SSS AND GSIS

SOCIAL SECURITY LAW

R.A. No. 8282

AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR
THIS PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL
SECURITY

Social Security Commission Composition:

 Secretary of Labor and Employment or his duly designated undersecretary;

 SSS president;
 (7) appointive members
o three (3) of whom shall represent the workers' group, at least one of whom
shall be a woman
o three (3), the employers' group, at least one (1) of whom shall be a woman;
and
o one (1), the general public whose representative shall have adequate
knowledge and experience regarding social security, to be appointed by the
President of the Philippines

 EX-OFFICIO CHAIRMAN: Carlos G. Dominguez, III

 VICE CHAIRMAN: Aurora C. Ignacio
 EX-OFFICIO AS SECRETARY OF LABOR: Silvestre H. Bello III
 MEMBERS:
o Diana Pardo Aguilar
o Anita Bumpus-Quitain
o Michael G. Regino
o Gonzalo T. Duque
o Ricardo L. Moldez
o Manuel L. Argel, Jr.
o Bai Norhata M. Alonto

Social Security Commission Term of Office

 The term of the APPOINTIVE MEMBERS shall be three (3) years.

Social Security Commission Powers

(1) To adopt, amend and rescind, subject to the approval of the President of the Philippines,
such rules and regulations as may be necessary;
(2) 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;
(3) 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;
(4) To approve restructuring proposals for the payment of due but unremitted contributions
and unpaid loan amortizations;
(5) 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;
(6) To compromise or release, in whole or in part, any interest, penalty or any civil liability to
SSS in connection with the investments authorized; and
(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper and
necessary exercise of its powers and.

Social Security Commission Duties

(1) 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 the Act during the preceding year including information and
recommendations on broad policies for the development and perfection of the program of
the SSS;
(2) 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;
(3) 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;
(4) 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;
(5) To adopt, from time to time, a budget of expenditures including salaries of personnel,
against all funds available to the SSS under this Act;
(6) To set up its accounting system and provide the necessary personnel therefor;
(7) 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;
(8) To acquire and dispose of property, real or personal, which may be necessary or
expedient for the attainment of the purposes of the Act;
(9) 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;
(10) To sue and be sued in court; and
(11) To perform such other corporate acts as it may deem appropriate for the proper
enforcement of the Act.

2016 Rules of Procedure

Jurisdiction of the Commission

 Any dispute arising under the Social Security Act with respect to coverage,
entitlement to benefits, collecting and settlement of contributions and penalties
thereon, or any other matter related thereto, shall be cognizable by the Commission
after the SSS, through the duly authorized personnel of the concerned SSS
Department/Branch/Representative Office had first taken action thereon in writing.
Provided, that in case of denial of SS benefit claim, loan application or other matters
related thereto, the petition shall likewise be accompanied by a
certification/resolution from the Benefits Review Committee and/or Flag Clearing
Committee stating its findings and recommendation.

APPEALS

• Court of Appeals – Petition for Review (Rule 43)

• Supreme Court – Petition for Review on Certiorari (Rule 45)

TYPES OF COVERAGE

 Compulsory Coverage
 Voluntary Coverage

Compulsory Coverage

 All employees not over sixty (60) years of age and their employers;
 Self-employed persons, including but not limited to the following:
o All self-employed professionals;
o Partners and single proprietors of businesses;
o Actors and actresses, directors, scriptwriters and news correspondents who
do not fall within the definition of the term "employee" in Section 8 (d) of this
Act;
o Professional athletes, coaches, trainers and jockeys; and
o Individual farmers and fishermen.
 the employer
 Any foreign government, international organization of their wholly-owned
instrumentality employing workers in the Philippines or employing Filipinos outside
of the Philippines, may enter into an agreement with the Philippine Governments for
the inclusion of such employee in the SSS.
Voluntary Coverage

 Spouses who devote full time to managing the household and family affairs, unless
they are also engaged in other vocation or employment which is subject to
mandatory coverage, may be covered by the SSS on a voluntary basis.
 Filipinos recruited by foreign-based employers for employment abroad may be
covered by the SSS on a voluntary basis.

SSS BENEFITS

https://www.sss.gov.ph/sss/DownloadContent?fileName=SUMMARY

PROHIBITED ACTS

 make or cause to be made false statement or representation as to any compensation

paid or received or whoever makes or causes to be made any false statement of a
material fact in any claim for any benefit payable under the Act, or application for
loan with the SSS, or whoever makes or causes to be made any false statement,
representation, affidavit or document in connection with such claim or loan;

 obtain or receive any money or check under the Act or any agreement thereunder,
without being entitled thereto with intent to defraud any member, employer or the
SSS;

 buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or
gives in pledge, except as authorized in the Act or in regulations made pursuant
thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant to
Section 23 for the collection or payment of contributions required herein;

 with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon,
ticket, book or other device prescribed by the Commission for the collection or
payment of any contribution required herein, or uses, sells, lends, or has in his
possession any such altered, forged or counterfeited materials, or makes, uses, sells
or has in his possession any such altered, forged, material in imitation of the material
used in the manufacture of such stamp, coupon, ticket, book or other device

 fails or refuses to comply with the provisions of the Act or with the rules and
regulations promulgated by the Commission
GOVERNMENT SERVICE INSURANCE SYSTEM

R.A. 8291

• The Government Service Insurance System Act of 1997

• Approved on May 30, 1997

COMPULSORY MEMBERSHIP

• Membership in the GSIS shall be compulsory for all employees receiving compensation
who have not reached the compulsory retirement age, irrespective of employment status.

EXCLUDED FROM MEMBERSHIP

 Armed Forces of the Philippines and

 the Philippine National Police,
o subject to the condition that they must settle first their financial obligation
with the GSIS, and contractuals who have no employer and employee
relationship with the agencies they serve
 members of the judiciary and constitutional commissions who shall have life
insurance only

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
the Act.

BENEFITS

• Life Insurance
• Retirement
• Separation
• Unemployment
• Disability
• Survivorship
• Funeral
• Employees Compensation

LIFE INSURANCE

All members of GSIS have compulsory life insurance coverage classified into two types:
• Life Endowment Policy (LEP). Designed to provide members with life insurance coverage
while still in active service, LEP provides maturity benefits to policy holders upon reaching
the maturity of their policy.
• Enhanced Life Policy (ELP). It provides an automatic yearly insurance coverage to new
members of GSIS based on their monthly compensation. ELP is designed to provide an
enhanced death benefit for the family of the deceased member.

RETIREMENT

• Retirement under RA 8291

• Retirement under RA 660
• Retirement under RA 1616
• Retirement under PD 1146
• Retirement under RA 7699

RA 8291
Effective June 24, 1997

 Eligibility
o You must have rendered at least 15 years of service and must be at least 60
years old upon retirement; and
o You must not be a permanent total disability pensioner.
 Retirement Benefit
o Option 1: Lump sum and old-age (basic monthly) pension
 Lumpsum–equivalenttoyour60-month(or5-
year)basicmonthlypension(BMP) payable at the time of retirement;
and
 BMP–payableforlifeafterthe5-yearguaranteedperiod

o Option 2: Cash payment and old-age (basic monthly) pension

o Cash Payment – equivalent to 18-month BMP payable upon
retirement; and
o Immediate BMP – payable for life from the date of retirement.

PD 1146
Effective May 31, 1977

 Eligibility
o You must have rendered at least 15 years of service and must at least be 60
o years old upon retirement; and
o Your date of retirement or separation is prior to June 24, 1997.
 Benefits
o Option 1: Lump sum and old-age (basic monthly) pension
 Lumpsum – equivalent to your 60-month (or 5 year) basic monthly
pension (BMP) payable at the time of retirement; and
 BMP–payableforlifeafterthe5-yearguaranteedperiod
 o Option 2: Cash payment and old-age (basic monthly) pension
o Cash Payment – equivalent to 18 – month BMP payable upon
retirement; and
o Immediate BMP – payable for life from the date of retirement

RA 1616 (Gratuity Benefit)

Effective May 31, 1957

 Eligibility
o You must have entered government service before June 1, 1977;
o You must have rendered at least 20 years of service regardless of age and
employment status; and
o Your last 3 years of service prior to retirement must be continuous, except in
cases of death, disability, abolition, or phase-out of position due to
reorganization.
 Benefits
o Gratuity pay or benefit. This is payable by your last employer. Its computation
is based on your total length of service (converted into gratuity months), as
follows:
o Gratuity Months Factor
First 20 years of service x 1 month
21-30 years of service x 1.5 months
In excess of 30 years of service x 2 months
o Refund of retirement premiums. These consist of your personal share with
interest) and government share (without interest), both of which are payable
by the GSIS.

RA 660 (Magic 87)

Effective June 16, 1951

 Eligibility
o You must have entered government service before June 1, 1977;
o Your appointment status must be permanent;
o Your last 3 years of service prior to retirement must be continuous, except in
cases of death, disability, abolition, or phase-out of position due to
reorganization; and
o You must be at least 52 years old and meet the corresponding years of
service (YOS) required for eligibility.

Under this law, your age when you retired (from age 52 to 57) and YOS should be equal to
87, hence, the “Magic 87” formula: Age + Service = 87
  Benefits Your annuity under this law depends on your retirement age. It is detailed in
the table below.

Retirement age Benefit

63 and above 5-year lump sum
Below 63 but at least 60 Initial 3-year lump sum payable upon retirement; &
Subsequent 2-year balance payable at age 63

Below 60 Monthly pension paid annually – with discount

Note that after the 5-year guaranteed period, within which you obtained any of the above
benefit, you shall be entitled to a monthly pension for life.

RA 7699 (The Portability Law)

Effective May 1, 1994

 RA 7699 is another retirement law that you can apply for only if:
o You are not entitled for pension benefit from either or both the GSIS or Social
Security System (SSS) because you are unable to meet the required periods of
service or number of contributions; and
o You have less than 120 months of SSS contributions or less than 180 months
of creditable government service (GSIS) at the time of retirement. (In
computing, there should be no overlapping of periods of service or
contributions under the GSIS and SSS.)

The Portability Law provides for totalization, the process of adding up the period of
creditable services or contributions under both SSS and GSIS for purposes of eligibility and
computation of benefits.

Separation

The Separation benefit is given to employees who have not reached the retirement age of
60 but have been separated from the service.
 Eligibility and Benefits
 If the member has been in the service for at least three years but less than 15 years,
and below 60 years of age:
o Cash payment equivalent to 100% of the Average Monthly Compensation
(average salary in the last three years) for every year of service payable upon
reaching age 60.
 If the member has been in the service for at least 15 years and is below 60 years of
age:
o Cash payment equivalent to 18 times the Basic Monthly Pension (BMP)
payable upon separation and monthly pension for life starting at age 60.

o BMP= (.025) x (AMC +700) x Period with Paid Premiums

Unemployment or Involuntary Separation

 The unemployment benefit is paid when permanent government employees who

have paid the required 12 months integrated contributions under RA 8291 are
involuntarily separated from the service as a result of the abolition of their office or
position usually resulting from reorganization.

 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.

Disability

 Disability refers to any loss or impairment of the normal functions of the physical
and/or mental faculties of members, which permanently or temporarily prevents
them to continue with work or engage in any other gainful occupation resulting in
the loss of income.

Kinds of Disability

• Permanent Total Disability;

• Permanent Partial Disability; and
• Temporary Total Disability

Permanent Total Disability

 disability due to injury or disease causing complete, irreversible and permanent

incapacity that will permanently disable a member to work or to engage in any
gainful occupation resulting to loss of income. The following disabilities are deemed
total and permanent:
o complete loss of sight for both eyes;
o loss of two limbs at or above the ankle or wrists;
o permanent complete paralysis of two limbs;
o brain injury resulting in incurable imbecility or insanity; and
o such other cases as may be determined and approved by GSIS

Permanent Total Disability Benefits

 Members who become permanently and totally disabled are entitled to the monthly
income benefits for life equivalent to the basic monthly pension (BMP) effective
from the date of disability. In addition to the monthly income benefits for life, a cash
payment equivalent to 18 times the basic monthly pension (BMP), will be paid to
members who were in the service at the time of the permanent total disability and
who have paid a total of 180 monthly contributions.

 Separated members who have at least three years of service and become
 permanently and totally disabled but have not paid a total of at least 180 monthly
contributions prior to the disability are entitled only to cash payment equivalent to
100% of their average monthly compensation for each year of service with paid
contributions but not less than twelve thousand pesos (Php12,000.00).

Permanent Partial Disability

 arises due to the complete and permanent loss of the use of any of the following
resulting to the disability to work for a limited period of time:
o any finger
o one arm
o one foot
o any toe
o one hand
o one leg
o one or both ears
o hearing of one or both ears
o sight of one eye
o such other cases as may be determined and approved by the GSIS

 The period of entitlement to PPD benefit is determined after due medical evaluation;
but such period of entitlement to the benefit will not exceed 12 months for the same
contingency. Only the leave of absence/s without pay incurred during the period of
entitlement, duly certified by the authorized officer of the agency where members
are employed, is compensable.

Temporary Total Disability

 accrues or arises when the impaired physical and/or mental faculties can be
rehabilitated and/or restored to their normal functions, but such disability will result
in temporary incapacity to work or to engage in any gainful occupation.

Temporary Total Disability Benefits

 The period of entitlement to TTD benefit is determined after due medical evaluation
and proof of actual loss of work resulting in loss of income by way of the incurred
actual number of days of leave of absence/s without pay duly certified by the
authorized officer of the agency where members are employed; but such period of
entitlement to the benefit should not exceed 120 days in one calendar year.

 However, if the disability requires more extensive treatment that lasts beyond 120
days, the payment of TTD may be extended by GSIS but not to exceed a total of 240
days. Only the leave of absence/s without pay incurred during the period of
entitlement is compensable.

 Entitlement, however, starts from the fourth day of the disability. The amount of
 TTD benefit is computed by multiplying 75% of the daily salary of members by the
number of days of disability based on the medical evaluation but not to exceed 240
days for the same contingency. However, the computed daily salary shall not be less
than Php70.00 but not to exceed Php340.00 per day.

Survivorship

 survivorship benefit of surviving spouses of members and pensioners even if they are
gainfully employed and receiving other sources of income or pension.
 Eligibility Requirements:
o When a member or pensioner dies, the primary beneficiaries (surviving legal
spouse and dependent children) or secondary beneficiaries, as the case may
be, shall be entitled to the applicable survivorship benefits.
o The primary beneficiaries [1] shall be the following:
 The legitimate spouse, until s/he re-marries, or co-habits/engages in
common-law relationship; and
 The dependent legitimate, legally adopted or legitimated children,
including illegitimate children, who have not reached the age of
majority, or, have reached the age of majority but incapacitated and
incapable of self-support due to a mental or physical defect acquired
prior to age of majority.
 The secondary beneficiaries shall be the dependent parents and, subject to the
restrictions on dependent children, the legitimate descendant

Funeral

 GSIS provides a Php30,000.00 funeral benefit to the following:

o An active member;
o A member who has been separated from the service but who is entitled to
future separation or retirement benefit;
o An member who is an old age pensioner;
o A retiree who at the time of his retirement was of pensionable age under RA
8291 but who opted to retire under RA 1616; and
o A member who retired under RA 1616 prior to the effectivity of RA 8291 with
at least 20 years of service, regardless of age.

Prescriptive Period

 Claims for benefits under the Act except for life and retirement shall prescribe after
four (4) years from the date of contingency.