What will happen if I stop paying my SSS contributions all of a sudden? Will this negatively impact my SSS benefits and loan eligibility? The answer is yes, you will lose your SSS benefits and loan eligibility in case you suddenly stop paying your SSS contributions!
As a matter of fact, there are a few other consequences related to this rash decision as well. For instance, you will also be cutting back your lump sum pension amount and severely hitting your pension qualification altogether. For further details, I suggest you keep reading down below!
In case you stop paying your SSS contributions in the Philippines, there are a few consequences that you would have to face. These consequences are listed down below:
1. Loss of Benefits
One of the most immediate consequences that you would face if you stopped paying your SSS contributions is loss of benefits. You will immediately lose your sickness and maternity benefits, disability benefits, and death and funeral benefits. Some of these benefits are unrestorable which means that even after you reactivate your membership later on, you would not get these benefits back.
2. Reduced Retirement Pension
The number of contributions you miss would effectively lower your total pension amount. This is because your pension amount is a combination of the number of your contributions and your average monthly salary credit. Hence, the lower the contributions you make, the lesser the pension amount you receive.
3. Qualification Issues
You would also face qualification challenges. In fact, you must make a total of 120 monthly contributions to SSS in order to qualify for the SSS pension. Any lower and you would be deemed unqualified to receive the lump sum pension amount when it is due.
4. Loan Eligibility
You would also have difficulty with loan eligibility from SSS. It means that you would not be able to receive the loans that SSS usually gives out to its contributors such as calamity and educational loans. This is mainly because SSS requires you to be up-to-date in your contributions.
5. Reactivation Requirements
In case you want to reactivate your membership with SSS later on, you will be required to pay all the missed payments. This would only regain a few of the benefits that you originally lost. So, it is favorable that you keep making timely payments to ensure that you don’t lose any of the benefits in the first place!
So, it is safe to say that you would face a large number of consequences if you stop paying your SSS contributions suddenly. These contributions include loss of benefits, reduced retirement pension amount, qualification issues, and loan eligibility crises. So, I would suggest that you keep paying your contributions on a timely basis.