QuestionsQuestions (Republic Act No. 7699)
The State policy is to promote workers’ welfare by recognizing their contributions and improving their conditions by providing benefits for their long years of contribution, through a scheme for totalization and portability of social security benefits to establish a unitary social security system within a reasonable period.
Totalization is the process of adding up periods of creditable services or contributions under each System (SSS and GSIS) for 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.
Contributions are the contributions paid by the employer or worker to either GSIS or SSS on account of the worker’s membership.
“Sector” refers to employment either in the public or private sector. It is relevant because RA 7699 covers workers who transfer from one sector to another (or work in both) and allows crediting and totalization across SSS and GSIS.
Covered workers are those who transfer employment from one sector to another or are employed in both sectors, such that their creditable services or contributions fall under both SSS and GSIS.
Their creditable services or contributions in both Systems are credited to their records in each System and then totalized for eligibility and computation for old-age, disability, survivorship, and other benefits when they do not qualify in either or both Systems without totalization.
Overlapping periods of membership shall be credited only once for purposes of totalization.
All contributions paid personally by the member and those paid by employers to both Systems are considered in processing the benefits the member can claim from either or both Systems.
The amount of benefits to be paid by one System shall be in proportion to the number of contributions actually remitted to that System.
No. Section 5 states that nothing in the Act shall be construed to diminish or reduce benefits being enjoyed by a covered worker arising from existing laws, issuances, and company policies or practices or agreements between employer and employees.
For the private sector: the Department of Labor and Employment (DOLE); for the government sector: the Civil Service Commission (CSC); together with SSS and GSIS. They must promulgate the rules within ninety (90) days from the effectivity of the Act.
Any conflict in the interpretation of the law and implementing rules and regulations shall be resolved in favor of the workers.
All laws, decrees, orders, rules, and regulations (or parts thereof) inconsistent with RA 7699 are repealed or modified accordingly.
It takes effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier.