UndergroundMineworkers

SocialSecuritySystem(SSS)
RetirementBenefit
ForUndergroundMineworkers

RETIREMENTBENEFITFORUNDERGROUNDMINEWORKERS
Pursuant to RA 8558 and Opinion No. 94s.1999 of the Secretary of Justice, the Social Security
CommissionunderitsResolutionNo.1038,reducedtheretirementagefromsixty(60)tofiftyfive(55)yearsfor
undergroundmineworkers.

Whomayqualifyunderthereducedretirementagerule?

Anyundergroundmineworkerwho

1. hasbeenemployedandcertifiedasundergroundmineworkerbyhisemployerwhosebusinessmustbe
duly registered with the Bureau of Mines as a mining company. The certification must be properly
supportedbytheworker'sjobdescription;and

2. has been working as underground mineworker for at least five (5) years (either continuous or
accumulated) prior to the semester of retirement but whose actual date of retirement is not earlier
thanMarch13,1998.

Whataretheconditionstoqualifyforretirementbenefit?

An underground mineworker who has paid at least one hundred twenty (120) monthly contributions
priortothesemesterofretirementshallbeentitledtoalifetimemonthlypension,providedhe:

1. is at least fiftyfive (55) years old, separated from employment or in the case of selfemployed, has
ceasedhisselfemployment;or

2. hasreachedtheageofsixty(60).

Whatarethetypesofretirementbenefits?

1. Monthlypension.

Thisisalifetimecashbenefitpaidtoanundergroundmineworkerretireewhohaspaidat least
120monthlycontributionstotheSSSpriortothesemesterofretirement.

2. Lumpsumamount.

This is granted to an underground mineworker retiree who has not paid the required 120

monthly contributions. It is equal to the total contributions paid by him and his employer, including
interest.

Howmuchmonthlypensionwillanundergroundmineworkerreceive?

Theamountofthemonthlypensionwillbethehighestof:

1. the sum of P300 plus 20 per cent of the average monthly salary credit plus two per cent of the
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averagemonthlysalarycreditforeachcreditedyearofservice(CYS)inexcessof10years;or

2. 40percentoftheaveragemonthlysalarycredit;or

3. P1,200,providedthatthemonthlypensionispaidfornotlessthan60months.

ThelowestmonthlypensionisP1,200ifthememberhasatleast120monthlycontributionsorwithatleast
10creditedyearsofservice;P2,400ifhehasatleast20creditedyearsofservice(CYS).

A retired underground mine worker has the option to receive his first 18 monthly pensions in lump sum
discountedatapreferentialrateofinteresttobedeterminedbytheSSS.

The option should be exercised upon filing of the first retirement claim. Only advanced payments shall be
discountedonthedateofpayment.

Thedependent'spensionand13th monthpensionareexcludedfrom theadvance18 monthspension.He

willreceivehismonthlypensionstartingonthe19thmonthandeverymonththereafter.

Whathappenstothepensionoftheretiredundergroundmineworkerwhenheresumesemployment?

Themonthlypensionshallbesuspendeduponreemploymentorresumptionofselfemploymentofa
retired underground mineworker who is less than sixty (60) years old. He shall again be subjected to
compulsorycoverage.

Howwillthemonthlypensionofanundergroundmineworkerretireebecomputedifheretiresafterage55?

Themonthlypensionofanundergroundmineworkerwhoretiresafterage55andhaspaidtherequired
120monthlycontributions,shallbethehighestofanyofthefollowing:

1. themonthly pension computedat the earliest time hecouldhaveretiredhadhebeenseparated

fromemploymentorceasedtobeselfemployedplusalladjustments;or

2. themonthlypensioncomputedatthetimewhenheactuallyretires.

Apensionerwhoretiresmorethanonceshallbeentitledtothehigherofeither:

1. themonthlypensioncomputedforthefirstretirementclaim;or

2. therecomputedmonthlypensionforthenewclaim.

Howisthemonthlypensionpaid?

Themonthlypensionispaidthroughthemember'sdesignatedbank.StartingSept.1,1993,apensioner
isrequiredtochoosethebanknearesthisresidencethroughwhichhewishestoreceivehispensionbenefits
undertheMagImpoksaBangkoProgram.

If the retired underground mineworker has a single savings account that he wants the SSS to use for
paymentofhispension,heshouldsubmithissavingsaccountnumberandaphotocopyofthepassbook'sfirst
andsecondpagestotheSSSuponfilingofapplicationforretirementclaim.
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Hemustshowtheoriginalpassbookduringthefilingofhisapplicationforauthenticationpurposes.For
ATM,thenameofmembermustbeembossedontheATMcardotherwise,acopyofthedepositslipmustbe
submitted.

Uponapprovaloftheclaim,theSSSwillmailanoticevoucherinforminghimwhenhecanwithdrawhis
benefitfromthebank.

Asidefromtheretirementbenefit,whatelsecanaretiredundergroundmineworkerreceive?

Theretiredundergroundmineworkerisentitledtoa13thmonthpensionpayableeveryDecember.

Arethechildrenofaretiredundergroundmineworkerentitledtothedependents'pension?

Yes. The legitimate, legitimated, or legally adopted and illegitimate children, born before the date of
retirementofaretiredundergroundmineworkerwilleachreceiveadependent'spensionequivalentto10per
centofhismonthlypensionorP250,whicheverishigher.

Only five minor children, beginning from the youngest, are entitled to the dependents' pension. No
substitutionisallowed.Iftherearemorethanfivedependents,thelegitimate,legitimatedorlegallyadopted
childrenshallbepreferred.

Forhowlongwillthedependentchildreceivepension?

The dependents' pension stops when the child reaches 21 years old, gets married, gets employed or
dies.

However,thedependents'pensionisgrantedforlife to childrenwhoareover21yearsold,provided
thattheyareincapacitatedandincapableofselfsupportduetophysicalormentaldefectwhichiscongenitalor
acquiredduringminority.

Whatwillhappentothemonthlypensionofaretiredundergroundmineworkerincaseofdeath?

Uponthedeathoftheundergroundmineworkerpensioner,hisprimarybeneficiariesasofthedateof
hisretirementshallbeentitledto100percentofthemonthlypensionandhisdependentstothedependents'
pension.

If he dies within 60 months from the start of his pension and he has no primary beneficiaries, his
secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions
correspondingtothebalanceofthefiveyearguaranteedperiod,excludingthedependents'pension.

Whatdocumentsareneededinfilingforaretirementbenefit?

1. Certification of separation from last employer/s for members less than 60 years of age, if the
certificationportionoftheretirementclaimapplicationisnotaccomplishedbylastemployer.

2. Affidavit of Separation (SS Form E417), in the absence of employer's certification of separation (if
last employer no longer exists/ if member's residence is far from the address of the last employer within/
outsidethePhilippines).

3. Certification from the employer/s that member was an underground mineworker indicating the
period of employment with the company supported by the worker's job description (employer
mustbedulyregisteredwiththeBureauofMines).

Ifwithdependentlegitimateorlegitimatedchildren:

Marriagecontractofmember
Birthorbaptismalcertificateofdependentchild/ren

Ifwithillegitimatedependentchildren:

Proofsoffiliationforillegitimatechild/ren,anyoneofthefollowing(forcontingencyonorafterMay
24,1997)

Will
Statementbeforeacourtofrecord
Any authentic writing (letter, diary or other writing and other documents such as school
cards/recordsofdependent,educational/insuranceplans/employmentrecordsofmember(where
thenameofdependentisindicated)andPhilHealth/GSIS/PagIBIGrecords

Ifdependentisincapacitated

Medicalcertificateofincapacitateddependentissuedbytheattendingphysician

Ifmemberisincapacitated

Medicalcertificateofmemberissuedbytheattendingphysician
Application for Representative Payee and Guarantor's Bond Form (SS Form BPN109), if guardian is
otherthanspouse
Affidavitre:GuardianshipofIncompetentPensioner(SSFormCLD1.1B),ifspouseistheguardian
IntrustForAccount

Note:Othernecessarypapersmayberequiredduringtheprocessingoftheclaim.