SSS hikes funeral benefits

MANILA, Philippines - The Social Security System (SSS) will pay higher funeral benefits starting August. Under SSS Circular 2015-009, the pension fund will increase funeral benefits from a fixed amount of P20,000 to a variable amount ranging from a minimum of P20,000 to a maximum of P40,000, depending on the member’s number of contributions and average monthly salary credit (AMSC). The increase would apply for all funeral benefit claims with date of contingency of Aug. 1, 2015 onwards. The new funeral benefits will be calculated using the fixed amount of P20,000 plus a percentage of a member’s total contributions and AMSC. The proposal to increase funeral benefits came about after SSS studies revealed that the costs of burial services have climbed to an average of more than P40,000 or twice the current fixed amount of benefit SSS disburses for funeral claims. SSS funeral benefit is a cash grant given to whoever defrayed the cost of funeral expenses of the deceased SSS member.  At present, the amount of benefit is pegged at P20,000 regardless of the member’s number of contributions.