

C. Beneficiary Hierarchy (Sec. 13-A, RA 11199)

Primary – Legitimate spouse until remarriage and dependent legitimate, legitimated, legally adopted, and illegitimate children < 21 yrs (or incapacitated)
Secondary – Dependent parents
Designated – Other persons expressly named in the member’s records only if no primary/secondary survivors exist
Legal heirs – By intestate rules if none of the above qualify

Important: Illegitimate parents and siblings are not statutory beneficiaries.

D. Ancillary Benefits

Funeral Grant – ₱20,000 – ₱60,000 (amount indexed to MSC bracket; raised to ₱60k in 2024)
13th-Month Pension – released every December
Loan Condonation – Any outstanding member salary loan is deducted from lump-sum; it is not inherited as personal debt.

E. Documentary Proof (core set)

Death certificate (PSA)
Report of Death (if employer-reported)
SS Form DDR-1 (Death, Disability & Retirement claim)
Beneficiary IDs & birth certificates
Marriage certificate / CENOMAR (to establish spouse entitlement)
UMID/SSS biometrics of filing claimant
Funeral Receipts (for funeral grant)

Electronic filing via My.SSS portal has been mandatory for funeral claims since 2023; biometrics still required onsite for pension set-up.

F. Prescriptive Period

No explicit statute of repose, but SSS imposes an administrative filing window of 10 years from date of death; jurisprudence treats limitation as directory rather than jurisdictional, but late filing risks evidentiary loss.

III. SSS Pension Benefits (for the Living Member)

A. Retirement Pension

Qualifying Event	Key Requirements	Pension Basis
Optional Retirement (60 – 64 yrs)	At least 120 monthly contributions; separated or self-employed ceasing to earn income	Same AMSC-based formula used in death claims
Compulsory Retirement (65 yrs)	No minimum contributions but pension depends on credited years
Portability	Totalization under RA 7699 (SSS + GSIS) allowed	Pro-rata pension

B. Disability Pensions

Permanent Total Disability (PTD) – loss of ≥ 100 % working capacity (blindness, two limbs, etc.)
Permanent Partial Disability (PPD) – loss of a body part/function; normally lump-sum unless long duration.

C. Other Living-Member Benefits

Sickness & Maternity cash allowances
Unemployment Insurance (up to two months)
Calamity & Salary Loans

D. Payee & Taxation

Pensions are paid directly to the member, treated as excluded from gross income under NIRC § 32(B)(6)(a). They do not form part of the estate for estate-tax purposes.

IV. Death Claim vs. Pension Benefits – Key Distinctions

Dimension	Death Claim	Pension Benefit (Retirement/Disability)
Triggering contingency	Member’s death (any cause)	Old-age, disability, unemployment, etc.
Payee	Beneficiaries (survivors)	The member himself/herself
Contribution threshold	36 MSCs for monthly pension; otherwise lump-sum	120 MSCs for retirement; none for compulsory 65 but low amount
Form of payment	Monthly survivor pension or lump-sum	Monthly pension; limited lump-sum (e.g., advance 18 months)
Computation base	Deceased’s AMSC and CYS*	Member’s own AMSC and CYS
Termination	Spouse: upon remarriage; Child: age 21/emancipation	Member’s life (for retirement); end of disability rating
Tax/estate treatment	Part of estate only upon receipt of lump-sum; monthly survivor pension excluded	Excluded from gross estate and income taxes
Documentary focus	Proof of death & relationship	Proof of age, separation, or disability
Jurisdiction for disputes	SSS Commission → Court of Appeals → SC	Same, but member vs. SSS disputes, not heirs

*CYS = Credited Years of Service (years with at least 6 posted contributions)

V. Common Misconceptions & Clarifications

“My father had only 20 contributions—SSS will still pay a pension.” No. It will be a lump-sum death benefit; pension requires 36 MSCs.
“If I die after starting my own retirement pension, my spouse gets the same amount.” Survivor’s pension after a pensioner’s death is 100 % of the basic pension (before any advance lump-sum) plus dependents’ pension, but no return of already-received monthly payouts.
“Death claim and funeral claim are separate.” The funeral grant is an integral ancillary of the death benefit. It may, however, be advanced to any payor of funeral expenses even if not a statutory beneficiary.

VI. Practical Filing Tips

Check posting gaps early using the My.SSS portal. Unposted contributions can slash pension amounts or convert a pension claim into mere lump-sum.
Secure an SSS-accredited funeral parlor: they can file the funeral grant online and offset against burial costs.
Spouse-claimants should update their Membership Data Change (SS Form E-4) to reflect “married” and submit a CENOMAR if the deceased had multiple registered spouses.
For overseas Filipino workers (OFWs), claims may be lodged at SSS foreign representative offices or by mail with consular authentication of documents.

VII. Appeals & Jurisdiction

Initial denial – file a Motion for Reconsideration within 60 days.
SSS Commission appeal – within 6 months from denial (§5, Rule IV, 2021 Rules).
Judicial review – petition for review under Rule 43 to the Court of Appeals, then to the Supreme Court via Rule 45 on pure questions of law.

VIII. Interaction with Other Schemes

GSIS members in dual coverage may totalize service credit under RA 7699; pro-ration applies to both death and retirement pensions.
Employees’ Compensation (EC) death and disability benefits are separate; dual entitlement is expressly allowed (Sec. 1-A, PD 626).

IX. Tax, Estate, and Financial Planning Implications

Estate Tax – Monthly survivor pensions are not part of the gross estate; lump-sum proceeds received after death are.
Creditor Protection – SSS benefits are exempt from attachment, garnishment, levy, or execution except to enforce child support (RA 11199, §24[f]).
Insurance vs. SSS – Private life-insurance proceeds are likewise estate-tax-exempt but may coexist with SSS survivor benefits.

X. Recent Updates (as of June 18 , 2025)

Year	Change	Impact
2023	Mandatory online funeral claim filing; biometric capture only on release day	Faster processing (3–5 working days)
2024	Funeral grant ceiling raised to ₱60,000	Larger non-contributory benefit
2025	Pending Senate Bill 42 seeks to index minimum pension to 20 % of latest poverty threshold	Would raise baseline for both old-age and death pensions once enacted

Conclusion

While both SSS Death Claims and Pension Benefits stem from the same social-insurance mandate, they serve different constituencies at different life stages and therefore operate under distinct rules. Understanding the divergence—in contingency, contribution requirements, beneficiary structure, computation, and tax/estate treatment—allows members and their families to plan proactively, prevent benefit forfeiture, and, where needed, assert their rights before administrative and judicial fora. Keep personal records updated, monitor contributions diligently, and consult qualified counsel or accredited SSS representatives for complex, multi-heir or disputed claims.