QuestionsQuestions (PRESIDENTIAL DECREE NO. 1146)
An “employee” is any person in the service of an employer who receives compensation for such service. A “member” is any person compulsorily covered by the System under Section 3 of the Act.
Membership is compulsory for all permanent employees below 60 years of age upon appointment to permanent status. Coverage may be extended to certain non-permanent employees subject to Presidential approval and availability of funds, and the coverage of temporary employees under R.A. No. 49 remains in force.
A member continues as a member notwithstanding separation. Unless separation terms provide otherwise, the member is entitled to whatever benefits accrued or earned at the time of separation for contingencies compensable under the Act.
Contributions are based on monthly compensation brackets (e.g., P200 or less; over P200 up to P3,000; over P3,000). Each bracket provides separate percentages for the employee and employer as shown in the schedule in Section 5(a).
If the System finds the employer cannot fully pay, it pays only rates the System considers within the employer’s capacity to pay. Benefits payable to the member and/or beneficiaries are then adjusted in accordance with the rules and regulations prescribed by the System.
Employers must deduct and withhold contributions monthly and remit the employee’s share plus the employer’s share within the first ten days of the following calendar month.
Yes. Remittance of contributions by the employer to the System is in preference to the payment of other obligations, except salaries and wages of its employees.
Unremitted collections earn interest as the Board may prescribe, not exceeding two percent per month from the due date to the date of payment, payable by the employer.
It equals: (1) 37.5% of the revalued average monthly compensation plus (2) 2.5% of the same revalued average monthly compensation for each year of service in excess of fifteen years. The pension is capped at 90% of the average monthly compensation.
It is equal to 170% of the first P200 of the average monthly compensation plus 100% of the average monthly compensation in excess of P200.
The member must have at least fifteen years of service, be at least sixty years of age, and be separated from the service.
Retirement is compulsory at age 65 if the employee has at least fifteen years of service. If the employee has less than fifteen years of service, he is allowed to continue in the service to complete the fifteen years (unless extended by appropriate authorities).
A member must have either: (1) at least 36 monthly contributions within the five-year period immediately preceding disability; or (2) at least 180 monthly contributions in total prior to disability; and the disability must not be compensable under any other law.
Survivorship pension includes: (1) basic survivorship pension equal to 50% of the basic monthly pension and (2) dependent’s pension not exceeding 50% of the basic monthly pension, subject to System rules.
The sickness/injury must be non-work connected and result in temporary total disability. The member must have at least 6 monthly contributions in the 12-month period immediately preceding sickness/injury and cannot enjoy sickness income benefits and sick leave pay simultaneously. The benefit is 65% of current daily compensation for each day/fraction, not exceeding 60 days in one calendar year, after exhausting sick leave credits but not earlier than the 4th day of sickness/injury.
The System has original and exclusive jurisdiction to settle disputes under the Act. The Board may designate a hearing officer to receive evidence. The hearing officer must submit findings/recommendations within 30 working days from closure of evidence and last pleading, and the Board must decide within 30 days thereafter (or within 30 working days for cases heard directly by the Board from submission for decision).
Within 15 days from receipt of notice of decision, an aggrieved party may appeal. Appeals on questions of law and facts go to the Court of Appeals following rules similar to appeals from RTC to CA; if only questions of law, the appeal goes directly to the Supreme Court on certiorari. No appeal bond is required. The appeal does not stay the Board’s decision unless ordered by the Board, CA, or Supreme Court.
The System, its assets, revenues (including accruals), and benefits paid are exempt from all taxes, assessments, fees, charges, or duties of all kinds. Benefits are not subject to attachment, garnishment, levy, or other processes, except for obligations of the member to the System/employer or when benefits are assigned with the System’s authority.