QuestionsQuestions (PRESIDENTIAL DECREE NO. 24)
PD 24 amended certain sections of the Social Security Act of 1954 to increase benefit rates, increase the loanable amount for housing loans, and remove technical flaws to improve the Social Security System’s (SSS) operations and effectiveness.
The SSS was directed and controlled by a Social Security Commission composed of the Secretary of Labor, the SSS Administrator, and six appointive members—two representing labor, two representing management, and two representing the general public—appointed by the President with the consent of the Commission on Appointments.
The Chairman of the Commission is designated by the President from among the members of the Commission.
Appointive members have a term of three years. For the first six appointive members, terms are shortened to one, two, and three years respectively for every two members, and subsequent vacancies are filled only for the unexpired term.
Appointive members receive fifty pesos per diem for each meeting actually attended, but no compensation is paid for more than eight meetings a month.
The Administrator is the chief executive officer responsible for carrying out the SSS program and Commission policies. The Administrator must have prior technical and administrative experience related to the Act’s purposes, and is appointed by the President with the consent of the Commission on Appointments.
Decisions or awards, once final and executory, are enforced like decisions of Courts of First Instance. The Commission may issue writs of execution through the city/provincial sheriff or appointed sheriff, and noncompliance after being required may lead to punishment for contempt by the proper court.
SSS benefits are payable only to persons entitled under the Act. A beneficiary who is a national of a foreign country that does not extend benefits to Filipinos residing in the Philippines, or which is not recognized by the Philippines, cannot receive benefits. The Commission may direct payments notwithstanding nationality if the best interests of the SSS will be served. Benefits are generally non-transferable and POAs or similar documents for collection are not recognized except when the recipient is physically and legally unable to collect personally.
If the recipient is a minor or incapable of administering his affairs, the Commission appoints a representative under Commission terms and conditions. If the recipient is under the custody of or living with parents or spouse, the benefits may be paid to the parents or spouse as representative payee, without needing such appointment.
SSS and all its assets, contributions, accruals, income, benefit payments, and related documents are exempt from taxes/assessments/fees/custom duties. Benefit payments are also exempt from attachment, garnishment, levy, or seizure except to pay a debt of the covered employee to the SSS.
It changes the formula by dividing the sum of monthly salary credits in defined periods (e.g., a 60-month period ending on the last day of the second quarter preceding retirement/total disability; or from month of coverage up to death/permanent disability/retirement) by the number of months in that period, whichever yields the greater result, with special treatment when death/permanent disability occurs within 18 months from coverage.
A covered employee may qualify if: (1) he has paid at least 120 monthly contributions and reached age 60 and is separated (or still employed but receiving less than the stated compensation); or (2) he has at least 120 monthly contributions and reached age 65; or (3) he has at least 36 monthly contributions and has become permanently totally disabled.
The monthly pension is suspended upon re-employment of a retired employee less than 65 years old if the employee receives monthly compensation of 250 pesos or more; or upon recovery of an employee retired due to permanent total disability (or failure to present himself for examination at least once a year upon SSS notice).
Benefits become a basic lump sum amount plus a factor for monthly contributions in excess of 120. Eligibility requires satisfaction of conditions such as payment ratio not less than 80% or payment of 18 monthly contributions within a specified 36-month period ending before the quarter of death/permanent disability. If conditions aren’t met, the computed amount is multiplied by one and one-fourth times the payment ratio. Minimum benefit rules apply (e.g., not less than total contributions and employer contributions, and not less than 500 pesos).
A qualified employee with at least 12 monthly contributions who is confined for more than five days is paid an allowance equivalent to 70% of average daily salary credit, with daily allowance not less than 2.50 pesos nor more than 12 pesos, payable for not longer than 120 days in one calendar year; no sickness benefit for more than 240 days on account of the same confinement.
The employee must notify the employer within five calendar days after the start of confinement unless the confinement is in a hospital or occurred while working/within employer premises. If unemployed, the employee must directly notify the SSS within five days unless hospitalized. If required notification/claims procedures lead to reduction or denial due to employer failure, the employer has no right to recover daily allowances advanced. If employer notification to SSS is late, reimbursement is limited starting from the 10th day prior to SSS notification.
It provides a bracketed schedule with monthly salary credits and corresponding employer/employee contributions. Increments are added on January 1, 1974 and January 1, 1979, equal to one-sixth of respective contributions in the schedule, rounded to the nearest ten centavos.
Employers who fail to remit contributions as prescribed pay a penalty of 3% per month from the date due until paid. A grace mechanism allows delinquent employers to remit within six months from approval of the amendatory act without incurring the 3% penalty; if they fail within the grace period, the 3% penalty is imposed from the time contributions first became due.