DEFINE LIFE

LABOR LAWS

Bar Review on Social Welfare Legislation

By Olive Cachapero

De La Salle University-College of Law

SSS LAW

Social Security System Law RA 8282

	Compulsory Coverage	Voluntary Coverage (disregard classification of ER/EE)	Excluded
Employer (must report person for coverage w/n 30 days from date of EE’s employment)	a) ER/any p who uses the services of another p in business, trade, industry/any undertaking (including social, civic, professional, charitable & other non-profit org w/c hire services of EE) b) Foreign gov, int’l org or its wholly-owned instrumentality such as an embassy in the Phi, may enter into an admin agreement w/ the SSS for the coverage of its Filipino EEs (employed in the Phil or outside Phil)	a) Separated members (or ceased to be self-employed/OFW/non-working spouse who wishes to continue paying – effective on the month he resumed payment of contribution b) OFWs – effective upon first payment of contribution, in case of initial coverage c) Non-working spouses of SSS members (w/ approval of working spouses) – effective upon first payment of contribution Ø should never have been an SSS member. Contributions will be based on 50% of the working spouse’s last posted MSC[1] but in no case lower than P1K	Government and its political subdivisions, branches, instrumentalities, including GOCCs w/ orig charters
Employee (effective on the 1^st day of employment)	a) Private EE (whether permanent, temporary, provisional) who is NOT over 60yo b) Domestic worker/kasambahay who has rendered at least 1 month of service c) Filipino seafarer upon the signing of the standard contract of employment bet. seafarer & manning agency (w/c acts as ER together w. the foreign ship owner) d) EE of letter b above e) Parent, spouse of child BELOW 21 yo of the owner of a single proprietorship business		a) Employment purely casual and not for occupation/business of ER b) Service performed on/in connection w/ an alien vessel by an EE if he is employed when such vessel is outside the Phil c) Service performed in the employ of Phil Gov/ instru/agency d) Letter b of compulsory coverage for ER e) Such other services performed by temporary and other EEs w/c may be excluded by regulation of Social Security Commission
Self-employed (Effective upon registration w SSS or upon payment of 1^st valid contribution)	Regardless of trade, business or occupation, w/ an income of at least P1K/month and NOT over 60yo, should register w/ SSS: a) Self-employed professionals b) Business partners, single proprietors & board directors c) Actors, actresses, directors, scriptwriters & news reporters (not under EE-ER rel) d) Professional athletes, coaches, trainers & jockeys e) Farmers & fisherfolks f) Workers in the informal sector (cigarette vendors, watch-your-car boys, etc)

Dependents, Beneficiaries

Primary Beneficiaries	Secondary Beneficiaries
1) Dependent Spouse (until he/she remarries) 2) Dependent legitimate, legitimated, legally adopted, and illegitimate children who are BELOW 21 yo Ø Illegitimate children shall be entitled to 50% of the share of the legitimate, legitimated, legally adopted, except when there are none, illegitimate children will receive 100%	1) Dependent parents, in the absence of the primary beneficiaries 2) Any other person designated by the member as his secondary beneficiary, in the absence of ALL the foregoing primary b. and dependent parents

SSS Benefits; Classifications

1) Social Security Benefits (SM-RDD)

i) Sickness – daily cash allowance paid for the number of days a member is unable to work due to sickness/injury.

ii) Maternity – daily cash allowance granted to a female member (married or not) who was unable to work due to childbirth or miscarriage.

iii) Retirement – cash benefit either in monthly pension or lump sum paid to a member who can no longer work due to old age.

iv) Disability – permanent total or permanent partial disability monthly pension or lump sum amount.

v) Death and Funeral – cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member.

2) Employees’ Compensation Benefits

SICKNESS BENEFITS

Qualifications	1) He is unable to work due to sickness/injury and confined either in a hospital/at home for at least 4 days 2) Has paid at least 3 mos of contributions w/n the 12 month period immediately before the semester of sickness has been paid 3) When all company sick leaves w/pay for the current year has been used up 4) ER has been notified, or, if separated, voluntary, self-employed member, the SSS directly.
Amount	90% of member’s average daily salary credit Computation: i) Count 12 mos backwards, starting from the month immediately before the sem of sickness ii) Identify the 6 highest MSC w/n the 12 month pd iii) Add the 6 highest MSC and divide by 180days to get the average daily salary credit (ADSC) iv) Multiply ADSC BY 90% to get daily sick allowance v) Multiply daily sick allowance by approved # of days to get benefit due
Limitation	Max of 120 days; No carrying forward to following year. Cannot be more than 240days because it shall be considered disability
Payment	a) For employed { Advanced by ER every regular payday { SSS will reimburse ER upon receipt of satisfactory proof of payment and legality thereof b) For unemployed, self-employed, voluntary members { Paid directly by SSS to the member
Prescriptive pd	Claim benefit or reimbursement w/n 1 yr from last day of hospital confinement, or from start of illness for home confinement.

MATERNITY BENEFITS

Qualifications	1) Has paid at least 3 mos of contributions w/n the 12 month period immediately preceding her childbirth or miscarriage 2) She has given required notification of her pregnancy through her ER (if employed), or to the SSS (if separated, voluntary, self-employed). Ø Notice given at least 60 days from date of conception, of the pregnancy and the probable date of childbirth Ø Accomplish Maternity Notification Form for notice to SSS (by ER or the member) Ø submit proof of pregnancy together with the Form
Amount	100% of member’s average daily salary credit a) 60 days – for normal delivery b) 78 days – for caesarean section delivery Computation: Multiply ADSC to 60 or 78 days
Limitation	Max of 4 deliveries or miscarriage; cannot apply for sickness benefits during the 60 day or 78 day period
Payment	c) For employed { Advanced by ER every regular payday { SSS will reimburse ER upon receipt of satisfactory proof of payment and legality thereof { If ER failed to notify SSS or failed to remit contributions, ER shall pay SSS damages equivalent to the benefits the EE would otherwise have been entitled to d) For unemployed, self-employed, voluntary members { Paid directly by SSS to the member
Notes	Not part of 13^th month pay

RETIREMENT BENEFITS

Qualifications	1) a member who is 60 yo, separated from employment, or ceased to be self-employed, and has paid at least 12o monthly contributions prior the semester of retirement OR 2) A member who is 65 yo, whether employed or not, and has paid at least 12o monthly contributions prior the semester of retirement For Underground Mineworkers 1) 55 yo, at least 5 yrs of work prior to the sem of retirement (continuous or accumulated), paid 120 monthly contributions prior to the sem of retirement OR 2) 60yo whether employed or not
Amount	Monthly Pension[2] The highest* of:* a) The sum of P300 + 20% of the average monthly salary credit (AMSC) + 2% of the AMSC for each CYS in excess of 10 years; or b) 40% of the AMSC; or c) P1,200, provided that the CYS is at least 10yrs or more but less than 20yrs, or P2,400, if CYS is 20 or more. The monthly pension is paid for not less than 60mos (because min. year of service as provided by law is 5yrs). Lump Sum Amount[3] { It is equal to the total contributions paid by the member and by the ER including interest. { A retiree has the option to receive the first 18 monthly pension in lump sum discounted at a preferential rate of interest to be det. by the SSS. the option should be exercised upon filing of the first retirement claim. dependents’ pension and 13^th month pensions are excluded in the 18 month lump sum pension. The member will receive month pension on the 19^th month and every month thereafter.
Effect of Resumption of Employment	{ Monthly pension shall be suspended and member shall again be subjected to compulsory coverage. { At 65yo, whether employed or not, he can already claim retirement benefit.
Other benefits	1) 13^th month pension payable every December 2) Hospitalization Benefits (HB) a) Retiree prior effectivity of RA 7875 (National Health Insurance Act, March 4, 1995) – automatically considered as members of PhilHealth and he and his dependents are entitled to HB b) Retirees effective March 4, 1995 up t resent – entitled to HB under PhilHealth only if they have contributed 120 monthly Medicare contributions
Dependent’s Pension	Qualification: Conceived on or before date of retirement Limitations: i) Max of 5 dependents; from youngest; If more than 5, legitimate will be preferred. ii) No substitution allowed. iii) Must be born on/before the contingency (retirement). iv) Will stop receiving if the child reaches 21, marries, dies, or becomes employed. But a child who is incapacitated and incapable of self-support due to physical/mental defect which is congenital or acquired during minority, shall be granted the benefit for life Amount: Equivalent to 10% if member’s monthly pension or P250, whichever is higher.
If retiree dies	{ Primary beneficiaries – entitled to 100% of monthly pension and the dependents to dependents’ pension. { If retiree dies within 60mos from start of monthly pension and has no primary b, the secondary b shall be entitled t a lump sum benefit equivalent to the total monthly pensions corresponding to the 5-year guaranteed period excluding dependents’ pension.

DISABILITY BENEFITS

Qualifications	A member who suffers partial or total disability with at least 1 monthly contribution paid to the SSS prior to the semester of contingency
Disability	Permanent Total Disabilities Lifetime Pension 1) Complete loss of sight of both eyes 2) Loss of 2 limbs at or above the ankle 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 the SSS. Permanent Partial Disabilities (The income benefit shall be paid beginning with the 1^st month of disability, but no longer than the designated # of months in the ff schedule: Complete and permanent loss of the use of; # of month One thumb (10) One index finger (8) One middle finger (6) One right finger (5) One little finger (3) One big toe (6) Any toe (3) One hand (39) One arm (50) One foot (31) One leg (46) One ear (10) Both ears (20) Hearing of one ear (10) Hearing of both ears (50) Sight of one eye (25)
Amount	Monthly Pension[4] Based on member’s number of paid contributions and the years of membership. ü Lowest monthly pension is P1K for members with 1 CYS; ü P1,200 w/ at least 10 CYS ü P2,400 with at least 20 CYS Lump Sum Amount[5] 1) Permanent Total Disability - equal to the monthly pension times the # of monthly contributions paid to SSS, or 12 times the percentage of disability, whichever is higher. 2) Permanent partial disability – equal to the monthly pension times the # of monthly contributions times the percentage of disability in relation to the whole body, or the monthly pension times 12 times the percentage of disability, whichever is higher.
Effect of Recovery	{ Monthly pension shall be suspended if member recovers from illness, resumes employment or fails to report for physical exam (at least once a year) when notified by SSS.
Other benefits	1) Supplemental allowance of P500 as additional financial assistance to meet the extra needs arising from the disability 2) Hospitalization Benefits (HB) a) Retiree prior effectivity of RA 7875 (National Health Insurance Act, March 4, 1995) – automatically considered as members of PhilHealth and he and his dependents are entitled to HB b) Retirees effective March 4, 1995 up t resent – entitled to HB under PhilHealth only if they have contributed 120 monthly Medicare contributions and have reached age 60.
Dependent’s Pension	{ Only the dependents of a totally disabled pensioner. { Same rules with retirement benefits.
If retiree dies	1) For totally disabled, same with retirement benefits 2) For partially disabled, if he retires or dies, pension STOPS.
Prescriptive Pd	File disability claim within 10 years from date of occurrence of disability.

DEATH AND FUNERAL BENEFITS

Amount	Monthly Pension[6] Same with retirement benefits. Lump Sum Amount[7] 1) Primary B., entitled to the higher of: a) Monthly pension times the # of monthly contributions paid prior to the sem of death, or b) 12 times monthly pension 2) Secondary b. a) 36 times monthly pension (if member has paid at least 36 monthly contri prior to the sem of death; or b) monthly pension times # of monthly contributions paid or 12 times monthly pension, whichever is higher (if member has paid less than 36 monthly contri prior to the sem of death)
Other benefits	1) 13^th month pension payable every December 2) Funeral benefits paid to whoever who shouldered it Funeral Benefit – minimum of P20k to a maximum of P40k, depending on the member’s paid contributions and CYS.
Dependent’s Pension	{ Same rules with retirement benefits and disability benefits.
Note	{ If deceased member has not paid any single contribution but was reported for coverage, his primary or secondary b. shall be entitled to funeral benefits only

GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

RA 8291

Compulsory Membership

Exclusions

1) All gov personnel, whether elective/appointive, irrespective of status of appointment, provided they are receiving fixed monthly compensation & have not reached the mandatory retirement age of 65 years

2)EEs who have reached the retirement age of 65 or more shall also be covered, subj to the ff rules:

a) Elective official – was below age 65 at the time of election and will be 65yo or more at the end of his term of office, including the period/s of his re-election to public office w/o interruption

b) Appointive officials – appointed to gov position by the Pres before reaching 65 and shall remain in the gov service at age beyod 65

c) Contractual EEs including casuals and other EEs w/ an EE-gov agency rel., provided they are receiving fixed monthly compen and rendering the req # of working hrs for the month

{ Effective date of membership: upon assumption of duty or election to public office

{ Upon separation from service: continue to be a member and shall be entitled to whatever benefits he has qualified to

1) Uniformed personnel of the AFP, PNP, BJMP & BFP

2) Brgy. and Sanggunian Officials who are NOT receiving fixed monthly compensation

3) Contractual EEs who are NOT receiving fixed monthly compensation

4) EEs who do not have a monthly regular hrs of work and who are NOT receiving fixed monthly compensation

Classes of Membership

1) As to type of members

a) Regular Members – those employed by the gov, national or local, legislative bodies, GOCC w/ orig charters, gov financial institutions, who are req by law to remit regular monthly contributions the GSIS

except: uniformed personnel of the AFP, PNP, Bureau of Jail Mngt and Penology (BJMP) and Bureau of Fire Protection (BFP)

b) Special Members – Constitutional commissioners, members of the judiciary, including those w equiv ranks, who are req by law to remit regular monthly contributions for life insurance policies to the GSIS

2) As to status of membership

a) Active members – regular or special, who is still in gov service together with the gov agency to which he belongs, is req to pay monthly contri

b) Inactive Members – separated from the service either by resignation, retirement, disability dismissal from service, retrenchment or, who is deemed retired from service under this Act.

Beneficiaries

Dependents

Primary Beneficiaries

1) Legal dependent spouse (until he/she remarries

2) Dependent children

Secondary Beneficiaries

1) Dependent parents

2) Legitimate descendants 0 subj to the restrictions on dependent children

1) Legitimate spouse dependent for support upon the member/pensioner

2) Legitimate, legitimated, legally adopted, including illegitimate child

ü unmarried

ü not gainfully employed

ü not over the age of majority, or over but incapacitated and incapable of self-support due to mental or physical defect acquired prior to age of majority

3) Parents dependent upon the member for support

GSIS Benefits: (DRESS-FUL)

1) Disability Benefits

2) Retirement Benefits

3) Compulsory Life Insurance Benefits under the Enhanced Life Policy (ELP)

4) Separation Benefit

5) Survivorship Benefits

6) Funeral Benefits

7) Unemployment Benefit

8) Compulsory Life Insurance Benefits under the Life Endowment Policy (LEP)

Compulsory Life Insurance Benefits under the LEP

Benefits

1) Maturity Benefits – face amount payable to the member upon maturity of the policy

2) Cash Surrender Value – earned values during the term of the insurance payable to the member when he is separated from service BEFORE maturity date of the policy or when he is considered as a case of PTD[8]

3) Death Benefit – face value of the policy payable to designated beneficiary or legal heirs, in the absence of the former, upon the death of a member

4) Accidental Death Benefit – additional benefit equivalent to the amount of Death Benefit when the member dies by accident. Proof must be presented to sufficiently establish that cause of death is accidental.

Ø prescribes 4 years after death

5) Cash Dividend – a policy holder is entitled to dividends subj to the guidelines as approved by the GSIS Board. (not a guaranteed benefit)

Compulsory Life Insurance Benefits under the ELP

Benefits

1) Death Benefit – equiv to the latest annual salary x AOI[9] factor which is 1.5 or 18 x the current monthly salary of the member or as det. by the GSIS; payable to the legal heirs less all indebtedness of the member with the GSIS in accordance with CLIP[10].

2) Termination Value – paid to the member upon his separation from the gov service less all indebtedness of the member with the GSIS in accordance with CLIP. Equivalent to a % of monthly life insurance premiums as det. by the GSIS, due and paid in full

3) Cash Dividend – same with LEP

Retirement Benefits

Amount	Consists of a monthly pension which is computed based on the CYS[11] and AMC[12] for the last 3 years
Eligibility	1) Has rendered at least 15 years of service 2) At least 60yo 3) Is not receiving a monthly pension benefit from PTD.
Retirement Benefit Options	1) 5 year lump sum equiv to 60months of BMP[13], subj to qualification reqs, less all indebtedness of the member with the GSIS in accordance with CLIP + an old-age pension benefit (equal to the BMP payable for life, starting on the 1^st day of the month following the expiration of the 5yr guaranteed period); OR 2) Cash payment benefit equivalent to 18 x BMP, subj to qualification reqs, less all indebtedness of the member with the GSIS in accordance with CLIP + monthly pension for life payableon the 1^st month following the date of retirement.
If retiree died while claims are being processed	1) If opted for 5yr lump sum – legal heirs shall be entitled to the 5yr lump sum benefit equiv to 60 months BMP. · However, the survivorship pension to qualified primary beneficiaries, if any, shall e granted AFTER the end of the 5yr guaranteed period. Must file within 4 years from death 2) If member opted for immediate pension – legal heirs shall be entitled to 18 months of BMP + accrued pension, if any, up to the date of death of the retiree · The survivorship pension shall be paid to qualified primary b., if any, and shall be computed from the death of retiree. Must file within 4 years from death Note: If failed to indicate option, it shall be immediate pension. Law on succession is applied.

Separation Benefits

Amount

1) Members who are separated from service and who have at least 3yrs of service but less than 15 yrs – cash payment equivalent to 100% of member’s AMC for each CYS, but not less than P12K

Ø payable upon reaching 60yo, or upon his separation if already 60yo at the time of separation

2) Cash payment equiv to 18 times BMP + old-age pension equal to the BMP payable monthly for life upon reaching the age of 60

Ø payable at the time of resignation/separation, provided the member resigns/separates from service after he has rendered at least 15 yrs of service and below 60yo

3) Reckoning date of separation of uniformed PNP, BJMP & BFP personnel shall be Feb 1, 1996. The computation of benefit shall be based on their BMP (premium-based) when they ceased to be members of the GSIS

If member died while claims are being processed

1) If member has rendered at least 15 years of creditable service – legal heirs shall be entitled to receive cash payment equiv to 18 months of BMP + accrued pension, if any, up to the date of death of the member

· Thereafter, primary beneficiaries shall be entitled to survivorship pension

2) If member has rendered less than 15 years of creditable service – legal heirs shall be entitled to receive cash payment equiv to 100% of AMC for each year of creditable service, but not less than P12K.

Unemployment Benefits

Conditions	1) He was a permanent EE at the time of separation 2) His separation was involuntary due to the abolition of his office/position resulting from reorganization, and 3) he has been paying the req premium contributions for at least 1 yr but less than 15 yrs prior to separation
Amount	50% of the AMC Shall be paid I accordance with the Schedule in the Implementing Rules.

Disability Benefits

Kinds	1) Permanent Total Disability (PTD) – same with SSS 2) Permanent Partial Disability (PPD) – same with SSS 3) Temporary Total Disability (TTD) – can be rehabilitated o restored to normal functions
Disabilities not covered	A member who suffers permanent disability for reasons due to his ü grave misconduct, ü notorious negligence, ü habitual intoxication, or ü willful intention to kill himself or another
Suspension of benefits	ü re-employed ü recovers from disability, as det. by GSIS, whose decision is final and binding ü fails to present himself for med exam when req by GSIS ü is receiving any other pension either from GSIS or another local or foreign institution or organization
Amount	PTD · Monthly income benefit for life equiv to BMP effective from date of disability Additional: a) Cash payment equiv to 18 x BMP - if member was in service at the time of PTD and who has paid a total of 180 monthly contri OR b) Cash payment equiv to 100% of his AMC for each year of service with paid contributions but not less than P12K – if separated member was in service for at least 3 years and has NOT paid a total of at least 180 monthly contri prior to his PTD PPD · Computed by dividing the BMP by 30 days and x # of compensable calendar days of LWOP[14] · Period of entitlement det. after due medical evaluation but not to exceed 12mos for the same contingency · Only the LWOP incurred during period of entitlement, duly certified by the authorized officer of the agency where he is employed, is compensable TTD · Computed by multiplying 75% of the daily salary by # of days of disability (based on med evaluation, but not to exceed 240days for the same contingency). Ø The computed daily salary shall not be less than P70 but not to exceed P340 per day · Period of entitlement det. after due med evaluation and proof of actual loss of work resulting in loss of income by way of the incurred actual # of days of LWOP duly certified by the authorized officer of the agency where he is employed but not to exceed 120 days in one calendar year. If disability requires more extensive treatment beyond 120days, the payment of TTD may be extended but not to exceed a total of 240days · Only the LWOP incurred during period of entitlement is compensable Note: For computing the benefit of inactive members, the BMP with respect to PTD and PPD, and the daily salary with respect to TTD, shall be computed as of the time of separation from the GSIS.
Conditions	a) In service at the time of disability, or b) if separated, has paid at least 36 monthly contri within the 5yr pd immediately preceding his disability, or has paid a total of at least 180 months contri prior to his disability a) gainfully employed prior to disability resulting in loss of income as evidenced by incontrovertible proof c) not a reg member of any social insurance institution d) not receiving any other pension either from GSIS or another local or foreign institution or organization
Forfeiture of Disability Benefits	Automatic forfeiture if member refuses or deliberately fails to: a) Have himself medically treated by a physician when req by GSIS b) take the prescribed medications, or c) have himself confined in a hospital w/o justifiable reason, when such is req by GSIS d) avail himself of such rehabilitation facilities as may be recommended by GSIS and made available for him, or e) observe such precautionary and/or preventive measures as prescribed by a physician or expressly req of him to prevent the aggravation or continuance of his disability *Upon compliance, may resume if still qualified.

Survivorship Benefits

Benefits	Beneficiaries shall be entitled to whichever is applicable in the ff: 1) Survivorship Pension consisting of: a) Basic Survivorship Pension which is 50% of the BMP; and b) Dependent’s pension equiv to 10% of the BMP for each child but not to exceed 50% of the BMP 2) Cash payment equiv to 18 months BMP 3) Cash payment equiv to 100% of the AMC for every year of service with paid contributions but not less than P12K Survivorship benefits of members in active service: 1) If at the time of death, a member was in the service and has rendered at least 15 years of creditable service: a) Primary b shall receive survivorship pension and cash payment equiv to 18 x BMP, or b) in the absence of primary, secondary b shall receive cash payment equiv to 18 x BMP, or c) in the absence of secondary, legal heirs shall receive cash payment equiv to 18 x BMP. 2) If at the time of death, a member was in the service and has rendered less than 15 years of creditable service, primary b shall receive cash payment equiv to 100% of the AMC for every year of service. Survivorship benefits of members in inactive service: Primary b of inactive members who have at least 15 yrs of creditable service shall receive survivorship pension only. 1) Primary b of inactive members who have at least 3 yrs but less than 15 CYS and were less than 60yo at the time of death - Cash payment equiv to 100% of the AMC for every year of service with paid contributions but not less than P12K 2) Primary b of inactive members who have less than 15 CYS but were at least 60yo at the time of separation and have received separation benefit – Ø NOT entitled to survivorship benefits. Ø However, if member has not received yet his separation benefit within 4 yrs after his separation, primary b shall receive cash payment equiv to 100% of the AMC for every year of service with paid contributions but not less than P12K
Conditions	The primary and secondary b, except dependent children, shall be entitled subj to the ff: a) NOT engaged in gainful occupation b) surviving spoused and deceased member wereliving together as H & W c) not gainfully engaged in a business or economic activity (self-employed), or if he is, receiving income less than the minimum compen of gov EEs d) not receiving any other pension either from GSIS or another local or foreign institution or organization e) In case of dependent spouse, payment to him or her shall discontinue when he or she remarries, cohabits, or engages in common-law rel.
Notes	{ Only the dependent spouse shall receive basic survivorship pension, while dependent children shall receive dependent children’s pension only (not exceeding 5 computed from the youngest and without substitution) { If one dies or becomes emancipated, other heir/beneficiary shall not be entitled to his share which shall be forfeited. { Prescriptive period to claim: 4 years

Funeral Benefits

To whom payable	To any qualified individual, according to the ff order of priority: 1) Legitimate spouse 2) Legitimate child who spent for the funeral services, or 3) Any other p who can show incontrovertible proof that he shouldered the funeral expenses
Amount	1) Prevailing amount approved by the Board of Trustees at the time of death of member 2) For uniformed members of the PNP, BJMP, BFO, fixed at P10K
Conditions	a) An active member or b) a member who has been separated from the service with more than 15 CYS, but entitled to future separation or retirement benefit c) Old age or disability pensioner, or d) a retiree who at the time of his retirement is at least 60yo with at least 20yrs of service but who opts to retire under RA 1616 on or after June 24, 1997, or e) A member who retired under RA 1616 on or after June 24, 1997 with at least 20 yrs of service, regardless of age.

LIMITED PORTABILITY LAW of 1994

RA 7699: An Act Instituting Limited Portability Scheme in the Social Security Insurance System by Totalizing the Workers’ Creditable Services or Contributions in Each of the Systems

{ Totalization – process of adding up the periods of creditable services or contributions under each of the Systems (SSS or GSIS), for the purpose of eligibility and computation of benefits.

{ Portability – refers to the transfer of funds for the account and benefit of a worker who transfers from one system to the other.

{ Applies only when the covered member does not qualify for benefits in either or both Systems without totalization provided, however, that overlapping periods of membership shall be credited only once for purposes of totalization.

{ If worker is still not qualified after totalization, he shall get whatever benefits correspond to his contributions in either or both Systems.

{ Processing of totalization of creditable services or periods of contributions and computation of benefits are the joint responsibility of the GSIS and the SSS.

Creditable services refers to the following:

1) All previous services rendered by an official/EE pursuant to an appointment, whether permanent, provisional or temporary;

2) All previous services rendered by an official/EE pursuant to a duly-approved appointment to a position in the Civil Service with compensation or salary;

3) The period during which an official/EE was on authorized sick leave of absence without pay NOT exceeding 1 yr;

4) The period during which an official/EE was out of the service as a result of illegal termination of his services as finally decided by the proper authorities; and

5) All previous services with compensation/salary rendered by elective officials.

Benefits:

The amount of benefits to be paid by one System shall be in proportion to the services rendered or periods of contributions made to that System.

1) Old-age Benefit

2) Disability Benefit

3) Survivorship Benefit

4) Sickness Benefit

5) Medicare benefit, provided that the member shall claim said benefit from the System where he was last a member, and

6) Such other benefits common to both Systems that may be availed of through totalization.

Totalization applies in the ff instances:

1) If a worker is not qualified for any benefits from both Systems

2) If a worker in the public sector is not qualified for any benefits from the GSIS

3) If a worker in the private sector is not qualified for any benefits from the SSS.

EMPLOYEES’ COMPENSATION BENEFITS

General Coverage:

1) All employers

2) Every EE not over 60yo

3) Any EE over 60yo who had been paying contributions to the System prior to age 60 and has not been compulsorily retired

4) Any EE who is coverable by both the GSIS and SSS and should be compulsorily covered by both Systems

Sectors of EEs covered by the Employees’ Compensation Program (ECP):

1) All public sector EEs including GOCC and LGUs covered by the GSIS

2) All private sector EEs covered by SSS

3) OFWs, namely

a) Filipino seafarers compulsorily covered under the SSS

b) Land-based contract workers provided their ER is engaged in any trade, industry or business undertaking in the Phil

{ Start of coverage: First day of employment

{ Nature of coverage: COMPULSORY

Employees’ Compensation Benefits (ECBs):

1) Medical Benefits – EE is entitled to medical services, appliances and supplies as the nature of his disability and progress of his recovery may require.

{ EE shall be entitled beginning on the 1^st day of injury or sickness and shall continue for as long as he is sick.

{ This duty is not ended even if his employment was terminated.

{ Loss of wages or earning capacity is not required to be proved to be entitled to this benefit.

2) Disability Benefits

a) PTD – EE is unable to perform any gainful occupation for a continuous period exceeding 120 days.

b) PPD – EE suffers a permanent partial loss of the use of any part of his body.

c) TTD – EE is unable to perform any gainful occupation for a continuous period of not exceeding 120 days, except when such disability requires medical attendance beyond 120 days but not to exceed 240 days.

3) Death Benefits

4) Funeral Benefits

Conditions for entitlement to ECBs:

a) The EE has been duly reported to the System (GSIS/SSS);

b) He sustains an injury or contracts sickness, PTD, PPD, TTD, or died as a result of the injury or sickness; and

c) The System has been duly notified of the injury or sickness (which caused his death, for death benefits).

Note:

· The ER shall be liable for the benefit is such illness or injury occurred before the EE is duly reported for coverage to the System.

· Permanent disability – inability of a worker to perform his job for more than 120days, regardless of WON he loses the use of any part of his body

· Total disability – disablement of an EE to earn wages in the same kind of work, or work of a similar nature that he was trained for, or accustomed to perform, or any kind of work which a person of his mentality and attainment could do. Does not require that EE be absolutely disabled or totally paralyzed.

Disability Benefits; Amount Monthly Income Benefit (MIB):

PTD	PPD	TTD
In SSS Equiv to 115% of the sum of the average monthly salary credit multiplied by the replacement ratio and 1 & ½% of the average monthly salary credit for each CYS in excess of 10 yrs; provided that the MIB shall in no case be less than P250; provided, however, that the monthly pension of surviving pensioners shall be increased automatically and simultaneously to the extent that the 15% difference in MIB between employee’s compensation (EC) and SSS and the 20% difference in MIB between EC and GSIS, should be maintained. In GSIS BMP + 20% thereof, but shall not be less tan P250 nor more than the actual salary at the time of contingency. Benefit for Dependent Children 10% of the MIB of the EE · Not exceeding 5,from youngest and w/o substitution · Except the benefit to dep children, the aggregate monthly benefit payable, in the case of the GSIS, shall in no case exceed the monthly wage/salary actually received by the EE as of the date of his PTD	Note: · Shall continue to receive the benefits even if he is gainfully employed and receiving his wage or salary. · If period covered for payment of income benefit exceeds 12mos, the income benefit should be paid in monthly pension; otherwise, it may be paid in lump sum or monthly pension. · Refer to previous PPD enumeration; In case of simultaneous loss of more than 1 member or apart thereof, the same monthly income shall be paid for a period equiv to the sum of the periods established but not exceeding 75months. Loss of a wrist = loss of the hand Loss of an elbow = loss of the arm Loss of an ankle =loss of the leg Loss of more than 1 joint = loss of the whole finger/toe Loss of only the 1^st joint = loss of ½ of the whole finger/toe	Income benefit equiv to 90% of EE’s average daily salary credited as det by the System, subj to the ff conditions: 1) Income benefit shall i) not be more than P200/day for private sector workers ii) not more than P90/day for public sector EEs

Suspension of monthly income benefit:

1) Failure to submit to the System a monthly medical report on his disability certified by his attending physician;

2) Failure to submit himself for examination upon being notified by the System, at least once a year;

3) Complete or full recovery

4) Upon being gainfully employed (except PPD).

DEATH BENEFITS

{ Death – loss of life resulting from an injury or sickness

{ Compensable death – death which is the result of a work-related injury or sickness.

{ Not part of deceased’s estate

{ In presumptive death, payment of benefits shall be reckoned from declaration of presumptive death, or the date specified in the declaration.

Amount of Death Benefits

Primary Beneficiary	Secondary Beneficiary
MIB shall be guaranteed for 5yrs which is no case shall be less than P15K, paid to beneficiaries for as long as they are entitled thereto.	MIB shall be 60 x MIB of primary bene which in no case shall be less than P15K which shall likewise be paid as monthly pension.

FUNERAL BENEFITS

{ Denial of death benefit results to denial of funeral benefits

{ Still entitled to funeral benefits even if the body was not found and that no burial activities were held.

Private Sector	Public Sector
P10K	P30K

*Read pg. 467-475, Chan for the Dependents and Beneficiaries

[1] Monthly Salary Credit – compensation base for contributions and benefits related to the total earnings for the month. Maximum covered earnings/compensation is P15K effective Jan. 1, 2002. Relevant computation for MSC: Identify the 6 highest MSC within 12 months counted immediately before the semester of contingency. (Semester – 2 consecutive quarters; Quarter – 3 consecutive months ending in March, June, Sep, Dec)

[2] Monthly Pension - lifetime cash benefit paid to a retiree who paid at least the 120 monthly contributions. Depends on the member’s paid contributions, including the credited years of service (CYS) and the # of dependent minor children but not to exceed 5.

[3] Lump Sum Amount – granted to a retiree who has not paid the required 120 monthly contribution.

[4] Monthly Pension - cash benefit paid to a disabled member who paid at least the 36 monthly contributions.

[5] Lump Sum Amount – granted to those who have not paid the required 36 monthly contribution.

[6] Monthly Pension - cash benefit paid to a disabled member who paid at least the 36 monthly contributions. Depends on the member’s paid contributions, including the CYS and the # of dependent minor children not exceeding 5.

[7] Lump Sum Amount – granted to those who have not paid the required 36 monthly contribution. The secondary beneficiaries shall be entitled to a lump sum benefit.

[8] Permanent Total Disability

[9] Amount of Insurance

[10] Claims and Loans Interdependency Policy

[11] Creditable Years of Service – include periods of service with the required premium contributions.

[12] Average Monthly Compensation - computed on the basis of the average salary of the member for the last 36mos of creditable service immediately preceding his retirement/separation.

[13] Basic Monthly Pension – computed on the basis of a % of the RAMC (Revalued Monthly Compensation which is AMC + P700) at the rate of 2.5% for every CYS, but in n case shall it exceed 90% of the AMC of the member.

[14] Leave of Absence without Pay

Tuesday, December 5, 2017

Labor Laws: SOCIAL WELFARE LEGISLATION 2017