Question & AnswerQ&A (Republic Act No. 7699)
The State declares the policy to promote the welfare of workers by recognizing their efforts in productive endeavors and to improve their conditions by providing benefits for their long years of contribution to the national economy through a limited portability scheme in social security.
'Portability' refers to the transfer of funds for the account and benefit of a worker who transfers from one social security system to the other.
The two systems are the Government Service Insurance System (GSIS) and the Social Security System (SSS).
Totalization is the process of adding up the periods of creditable services or contributions under each of the social security systems for purposes of eligibility and computation of benefits.
Covered workers are those who transfer employment from one sector to another (public or private) or are employed in both sectors and have contributions in both GSIS and SSS.
Overlapping periods of membership shall be credited only once for purposes of totalization.
Benefits shall be computed by totalizing creditable services, and the amount paid by each system shall be proportional to the number of contributions actually remitted to that system.
No, nothing in the Act shall be construed to diminish or reduce benefits currently enjoyed by workers arising from existing laws, issuances, company practices, or agreements.
The Department of Labor and Employment for the private sector and the Civil Service Commission for the government sector, together with SSS and GSIS, are tasked to promulgate the necessary implementing rules and regulations.
Any conflict in interpretation shall be resolved in favor of the workers.
The Act took effect fifteen (15) days after its complete publication in the Official Gazette or in at least two national newspapers of general circulation, whichever came earlier.
All laws, decrees, orders, rules, and regulations, or parts thereof inconsistent with this Act are repealed or modified accordingly.