Suspension of pension payments

Dear PAO,
This is in connection with the suspension of pension payments once a person reenters employment, does this also apply if the pensioner gets a part time employment or does it only apply to full time employment?
PQ
Dear PQ,
Section 12-B(c) of Republic Act (R.A.) 8282 (SSS Law), provides that “the monthly pension shall be suspended upon the re-employment or resumption of self employment of a retired member who is less than 65 years old. He shall again be subject to Section 18 of this Act.”

An employee under the SSS law is any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services, where there is an employer-employee relationship. Employment on the other hand is defined under the same law as “any service performed by an employee for his employer, except—

(1) Employment purely casual and not for the purpose of occupation or business of the employer;

(2) Service performed or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines;

(3) Service in the employ of the Philippine government or instrumentality or agency thereof;

(4) Service performed in the employ of a foreign government or international organization or their wholly owned instrumentality;

(5) Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors.”

As we go back to the policy of R.A. 8282, it is clear that the social security system is aimed to provide meaningful protection to members against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden. There must be loss of income due to disability, sickness, maternity, old age and death. This must be the rationale behind the retirees’ pensions of SSS pensioners who are under 65 years of age who are momentarily suspended when they get employment. This is also in line with the provisions of the SSS law on the compulsory coverage of all employees not over 60 years old and their employers.

From the foregoing, there is no mention of any distinction about part time and full time employment. Hence, we cannot also distinguish. An important factor relative to the suspension of the monthly retirement pension is not the kind of employment that the retired member has but the age of the member. You may make further queries with the SSS for clarification.
We hope that we were able to address your query.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net  –Persida Acosta, Manila Times