This article explains how the Social Security System (SSS) treats members who have paid at least 120 monthly contributions, what “refunds” (lump-sum payouts) are and aren’t available, and the legal/administrative rules that typically apply. It is written for workers, voluntary members, self-employed/OFWs, and HR/payroll officers in the Philippines.

1) Why “120 months” matters

120 posted monthly contributions is the classic “minimum vesting” threshold for a monthly retirement pension under the SSS. In plain terms:

If you have at least 120 months at retirement age, you qualify for a monthly pension (recurring benefit).
If you have fewer than 120 months at retirement age, you do not qualify for a monthly pension; you’ll get a lump-sum retirement benefit (often called a “refund”) instead.

The 120-month rule is the dividing line between a lifetime pension and a one-time payout.

2) Retirement ages and when the 120-month rule is checked

Optional retirement at 60 You may file at age 60 if separated from employment or ceased self-employment. SSS checks your posted contributions at filing.
- If you already have ≥120 months, you start a monthly pension.
- If you’re <120, data-preserve-html-node="true" you may:
  - Continue paying (as a voluntary/self-employed member) after age 60 to reach 120 before age 65; or
  - File and receive a lump-sum at 60 (but see “Irrevocability” below).
Mandatory retirement at 65 At 65, SSS treats you as mandatorily retired whether or not you are still working.
- If you have ≥120, you get a monthly pension.
- If <120, data-preserve-html-node="true" SSS pays a lump-sum (no monthly pension).

Practical tip: Many members who are short of 120 at 60 keep contributing voluntarily until they hit 120, then file for a pension. Once you take the retirement lump-sum, you generally cannot later convert it into a monthly pension for the same coverage periods.

3) Can I “refund” my SSS if I already have 120+ months?

No, not in the way most people mean “refund.” If you qualify for a monthly pension (i.e., ≥120 months at retirement), SSS does not let you cash out all contributions instead of the pension. The policy goal is to provide lifetime income, not a contribution withdrawal scheme.

What you can choose:

18-month advance: If you qualify for a pension, you may opt to receive the equivalent of your first 18 months of pension in advance (discounted). Regular monthly payments resume on the 19th month. This is not a refund of contributions; it’s an advance on pension.
Administrative refunds/adjustments only: If there were excess, erroneous, or duplicate payments (e.g., misposted employer contributions), SSS may correct and refund the overpayment to the correct party. This is narrowly administrative—not a retirement “cash-out.”

4) If I’m short of 120 months, what “refund” do I get?

If you do not meet 120 months at retirement:

You receive a lump-sum retirement benefit, typically consisting of the total contributions paid (your share and employer’s share) plus credited interest, less any lawful deductions (e.g., unpaid SSS loans and penalties).
Once the lump-sum is issued for retirement, those same coverage months are closed for future conversion into a monthly pension.

Choices if you’re short at 60:

Keep paying until 120 (best if you can) and then claim pension; or
Take the lump-sum at 60 (you’ll forego the pension for those months).

5) Can I still contribute after 60 to complete 120 months?

Yes. If you’re not yet 65 and you’re short of 120, you may continue contributing as a voluntary or self-employed member (including OFWs) until you reach the threshold or until you hit age 65—whichever comes first.

Note on employment after early retirement: If you claim optional retirement at 60 and then return to covered employment before 65, pension payments are suspended during months you are employed/self-employed. At 65, your pension continues regardless of work.

6) Monthly pension: how it’s determined (high-level)

SSS computes the Monthly Pension using statutory formulas based mainly on:

Average Monthly Salary Credit (AMSC) — derived from your posted contributions;
Credited Years of Service (CYS) — essentially the total years with posted contributions; and
Minimum pension safeguards and floor amounts set by law/regulation.

Real-world effect:

Higher and more recent salary credits and longer coverage generally mean a higher pension.
Loan balances and certain obligations can offset benefits.

In addition, SSS provides:

13th month pension every December;
Dependent’s pension for up to five qualified minor dependents (subject to family hierarchy rules);
Survivorship benefits for beneficiaries after the retiree’s death.

7) Portability/Totalization to reach 120 months

If you have periods of coverage in both SSS and GSIS, the Portability Law (R.A. 7699) allows totalization of creditable service to meet eligibility (e.g., to hit “120 months”). Each system then pays a pro-rated benefit based on its share of your total service.

Key uses:

Private-to-public or public-to-private career moves;

Avoids “orphaned” contribution years that would otherwise be wasted.

8) WISP / WISP Plus and other side accounts

Apart from the main SSS retirement benefit, newer savings-type programs (e.g., Workers’ Investment and Savings Program (WISP) and WISP Plus) let members build separate savings.

These do not change the 120-month requirement for the pension.
They may have their own withdrawal/refund rules (e.g., partial withdrawals or full withdrawal at certain ages/events).
Think of them as supplementary to the main SSS pension.

9) Documentation, timing, and common pitfalls

When filing retirement:

Ages: 60 (optional) or 65 (mandatory).
Employment status at 60: Must be separated/ceased in covered employment to draw pension at 60.
Contributions: Ensure your posted months in the online record match your payslips/receipts. Correct mispostings or gaps before filing.
Loans: Expect offset from any outstanding SSS salary/Calamity loans and penalties.
Name/ID consistency: Mismatches delay processing (name changes, birthdays, dependents’ details).

Pitfalls to avoid:

Taking a lump-sum at 60 when you’re just a few months short of 120—there’s usually no going back.
Assuming you can withdraw contributions after reaching 120 months—not allowed; pension applies.
Overlooking totalization (R.A. 7699) when you have GSIS years.

10) Special situations & edge cases

Re-employment after 65: Pension continues, even if you resume covered work.
Disability prior to retirement: Separate disability benefits may apply; periods paid under disability may interact with retirement computation.
Death before filing retirement: Death benefits become relevant; eligibility and beneficiaries follow SSS hierarchy rules.
Foreign work histories: The Philippines has bilateral social security agreements with several countries that may allow totalization across systems (distinct from R.A. 7699 with GSIS). Each agreement has its own mechanics.

11) FAQs (quick answers)

Q: I have 135 months. Can I just get my money back as cash? A: No. With ≥120 months, you get a monthly pension (you may take an 18-month advance at a discount).
Q: I’m 60 with 118 months. Can I keep paying to reach 120? A: Yes—until 65. Once you reach 120, file for the monthly pension.
Q: I took my lump-sum at 60 with 100 months. I later paid 20 more months. Can I convert to a pension? A: Generally no for the months already liquidated. New contributions after the lump-sum may not retro-qualify those same months into a pension. Plan contributions before taking a lump-sum.
Q: Will my pension stop if I work again? A: If you retired at 60 and work again before 65, pension is suspended during covered months; at 65, pension continues regardless of work.
Q: Are employer overpayments refundable? A: Yes, but these are administrative corrections, not a member’s retirement “refund.”

12) Practical planning checklist

Get your posted contributions printout (or screenshot) and count months.
Project to 120: If short, decide whether to continue paying vs. take lump-sum at 60.
Verify salary credits and fix mispostings early.
Settle SSS loans (or anticipate offsets).
Assess totalization:
- GSIS service? Consider R.A. 7699.
- Work abroad? Check if your country of work has a social security agreement with the PH.
Consider WISP/WISP Plus for supplemental savings—separate from the pension.
Decide on 18-month advance only if you truly need immediate cash (remember it’s discounted).
If filing at 60, ensure you’re separated from covered employment first.

13) Bottom line

120+ months unlocks a monthly pension—not a refundable cash-out of contributions.
<120 data-preserve-html-node="true" months at retirement yields a lump-sum (“refund”), unless you continue contributing to hit 120 before 65.
Plan carefully around age 60–65, consider totalization options, and fix contribution records before you file.

Disclaimer

This article summarizes prevailing SSS rules and practices in general terms. Individual situations can differ (e.g., record discrepancies, special laws, bilateral agreements). For decisions with financial impact, review your official SSS records and consult SSS or a qualified practitioner.