soc leg report

7/30/2019 Soc Leg Report

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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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