REPUBLIC ACT NO.

7699
The Limited Portability of
Law
AN ACT INSTITUTING LIMITED PORTABILITY SCHEME IN THE
SOCIAL SECURITY INSURANCE SYSTEMS BY TOTALIZING THE
WORKERS' CREDITABLE SERVICES OR CONTRIBUTIONS IN EACH
OF THE SYSTEMS.

POLICY OF THE STATE (Section 1)

Promotion of the welfare of the workers by recognizing their efforts in
productive endeavors;
Improve of their conditions by providing benefits for their long years of
contribution to the national economy;
Totalization and portability of social security benefits with the view of
establishing within a reasonable period a unitary social security
system.

It is includes contributions paid by the employee or worker on account

of the workers membership to the system, either the
GSIS or SSS.

DEFINITION OF TERMS
TOTALIZATION
The process of adding up the
periods of creditable services
or contributions under each
of the Systems, for purposes
of eligibility and computation
of benefits.

PORTABILITY
The transfer of funds for the
account and benefit of a
worker who transfers from
one system to the other

OVERLAPPING PERIOD
Period during which a worker simultaneously contributes
to BOTH Systems.

Who are the covered workers?

1. Those who Transfer employment from public to private
sector or vice versa, or

2. Employed in both private or public sectors

Method: The Creditable Services or

Contributions in both systems shall be:
1. Credited to their service or contribution record in each of the
systems; and
2. Totalized for purposes of old-age, disability, survivorship and
other benefits in case the covered member does not qualify
for benefits in either or both systems without totalization.

.Note: In cases of overlapping periods of membership, it shall

be credited only once for purposes of totalization. (Section 3)

What are the Creditable Services?

For the public sector,
1. All previous services rendered by an official/employee
pursuant to an appointment whether permanent,
provisional or temporary;
2. All previous services rendered by an official/employee
pursuant to a duly approved appointment to a position in
the Civil Service with compensation or salary.
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 a result of illegal termination of his service as
finally decided by the proper authorities; and;
5. All previous services with compensation or salary rendered
by elective officials.

TOTALIZATION: When does it

apply?
If a worker is not qualified for any benefits from both
Systems; or
If a worker in the public sector is not qualified for any
benefits from the GSIS; or
If a worker in the private sector is not qualified for any
benefits from the SSS.

PROPOTIONALITY OF BENEFITS
Benefits to be paid by one System shall be in proportion to
the number of contributions ACTUALLY REMITTED to that
System.

Note: All contributions paid by such member personally, and

those that were paid by his employers to both Systems shall
be considered in the processing of benefits which he can claim
from either or both Systems.

How to resolve Workers with

OVERLAPPING PERIODS?
Overlapping periods of creditable services or contributions in
both Systems shall be credited only once for purposes of
totalization.
Formula: Creditable Services (CS)/Period of Contributions
(PC) in case there is/are overlapping period/s (OP):
therefore,
CS/PC = Total years of service under GSIS + Total years
of service under SSS OP

QUESTION
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
the systems (GSIS and SSS), then A
migrated and did not continue his
contributions to SSS as a voluntary
member. Now A comes back to the
Philippines, and A is asking for you advise,
What will you tell him?

ANSWER
Advise A and comply with the
requirements of SSS.
With totalization, 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 Monthly Salary Credit)
in the SSS.

FOLLOW UP QUESTION
Can A qualify for GSIS PENSION?

ANSWER
Yes. With totalization, based on the ratio
of 60/180 or 33%, GSIS will give him 33%
of the pension he would have gotten
based on the AMSC (Average Monthly
Salary Credit) in the GSIS.

QUESTION
B has 10 years of government service and
7 years of private sector employment.
Where will B qualify for the pension?

ANSWER
NONE!!! However, THANKS TO RA
7699 we will have the following:

With Totalization on our side:

B will qualify for both systems.
The pension for SSS will be 7/10 or 70% of the
pension he would have gotten based on his
Average Monthly Salary Credit (AMSC) .
For GSIS, B will receive 10/15 or 2/3 (or
66.667%) of the pension he would have
received.

JURISPRUDENCE related to
RA 7699
Resolution no. 01-0498; Villones, Sonia L.
Re: Payment of Benefits

RA 7699, otherwise known as AN ACT INSTITUTING LIMITED PORTABILITY

SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS BY TOTALIZING
THE WORKERS' CREDITABLE SERVICES OR CONTRIBUTIONS IN EACH OF
THE SYSTEMS provides: a covered worker who transfers employment from one
sector to another or is employed in both sectors shall have his creditable services or
contributions in both system credited to his service or contribution record in each of
the systems and shall be totalized for the purpose of old-age, disability, survivorship
and other benefits in case the covered member does not qualify for such benefits in
either or both systems without totalization.
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.

JURISPRUDENCE related to
RA 7699
G.R. No. 141707; Gamogamo v. PNOC Shipping and Transport Co.
Petitioners contention that the principle of tacking of creditable service is
mandated by RA 7699 is baseless. Section 3 of RA 7699 reads: Sec. 3. Provisions of
any general or special law or rules and regulations to the contrary notwithstanding, a
covered worker who transfers employment from one sector to another or is employed
in both sectors shall have his credible services or contributions in both Systems
credited to his service or contribution record in each of the Systems and shall be
totalized for purposes of old-age, disability, survivorship and other benefits in case the
covered member does not qualify for such benefits in either or both Systems without
totalization: Provided, however, That overlapping periods of membership shall be
credited only once for purposes of totalization.
Obviously, totalization of service credits is only resorted to when the retiree does not
qualify for benefits in either or both Systems. Here, petitioner is qualified to receive
benefits granted by the GSIS. (Section 12(b) of Presidential Decree No, 1146, as
amended, otherwise known as the Government Service Insurance Act of 1977 states,
A member who has rendered at least three years but less than fifteen years of service
at the time of separation shall, upon reaching sixty years of age or upon separation
after age sixty, receive a cash payment equivalent to one hundred percent of his
average monthly compensation for every year of service with an employer.)