The Social Security System has announced an improvement to its pension scheme that is expected to implement starting in 2025. This program is designed to inspire employees toward savings and even bring an improved security net for retirees and their dependents. It also allows for a more uncomplicated mode of payment. In this article, you will read more about that new pension scheme, the timing for payments, and the increased benefits.
Great Features of the New SSS Scheme for Pension
- Increased Pension Benefits
- The 2025 Pension Plan would increase the present monthly payouts of pensioners and dependent beneficiaries. This increase would further mitigate inflation and the ever-increasing cost of living. The following adjustments would be made:
- Base Pension Increase: An increase of ten percent (10%) of the base pension amount would be given to both existing and new pensioners.
- Additional Cost-of-Living Adjustment (COLA): An extra cost-of-living adjustment of up to five percent will be given to pensioners whose pensions are below a certain threshold.
- Flexible Payment Schemes
- The new scheme will provide more flexible payment options for pensioners. The beneficiaries may choose from the following choices:
- Monthly Direct Deposit Payout: These pensions would then be directly deposited in the bank account of the beneficiary concerned.
- Quarterly Lump-sum Payment: The beneficiaries may choose this option of receiving their pensions quarterly for an allowance of budgeting flexibility.
- E-Wallet Linkages: Such payments can be linked to various popular e-wallets to bring speed and availability in transactions.
Enhanced Survivor and Disability Benefits Scheme
Alongside this new scheme comes a broadened scope of coverage-increased payouts for survivors and disability benefits. Survivors and dependents will also get 7% more on their amounts, ensuring continued sustenance to families.
Early Retirement Options
Eligible members can now start to retire early with reduced benefits at the age of 55, but with compliance to some terms and conditions. This provides the members with better flexibility in planning their financial future.
Payment Schedule 2025
In a smooth transition for the year, SSS has come up with a new payment schedule for the year 2025. Here is how the payments will be made according to the last digit of beneficiary SSS number:
- Last Digit 0-1: Payments on the 1st of every month
- Last Digit 2-3: Payments on the 5th of every month
- Last Digit 4-5: Payments on the 10th of every month
- Last Digit 6-7: Payments on the 15th of every month
- Last Digit 8-9: Payments on the 20th of every month
For those opting for payment by quarters, here are the dates for disbursement:
- 1st Quarter: March 15, 2025
- 2nd Quarter: June 15, 2025
- 3rd Quarter: September 15, 2025
- 4th Quarter: December 15, 2025
Increased Benefits Eligibility
- Members must work under the following conditions in order to access the increased benefits that will be available under the 2025 scheme.
- Current of Active Members Contribution: The member should have contributed to a minimum of 120 months in his or her SSS.
- Retirement Age: The member may retire by the age of 60 years, while he or she may retire on an early retirement scheme without penalty from the age of 55.
- Updated Records: The member beneficiary should update his or her personal and banking information in the SSS databases.
How to Update Your Information
To get the newest things of the scheme, all members should make sure to have their profiles updated and accurate. Here’s how:
- Log in to the SSS Member Portal. Go to www.sss.gov.
- Verify Your Details: Verify your personal, banking, and beneficiary information.
- Enclose Documents Required for Submission: Such as proof of identification or bank account information.
- SSS Offices: No online access- update your record in the closest SSS branch.
Frequently Asked Questions
Q. Is the pension increase going to automatically happen for current pensioners?
Yes, effective January 2025, all current pensioners will automatically receive the increased benefits.
Q. Would you be able to switch from monthly to quarterly distribution and vice versa?
Yes, the beneficiaries can change their preferences on how they want to receive their benefits by updating their records in the SSS Member Portal or visiting an SSS office.
Q. How will the new Additional COLA be calculated?
The added benefit will be a COLA based on the current pension amount of the beneficiary and will be automatically credited to an eligible beneficiary.