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AN ACT INSTITUTING LIMITED PORTABILITYSCHEME IN THE SOCIAL SECURITY INSURANCE
SYSTEMS BY TOTALIZING THE WORKERS'CREDITABLE SERVICES OR CONTRIBUTIONS IN
EACH OF THE SYSTEMS.
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It is hereby declared the policy of the State to
promote the welfare of our workers by
recognizing their efforts in productive
endeavors and to further improve theirconditions by providing benefits for their long
years of contribution to the national economy.
Towards this end, the State shall institute a
scheme for totalization and portability ofsocial security benefits with the view of
establishing within a reasonable period a
unitary social security system.
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These rules and regulations shall apply to:
All worker-members of the Government
Service Insurance System (GSIS) and/or
All worker-members of the Social SecuritySystem (SSS)
who transfer from one sector to another, andwho wish to retain their membership in bothSystems.
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As used in this Act, unless the context indicates
otherwise, the following terms shall mean:
(a) "Contributions" shall refer to the contributionspaid by the employee or worker to either the
Government Service Insurance System (GSIS) or the
Social Security System (SSS) on account of the
worker's membership;
(b) "Portability" shall refer to the transfer of funds
for the account and benefit of a worker who
transfers from one system to the other;
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(c) "Sector" shall refer to employment either in
the public or private sector;
(d) "System" shall refer to either the SSS as
created under Republic Act No. 1161, as
amended or the GSIS as created under
Presidential Decree No. 1146, as amended; and
(e) "Totalization" shall refer to the process of
adding up the periods of creditable services or
contributions under each of the Systems, forpurposes of eligibility and computation of
benefits.
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Eligibility - means the worker has satisfied the
requirements for entitlement to the benefits
provided for under the Act.
Overlapping of periods - shall refer to the
periods during which a worker simultaneously
contributes to both Systems.
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For the public sector, the following shall be
considered creditable services :
1. All previous services rendered by anofficial/employee pursuant to an appointment
whether permanent, provisional or temporary;
2. All previous services rendered by anofficial/employee pursuant to a duly approved
appointment to a position in the Civil Service
with compensation or salary.
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3. The period during which an
official/employee was on authorized sick leave
of absence without pay not exceeding one
year;
4. The period during which an
official/employee was out of the service as aresult of illegal termination of his service as
finally decided by the proper authorities; and
5. All previous services with compensation orsalary rendered by elective officials.
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For the private sector, the periods of
contribution shall refer to the periods during
which a person renders services for an
employer with compensation or salary, andduring which contributions were paid to SSS.
For the purpose of this Section, a self-
employed person shall be considered anemployee and employer at the same time.
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1. Old-age benefit,
2. Disability benefit,
3. Survivorship benefit,
4. Sickness benefit,5. Medicare benefit, provided that the
member shall claim benefit from the System
where he was last a member, and
6. Such other benefits common to both
Systems that may be availed of through
totalization.
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Provisions of any general or special law or rulesand regulations to the contrary notwithstanding, acovered worker who transfers employment fromone sector to another or is employed in both
sectors shall have his creditable services orcontributions in both Systems credited to hisservice or contribution record in each of theSystems and shall be totalized for purposes of old-age, disability, survivorship and other benefits in
case the covered member does not qualify for suchbenefits in either or both Systems withouttotalization: Provided, however, That overlappingperiods of membership shall be credited only oncefor purposes of totalization.
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Totalization shall apply in the followinginstances:
a. If a worker is not qualified for any benefitsfrom both Systems; or
b. If a worker in the public sector is notqualified for any benefits from the GSIS; or
c. If a worker in the private sector is notqualified for any benefits from the SSS
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I. All creditable services or periods of
contributions made continuously or in the
aggregate of a worker under either of theSectors shall be added up and considered for
purposes of eligibility and computation of
benefits.
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II. All services rendered or contributions paid
by a member personally and those that were
paid by the employer to either System shall beconsidered in the computation of benefits
which may be claimed from either or both
Systems. However, the amount of benefits to
be paid by one System shall be in proportion tothe services rendered/periods of contributions
made to that System.
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All contributions paid by such member
personally, and those that were paid by his
employers to both Systems shall be consideredin the processing of benefits which he can
claim from either or both Systems: Provided,
however, That the amount of benefits to be
paid by one System shall be in proportion tothe number of contributions actually remitted
to that System.
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1. A worked for the government sector for 5
years and then worked for the private sector
for 5 years, or 60 months for each of thesystems (GSIS and SSS), then he migrated and
did not continue his contributions to SSS as a
voluntary member.
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SSS requires 120 months for him to qualify as a
pensioner. With the totalization, assuming A
complies with the other requirements, he
would qualify as a pensioner at SSS.
So, based on the ratio of 60/120 or 50%, SSS
will give him 50% of the pension he would have
gotten based on the AMSC (Average MonthlySalary Credit) in the SSS.
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A will not qualify for the GSIS pension since
GSIS requires at least 15 years of governmentservice.
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2. B has 10 years of government service and 7years of private sector employment.
Like A, he does not qualify for any of the pension
systems. With totalization, he will qualify for bothsystems.
The pension for SSS will be 7/10 or 70% of the
pension he would have gotten based on hisAMSC.
For GSIS, B will receive 10/15 or 2/3 (or66.667%) of the pension he would have received.
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III. For the purpose of computation of benefits,
totalization shall apply in all cases so that the
contributions made by the worker-member inboth Systems shall provide maximum benefits
which otherwise will not be available. In no
case shall the contribution be lost or forfeited.
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IV. If after totalization the worker-member still
does not qualify for any of the benefits listed
in the Implementing Rules and Regulations ofR.A. 7699, the member will then get whatever
benefits correspond to his/her contributions in
either or both Systems.
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1. Old-age benefit,
2. Disability benefit,
3. Survivorship benefit,
4. Sickness benefit,5. Medicare benefit, provided that the
member shall claim benefit from the System
where he was last a member, and
6. Such other benefits common to both
Systems that may be availed of through
totalization.
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V. If a worker qualifies for benefits in bothSystems, totalization shall not apply.
VI. The process of totalization of creditableservices or periods of contributions andcomputation of benefits provided for under theAct shall be the joint responsibility of the GSISand the SSS.
VII. Overlapping periods of creditable servicesor contributions in both Systems shall becredited only once for purposes of totalization.
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The processes involved in the prompt paymentof monthly benefits to eligible members shallbe the joint responsibility of the GSIS and theSSS.
The System or Systems responsible for thepayment of money benefits due a coveredworker shall release the same within fifteen
(15) working days from receipt of the claim,subject to the submission of the requireddocuments and availability of completeemployee/employer records in the System.
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The GSIS and SSS shall be responsible for the
recording and documentation of the creditable
services and/or periods of contributions of themembers respectively.
For the purposes of the Act, accreditation of
services or periods of contributions of themembers shall be undertaken by the GSIS for
the public sector and by the SSS for the private
sector.
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Complaints and questions relative to the
creditable service or periods of contributions
as well as computation of benefits shall bebrought before the System concerned and shall
be resolved in accordance with the policies
and procedures adopted by the said System.
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Nothing in this Act shall be construed to
diminish or reduce the benefits being enjoyed
by a covered worker arising from existing laws,issuances, and company policies or practices or
agreements between the employer and the
employees.
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Resolution No. 01-0498
G.R. No. 141707
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RA 7699, otherwise known as AN ACT INSTITUTING LIMITEDPORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCESYSTEMS BY TOTALIZING THE WORKERS' CREDITABLE SERVICESOR CONTRIBUTIONS IN EACH OF THE SYSTEMS provides:
a covered worker who transfers employment fromone sector to another or is employed in both sectorsshall have his creditable services or contributions inboth system credited to his service or contributionrecord in each of the systems and shall be totalized
for the purpose of old-age, disability, survivorshipand other benefits in case the covered member doesnot qualify for such benefits in either or bothsystems without totalization.
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This being so, Villones cannot be entitled to
separation pay considering that in 1995, upon
reaching the age of 60 yrs. old, he retired with
the SSS and was already receiving his monthly
pension while still with the SICIWA. In other
words, he has already been compensated the
old-age benefits contemplated under RA 7699.
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Petitioners contention that the principle of tacking ofcreditable service is mandated by RA 7699 is baseless.Section 3 of RA 7699 reads:
Sec. 3. Provisions of any general or special law orrules and regulations to the contrary notwithstanding, acovered worker who transfers employment from one sectorto another or is employed in both sectors shall have hiscredible services or contributions in both Systems creditedto his service or contribution record in each of the Systemsand shall be totalized for purposes of old-age, disability,survivorship and other benefits in case the covered memberdoes not qualify for such benefits in either or both Systemswithout totalization: Provided, however, That overlappingperiods of membership shall be credited only once forpurposes of totalization.
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Obviously, totalization of service credits is only
resorted to when the retiree does not qualifyfor benefits in either or both Systems. Here,
petitioner is qualified to receive benefits
granted by the GSIS.
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