QuestionsQuestions (Republic Act No. 11199)
It is titled the “Social Security Act of 2018.” The State policy is to establish, develop, promote, and perfect a sound and viable tax-exempt social security system that promotes social justice through savings and provides meaningful protection against contingencies such as disability, sickness, maternity, old age, death, and loss of income; it also aims to extend protection to Filipino workers (local or overseas) and their beneficiaries, emphasizing “work, save, invest and prosper.”
The SSS is an independent and accountable GOCC (government-owned and -controlled corporation) within the corporate governance standards of RA 10149 (GCG Law), directed and controlled by the Social Security Commission.
It is composed of: (1) Secretary of Finance (ex officio Chairperson), (2) SSS President and CEO (Vice-Chairperson, acting as Chair in absence of Finance Secretary), (3) Secretary of Labor and Employment (ex officio member), and (4) six (6) appointive members—three (3) representing workers and three (3) representing employers—appointed by the President. At least one worker representative and one employer representative must be women. The nominees for these worker and employer members are endorsed by the Governance Commission for GOCCs following the fit and proper rule and competence.
A Commission member must: (1) act with utmost and undivided loyalty to the SSS; (2) exercise due care, extraordinary diligence and skill and act in utmost good faith; (3) act for the benefit of the SSS and not for personal benefit; (4) not profit individually by virtue of office; (5) avoid conflicts of interest and declare interests; and (6) apply sound business principles to ensure financial soundness of the SSS.
The SSS President is responsible for general operations and management functions and immediately carries out Commission policies. Removal is for a valid cause and may be based on: (1) physical or mental incapacity lasting more than six (6) months; (2) fraudulent or illegal acts/omissions or acts manifestly opposed to SSS aims/interests; (3) no longer possessing qualifications under the Act; or (4) failure to meet performance standards based on GCG evaluation.
It conducts necessary actuarial studies and makes recommendations on premiums, investments, and related matters. The Commission appoints the Chief Actuary upon recommendation of the SSS President, and the Actuary supports actuarial soundness through studies and valuations affecting benefits and contribution adjustments.
Personnel below the rank of Vice-President are appointed by the SSS President; except those below the rank of assistant manager, appointments are subject to Commission confirmation. All personnel are selected only from civil service eligibles and are subject to civil service rules. The Chief Actuary can only be removed for just causes, including gross incompetence, gross inefficiency, disloyalty, conflict of interest, dishonesty, and serious misconduct.
The Commission must conduct continuing actuarial and statistical studies/valuations to determine the financial condition of the SSS and, considering limitations, readjust benefits, contributions, premium rates, interest rates, and/or allocation/reallocation of funds to contingencies covered.
The Commission may condone, compromise, or release in whole or in part penalties imposed on delinquent social security contributions (regardless of amount) when the employer shows clear inability to pay due to economic crisis, serious business losses, financial reverses, or natural calamity/man-made disaster without fault on the employer. RA 11199 also requires an immediate condonation of penalties under RA 10361 subject to Commission rules, and mandates an annual report to the President, Senate, and House with details.
The Act provides a schedule effective in January of the year of implementation: it specifies total contribution rate, employer and employee shares, and minimum/maximum monthly salary credits for each year from 2019 to 2025 (e.g., 2019: 12% total with 8% employer and 4% employee, minimum P2,000 and maximum P20,000; increasing up to 2025 with 15% total, 10% employer, 5% employee, minimum P5,000 and maximum P35,000).
Coverage is compulsory upon all employees including kasambahays/domestic workers not over 60 years of age and their employers.
Spouses who devote full time to managing the household and family affairs may be covered on a voluntary basis, unless they are also engaged in other vocation or employment subject to mandatory coverage.
Self-employed coverage is compulsory for self-employed persons as determined by the Commission under rules and regulations, including: self-employed professionals; partners and single proprietors; actors/directors/scriptwriters/news correspondents not covered as employees; professional athletes/coaches/trainers/jockeys; and individual farmers and fishermen. Applicable provisions for covered employees generally apply to them.
Coverage is compulsory for both sea-based and land-based OFWs (not over 60 years old). All benefit provisions apply. Manning agencies are considered agents and are treated as employers of sea-based OFWs with joint and several/solidary liability for civil liabilities for violations of the Act; persons directly controlling/managing/directed are criminally liable for penalized acts/omissions.
Land-based OFWs are compulsory members treated similarly to self-employed persons unless bilateral labor and social security agreements negotiated with host countries ensure that employers pay required SSS contributions. If such contributions are paid through bilateral arrangements, land-based OFWs are treated as compulsorily covered employees with employer and employee shares of contributions as provided in the bilateral agreements.
Disputes are cognizable by the Commission; cases are heard by the Commission, its members, or authorized hearing officers and must be decided within a mandatory 20-day period after submission of evidence. Decisions become final and executory after 15 days from notification unless appealed, and judicial review requires exhaustion of remedies before the Commission.
The Commission’s decision may be reviewed by the Court of Appeals on questions of law and facts, using RTC appeal procedure as far as practicable. If the case involves only questions of law, review is by the Supreme Court. Appeal must be filed within 15 days from notification; no appeal bond is required; cases are heard summarily and take precedence except in the Supreme Court for certain criminal precedence. Appeal does not stay/supersede the Commission’s order unless ordered by the proper court or the Commission.
The Commission may issue a writ of execution motu proprio or on motion after the decision becomes final and executory, in the same manner as RTC judgments, directing the sheriff for execution; non-compliance after notice can be punished for contempt upon application under Rule 71 of the Rules of Court.
Authorized SSS officials/employees can administer oaths, take depositions, certify official acts, and issue subpoenas and subpoenas duces tecum to compel witness attendance and production of records needed as evidence. Contumacy is dealt with in accordance with law.