In the Philippines, the Social Security System (SSS) serves as a primary pillar of social protection for private-sector employees, self-employed individuals, and voluntary members. As members approach the twilight of their professional careers, understanding the nuances of the SSS Retirement Benefit becomes paramount.

Under Republic Act No. 11199, also known as the Social Security Act of 2018, the retirement benefit is a cash benefit paid to a member who can no longer work due to old age. At age 60, this benefit is classified under optional retirement.

I. Eligibility Criteria for Optional Retirement (Age 60)

Retiring at age 60 is an option available to members who meet specific conditions. Unlike the mandatory retirement age of 65, the age 60 milestone requires the member to cease active employment or self-employment.

Age Requirement: The member must have reached the age of 60 years old.
Contribution Requirement: The member must have paid at least 120 monthly contributions prior to the semester of retirement. These do not need to be consecutive, but the total count must reach 120.
Employment Status: * For Employees: The member must be separated from employment.

For Self-Employed/Voluntary/OFW Members: The member must have ceased to be self-employed or have stopped earning an income.

Exceptions for Specific Occupations: Certain professions allow for earlier retirement (e.g., underground/surface mineworkers at age 50, and racehorse jockeys at age 55), provided specific contribution and years-of-service requirements are met.

II. Types of Retirement Benefits

Depending on the member's contribution history, the benefit is awarded in one of two forms:

Monthly Pension: Life-long cash payments provided to members who have met the 120-month contribution threshold.
Lump Sum Amount: A one-time payment granted to members who have reached the retirement age but fail to meet the 120-month contribution requirement. This amount equals the total contributions paid by the member and the employer, plus interest.

III. Calculating the Monthly Pension

The SSS uses three different formulas to determine the monthly pension, and the member is granted the highest result among the three:

The Basic Formula: ₱300 + 20% of the Average Monthly Salary Credit (AMSC) + 2% of the AMSC for each credited year of service (CYS) in excess of ten years.
The 40% Formula: 40% of the Average Monthly Salary Credit (AMSC).
The Minimum Pension: * ₱1,200 for members with at least 10 Credited Years of Service (CYS).

₱2,400 for members with at least 20 Credited Years of Service (CYS).

Note: The "semester of retirement" refers to two consecutive quarters ending in the quarter of retirement. The "Average Monthly Salary Credit" (AMSC) is generally the average of the last 60 monthly salary credits.

IV. Documentary Requirements

To claim the retirement benefit, the member must submit the following documents to the SSS (either via the My.SSS portal or at a physical branch):

Retirement Claim Application (SSS Form DDR-1): The primary application form.
SS Unified Multi-Purpose ID (UMID) Card: Or any two valid government-issued IDs with photo and signature.
Certificate of Separation from Last Employer: (For employees) To prove the cessation of employment.
Affidavit of Cessation of Business/Self-Employment: (For self-employed members).
Disbursement Account: Proof of a valid bank account (e.g., passbook, validated deposit slip) or an e-wallet registered under the SSS Disbursement Account Enrollment Module (DAEM).

V. Essential Legal Provisions and Limitations

Dependents' Allowance: For those receiving a monthly pension, a dependent’s pension equivalent to 10% of the member's monthly pension (or ₱250, whichever is higher) is granted for each qualified dependent child (maximum of five), starting from the youngest.
13th Month Pension: Retired pensioners receive an additional month of pension every December.
Effect of Re-employment: If a member who retired at age 60 (optional retirement) decides to return to employment or resume self-employment before reaching age 65, the monthly pension shall be suspended. The member must again contribute to the SSS. Pension resumes once the member reaches age 65 or ceases employment again.
Death of a Pensioner: Upon the death of a retirement pensioner, the primary beneficiaries (legal spouse and minor children) are entitled to 100% of the monthly pension plus the dependents' allowance. If there are no primary beneficiaries, the secondary beneficiaries (dependent parents) or legal heirs may receive a lump sum.