LIMITED PORTABILITY LAW (REPUBLIC ACT NO.
for any benefits in the GSIS; or
7699) What is Portability?
Portability refers to the transfer of funds for the
account, and benefit of a worker who transfers from
one system to the other (Section 1(b), Rule III of R.A.
No. 7699). The term system herein refers to SSS or
GSIS. It refers to instances where a worker transfers
from private employment to government
employment, and vice versa, thereby transferring from
being SSS member to GSIS member, and vice versa.
The transfer of funds is to ensure that his/her years of
service are duly credited.
Coverage
Section 1, Rule I of R.A. No. 7699 provides that the
rules and regulations shall apply to all worker‐
members of the Government Service Insurance
System (GSIS) and/or Social Security System (SSS) who
transfer from one sector to another, and who wish to
retain their membership in both Systems.
Limited Portability Scheme
R.A. No. 7699 was enacted to enable those from the
private sector who transfer to the government service
or from the government sector to the private sector to
combine their years of service and contributions which
have been credited with the SSS or GSIS, as the case
may be, to satisfy the required number of years of
service for entitlement to the benefits under the
applicable laws (Chan, Joselito, Bar Reviewer on Labor
Law, 2017 3rd Revised Edition, pg. 445).
Totalization Rule
It refers to the process of adding up the periods of
creditable services or contributions under each of the
Systems, SSS or GSIS, for the purpose of eligibility and
computation of benefits (Chan, Joselito, Bar Reviewer
on Labor Law, 2017 3rd Revised Edition, pg. 445).
Hence, if a worker is not entitled to any benefits
under SSS or GSIS because the periods of his
creditable services or contributions does not qualify
to avail any benefit under SSS or GSIS, as the case may
be, he/she could apply the totalization rule. Applying
the totalization rule can increase the chances of a
worker to avail of benefits under the subject law.
Section 3, Rule V of R.A. No. 7699 provides instances
where totalization applies, to wit: 1. If a worker is not
qualified for any benefits from both Systems;
2. If a worker in the public sector is not qualified
3. If a worker in the private sector is not
qualified for any benefits from the
SSS.
4.
If a work qualifies for benefits in both Systems,
totalization shall not apply (Section 5, Rule V of R.A.
No. 7699).
In the case of Gamogamo v. PNOC Shipping and
Transport Corp., G.R. No. 141707, dated May 7, 2002,
the pivotal issue was whether, for the purpose of
computing an employee’s retirement pay, prior service
rendered in a government agency can be tacked in and
added to the creditable service later acquired in a
government-owned and controlled corporation
without original charter. Petitioner Gamogamo was
first employed with the Department of Health (DOH)
for fourteen (14) years until he resigned. After which,
he was employed by a private domestic corporation,
LUSTEVECO. Said corporation was subsequently
acquired by PNOC Shipping and Transport
Corporation. Respondent then implemented a
Manpower Reduction Program under which,
retrenched employees shall receive a two-month pay
for every year of service. Petitioner requested to be
included in the next retrenchment schedule, but was
declined. Hence, petitioner filed a complaint for the
full payment of his retirement benefits, and that his
service with DOH should have been included in the
computation of his years of service. The Court ruled in
the negative. The Supreme Court stated, to wit:
“Petitioner’s contention that the principle of tacking of
creditable service is mandated by Republic Act No.
7699 is baseless. xxx
Obviously, totalization of service credits is only
resorted to when the retiree does not qualify for
benefits in either or both of the Systems. Here,
petitioner is qualified to receive benefits granted by
the Government Security Insurance System (GSIS), if
such right has not yet been exercised. The pertinent
provisions of law are:
SEC. 12 Old Age Pension. — (a) xxx
(b) 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 (Presidential Decree No. 1146, as
amended, otherwise known as the Government Service
Insurance Act of 1977).
SEC. 4. 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: Provided, however, That the amount of
benefits to be paid by one System shall be in
proportion to the number of contributions actually
remitted to that System (Republic Act No. 7699).
In any case, petitioner’s fourteen years of service with
the DOH may not remain uncompensated because it
may be recognized by the GSIS pursuant to the
aforequoted Section 12, as may be determined by the
GSIS. Since petitioner may be entitled to some
benefits from the GSIS, he cannot avail of the benefits
under R.A. No. 7699.” (Emphasis supplied)
Hence, if an employee is entitled to some benefits
either from GSIS or SSS, as the case may be, then the
rule on totalization will not apply. Totalization is only
resorted to when one cannot avail any benefits from
GSIS or SSS, as the case may be, since the subject law
intends that the employee may be able to get some
1
benefits for his/her years of work. This is in conformity
with the objective of the Portability Law which is to
ensure the social welfare of employees in any sector.
Under RA 7699, otherwise known as the Portability
Law, government retirees who do not meet the
required number of years provided under PD 1146 and
RA 8291 may still avail themselves of retirement and
other benefits.
Under this law, retirees may combine their years of
service in the private sector represented by
contributions to the Social Security System (SSS) with
their government service and contributions to the
GSIS to satisfy the required years of service under PD
1146 and RA 8291.
However, if retirees have already satisfied the
required years of service under the GSIS retirement
option they have chosen, they would not be allowed
to incorporate
their contributionsto the SSS anymore for availment of
additional benefits.
In case of death, disability and old age, the periods of
creditable services or contributions to the SSS and
GSIS shall be added to entitle retirees to receive the
benefits under either PD 1146 or RA 8291.
If qualified under RA 8291, all the benefits shall apply
EXCEPT the cash payment. The Portability Law
provides that only benefits common to both Systems
(GSIS and SSS) shall be paid. Cash payment is NOT
included in the benefits provided by the SSS.
2