Thursday, July 14, 2022 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF LAW - JD 1-6

SSS, GSIS &

PORTABILITY LAW AGRARIAN LAW & SOCIAL LEGISLATION

REPORTER ADVISOR

GROUP 1 Atty. Charry Mae Valenzuela

OUTLINE OF REPORT

Reporter

I Introduction to Social Security Act of 1997 BRUCELAS & RIEL

II The SSS Benefits PEREZ & SALUDO

III Government Service Insurance System Act of 1997 DUMLAO & DELA CRUZ
and Its Benefits

IV Portability Law ALVAREZ & SORONGON

 The Social Security
Act of 1997
(REPUBLIC ACT NO. 8282)

01
 1954
R. A. 1161, otherwise known as the Social Security Act of 1954 was approved on July 18,
1954.

1957
R. A. 1792, the first amendatory act which deleted the provisions on unemployment benefits,
was approved on June 21, 1957.
R. A. 1161 was implemented on September

1960
R. A. 2658 was enacted wherein the coverage of the SSS was broadened, the benefits

Development increased and the enjoyment thereof were liberized.

of the Law 1963

R. A. 3839 was promulgated wherein the retirement benefits were increased and the minimum age
requirement for coverage was removed.
Rationale behind the enactment of the Social Security
Law
It is the policy of the State to establish, develop, promote and
perfect a sound and viable tax-exempt social security system
suitable to the needs of the people throughout the Philippines
which shall promote social justice and provide meaningful
protection to members and their beneficiaries against the
hazards of disability, sickness, maternity, old-age, death, and
other contingencies resulting in loss of income or financial
burden.
Towards this end, the State shall endeavor to extend social
security protection to workers and their beneficiaries. (Sec. 2.
Declaration of Policy)
Validity of the Social Security Law

Such enactment is a legitimate exercise of the police power. It

affords protection to labor, especially to working women and
minors, and is in full accord with the constitutional provisions
on the "promotion of social justice to insure the well-being and
economic security of all the people."
Being in fact a social legislation, compatible with the policy of
the Church to ameliorate living conditions of the working class,
appellant cannot arbitrarily delimit the extent of its provisions
to relations between capital and labor in industry and
agriculture. (Roman Catholic Archbishop of Manila v. SSC)
Construction of the Social Security Law

The provision of the Social Security Act should be liberally

construed in favor of those seeking its benefits.

"Any interpretation which would defeat rather than promote

the ends for which the Social Security Act was enacted should
be eschewed." (Franklin Baker Co. of the Philippines v. SSS)
Social Security Law is not part of the taxation system
The Social Security Law is not part of the taxation system
because it is not intended for raising revenues but for the
promotion of the general welfare.
Social Security Law is not a law on succession
It should also be noted that the Social Security System is not a
law of succession.

Its purpose is to provide social security, which means funds for

the beneficiary, if the employee dies, or for the employee
himself and his dependents if he is unable to perform his task
because of illness or disability, or is laid off by reason of the
termination of the employment, or because of temporary lay-off
due to strike, etc. (Tecson v. SSS)
02

The SSS Benefits

 BENEFITS
Maternity leave
Sickness
Permanent Disability
Retirement
Death
Funeral
Maternity Leave
The Maternity leave benefit is available to all
Female SSS Members who:
Gives birth or suffers Miscarriage/abortion
Has paid at least three (3) months
contribution in the 12-month period
immediately preceding the semester of her
childbirth, abortion or miscarriage.
Maternity Leave
The Maternity leave benefit is equivalent to
100% of the daily salary credit.
Duration of Maternity Leave
As amended by RA11210:
105 days of Maternity leave with full pay
60 days for miscarriage or emergency termination
of pregnancy
With an option to extend an additional 30 days
without pay.
In case worker qualifies as a solo parent under RA
8972:
Additional 15 days maternity leave with pay
Procedure for availment
as amended by RA 11210:
A female Social Security System (SSS) member who has paid
at least three (3) monthly contributions in the twelve (12)-
month period immediately preceding the semester of her
childbirth, miscarriage, or emergency termination of
pregnancy shall be paid her daily maternity benefit which
shall be computed based on her average monthly salary
credit for one hundred five (105) days, regardless of
whether she gave birth via caesarian section or natural
delivery, subject to the following conditions:
Procedure for availment
That the female worker shall have notified her employer of her
pregnancy and the probable date of her childbirth, which notice
shall be transmitted to the SSS in accordance with the rules and
regulations it may provide;
That the full payment shall be advanced by the employer within
thirty (30) days from the filing of the maternity leave application;
That payment of daily maternity benefits shall be a bar to the
recovery of sickness benefits provided under Republic Act No.
1161, as amended, for the same period for which daily maternity
benefits have been received;
Procedure for availment
That the SSS shall immediately reimburse the employer of one
hundred percent (100%) of the amount of maternity benefits advanced
to the female worker by the employer upon receipt of satisfactory and
legal proof of such payment; and
That if a female worker should give birth or suffer a miscarriage or
emergency termination of pregnancy without the required
contributions having been remitted for her by her employer to the SSS,
or without the latter having been previously notified by the employer
of the time of the pregnancy, the employer shall pay to the SSS
damages equivalent to the benefits which said female member would
otherwise have been entitled to.
Procedure for availment
as amended by RA 11210:
An additional maternity leave of thirty (30) days, without
pay, can be availed of, at the option of the female worker:
Provided, That the employer shall be given due notice, in
writing, at least forty-five (45) days before the end of her
maternity leave: Provided, further, That no prior notice shall
be necessary in the event of a medical emergency but
subsequent notice shall be given to the head of the agency.
Procedure for availment
as amended by RA 11210:
Workers availing of the maternity leave period and benefits must receive
their full pay. Employers from the private sector shall be responsible for
payment of the salary differential between the actual cash benefits
received from the SSS by the covered female workers and their average
weekly or regular wages, for the entire duration of the maternity leave,
with the following exceptions, subject to the guidelines to be issued by the
Department of Labor and Employment (DOLE):
Procedure for availment
Those operating distressed establishments;
Those retail/service establishments and other enterprises employing not
more than ten (10) workers;
Those considered as micro-business enterprises and engaged in the
production, processing, or manufacturing of products or commodities
including agro-processing, trading, and services, whose total assets are not
more than Three million pesos (₱3,000,000.00); and
Those who are already providing similar or more than the benefits herein
provided.

That said exemptions shall be subject to an annual submission of a

justification by the employer claiming exemption for the approval of the DOLE.
take note:
In case the employee qualifies as a solo parent under Republic Act No.
8972, or the "Solo Parents’ Welfare Act", the employee shall be paid an
additional maternity benefit of fifteen (15) days.
It can on;y be availed for the first four (4) deliveries or miscarriages
it cannot be simultaneous with sick benefit.
Sickness Benefit
Sickness benefit is not payment or reimbursement
for hospitalization, medical treatment or medicine
they are daily cash allowances to help carry
through the employee and his family during his
confinement.
It may be availed by:
A member who has paid at least three (3) monthly contributions in the
twelve-month period immediately preceding the semester of sickness or
injury and
is confined therefor for more than three (3) days in a hospital or elsewhere
with the approval of the SSS,
shall, for each day of compensable confinement or a fraction thereof, be paid
by his employer, or the SSS, if such person is unemployed or self-employed, a
daily sickness benefit equivalent to ninety percent (90%) of his average daily
salary credit, subject to the following conditions:
Conditions:
In no case shall the daily sickness benefit be paid longer than one
hundred twenty (120) days in one (1) calendar year, nor shall any
unused portion of the one hundred twenty (120) days of sickness
benefit granted under this section becarried forward and added to
the total number of compensable days allowable in the subsequent
year;
The daily sickness benefit shall not be paid for more than two
hundred forty (240) days on account of the same confinement; and
Conditions:
The employee member shall notify his employer of the fact of his
sickness or injury within five (5) calendar days after the start of his
confinement unless such confinement is in a hospital or the employee
became sick or was injured while working or within the premises of the
employer in which case, notification to the employer is not necessary:
Provided, That if the member is unemployed or selfemployed, he shall
directly notify the SSS of his confinement within five (5) calendar days
after the start thereof unless such confinement is in a hospital in which
case notification is also not necessary: Provided, further, That in cases
where notification is necessary, the confinement shall be deemed to
have started not earlier than the fifth day immediately preceding the
date of notification
Retirement Benefits
There retirement benefit under the Social Security Act can be availed of
by the SSS member if he has:

reached the age of 60 or the compulsory retirement age of 65 years

already retired from service or ceased to be self employed
who has paid atleast 120 monthly contributions prior to the
semester of retirement.
Monthly Pension
The monthly pension of a member who retires after reaching age sixty
(60) shall be the higher of either:

the monthly pension computed at the earliest time he could; have

retired had he been separated from employment or ceased to be
self-employed plus all adjustments thereto; or
the monthly pension computed at the time when he actually
retires.
Lump sum Benefit equal to the total
contributions paid by him and on his behalf
A covered member who is sixty (60) years old at retirement and who
has not paid at least 120 monthly contributions prior to the semester
of his retirement, shall be entitled to a lump sum benefit equal to
the total contributions paid by him and on his behalf

Provided, That he is separated from employment and is not continuing

payment of contributions to the SSS on his own.
Effect if retired member dies
Upon the death of the retired member, his primary beneficiaries
as of the date of his retirement shall be entitled to receive the
monthly pension
if he has no primary beneficiaries and he dies within sixty (60)
months from the start of his monthly pension, his secondary
beneficiaries shall be entitled to a lump sum benefit equivalent to
the total monthly pensions corresponding to the balance of the
five-year guaranteed period, excluding the dependents’ pension.
Take note:
The member shall have the option to receive his first eighteen (18)
monthly pensions in lump sum discounted at a preferential rate of
interest to be determined by the SSS.
The monthly pension shall be suspended upon the reemployment
or resumption of self-employment of a retired member who is less
than sixty-five (65) years old.
Death Benefits
on the death of a member who has paid at least thirty-six (36)
monthly contributions prior to the semester of death, his primary
beneficiaries shall be entitled to the monthly pension
if he has no primary beneficiaries, his secondary beneficiaries shall
be entitled to a lump sum benefit equivalent to thirty-six (36) times
the monthly pension.
If he has not paid the required thirty-six (36) monthly contributions,
his primary or secondary beneficiaries shall be entitled to a lump
sum benefit equivalent to the monthly pension times the number of
monthly contributions paid to the SSS or twelve (12) times the
monthly pension, whichever is higher.
Funeral Benefits
A funeral grant equivalent to Twelve thousand pesos (₱12,000.00)
shall be paid, in cash or in kind, to help defray the cost of funeral
expenses upon the death of a member, including permanently
totally disabled member or retiree
Primary Beneficiaries
a. the dependent spouse, until he or she remarries; and
b. the dependent legitimate, legitimated or legally adopted, and
illegitimate children
Secondary Beneficiaries
a. the dependent parent; or
b. any other person designated by the member as his secondary
beneficiary
Dependents
a. the legal spouse entitled by law to receive support from the
member;
b. the legitimate, legitimated, legally adopted, and illegitimate
child who:
i. is unmarried, not gainfully employed, and has not reached twenty-one (21) years
of age; or
ii. if over twenty-one (21) years of age, he is congenitally or while still a minor has
been permanently incapacitated and incapable of self-support, physically or
mentally; and
c. the parent who is receiving regular support from the member
Dependents' Pension
granted to dependents in case of death, permanent total
disability or retirement of an SSS member.
equivalent to ten percent (10%) of the monthly pension or
Two hundred fifty pesos (P250.00), whichever is higher,
payable to each dependent child conceived on or before the
contingency but not exceeding five (5) beginning with the
youngest and without substitution.
Social Security System
The Social Security System (SSS) is the implementing arm of the
Social Security Act. It is a corporate body directed and controlled
by the Social Security Commission.
SSS: Powers and Duties
To submit annually not later than April 30, a public report to the President of the
Philippines and to the Congress of the Philippines covering its activities in the
administration and enforcement of this Act during the preceding year including
information and recommendations on broad policies for the development and perfection
of the program of the SSS;
To require the actuary to submit a valuation report on the SSS benefit program every
four (4) years, or more frequently as may be necessary, to undertake the necessary
actuarial studies and calculations concerning increases in benefits taking into account
inflation and the financial stability of the SSS, and to provide for feasible increases in
benefits every four (4) years, including the addition of new ones, under such rules and
regulations as the Commission may adopt, subject to the approval of the President of the
Philippines: Provided, That the actuarial soundness of the reserve fund shall be
guaranteed: Provided, further, That such increases in benefits shall not require any
increase in the rate of contribution;
SSS: Powers and Duties
To establish offices of the SSS to cover as many provinces, cities and congressional
districts, whenever and wherever it may be expedient, necessary and feasible, and to
inspect or cause to be inspected periodically such offices;
To enter into agreements or contracts for such service and aid, as may be needed for
the proper, efficient and stable administration of the SSS;
To adopt, from time to time, a budget of expenditures including salaries of personnel,
against all funds available to the SSS under this Act;
To set up its accounting system and provide the necessary personnel therefor;
To require reports, compilations and analyses of statistical and economic data and to
make investigation as may be needed for the proper administration and development of
the SSS;
SSS: Powers and Duties
To acquire and dispose of property, real or personal, which may be necessary or
expedient for the attainment of the purposes of this Act;
To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or
private property for the purpose of undertaking housing projects preferably for the
benefit of low-income members and for the maintenance of hospitals and institutions for
the sick, aged and disabled, as well as schools for the members and their immediate
families;
To sue and be sued in court; and
To perform such other corporate acts as it may deem appropriate for the proper
enforcement of this Act.
Social Security Commission
The Social Security Commission (SSC) is composed of:
Secretary of Labor and Employment or his duly designated
undersecretary;
SSS President; and
Seven (7) members to be appointed by the President of the
Philippines, to wit:
i. three (3) representing the workers' group;
ii. three (3) representing the employers' group; and
iii. one (1) representing the general public who should have adequate knowledge
and experience regarding social security.
Social Security Commission
The Chairman of the SSC shall be designated by the President
from among its members.

The term of the appointive members shall be three (3) years.

They shall continue to hold office until their successors shall have
been appointed and duly qualified.
Social Security Commission
The SSC performs both administrative and quasi-judicial
functions.
It is co-equal in rank with the Regional Trial Courts. It may sue and
be sued in the RTC only on matters connected with its
administrative functions, but not on matters connected with its
quasi-judicial functions. In its decisions, the same may be
reviewed both upon the law and the facts by the CA or by SC if
involves questions of law.
SSC: Powers and Duties
To adopt, amend and rescind, subject to the approval of the President of the Philippines,
such rules and regulations as may be necessary to carry out the provisions and purposes
of the Social Security Act.
To establish a provident fund for the members which will consist of voluntary
contributions of employers and/or employees, self-employed and voluntary members
and their earnings, for the payment of benefits to such members or their beneficiaries,
subject to such rules and regulations as it may promulgate and approved by the
President of the Philippines.
To maintain a provident fund which consists of contributions made by both the SSS and
its officials and employees and their earnings, for the payment of benefits to such
officials and employees or their heirs under such terms and conditions as it may
prescribe.
SSC: Powers and Duties
To approve restructuring proposals for the payment of due but unremitted contributions
and unpaid loan amortizations under such terms and conditions as it may prescribe
To authorize cooperatives registered with the cooperative development authority or
associations registered with the appropriate government agency to act as collecting
agents of the SSS with respect to their members: Provided, That the SSS shall accredit
the cooperative or association: Provided, further, That the persons authorized to collect
are bonded.
To compromise or release, in whole or in part, any interest, penalty or any civil liability
to SSS in connection with the investments authorized under Section 26 hereof, under
such terms and conditions as it may prescribe and approved by the President of the
Philippines.
To approve, confirm, pass upon or review any and all actions of the SSS in the proper
and necessary exercise of its powers and duties hereinafter enumerated.
SSC: Quasi-judicial Functions
The SSC has jurisdiction over disputes arising under the Social Security Act with respect
to coverage, entitlement of benefits, collection and settlement of contributions and
penalties thereon, or any other matter related thereto.
The hearings before the Commission are administrative and are not strictly governed by
the technical rules of procedure that are applied to judicial trials.
The SSC has no authority to condone penalties for late payment.
The SSC ha jurisdiction over claim for damages. The Social Security Act provides that the
"filing, determination and settlement of claim shall be governed by the rules and
regulations promulgated by the Commission; and the rules and regulations thus
promulgated state that the effectivity of membership in the System, as well as the final
determination and settlement of claims shall be vested in the Commission.
 03

The Government
Service Insurance System
Act of 1997
and Its Benefits
(REPUBLIC ACT NO. 8291)
 Definitions
Employer - The national government, its political subdivisions, branches,
agencies or instrumentalities, including government-owned or controlled
corporations, and financial institutions with original charters, the
constitutional commissions and the judiciary
Employee or Member- Any person receiving compensation while in the
service of an employer as defined herein, whether by election or
appointment, irrespective of status of appointment, including barangay and
Sanggunian officials
Active Member- A member who is not separated from the service
 Coverage of GSIS
The GSIS covers government employees, irrespective
of employment status, who are employed with:
A. The national government, its political subdivision, branches,
agencies or instrumentalities;
B. Government-owned or controlled corporations;
C. Government financial institutions with original charters;
D. Constitutional commissions; and
E. The Judiciary.
 Compulsory Membership
All government personnel who are receiving fixed monthly compensation
and have not reached the mandatory retirement of 65 years old, whether
elective or appointive.

Elective officials who will be more than 65 years old at the end of his term.

Officials appointed by the President of the Philippines who remain in the

office after reaching the age of 65.

Contractual or casual employees who received fixed monthly compensation

and render the required number of working hours for the month.
 Employees not subject to compulsory

coverage of GSIS
A. Uniformed personnel of the AFP, PNP, BFP, and BJMP
B. Barangay and Sangunian Officials who are not receiving fixed monthly
compensation
C. Contractual Employee who are not receiving fixed monthly compensation
D. Employees who do not have monthly regular hours of work and are not
receiving fixed monthly compensation
 Classes of GSIS membership
1. Regular or Special
a. Regular - Those employed by the government, national or local,
legislative bodies, government-owned and controlled corporations with
original charters, government financial institutions
b. Special - The constitutional commissioners, members or the judiciary
2. Active or Inactive
a. Active member - member of GSIS whether regular or special who is still
in the government service
b. Inactive member - member who is separated from the service either by
resignation, retirement, disability, dismissal from the service,
retrenchment or who deemed retired from the service.
 Effect of Separation from the Service
A member separated from the service shall continue to be a member, and shall
be entitled to whatever benefits he has qualified to in the event of any
contingency compensable under this Act.
 Sources of Funds
1. Contributions - Shall mandatory for the member and employer to pay the
monthly contributions
2. Interest on Delayed Remittances - Agencies which delay the remittance of
any and all monies due the GSIS shall be charged interests as may be
prescribed by the Board but not less than two percent (2%) simple interest
per month. Such interest shall be paid by the employers concerned.
3. Government Guarantee. - The government of the Republic of the
Philippines hereby guarantees the fulfillment of the obligations of the GSIS
to its members as and when they fall due
A. Computation of the Basic Monthly

Pension
Formula:
BMP = .025 X RAMC X PPP
Note: BMP shall not exceed 90% of the Average Monthly
Compensation
 Computation of the Basic Monthly

Pension
AMC (Average Monthly Compensation)
- The total monthly compensation in your last 3 years in the
service/36 month, if less than 36 months, the actual number of
months of period with paid premium

PPP (Period with Paid Premium)

- Service periods with corresponding premium contribution paid
and remitted to GSIS
Computation of the Basic Monthly

Pension
RAMC (Revalued Average Monthly Compensation)
RAMC = PHP700 + AMC

Computation of BMP
A. PPP is less than 15 years
BMP = .375 X RAMC
B. PPP is more than 15 yeas
BMP = .025 X RAMC X PPP
 Sample Computation
1. Employee A
Start date: March 1, 1980
Date of Retirement: March 1, 2014
Tenure: 34 years
Salary: 25,000

AMC = Y1 - 25,000X10 = 250,000 (with LOA for 2mos)

= Y2 - 25,000X12 = 300,000
= Y3 - 25,000X12 = 300,000 = 25,000 (AMC)
34 months
 Sample Computation
2. RAMC = PHP700 + AMC
RAMC = 700 + 25,000
RAMC = 25,700

3. PPP = 34 years - 2mos (LOA)

PPP = 33.83

4. BMP = .025 X RAMC X PPP

BMP = .025 X 25,700 X 33.83
BMP = 21,735.775
 Sample Computation
5. BMP shall not exceed 90% of the Average Monthly
Compensation

25,000 X .90 = 22,500

In this case, the BMP did not exceed the 90% AMC.
BMP = 21,735.775
B. BMP may be adjusted upon the recommendation of the

President and General Manager of the GSIS and approved by

the President of the Philippines: Provided, however, that the

basic monthly pension shall not be less than P1,300.00:

Provided, further, that the basic monthly pension for those

who have rendered at least twenty (20) years of service after

the effectivity of this Act shall not be less than P2,400.00 a

month.
 Computation of Service
Shall be from the date of original appointment/election,
including periods of service at different times under one or more
employers, those performed overseas under the authority of the
Republic of the Philippines, and those that may be prescribed by
the GSIS in coordination with the Civil Service Commission.
GSIS Member Benefits
Sec. 11 - Separation Benefits Sec. 18 - Temporary Total
Disability Benefit

Sec. 12 - Unemployment or
Involuntary Separation Benefits Sec. 20-22 - Survivorship
Benefits

Sec. 13 - Retirement Benefits Sec. 23 - Funeral Benefits

Sec. 16 - Permanent Partial Sec. 24 - Life Insurance

Disability Benefit Benefits

Sec. 17 - Permanent Total

Disability Benefit
Sec. 11 - Separation Benefits

A. For members who resign or are separated from the

service for at least 3 years but less than 15 years:
A cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for each year of service he paid
contributions but not less than Twelve thousand pesos (P12,000),
payable upon reaching sixty (60) years of age or upon separation,
whichever comes later.
B. For members who resign or are separated from the
service for at least 15 years and is below 60 years old
at the time of resignation or separation:
A cash payment equivalent to eighteen (18) times his basic monthly
pension payable at the time of resignation or separation, plus an old-age
pension benefit equal to the basic monthly pension payable monthly
for life upon reaching the age of sixty (60).
Cash Payment Computation

 Sec. 12 - Unemployment
or Involuntary Separation
Benefits

 The following conditions must be met:

Who can
Member was a permanent employee at
the time of separation.

avail this Member's separation was involuntary

benefit?
due to the abolition of its office or
position as a result of reorganization.

Member has been paying the required

premium contributions for at least 1
year prior to separation
 What form of benefit can be received?
The benefit is in the form of monthly cash payments equivalent to 50% of the average
monthly compensation (AMC).
The duration of the benefit depends on the length of service
and ranges from two months to a maximum of six months.
Note under Sec.12:
All accumulated unemployment benefits paid
to the employee during his entire membership
with the GSIS shall be deducted from voluntary
separation benefits.
SAMPLE QUALIFIED EMPLOYEES WHO

CAN RECEIVED THIS BENEFIT:

Newly abolished Government Offices:

Presidential Anti-Corruption Commission (PACC) employees, which

ex-President Rodrigo R. Duterte created in 2017
Office of the Cabinet Secretary administrative employees, created by
the late President Corazon C. Aquino in 1987
 Sec. 13 - Retirement Benefits

To be entitled, the GSIS member must meet the following conditions:

Has rendered at least fifteen (15) years of service;

He is at least sixty (60) years of age at the time of retirement; and

He is NOT receiving a monthly pension benefit from permanent total disability.

A retiring GSIS member has the following
options to avail the benefit:

5-year lump-sum equivalent to 60 months of basic monthly pension

(BMP). After the the lapse of 5-year period, old-age pension benefit
equal to BMP payable for life; or

Cash payment benefit equivalent to 18 times of the BMP + monthly

pension for life.
 Effect of Death of the GSIS Member while
Retirement Claims are Being Processed
If the deceased member opted If the deceased member opted for If the deceased member failed to indicate
for 5-year lump-sum immediate pension any retirement option.

His legal heirs shall be entitled
to 5-year lump sum benefit
equivalent to 60 months basic
monthly pension. But the
survivorship pension shall be
granted only after the end of
His legal heirs shall be entitled to the The retirement benefit shall be computed
cash payment benefit equivalent to 18 as if he opted for immediate pension.
months of monthly basic pension, plus
accrued pension up to date of death of
the retiree.

the 5 year guaranteed period.

Sec. 14 - Periodic Pension
Adjustment
The monthly pension of all pensioners including all those receiving
survivorship pension benefits shall be periodically adjusted as may
be recommended by the GSIS’ actuary and approved by the Board in
accordance with the rules and regulations prescribed by the GSIS.
Disability Benefits
Sec. 16- Permanent Total Disability (PTD)
Benefits

Sec. 17- Permanent Partial Disability (PPD)

Benefits

Sec. 18- Temporary Total Disability (TTD)

Benefits
 Sec. 15 - General Conditions
for Entitlement
Who are covered?
A member who suffers disability for reasons NOT DUE to his
grave misconduct, notorious negligence, habitual
intoxication, or willful intention to kill himself or another,
shall be entitled to the benefits provided for under Sections
16 and 17 immediately following, subject to the
corresponding conditions therefor.
 Gainfully employed prior to the

Specific
commencement of disability resulting
in loss of income

Eligibility Not a registered member of any social

Requirement
insurance institution

Not receiving any other pension either

from GSIS or another local or foreign
institution or organization
 Sec 16. - Permanent
Total Disability Benefits
What is Permanent Total Disability ?

It is a disability caused by injury or disease

resulting in complete, irreversible and permanent
incapacity to work or to engage in any gainful
occupation
Disabilities Considered
Total and Permanent
Complete loss of sight for Permanent complete paralysis
both eyes of two limbs

Brain injury resulting in

Loss of two limbs at or above
incurable imbecility or
the ankle or wrists
insanity

Such other cases as may be

determined and approved by
the GSIS.
 Permanent Total Disability Benefits
SUFFERED WHILE IN THE SERVICE
Lifetime monthly income
benefit equivalent to the basic
monthly pension plus cash
payment equivalent to 18 times
of the member's basic monthly
pension, provided that a total
at the time of his
of at least 180 monthly
contributions has been paid.
NOTE: A member cannot simultaneously enjoy the monthly income benefit for permanent disability and
the old age retirement.
SUFFERED AFTER SEPARATION FROM
SERVICE
Lifetime monthly income benefit equal
to the basic monthly pension effective
from the date of disability , provided
that the member has paid:
a. 36 monthly contributions
within the
5-year period immediately preceding
member's disability.
b. 180 monthly contributions prior to
member's disability.
MEMBER HAS NOT PAID THE REQUIRED MINIMUM
CONTRIBUTIONS AND THE DISABILITY WAS
SUFFERED AFTER SEPARATION FROM SERVICE
Member's separation benefit equivalent to
100% of his average monthly
compensation for each year of service (but
not less than P12,000) shall be paid in
advance, provided that he has rendered at
least 3 years of service
permanent total disability.
 Sec. 17 - Permanent Partial
Disability Benefits
What is Permanent Partial Disability ? Any Finger One hand

The disability is permanent and partial

when the GSIS member is Any Toe One or Both Ears

incapacitated to work for a limited

One Leg Hearing of One or Both Ears
period of time because of complete
and permanent loss of any of the
One Arm Sight of One Eye
following body parts:
Other cases as may be
One Foot
determined by GSIS
 Additional Eligibility
Requirement
Members whose disability are partial are entitled to PPD benefit when:
01
In the service at the
time of disability
02
If separated from the service:
a. have paid at least 36 months
contributions within the five year period
immediately preceding the disability; or
b. have paid a total of at least 180 months
contributions prior to the disability.
Permanent Partial Disability Benefit
Any GSIS member qualified to PPD benefit shall be entitled to a cash payment
equivalent to basic monthly pension (BMP) divided by 30 days and multiplying
the quotient by the number of compensable calendar days of leave of absence
without pay (LWOP) indicated in the GSIS's Scheduled Disabilities

Cash Benefit=(BMP/ 30 days) x (Compensable Calendar Days of LWOP)

Other Considerations
The loss in earning capacity shall be determined not only on the basis of the
member’s actual loss of income from his or her current occupation but also on his
or her capacity to continue engaging in any gainful occupation because of the
impairment.

The PPD benefit to be granted shall be one time for every disability, if qualified.

If the member has two or more different contingencies during the same period of
benefit entitlement, he or she shall be compensated only once for the overlapping
periods.

For claims with two or more injuries falling under the Scheduled or Non-Scheduled
Disabilities, the claimant shall be paid with the higher benefit.
 Sec. 18 - Temporary Total
Disability Benefits
What is Temporary Total Disability ?

The disability is temporary and total when the GSIS member is

momentarily incapacitated to work or engage in any gainful
occupation as a result of impairment of physical or mental faculties
which can be rehabilitated or restored to their normal functions.
 Additional Eligibility
Requirement
GSIS Member is entitled to TTD benefit under the following conditions:

The GSIS member must be in the service at the time of his disability.

If separated from the service, the member:

a. must rendered at least three (3) years of service; and

b. have paid at least 6 monthly contributions in the 12-month period

immediately preceding his disability.

The GSIS member must have exhausted all his sick leave credits.
Temporary Total Disability Benefit
Any GSIS member qualified to TTD benefit shall be entitled to a cash payment
equivalent to 75% of the current daily compensation (CDC) for each day of
disability for a period not exceeding 120 days in one calendar year.

Note:
A. If the disability requires more extensive treatment beyond 120 days, the
payment of the TTD benefit may be extended by the GSIS for a period not
exceeding 240 days

B. The temporary total disability benefit shall in no case be less than Seventy
pesos (P70.00) a day.

Cash Benefit=(CDC x 75%) x (No.of Days with TTD not exceeding 120 or 240
days, whichever applies)
Suspension of Disability Benefits
Unless the member has reached the minimum retirement age, disability benefits
shall be suspended if:
The member is reemployed; or

The member recovers from disability as determined by GSIS; or

The member fails to present himself for medical examination when required by the
GSIS.
Forfeiture of To have himself medically treated by a
physician when required by the GSIS

Disability To take the prescribed medications

Benefits
Disability benefits will be automatically
forfeited if the GSIS members refuses or fails:
To have himself confined in a hospital,
when such confinement is required by
the GSIS; or
To avail himself of rehabilitation
facilities as may be duly recommended
by the GSIS; or

To observe such precautionary or

preventive measures as prescribed by a
physician to prevent the aggravation or
continuance of his disability
Sec. 19 - Non-scheduled
Disability
For injuries or illnesses resulting in a disability not listed in the
schedule of partial/total disability, as provided herein, the GSIS shall
determine the nature of the disability and the corresponding benefits
therefor.
Sec. 20 - Survivorship
Benefits
When a member or pensioner dies, the beneficiaries
shall be entitled to survivorship benefits provided in
Sections 21 and 22 hereunder subject to the
conditions therein provided for. The survivorship
pension shall consist of:

The basic survivorship pension which is fifty

percent (50%) of the basic monthly pension

The dependent children’s pension not exceeding

fifty percent (50%) of the basic monthly
pension.
 Sec. 21 - Primary Beneficiaries Survivorship Benefit
SURVIVORSHIP PENSION + CASH A CASH PAYMENT EQUIVALENT TO 100% OF HIS
PAYMENT EQUIVALENT TO 100% OF AVERAGE MONTHLY COMPENSATION (AMC) FOR
SURVIVORSHIP PENSION HIS AVERAGE MONTHLY EACH YEAR POF SERVICE HE PAID
COMPENSATION (AMC) FOR EVERY CONTRIBUTIONS, BUT NOT LESS THAN PHP
YEAR OF SERVICE 12,000

(i) was in the service at the time of his
death; or
(ii) if separated from the service,
a. has at least three (3) years of service
at the time of his death and has paid
Provided, That the deceased was
in the service at the time of his
death with at least three (3) years
of service.
Provided, That the deceased has rendered
at least three (3) years of service prior to
his death but does not qualify for the
benefits under the item (1) or (2) of this
paragraph.

thirty-six (36) monthly contributions

within the five-year period immediately
preceding his death; or

b. has paid a total of at least one

hundred eighty (180) monthly
contributions prior to his death.
In the absence of primary beneficiaries, the secondary beneficiaries
shall be entitled to the following:

Cash payment equivalent to one hundred percent (100%) of his average monthly
compensation for each year of service he paid contributions, but not less than Twelve
thousand pesos (P12,000):
Provided, That the member is in the service at the time of his death and has at least
three (3) years of service; or

In the absence of secondary beneficiaries, the benefits under this paragraph shall be
paid to his legal heirs.

NOTE: For purposes of the survivorship benefits, legitimate children shall include
legally adopted and legitimate children.
Sec. 22 - Death of a Pensioner
Upon the death of an old-age pensioner or a member
receiving the monthly income benefit for permanent
disability, the qualified beneficiaries shall be entitled
to the survivorship pension defined in Section 20 of
this Act, subject to the provisions of paragraph (b) of
Section 21 hereof.

However, when the pensioner dies within the period

covered by the lump sum, the survivorship pension
shall be paid only after the expiration of the said
period.
Sec. 23 - Funeral Benefits
This benefit is intended to help defray the expenses
incident to the burial and funeral of the deceased member,
pensioner, or retiree. It is payable to any qualified
individual, in accordance with the following order of
priority:
Legitimate Spouse

Legitimate Child who spent for the funeral services

Any other person who can show incontrovertible

proof that he shouldered the funeral expenses of the
deceased.
How much is the Funeral Benefit?
The amount of funeral benefit shall be determined and
specified by the GSIS in the rules and regulations but
shall not be less than Twelve thousand pesos
(P12,000.00).
Provided, that it shall be increased to at least Eighteen
thousand pesos (P18,000.00) after five (5) years.
Sec. 24 - Compulsary Life
Insurance Benefits
All employees except for Members of the
Armed Forces of the Philippines (AFP) and
the Philippine National Police (PNP) shall,
under such terms and conditions as may be
promulgated by the GSIS, be compulsorily
covered with life insurance.
Sec. 28 - Prescriptive Period for
Filing Claims
Claims for GSIS benefits except for life and
retirement shall prescribe after four (4)
years from the date of contingency. Claims
filed after 4 years will be barred by
prescription.
 04

The Portability Law