G S l S Government Service Insurance System Financial Center, Pasay City, Metro Manila 1308 POLICY AND PROCEDURAL GUIDELINES NO. $/5°/7 FUNCTIONAL AREA: Claims DISTRIBUTION : All Senior Vice Presidents SUBJECT MATTER : All Vice Presidents All Managers Operations Groups Actuarial and Risk Management Group Controller Group Financial Management Group Legal Services Group information Technology Services Group Corporate Services Group Internal Audit Services Office Corporate Communications Office TOTALIZATION SCHEME UNDER R.A. No. PORTABILITY LAW BACKGROUNDIRATIONALE Republic Act (R.A.) No. 7699, 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, or otherwise known as the Portability Law, was approved on 1 May 1994 with the primary purpose of improving the so security benefits of people - who have worked in both private and government sectors - by instituting “a scheme for totalization and portability of social security benefits” Section 3 of the Portability Law states that, “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 (should be ‘creditable’) 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 PROCESSING OF GSIS BENEFITS USING THE 7699H overlapping periods of membership shall be credited only once for purposes of totalization.” The passage of R.A. 7699 helped workers who, without the totalization scheme. would not be eligible for monthly pension, disability or survivorship benefits under the GSIS or Social Security System (SSS) or both Pursuant to Section 6 of R.A. 7699, the GSIS, together with the SSS, Department of Labor and Employment (DOLE), and Civil Service Commission (CSC) signed the Rules and Regulations Implementing Republic Act No. 7699 on 16 August 1994. Section 3, Rule V: Totalization, under the IRR on RA 7699 states: “Section 3. Totalization shail apply in the following instances: ) If @ worker is not qualified for any benefits from both Systems; 6) If a worker in the public sector is not qualified for any benefits in the GSIS; or ©) If a worker in the private sector is not qualified for any benefits from the SSS. For the purpose of computation of benefits, totalization shall apply in all cases so that the contributions made by the worker-member in both Systems shall provide maximum benefits which otherwise will not be available. in no case shall the contribution be lost or forfeited.” ‘A Memorandum of Agreement (MOA) was also executed between the GSIS and SSS last 16 August 1994, defining the responsibilities of the two social security systems with respect to documenting the creditable services of members and applying these in the computation of their benefits under each System. The GSIS has already been applying the Portability Law since its adoption, but there has been no single uniform interpretation or application of this law, and no codified GSIS-specific or GSIS-made policy on it OBJECTIVES This PPG aims to: A. Identify the applicable benefits under GSIS law in which the Totalization Scheme may be applied; B. Ensure uniform understanding and implementation of the totalization scheme under R.A. 7699 or the Portability Law.; and Page 2 of 9C. Provide clear cut guidelines and procedures in the processing of retirement benefits under R.A. 7699 or Portability Law for retiring or separated members. Ill, DEFINITION OF TERMS A. Benefit = under the Portability Law, shall refer to the following: Old-age benefit, Disability benefit, Survivorship benefit, Sickness benefit, Medicare benefit, and such other benefits common to both GSIS and SSS that may be availed of through totalization'. However, Disability, Sickness and Medicare benefits shall NOT be extended to GSIS members claiming under the Portability Law, as totalization is no longer applicable for these benefits, B. Overlapping of - periods during which a worker simultaneously periods contributes to both Systems?. And, for purposes of totalization, overlapping of periods are counted only once’. C. Periods of - periods during which a person renders services for an Contributions employer (a self-employed person is considered an (PoC) employee and employer at the same time) with ‘compensation or salary, and during which contributions were paid to the SSS‘. D. Periods with - computed periods of service of a regular member while Paid Premiums in government service where the corresponding (PPP) compulsory premium contributions were actually paid and remitted to GSIS for such period. It is also used as one of the factors in the computation of Basic Monthly Pension (BMP) for retirement benefit and pension, and Cash Payment for separation benefit. E. Total Length of - sum equivalent of all services rendered by a member in Service (TLS) any government agency, regardless of status, which is a basis in determining his eligibility to avail of loans and benefits as GSIS member. F. Totalization - process of adding up the periods of creditable services ‘or contributions under each of the Systems, for purposes of eligibility and computation of benefits’. ‘Rule IL. Section 1. of the Rules and Regulations Implementing Republic Act No. 7699, 16 August 1994. Rule IIL. Section 1. of the Rules and Regulations Implementing Republic Act No. 7699, 16 August 1994. >Rule V. Section 7 of the Rules and Regulations Implementing Republic Act No. 7699, 16 August 1994. ‘Rule Il. Seetion 1.g. ofthe Rules and Regulations implementing Republic Act No. 7699, 16 August 1994, Rule IIL Section Ie. ofthe Rules and Regulations Implementing Republic Act No. 7699, 16 August 1994. Page 3of9IV. POLICIES A. Coverage This PPG covers all active and inactive members of the GSIS who transferred to (or have records of services in) the private sector and vice versa, who have not met the service requirements to qualify to GSIS or SSS benefit but would like to avail of Old-Age Pension under the GSIS. B. Documentary Requirements GSIS members applying for benefit under R.A. 7699 shall be required to submit the following: 4. GSIS Application for Retirement under R.A. 7699 Form, with a filled-out SSS Certification portion showing the POC, whereby the certifying official must be at least a Branch Manager of the issuing SSS Branch Office; or 2. In the absence of the filled-out SSS Certification portion, the GSIS Application for Retirement under R.A. 7699 and a Certification from SSS showing the POC, whereby the certifying official must be at least a Branch Manager of the issuing SSS Branch Office, C. Totalization of Services and Eligibility to GSIS Benefits 4. Totalization of services shall only be applied if all of the following conditions are met: ‘a. The TLS of a GSIS member is less than fifteen (15) years; b. The POC of the member with the SSS is less than ten (10) years, and ¢. The combined TLS and POC of the member, less overlapping of periods, shall result in the member meeting the minimum length of service to qualify for GSIS pension. To illustrate: Detail serum Qualification i] Jess than 15 years TLS Totalization shall be appli and less than 10 years POC The member shall be entitled to and pro-rata pension only (and pension TLS + POC - overlap is 15 years | accrual, if any), without 18-month or more or 5-year lump sum retirement benefits. Page 4 of 92. Totalization \all be applied particularly for the member-worker to qualify for GSIS pension, The amount of pension to be paid by the GSIS shall be proportionate to the contributions made by the member to the GSIS (the PPP), and shall not take into consideration any contributions made to the SSS nor overlapping of periods, even with the totalization of services. To illustrate: Details Qualification 7 years PPP (8 years TLS) Totalization shall be applied. and 9 years POC The member shall be entitled to with pro-rata pension only (and pension 1.5 years overlap accrual, if any), without 18-month thus. ‘or 5-year lump sum retirement TLS + POC - overlap = 15.5 benefits, based on PPP of 7 years. | J All other rules and policies of the GSIS shall, at all times, apply in the computation of GSIS benefits. Totalization of services shall NOT apply if: a. The TLS of the member with the GSIS is 15 years or more, making him or her eligible to retire under R.A. 8291. Accordingly, his or her application for benefits under R.A. 7699 shall be disapproved; or b. The POC with SSS of the worker is 10 years or more, regardless of the number of years of the TLS of the member with the GSIS, making him or her eligible to retire under R.A. 8282. Accordingly, he or she may be qualified to Cash Payment with the GSIS, provided that the TLS is 3 years ‘or more but less than 15 years; or c. The sum of the TLS and POG, less overlapping periods, is less than 15 years. Accordingly, he or she may be qualified to Cash Payment with the provided that the TLS is 3 years or more but less than 15 yea To illustrate: Details ______ Qualification za] 15 years or more TLS Tolalization shall NOT be applied The member is entitled to GSIS Page 5 of 8Details Qualification retirement and pension. ess than 15 years TLS Totalization shall NOT be applied. and 10 years or more POC The member shall be advised to retire under SSS, and GSIS shall process Separation benefit, if TLS is 3 years or more less than 15 years TLS Totalization shall NOT be applied. and ess than 10 years POC The GSIS shail process and ‘Separation benefit, if TLS is 3 TLS + POC - overlap is less than years or more 15 years a 4. In case totalization is not applicable, the GSIS member shall be paid whatever benefits correspond to his or her contributions to the GSIS, subject to its existing rules and policies. D. Entitlement to Other GSIS Benefits and Loan Privileges 4. A GSIS retiree-pensioner under Portability Law shall be eligible to avail of the loan programs of GSIS for its pensioners, unless otherwise explicitly excluded 2. Upon the death of a GSIS pensioner under R.A. 7699, the surviving legal heirs shall be entitled to Survivorship Pension and Funeral Benefit, subject to existing policies. 3. A GSIS retiree-pensioner under the Portability Law shall NOT be entitled to the following other benefits: Minimum pension of Php 5,000; Annual pension increases; Annual Christmas Cash Gift for pensioners; ‘One-time pension benefit (Php10,000); Milestone benefit; and Other benefits as may be defined by future GSIS policies and/or resolutions. reaege Page 6 of 94, The Disability, Sickness and Medicare benefits which are included in the Rules and Regulations Implementing R.A. No. 7699 shall NOT be extended to GSIS members claiming under the Portability Law® E. Prescription of Benefits under the Totalization Scheme 4. If the Totalization Scheme under R.A. 7699 is applicable as defined above, the member-worker shall be entitled to GSIS pension, and therefore the benefit under Portability Law shall not prescribe. Otherwise, the existing policies on prescription of benefit/s shall apply. To illustrate Details Qualification i Tess than 15 years TLS Totalization shall be applied. and less than 10 years POC The member shall be entitled to and pension. TLS + POC — overlap is 15 years or more Date of Retirement: 1995 Date of Retirement shall not matter. | Applied today Retirement Benefit shall not at age 60 prescribe. | | Last Sector: SSS ‘Last Sector’ and ‘Sector served the | longest’ shall not matter. | less than 15 years TLS Totalization shall NOT be applied. | and less than 10 years POC and TLS + POC — overlap is less than 15 years Date of Retirement: 2011 ‘The Separation benefit of the member shall be subject to Applied on January 2016 prescription. at age 63 Last Sector: SSS “The TLS or the PPP is not considered in the benefit qualifications, thus totalization is not applicable Page 7 of 92. A deceased member-worker who applied for retirement benefit under RA 4616, RA 660, PD 1146 or RA 8291 and was found to be ineligible to the benefit applied for, shall be evaluated for eligibility to the retirement benefit under the Portability Law; Provided that the retirement application has been filed with the deceased member-worker's agency or the GSIS prior to his or her death, In case the deceased member-worker is eligible to the said benefit under Portability Law, the retirement proceeds shall be paid to his or her surviving legal heirs and the survivorship pension shall commence in accordance with the existing rules on survivorship benefit. V. SYSTEM AND PROCEDURAL REQUIREMENTS: The ITSG shall provide the necessary system access, support, and automation enhancement, if any, to efficiently and effectively implement this PPG. VI. PROCEDURES The MOO on Claims Administration shall be revised to adhere to the following general guidelines: Responsible Unit Activity Central | Branch Office Office 7. Receive claim application for retirement under RA 7699 — Portability Law. . Check the presence of showing the POC SSS Certification | | 2.1. If with SSS Certification, proceed to Activity| Frontline | Members 3. Services | Assistance Unit (FSU) | Unit (MAU) 2.2 If without SSS Certification, inform the claimant of the deficiency. 3. Log into the TMS and forward to the Claims Unit for processing. 4, Process the relirement claim. Ensure that the Ciaims Unit indicated POC in the field “TLS in SSS" is net of, ‘Overlapping of Periods and in value of years. End of Process Page 6 of 9VII. INFORMATION DISSEMINATION ‘The Corporate Communications Office shall prepare the information materials for the dissemination of this PPG. Vill. REPEALING CLAUSE All Office Orders, Circulars, Policy and Procedural Guidelines inconsistent herewith are hereby superseded, modified or repealed accordingly. Ix. EFFECTIVITY This PPG shall take effect immediately and prospectively. ORIGINAL SIGNED ATTY. NORA MALUBAY-SALUDARES Officer-in-Charge, Office of the President and General Manager Date signed: SEP_0 ¢ 2017 Page 9 of 9