This is just as India has EPFO, two of the main social security organizations in Philippines include GSIS (Government Service Insurance System) and SSS (Social Security System). These two institutions are established to bring social and financial security of citizens, but the doubt always exists that when a citizen contributes to these two institutions in his career, then what will he receive during retirement? Will both contributions be counted? Is there any overlap? And what effect does it have on retirement benefits?
What are GSIS and SSS?
GSIS (Government Service Insurance System) GSIS is only for government employees. If you work in any department, agency, or office of the Philippines government, your pension and insurance related services are covered by GSIS. This institution provides services like retirement pension, life insurance, death benefits, and emergency loans for employees.
SSS (Social Security System)
The SSS is for all employees and self-employed who work in the private sector. It also includes retirement pension, death benefits, sickness and maternity benefits.
Can a person be a member of both GSIS and SSS?
Yes, sometimes a person works in both the government and private sectors at different stages of his life. For example:
- The person works in a private company at the beginning of his career and later joins the government service.
- Or he starts working in the private sector again after retirement.
- In such cases, the person contributes to both SSS and GSIS. This is called Contributions Overlap.
What does overlap mean?
Contributions Overlap means that the same person has contributed to both entities during his tenure. That is, he has funds accumulated in both SSS and GSIS. Now when the person retires, the question arises – will he get pension from both places? Or from the same institution?
Can one receive retirement benefits from both?
This depends on the individual’s total contribution period. The Philippines has a law called the Portability Law (RA 7699) that was created for such cases.
What does the Portability Law say?
The Portability Law (Republic Act No. 7699) serves the interests of persons who pay to the SSS and the GSIS during their working years. According to this law:
The individual can totalize his or her contribution period to both the GSIS and the SSS.
This law ensures that the individual is not denied a pension just because he or she contributed to both institutions.
If the individual has not completed the required minimum service period (e.g. 15 years) for one institution, the service in both institutions will be totalized.
What is Totalization?
Totalization implies that in the event that you have contributed to each of these two bodies (GSIS as well as SSS), the years served by each of them will be added to obtain the total number of your contribution years. This is to help you know whether you can fulfill minimum eligibility.
- Example:
- Let’s say a person:
- Contributed to SSS for 9 years
- Contributed to GSIS for 7 years
- Then his total contribution is: 9 + 7 = 16 years
Now if the minimum requirement for pension in GSIS or SSS is 15 years, then that person can become eligible for a pension under Totalization.
Under what conditions is a pension available?
| Institution | Minimum Contribution Period | Eligibility Age |
|---|---|---|
| GSIS | 15 years | 60 or 65 years (depending on type of service) |
| SSS | 120 months (10 years) | 60 years (optional), 65 years (mandatory retirement) |
Is a pension available from both the institutions?
If the person has made sufficient contributions to both the institutions and is eligible for both, then he can get pension from both.
But if the minimum eligibility is not met in one of the institutions, then Totalization applies and the pension is available from the institution that qualifies after Totalization.
How to fill out the form and where to apply?
Step-by-step process:
At the time of retirement, you need to contact the institution you last contributed to.
You need to apply for a pension under the Portability Law by visiting the GSIS or SSS office.
- Documents required:
- Service Record
- Contribution Records
- Identification Card
- Document confirming retirement age
- The institution will automatically collect information from the other institution and determine eligibility by totalization.
- Some common questions and answers
- Do I need to contribute to both institutions simultaneously?
No. But if you have, the Portability Law is beneficial for you.
- If my service is completed in GSIS, what happens to the amount deposited in SSS?
You can apply for either a refund or a pension from SSS – depending on how many months you have contributed.
- Can the pension amount be more or less if you contributed to both?
The pension amount is determined by the institution you are eligible from, and depends on your last salary, total years of service, and contributions.
Conclusion:
If you have contributed to both GSIS and SSS in your career, you don’t have to panic. The Philippine government’s Portability Law ensures that your contributions don’t go to waste. All you need to do is understand the totalization process and apply at the right time.
FAQs
Q1. What is GSIS?
GSIS stands for Government Service Insurance System, which provides retirement and other benefits to government employees in the Philippines.
Q2. What is SSS?
SSS stands for Social Security System, which offers social security protection to private sector workers and some self-employed individuals.
Q3. Can I receive both GSIS and SSS retirement benefits?
Yes, under certain conditions, you can receive both GSIS and SSS retirement benefits if you have made qualifying contributions to both systems.
Q4. Who is eligible for both GSIS and SSS pensions?
Individuals who worked in both the public and private sectors and contributed to both systems separately may be eligible for both pensions.
Q5. Do I need to complete a minimum number of contributions for both?
Yes. GSIS generally requires at least 15 years of service, while SSS requires a minimum of 120 monthly contributions for retirement.