ra 7699 portability

7/22/2019 RA 7699 portability

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REPUBLIC ACT NO. 7699

The Limited Portability of LawAN ACT INSTITUTING LIMITED PORTABILITY SCHEME IN

THE SOCIAL SECURITY INSURANCE SYSTEMS BYTOTALIZING THE WORKERS' CREDITABLE SERVICES OR

CONTRIBUTIONS IN EACH OF THE SYSTEMS.


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POLICY OF THE STATE (Section 1)

Promotion of the welfare of the workers by recognizing theirefforts in productive endeavors;

Improve of their conditions by providing benefits for their longyears of contribution to the national economy;

Totalization and portability of social security benefits with theview of establishing within a reasonable period a unitary socialsecurity system.

It is includes contributions paid by the employee or worker onaccount of the workers membership to the system, either theGSIS or SSS.


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TOTALIZATION PORTABILITY

The process of adding up the

periods of creditable services

or contributions under each

of the Systems, for purposesof eligibility and computation

of benefits.

The transfer of funds for the

account and benefit of a

worker who transfers from

one system to the other

DEFINITION OF TERMS

OVERLAPPING PERIOD

Period during which a worker simultaneously contributes

to BOTH Systems.


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Who are the covered workers?

1. Those who Transfer employment from public to private

sector or vice versa, or

2. Employed in both private or public sectors


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Method: The Creditable Services

or Contributions in both systemsshall be:

1. Creditedto their service or contribution record in each ofthe systems; and

2. Totalizedfor purposes of old-age, disability, survivorshipand other benefits in case the covered member does notqualify for benefits in either or both systems withouttotalization.

Note: In cases of overlapping periods of membership, it shallbe credited only once for purposes of totalization. (Section 3)


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What are the Creditable Services?

For the public sector,

1. All previous services rendered by an official/employeepursuant to an appointment whether permanent,provisional or temporary;

2. All previous services rendered by an official/employeepursuant to a duly approved appointment to a position inthe Civil Service with compensation or salary.

3. The period during which an official/employee was onauthorized sick leave of absence without pay notexceeding one year;

4. The period during which an official/employee was out ofthe service as a result of illegal termination of his serviceas finally decided by the proper authorities; and;

5. All previous services with compensation or salary renderedby elective officials.


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TOTALIZATION: When does it

apply?

If a worker is not qualified for any benefits from both

Systems; or

If a worker in the public sectoris not qualified for any

benefits from the GSIS; or

If a worker in the private sectoris not qualified for any

benefits from the SSS.


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PROPOTIONALITY OF BENEFITS

Benefits to be paid by one System shall be in proportion to

the number of contributionsACTUALLY REMITTED to that

System.

Note: All contributions paid by such member personally, and

those that were paid by his employers to both Systems shall

be considered in the processing of benefits which he can claimfrom either or both Systems.


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How to resolve Workers with

OVERLAPPING PERIODS?

Overlapping periods of creditable services or contributions in

both Systems shall be credited only once for purposes of

totalization.

Formula: Creditable Services (CS)/Period of Contributions

(PC) in case there is/are overlapping period/s (OP):

therefore,

CS/PC = Total years of service under GSIS + Total years

of service under SSS OP


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QUESTION

A worked for the government sector for 5

years and then worked for the private

sector for 5 years, or 60 months for each ofthe systems (GSIS and SSS), then A

migrated and did not continue his

contributions to SSS as a voluntary

member. Now Acomes back to the

Philippines, and A is asking for you advise,

What will you tell him?


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ANSWER

Advise A and comply with the

requirements of SSS.

With totalization, based on the ratio of

60/120 or 50%, SSS will give him 50% of

the pension he would have gotten based on

the AMSC (Average Monthly Salary Credit)

in the SSS.


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ANSWER

Can A qualify for GSIS PENSION?

FOLLOW UP QUESTION

Yes. With totalization, based on the ratio

of 60/180 or 33%, GSIS will give him 33%of the pension he would have gotten

based on the AMSC (Average Monthly

Salary Credit) in the GSIS.


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QUESTION

B has 10 years of government service and

7 years of private sector employment.

Where will B qualify for the pension?

ANSWER

NONE!!! However, THANKS TO RA7699 we will have the following:


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With Totalization on our side:

B will qualify for both systems.

The pension for SSS will be 7/10 or 70% of thepension he would have gotten based on hisAverage Monthly Salary Credit (AMSC) .

For GSIS, B will receive 10/15 or 2/3 (or66.667%) of the pension he would havereceived.


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JURISPRUDENCE related to

RA 7699Resolution no. 01-0498; Villones, Sonia L.

Re: Payment of Benefits

RA 7699, otherwise known as AN ACT INSTITUTING LIMITEDPORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCESYSTEMS BY TOTALIZING THE WORKERS' CREDITABLE SERVICES OR

CONTRIBUTIONS IN EACH OF THE SYSTEMS provides:a coveredworker who transfers employment from one sector to another or isemployed in both sectors shall have his creditable services or contributionsin both system credited to his service or contribution record in each of thesystems and shall be totalized for the purpose of old-age, disability,survivorship and other benefits in case the covered member does not qualifyfor such benefits in either or both systems without totalization.

This being so, Villones cannot be entitled to separation pay considering thatin 1995, upon reaching the age of 60 yrs. old, he retired with the SSS andwas already receiving his monthly pension while still with the SICIWA. Inother words, he has already been compensated the old-age benefitscontemplated under RA 7699.


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JURISPRUDENCE related to

RA 7699 G.R. No. 141707; Gamogamo v. PNOC Shipping and Transport Co.

Petitioners contention that the principle of tacking of creditable service is

mandated by RA 7699 is baseless. Section 3 of RA 7699 reads: 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 services or contributions in both Systems credited

to his service or contribution record in each of the Systems and shall be totalized forpurposes 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 overlapping periods of membership shall be credited only once

for purposes of totalization.

Obviously, totalization of service credits is only resorted to when the retiree does not

qualify for benefits in either or both Systems. Here, petitioner is qualified to receivebenefits granted by the GSIS.(Section 12(b) of Presidential Decree No, 1146, as

amended, otherwise known as the Government Service Insurance Act of 1977 states,

A member who has rendered at least three years but less than fifteen years of service

at the time of separation shall, upon reaching sixty years of age or upon separation after

age sixty, receive a cash payment equivalent to one hundred percent of his average

monthly compensation for every year of service with an employer.)

ra 7699 portability

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