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Social Security System

RA 8282
Policy
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 families against
the hazards of disability, sickness, maternity, old-age, death
and other contingencies resulting in loss of income or
financial burden. (Sec. 2, RA 8282)
Effectivity

May 24, 1997

Vision
A viable social security institution providing universal
and equitable social protection through world-class
service.
Vision
A viable social security institution providing universal
and equitable social protection through world-class
service.
Overview
The concept of social security evolved from an age-old
search of man for protection against poverty.
a social insurance program for employees in the
Philippines.
Founded in 1957, the SSS is a government agency that
provides retirement and health benefits to all paid up
employees in the Philippines.
Legislative History
On Jan. 26, 1948, Pres. Manuel A. Roxas proposed a bill seeking
to establish a social security system for wage earners and
low-salaried employees.

Pres. Elpidio Quirino created the Social Security Study


Commission on July 7, 1948.

In 1954, Rep. Floro Crisologo, Senators Cipriano Primicias and


Manuel Briones introduced bills based on the report of the
Social Security Study Commission
enacted into Republic Act (RA) 1161, better known as the Social
Security Act of 1954

In 1957, amendatory bills were presented in Congress. These bills


were the bases of RA 1792, which amended the original Social
Security Act.

On Sep. 1, 1957, the Social Security Act of 1954 or the Social Security
Law (SS Law) was finally implemented

In 1993, household helpers earning at least P1,000 were included in


the compulsory coverage of employees.
On May 1, 1997, Pres. Fidel V. Ramos signed RA 8282,
further strengthening the SSS. Also known as the
Social Security Act of 1997

Social Security provides replacement income for


workers in times of death, disability, sickness,
maternity and old age.
Programs
The SSS is the social institution that members immediately turn to
in times of financial need brought on by real life contingencies such
as sickness, maternity, disability, retirement, work injury, or
death. However, it has also provided its members with short-term
loan programs from which they can borrow for personal purposes.

Member Loans
Business Loans
Housing Loan
Member Loans
Salary Loan

A cash loan granted to an employed, currently- paying self-employed or voluntary


member. It is intended to meet the member's short-term credit needs.

A one-month salary loan is equivalent to the average of the member-borrower's latest


posted 12 Monthly Salary Credits (MSCs), or amount applied for, whichever is lower.

A two-month salary loan is equivalent to twice the average of the member-borrower's


latest posted 12 MSCs, rounded to the next higher monthly salary credit, or amount
applied for, whichever is lower.

The net amount of the loan shall be the difference between the approved loan amount
and all outstanding balance of short-term member loans.
Business Loans
SSS is a reliable partner in the government's economic
stabilization program through SSS' massive purchases
of T-notes and T-bills. By investing heavily in
government securities, SSS indirectly supports the
government construction of roads, bridges, irrigation
networks, dams, and other infrastructure necessary
for the growing economy.
Business Loans
Business Development Loan Facility

Social Development Loan Facility

Fixed-Term Credit Facility

ASENSO Program (Access of Small Enterprises to Sound


Lending Opportunities
Business Development Loan Facility

lending facility of the Social Security System (SSS)

designed to contribute to the nation's economic


growth and development

providing financial assistance to the business sector


Social Development Loan Facility

a lending facility of the Social Security System (SSS)

designed to provide long-term loan assistance for the


development of facilities and establishments of
institutions that provides quality education or other
academic training programs and affordable medical or
health care related services to the general population
and to SSS members and their dependents.
Fixed-Term Credit Facility

is a lending facility of the Social Security System (SSS)

designed to provide sustainable fixed-term credit


facility to SSS accredited participating financial
institutions (PFIs) for re-lending to eligible private
enterprises
Access of Small Enterprises to Sound Lending
Opportunities (ASENSO)

formerly SULONG Program by the government


financial institutions (GFIs)

designed to give small and medium enterprises (SMEs)


greater access to short and long term funds by
simplifying and standardizing the lending procedures.
Housing Loans
Direct Housing Loan Facility for Workers' Organization
Members

Direct Housing Loan Facility for OFWs

House Repair/Improvement Loan

Assumption of Mortgage
Direct Housing Loan Facility for Workers'
Organization Members

aims to provide socialized and low-cost housing to


workers who are bonafide members of duly registered
and accredited workers' organizations.

WOMs refer to any association of workers in the


private sector duly registered with the DOLE, the
Securities and Exchange Commission, or the
Cooperative Development Authority.
Direct Housing Loan Facility for OFWs

designed to support the Government's shelter


program, which aims to provide socialized and low-
cost housing to overseas Filipino contract workers.

The property subject of the loan must be occupied by


the owner-borrower or his/her immediate family
member upon purchase of the unit.
Housing Loan for Repairs and/or
Improvements

a lending program of the Social Security System (SSS)


available either directly from the SSS or thru its
accredited participating financial institutions (PFIs).
Assumption of Mortgage

is a lending program of the Social Security System


(SSS) allowing a member in good standing to assume
the updated principal balance of an existing SSS
housing loan.
Compulsory Coverage
Coverage of Employees

a. A private employee who is not over 60 years old


b. A household-helper earning at least P1,000 a month is
covered starting Sept. 1, 1993.

A household-helper is any person who renders domestic or


household services exclusively to a household employer such
driver, gardener, cook, governess, and other similar
occupations.
c. A Filipino seafarer upon the signing of the standard
contract or employment between the seafarer and
the manning agency which, together with the foreign
ship owner, act as employers.

d. An employee of a foreign government, international


organization or their wholly-owned instrumentality
based in the Philippines, which entered into an
administrative agreement with the SSS for the
coverage of its Filipino workers.
Coverage of Employers

An employer, or any person who uses the services of another person in


business, trade, industry or any undertaking.

A social, civil, professional, charitable and other non-profit


organization which hire the services of employees are considered
employers.

A foreign government, international organization or its wholly-owned


instrumentality such as embassy in the Philippines, may enter
into an administrative agreement with the SSS for the coverage
of its Filipino employees.
Coverage of Self-Employed Persons

A self-employed person, regardless of trade, business or occupation,


with an income of at least P1,000 a month and not over 60 years
old, should register with the SSS.

Included but not limited to are the following self-employed persons:


self-employed professionals; business partners, single proprietors
and board directors; actors, actresses, directors, scriptwriters and
news correspondents who do not fall with the term employee;
professional athletes, coaches, trainers and jockeys; farmers and
fisherfolks; and workers in the informal sector such cigarette
vendors, watch-your-car-boys, hospitality girls, among others.
RP v. Asiapro Cooperative
Respondent Asiapro, as a cooperative, is composed of
owners-members. Its primary objectives are to
provide savings and credit facilities and to develop
other livelihood services for its owners-members.

In the discharge of the aforesaid primary objectives,


respondent cooperative entered into several Service
Contracts with Stanfilco a division of DOLE
Philippines, Inc. and a company based in Bukidnon.
RP v. Asiapro Cooperative
The owners-members do not receive compensation or wages
from the respondent cooperative. Instead, they receive a
share in the service surplus

The owners-members get their income from the service


surplus.

In order to enjoy the benefits under the Social Security Law of


1997, the owners-members of the respondent cooperative,
who were assigned to Stanfilco requested the services of the
latter to register them with petitioner SSS as self-employed
and to remit their contributions as such
RP v. Asiapro
SSS sent a letter to Asiapro that based on the Service
Contracts it executed with Stanfilco, respondent
cooperative is actually a manpower contractor supplying
employees to Stanfilco and for that reason, it is an
employer of its owners-members working with
Stanfilco. Thus, respondent cooperative should register
itself with petitioner SSS as an employer and make the
corresponding report and remittance of premium
contributions in accordance with the Social Security Law
RP v. Asiapro
Although the aforesaid provision speaks merely of claims for
Social Security, it would necessarily include issues on the
coverage thereof, because claims are undeniably rooted in
the coverage by the system.

In determining the existence of an employer-employee


relationship, the following elements are considered: (1) the
selection and engagement of the workers; (2) the payment of
wages by whatever means; (3) the power of dismissal; and (4)
the power to control the worker's conduct, with the latter
assuming primacy in the overall consideration.
RP v. Asiapro
In determining the existence of an employer-employee
relationship, the following elements are considered: (1)
the selection and engagement of the workers; (2) the
payment of wages by whatever means; (3) the power of
dismissal; and (4) the power to control the worker's
conduct, with the latter assuming primacy in the overall
consideration.
RP v. Asiapro
All elements are present in this case.

First. It is expressly provided in the Service Contracts that it is the


respondent cooperative which has the exclusive discretion in the selection
and engagement of the owners-members as well as its team leaders who
will be assigned at Stanfilco.

Second. The weekly stipends or the so-called shares in the service surplus
given by the respondent cooperative to its owners-members were in
reality wages

Third. The respondent cooperative which has the power to investigate,


discipline and remove the owners-members and its team leaders who
were rendering services at Stanfilco.

Fourth. It is the respondent cooperative which has the sole control over the
manner and means of performing the services.
SSS v. CA

Whether or not an agricultural laborer who was hired on


"pakyaw" basis can be considered an employee
entitled to compulsory coverage and corresponding
benefits under the Social Security Law.
SSS v. CA
SC:
There was no shred of evidence to show that Tana was only a
seasonal worker. All witnesses, including Ayalde, testified that
Tana and his family resided in the plantation. The only logical
explanation for this set up was that Tana was working for most
part of the year exclusively for Ayalde.

A closer scrutiny of the records revealed that while Ayalde may not
have directly imposed on Tana the manner and methods to follow
in performing his tasks, she did exercise control through her
overseer. Under the circumstances, the relationship between
Ayalde and Tana has more of the attributes of employer-employee
than that of an independent contractor hired to perform a specific
project.
Lazaro v. SSC
Is a sales supervisor of a company engaged in the sale of home
appliances an employee of such company?

SSC, as upheld by the Court of Appeals, found that Laudato was a


sales supervisor and not a mere agent. As such, Laudato oversaw
and supervised the sales agents of the company, and thus was
subject to the control of management as to how she implements
its policies and its end results. SC disinclined to reverse this finding,
in the absence of countervailing evidence from Lazaro and also in
light of the fact that Laudato's calling cards from Royal Star
indicate that she is indeed a sales supervisor.
SSC v. Alba
Whether an administrator could be considered an
employer? Yes.

Far Alba was no ordinary administrator. He was no less


than the son of the hacienda's owner and as such he
was an owner-in-waiting prior to his father's death.
SSC v. Alba
Lamboso testified that he was selected and his services
were engaged by Far Alba himself. Corollarily, Far Alba
held the prerogative of terminating Lamboso's
employment. Lamboso also testified in a direct
manner that he had been paid his wages by Far Alba.
This testimony was seconded by Lamboso's co-worker.
SSC v. Alba
Not to be forgotten is the definition of an employer under
Article 167 (f) of the Labor Code which deals with
employees' compensation and state insurance fund. It
defines a person as "any individual, partnership, firm,
association, trust, corporation or legal representative
thereof". Plainly, Far Alba, as the hacienda
administrator, acts as the legal representative of the
employer and is thus an employer within the meaning of
the law liable to pay the SS contributions.
Voluntary Coverage
Coverage of Separated Members
A member who is separated from employment or ceased
to be self-employed/OFW/non-working spouse and
would like to continue paying his/her contributions.

Coverage of Overseas Filipino Workers (OFWs)


A Filipino recruited in the Philippines by a foreign-based
employer for employment abroad; having a source of
income in the foreign country; and permanent resident
in a foreign country.
Coverage of non-working Spouse of
SSS Members
A person legally married to a currently employed and
actively paying SSS member who devotes full time in
the management of household and family affairs
may be covered on a voluntary basis provided there
is approval of the working spouse. The person should
never have been a member of the SSS. The
contributions will be based on 50% of the working
spouses last posted monthly salary credit but in no
case shall it be lower than P1,000.
Effectivity of coverage
Compulsory coverage
1. For an employee on the first day of employment
2. For an employer on the first day the employer
hires employee/s.
Employer is given 30 days from date of
employment to report the employee for coverage
to SSS.
3. For self-employed upon payment of first valid
contribution, in case of initial coverage.
Voluntary coverage

1. For OFW upon first payment of contribution, in


case of initial coverage.
2. For non-working spouse upon first payment of
contribution.
3. For separated member on the month the person
resumed payment of contribution.
Legal Dependents of Member
The legal beneficiaries of a member are:
Legally married dependent spouse until he or she
remarries;
Dependent legitimate, legitimated or legally adopted
and illegitimate children.
These two are primary beneficiaries.
If single, benefits will go to dependent parents who are
considered secondary beneficiaries.
In absence of both primary and secondary, any other
person designated by member.
Dependents
(1) The legal spouse entitled by law to receive support
from the member;

(2) The legitimate, legitimated or legally adopted, and


illegitimate child who is unmarried, not gainfully
employed, and has not reached twenty-one (21) years of
age, or 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

(3) The parent who is receiving regular support from the


member
SSS v. Bailon
Clemente G. Bailon (Bailon) and Alice P. Diaz (Alice)
contracted marriage in Barcelona, Sorsogon.

More than 15 years later, Bailon filed before the then


Court of First Instance (CFI) of Sorsogon a petition to
declare Alice presumptively dead.

By Order, the CFI granted the petition.


SSS v. Bailon
Close to 13 years after his wife Alice was declared
presumptively dead, Bailon contracted marriage with
Teresita Jarque (respondent) in Casiguran, Sorsogon.

Bailon, who was a member of the Social Security System


(SSS) since 1960 and a retiree pensioner thereof, died.

Respondent thereupon filed a claim for funeral benefits,


and was granted P12,000 by the SSS
SSS v. Bailon
Cecilia Bailon-Yap (Cecilia), who claimed to be a daughter
of Bailon and one Elisa Jayona (Elisa) contested before
the SSS the release to respondent of the death and
funeral benefits.

She claimed that Bailon contracted three marriages in his


lifetime, the first with Alice, the second with her mother
Elisa, and the third with respondent, all of whom are still
alive; she, together with her siblings, paid for Bailon's
medical and funeral expenses; and all the documents
submitted by respondent to the SSS in support of her
claims are spurious
SSS v. Bailon
SSS cancelled the pension.

Respondent protested asserting that her marriage with


Bailon was not declared before any court of justice as
bigamous or unlawful, hence, it remained valid and
subsisting for all legal intents and purposes as in fact
Bailon designated her as his beneficiary.

When raised to SSC, it held that Teresita Jarque-Bailon is


not the legitimate spouse and primary beneficiary of SSS
member Clemente Bailon.
SSS v. Bailon
SC:

In interfering with and passing upon the CFI Order, the SSC virtually acted as
an appellate court. The law does not give the SSC unfettered discretion to
trifle with orders of regular courts in the exercise of its authority to determine
the beneficiaries of the SSS.

In the case at bar, as no step was taken to nullify, in accordance with law,
Bailon's and respondent's marriage prior to the former's death in 1998,
respondent is rightfully the dependent spouse-beneficiary of Bailon.
Employment services excluded
1. Purely casual employment and not for the purpose of occupation
or business of the employer
2. Services performed or in connection with an alien vessel by an
employee if he/she is employed when such vessel is outside the
Philippines
3. Services performed in the employ of the Philippine government
4. Service performed in the employ of a foreign government or
international organization, or their wholly-owned instrumentality
unless there is an agreement with the Philippine Government for
the inclusion of such employees in the SSS
5. Such other temporary services performed by temporary
employees which may be excluded by regulation. Employees of
bona fide independent contractors shall not be deemed
employees of the employer engaging the service of said
contractors.
Duties of employee-members
Among others:

Secure SS number
Ensure they are reported for coverage by their
employers
Pay their monthly share.
Duties of employer-members
Among others:

Require presentation of SS number of prospective employee

Report all employees for SS coverage within 30 days from


date of employment

Deduct from the employees the monthly SS contributions


based on schedule of contributions; pat their share of
contributions including Employees Compensation and remit
these contributions to SSS or accredited banks within first 10
calendar days following the month when said contributions
are due and applicable

Submit a summary of all contributions


Issue official receipts and maintain official records of employment
and deductions

Remit to SSS all salary, educational, stocks investment or


privatization loan amortization of their employees and submit a
form

Submit a summary of all employees loan amortization

Advance SS and EC sickness benefits once approved by SSS

Advance SS maternity benefits due

File for reimbursement for all legally advanced sickness and


maternity benefits
Benefits under social security program

Covered employees are entitled to a package of


benefits under social security and EC in the event of
death, disability, sickness, maternity, and old-age

Self-employed and voluntary members also get same


benefits except those benefits under the EC program
Sickness benefit
A daily cash allowance paid for the number of days a member is unable to
work due to sickness or injury. The amount is equivalent to 90% of the
members average daily salary credit.

Requirements:

1. He is unable to work due to sickness or injury and confined either in a


hospital or at home for at least 4 days;

2. He has paid at least 3 months of contributions within the 12-month


period immediately before the semester of sickness/injury

In computing, exclude the semester of sickness. A semester refers to two


consecutive quarters ending in the quarter of sickness. A quarter refers to
three consecutive months ending March, June, September or December.
3. He has used up all company sick leaves with pay; and

4. He has notified the employer or SSS, if separated,


voluntary or self-employed.
Notify employer within 5 calendar days after start of
sickness/injury and employer must notify SSS within 5
days after receipt of notification.

Notice is not required if members confinement is in


hospital or member got sick while working or within
company premises.
For example: SSS member gets sick in October 2006 for
20 days.

a. The semester of sickness would be from July 2006 to


December 2006.
b. The 12-month period would be from July 2005 to June
2006 (where the six highest monthly salary credits
will be chosen).
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 be carried forward and added to the total
number of compensable days allowable in the
subsequent year.
Effect of failure or delay in
notification
If employees notifies beyond period, confinement shall be
deemed to have started not earlier than the fifth day.

If employer notifies beyond period, employer shall be


reimbursed only for each day of confinement starting from
the 10th calendar day immediately preceding the date of
notification to SSS.

If employee notified the employer but the latter failed to


notify SSS, employer shall have no right to recover the daily
sickness allowance advanced.
Prescribed period in filing a claim of a member
confined in hospital/home:

1. For hospital, claim for benefit must be filed within 1


year from last day of confinement;
2. For home, 1 year from start of illness.
Failure to file the claim within the prescribed period
will result to denial of claim.
Maternity Benefit
It is a daily cash allowance granted to female member
who was unable to work due to childbirth or
miscarriage.

It is equivalent to 100% of members average daily


salary credit multiplied by 60 days for normal delivery
pr miscarriage, 78 days for caesarian section delivery.
Qualifications for entitlement:
1. She has paid at least three monthly contributions
within the 12-month period immediately preceding
the semester of her childbirth or miscarriage

1. She has given the required notification of her


pregnancy through her employer if employed, or to
SSS if separated, voluntary or self-employed.
For example: SSS member gives birth in December 2016.

a. The semester of contingency would be from July 2016


to December 2016.

a. The 12-month period before the semester of


contingency would be from July 2015 to June 2016.
Deliveries covered:

Only for the first four deliveries or miscarriages shall be paid


starting May 24, 1997 (effectivity of RA 8282)

Notice required:

As soon as pregnancy is confirmed, member must notify


immediately employer or SSS, if unemployed, etc. and
probable date of childbirth at least 60 days from date of
conception. Employer must in turn notify SSS after receipt
of notification. Failure to observe the rule may result in
denial.
Can a member apply for sickness benefit if she has
been paid maternity benefit?

No, because as a rule, no member can be entitled to two


benefits for the same period.
Disability Benefit
Disability any restriction or lack (lack from
impairment) of ability to perform an activity in the
manner or within the range considered normal for a
human being.

Impairment any loss or abnormality of psychological,


physiological, or anatomical structure or function.
Who is qualified?

A member who suffers partial or total permanent


disability with at least one monthly contribution paid
to the SSS prior to the semester of contingency.
Some partial permanent disabilities:

one thumb one big toe


one index finger one hand
one middle finger one arm
one ring finger one foot
one little finger one leg
hearing of one ear one ear
hearing of both ears both ears
sight of one eye
Some total permanent disabilities:
1. Complete loss of sight of both eyes
2. Loss of two limbs at or above the ankles or wrists
3. Permanent complete paralysis of two limbs
4. Brain injury resulting to incurable imbecility or
insanity
5. Such cases as determined and approved by SSS
Ortega v. SSC
Claims under the Labor Code for compensation and
under the Social Security Law for benefits are not the
same as to their nature and purpose.

On the one hand, the pertinent provisions of the


Labor Code govern compensability of work-related
disabilities or when there is loss of income due to work-
connected or work-aggravated injury or illness.
Ortega v. SSC
On the other hand, the benefits under the Social Security Law
are intended to provide insurance or protection against the hazards
or risks of disability, sickness, old age or death, inter alia,
irrespective of whether they arose from or in the course of the
employment.

And unlike under the Social Security Law, a disability is total


and permanent under the Labor Code if as a result of the injury or
sickness the employee is unable to perform any gainful occupation
for a continuous period exceeding 120 days regardless of whether
he loses the use of any of his body parts.
Types of disability benefits:
Monthly pension cash benefit paid to a disabled
member who has paid at least 36 monthly
contributions to the SSS prior to the semester of
disability.

In addition to monthly pension, supplemental


allowance of P500 is paid to the total or partial
disability pensioner.

Lump sum amount granted to those who have not


paid the required 36 monthly contributions.
Is monthly pension for life?
The member who suffers from permanent total
disability shall receive monthly pension for life.
However, the said monthly pension shall be
suspended: (1) if he recovers from his permanent
total disability; (2) if he resumes employment; (3) if
he fails to report for annual physical exam upon
notice by SSS. Domiciliary service (if member is
unable to report to SSS for exam) can be requested.
The member who suffers from permanent partial
disability shall receive his monthly pension for the
duration of a certain number of months assessed
based on the degree of his disability.

Prescriptive period in filing a disability claim:

10 years from the date of occurrence of disability.


Retirement Benefit

It is a cash benefit either in monthly pension or lump


sum paid to a member who can no longer work due to
old age.
Who may qualify?
1. A member who is 60 years old, separated from
employment or ceased to be self-employed, and has
paid at least 120 monthly contributions prior to the
semester of retirement.

2. A member who is 65 years old whether employed


or not and has paid at least 120 monthly
contributions prior to the semester of retirement.
Dycaico v. SSS
Sec. 12-B. Retirement Benefits.
xxx xxx xxx
(d) 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. . . .
Dycaico v. SSS
SSC opined that under Section 12-B(d) of Rep. Act No.
8282, the primary beneficiaries who are entitled to
survivor's pension are those who qualify as such as of
the date of retirement of the deceased member.

Hence, the petitioner, who was not then the legitimate


spouse of Bonifacio as of the date of his retirement,
could not be considered his primary beneficiary.
Dycaico v. SSS
SC:
The proviso "as of the date of his retirement" in
Section 12-B(d) of Rep. Act No. 8282, which qualifies
the term "primary beneficiaries," is unconstitutional
for it violates the due process and equal protection
clauses of the Constitution.
For Underground Mineworkers:

1. Has reached the age of 55 years old and is an underground


mineworker for at least 5 years (either continuous or
accumulated) prior to the semester of retirement but whose
actual date of retirement is not earlier than March 13, 1998;
separated from employment or in the case of self-employed,
has ceased self-employment, and has paid at least 120
monthly contributions prior to the semester of retirement.

2. has reached the age of 60 years old whether employed or


not and has paid at least 120 monthly contributions prior to
the semester of retirement.
Types of retirement benefits:
1. Monthly pension

2. Lump sum amount

Aside from retirement benefit, retiree is entitled to a 13th month


pension payable every December.

All retiree pensioners prior to effectivity of RA 7875 on March 4,


1995 are automatically considered members of PhilHealth
and he and his legal dependents are entitled to its
hospitalization benefits.
Death Benefit
It is a cash benefit either in monthly pension or lump
sum paid to the beneficiaries of a deceased member.

Types of death benefit:


1. Monthly pension
2. Lump sum amount
Beneficiaries:
Primary: (1) Legitimate dependent spouse until the
person remarries; (2) dependent legitimate,
legitimated or legally adopted and illegitimate
children who are not yet 21 years old.
Secondary: In the absence of primary, dependent
parents.
In their absence, any other person designated by
member in record.
Signey v. SSS

Who is entitled to the social security benefits of a


Social Security System (SSS) member who was
survived not only by his legal wife, but also by two
common-law wives with whom he had six children?
Signey v. SSS
In the case at bar, the existence of a prior subsisting
marriage between the deceased and Editha is supported
by substantial evidence. Petitioner, who has fully availed
of her right to be heard, only relied on the waiver of
Editha.

SSC found (affirmed by CA and SC) based on the SSS field


investigation report that even if Editha was the legal wife, she
was not qualified to the death benefits since she herself
admitted that she was not dependent on her deceased
husband for support inasmuch as she was cohabiting with a
certain Aquilino Castillo.
Signey v. SSS
Whoever claims entitlement to the benefits provided by law
should establish his or her right thereto by substantial
evidence.
Since petitioner is disqualified to be a beneficiary and
because the deceased has no legitimate child, it follows
that the dependent illegitimate minor children of the
deceased shall be entitled to the death benefits as primary
beneficiaries. The SSS Law is clear that for a minor child to
qualify as a "dependent, the only requirements are that
he/she must be below 21 years of age, not married nor
gainfully employed.
SSS v. De Los Santos
The obvious conclusion then is that a wife who is
already separated de facto from her husband cannot
be said to be "dependent for support" upon the
husband, absent any showing to the contrary.
Conversely, if it is proved that the husband and wife
were still living together at the time of his death, it
would be safe to presume that she was dependent
on the husband for support, unless it is shown that
she is capable of providing for herself.
SSS v. De Los Santos
Respondent herself admits that she left the conjugal
abode on two (2) separate occasions, to live with two
different men. The first was in 1965, less than one year
after their marriage, when she contracted a second
marriage to Domingo Talens. The second time she left
Antonio was in 1983 when she went to the US, obtained a
divorce, and later married an American citizen.
In fine, these uncontroverted facts remove her from
qualifying as a primary beneficiary of her deceased
husband.
Monthly pension depends on members paid
contributions, including the credited years of service
(CYS) and the number of dependent minor children but
not to exceed five.

In addition to death benefit, beneficiaries are entitled to


13th month pension payable every December and funeral
benefit expenses which is paid to whoever shouldered
the funeral expenses of the deceased member. Funeral
grant is P20,000 (effective Sept. 1, 2000).
If deceased member is survived by legitimate, legitimated or
legally adopted and illegitimate children, how is monthly
pension to be divided?

If survived by less than five, the illegitimate minor children


will be entitled to 50% of the share of the legitimate,
legitimated or legally adopted and 100% of the dependents
pension (equivalent to 10% of the members monthly pension
or P250 whichever is higher). Only five minor children,
beginning from the youngest, are entitled to dependents
pension. When there are more than 5, the legitimate,
legitimated or legally adopted shall be preferred.
For how long will the dependent child receive the
pension?
When the child reaches 21 years old, gets married, gets
employed or dies. However, the dependents pension is
granted for life to children who are over 21 years old,
provided they are incapacitated and incapable of self-
support due to physical or mental disability which is
congenital and acquired during minority.
Contributions
SSS 10.4% of the monthly salary credit not exceeding
P15,000 and payable by both employer (7.07%) and
employee (3.33%) effective Jan. 1, 2007.

EC Starting Jan. 1, 2007, P10 for a monthly salary credit


of P14,500 and below and P30 for employees with an
MSC of P15,000 and payable only by employer.
SS Number
The SS number assigned to a member is the lifetime number and must
always be used in all transactions with the SSS. The member should not
secure another number at any other time.

If the member wishes to secure another SS card and cannot remember


the SS number, it is advisable to inquire from the SSS servicing branch.

If a member has more than one SS number, this will cause delay in
processing of the claim for benefits or loans in the future. Thus, it is important
that a member should have only one SS number. Therefore, he/she should
write or visit the SSS servicing branch to request for the cancellation of the
other number/s and consolidation of all of the contributions under the
retained number. From then on, the retained number should be used in all
transactions with the SSS.
Right to Institute
Sec. 22 - The right to institute the necessary action
against the employer may be commenced within
twenty (20) years from the time the delinquency is
known or the assessment is made by the SSS, or from
the time the benefit accrues, as the case may be.
Lo v. CA
Private respondents application was denied because the SSS records
showed that he became a member only in 1983, and contributions
in his favor were remitted only from October 1983 to September
1984. As private respondent knew that SSS contributions were
deducted from his salary since compulsory SSS coverage took
effect in 1957, he filed a petition with the Social Security
Commission against Jose Lo and his son Rafael Lo, who took over
the management of the company. The Commission upheld private
respondent's claim and ordered petitioner and Jose Lo to remit to
the SSS the unpaid contribution in favor of private respondent,
including penalties and charges.
Lo v. CA
Petitioner filed a petition for review with the Court of Appeals, which
affirmed the decision of the Commission. When the appellate court
denied his motion for reconsideration, petitioner filed this petition
for review by certiorari. He contended that the lower court erred in
ruling that the claim had not yet prescribed. Petitioner claimed
that Payment of SS premium, as stated in the Decision, is an
obligation created by law hence, without need of demand, it
becomes due on the date when such payment should be made.
Hence, under Article 1150 [of the Civil Code], the right of action to
recover unremitted SS premium accrues on the date it is payable
and may be brought beginning such date.
Lo v. CA
SC:
Supreme Court dismissed the petition, and affirmed the decision of the
Court of Appeals. Section 22 (b), par. 2, of Republic Act No. 1161, or the SSS
Law, expressly provides that the right to institute the necessary action
against the employer may be commenced within twenty years from the
time the delinquency is known or the assessment is made by the SSS, or
from the time the benefit accrues, as the case may be. The provision is
clear that the period of prescription commences to run only upon the
discovery of the violation, which took place in 1985. When the complaint
was filed on August 14, 1985, less than one year had passed since private
respondent discovered the delinquency. Therefore, the claim was timely
instituted.
Penal Clause
Who are liable and what are the penalties.
Who can file?
(i) Criminal action arising from a violation of the provisions of
this Act may be commenced by the SSS or the employee
concerned either under this Act or in appropriate cases under
the Revised Penal Code: Provided, That such criminal action
may be filed by the SSS in the city or municipality where the
SSS office is located, if the violation was committed within its
territorial jurisdiction or in Metro Manila, at the option of the
SSS.
Garcia v. SSC
SSC found Garcia, the sole surviving director of Impact
Corporation, petitioner herein, liable for unremitted
SSS contributions.
Issue is whether or not petitioner, as the only surviving
director of Impact Corporation, can be made solely
liable for the corporate obligations of Impact
Corporation pertaining to unremitted SSS premium
contributions and penalties therefore.
Garcia v. SSC
Petitioner challenges the finding of the Court of Appeals
that under Section 28 (f) of the Social Security Law, a
mere director or officer of an employer corporation,
and not necessarily a "managing" director or officer,
can be held liable for the unpaid SSS premium
contributions.
Garcia v. SSC
Section 28 (f) of the Social Security Law provides the
following:
(f) If the act or omission penalized by this Act be
committed by an association, partnership, corporation
or any other institution, its managing head, directors
or partners shall be liable to the penalties provided in
this Act for the offense.
Garcia v. SSC
SC:
This Court though finds no need to resort to statutory
construction. Section 28 (f) of the Social Security Law imposes
penalty on:
(1) the managing head;
(2) directors; or
(3) partners, for offenses committed by a juridical person
The said provision does not qualify that the director or partner
should likewise be a "managing director" or "managing
partner. The law is clear and unambiguous
Garcia v. SSC
Although a corporation once formed is conferred a
juridical personality separate and distinct from the
persons comprising it, it is but a legal fiction
introduced for purposes of convenience and to
subserve the ends of justice. The concept cannot be
extended to a point beyond its reasons and policy,
and when invoked in support of an end subversive of
this policy, will be disregarded by the courts.
Tan v. Ballena
In answer to criminal complaint for violation of SS law,
petitioners interposed the defenses of lack of criminal
intent and good faith as their failure to remit was
brought about by alleged economic difficulties, and
they have already agreed to settle their obligations
with the SSS through a memorandum of agreement to
pay in installments.
Tan v. Ballena
SC:
As held by the Court of Appeals, the claims of good faith
and absence of criminal intent for the petitioners'
acknowledged non-remittance of the respondents'
contributions deserve scant consideration. The
violations charged in this case pertain to the SSS Law,
which is a special law. As such, it belongs to a class of
offenses known as mala prohibita.
Social Security Commission
Composed of the Secretary of Labor and Employment or
his duly designated undersecretary, the SSS president
and seven (7) appointive members, three (3) of whom
shall represent the workers group, at least one of whom
shall be a woman; three (3), the employers group, at
least one (1) of whom shall be a woman; and 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.
To carry out the purposes of this Act, the Social
Security System, hereinafter referred to as SSS, a
corporate body, with principal place of business in
Metro Manila, Philippines is created.

The System shall be directed and controlled by the


SSC.
Any dispute arising under RA 8282 with respect to
coverage, benefits, contributions and penalties thereon
or any other matter related thereto, shall be cognizable
by the Commission, and any case filed with respect
thereto shall be heard by the Commission, or any of its
members, or by hearing officers duly authorized by the
Commission and decided within twenty (20) days after
the submission of the evidence. The filing, determination
and settlement of disputes shall be governed by the
rules and regulations promulgated by the Commission.
SSS v. Atlantic Gulf
Which body has jurisdiction to entertain a controversy
arising from the non-implementation of a dacion en
pago agreed upon by the parties as a means of
settlement of private respondents' liabilities?
SSS v. Atlantic Gulf
From the allegations of respondents' complaint, it
readily appears that there is no longer any dispute
with respect to respondents' accountability to the SSS.
Respondents had, in fact, admitted their delinquency
and offered to settle them by way of dacion en pago
subsequently approved by the SSS.
SSS v. Atlantic Gulf
The controversy lies in the non-implementation of the
approved and agreed dacion en pago on the part of the
SSS. As such, respondents filed a suit to obtain its
enforcement which is, doubtless, a suit for specific
performance and one incapable of pecuniary
estimation beyond the competence of the
Commission.
Court Review. The decision of the Commission upon any disputed matter
may be reviewed both upon the law and the facts by the Court of Appeals. For
the purpose of such review, the procedure concerning appeals from the
Regional Trial Court shall be followed as far as practicable and consistent with
the purposes of this Act. Appeal from a decision of the Commission must be
taken within fifteen (15) days from notification of such decision. If the decision
of the Commission involves only questions of law, the same shall be reviewed
by the Supreme Court. No appeal bond shall be required. The case shall be
heard in a summary manner, and shall take precedence over all cases, except
that in the Supreme Court, criminal cases wherein life imprisonment or death
has been imposed by the trial court shall take precedence. No appeal shall act
as a supersedeas or a stay of the order of the Commission unless the
Commission itself, or the Court of Appeals or the Supreme Court, shall so
order.
Criminal offenses for violations of the law are within the
jurisdiction of the regular courts.