Policy purpose for amendments
- The decree declares that it is necessary to further amend certain sections of the Social Security Law to bring about more effective implementation and to make the SSS more responsive to the needs of its members.
Governance of the Social Security Commission
- Section 3(a) creates the Social Security System with principal place of business in Manila or Quezon City, Philippines.
- The SSS is directed and controlled by a Social Security Commission composed of the Secretary of Labor, the SSS Administrator, and six appointive members.
- The six appointive members are allocated as follows: two represent the labor group, two represent the management group, and two represent the general public; they are appointed by the President.
- The Chairman of the Commission is designated by the President from among Commission members.
- The appointive members’ term is three years.
- The decree provides transitional terms: the first six appointive members serve one, two, and three years for every two members, respectively.
- The decree provides for filling vacancies: all vacancies, except those arising from expiration of term, are filled only for the unexpired term.
- The appointive members are paid one hundred pesos per diem for each meeting actually attended.
- Compensation is capped: no compensation is paid for more than eight meetings a month.
Funeral grant added to retirement benefits
- Section 12 is amended by adding paragraph (d) establishing a funeral grant of seven hundred fifty pesos.
- The funeral grant under Section 12(d) is effective January 1, 1974.
- The grant is given upon the death of a retiree to help defray funeral expenses.
Death benefits and eligibility rules
- Section 13 is amended to provide death benefits effective January 1, 1974, payable by the SSS upon the covered employee’s death.
- Under Section 13(A), the SSS pays the beneficiaries or legal heirs the basic lump sum amount, plus five-twelfths of one percent of the basic lump sum amount for each monthly contribution in excess of one hundred twenty and paid as of the last day of the second quarter preceding the quarter of death.
- Under Section 13(B), each minor unmarried legitimate child (not exceeding five) receives a monthly pension equivalent to twenty percent of the pension amount computed under Section 12(A).
- The child’s monthly pension continues until the child reaches age twenty-one, gets married, or becomes gainfully employed.
- Eligibility conditions at the time of death are required for the child pension under Section 13(B):
- Condition 1: the child’s parent/covered employee has paid eighteen monthly contributions within the thirty-six calendar month period ending on the last day of the second quarter preceding the quarter of death.
- Condition 2: the payment ratio is not less than eighty percent.
- When neither of the foregoing conditions is satisfied, the SSS pays beneficiaries or legal heirs under Section 13(A) multiplied by one and one-fourth, and further multiplied by the payment ratio.
- The death benefit under the above adjustment is subject to minimums:
- it is not less than the total contributions paid by the employee and employer in the employee’s behalf to the SSS; and
- it is not less than five hundred pesos.
- If the covered employee dies in the month of coverage, the employee is entitled to the minimum benefit.
- Under Section 13(C), the SSS provides a funeral grant of seven hundred fifty pesos to help defray funeral expenses.
Permanent disability benefits and computations
- Section 13-A establishes permanent disability benefits for the covered employee upon permanent total disability or permanent partial disability.
- Upon permanent total disability, if such disability occurs before the covered employee has paid thirty-six monthly contributions to the SSS, the employee is entitled to the basic lump sum amount.
- For permanent total disability, eligibility conditions at the time of permanent total disability are required:
- Condition 1: eighteen monthly contributions within the thirty-six calendar month period ending on the last day of the second quarter preceding the quarter of permanent total disability; or
- Condition 2: payment ratio is not less than eighty percent.
- If neither condition is satisfied, the permanent total disability benefit equals:
- the basic lump sum amount multiplied by one and one-fourth, and
- further multiplied by the payment ratio.
- Minimums for permanent total disability apply:
- the benefit is not less than the total contributions paid by the employee and employer in the employee’s behalf to the SSS; and
- the benefit is not less than five hundred pesos.
- A covered employee who becomes permanently totally disabled in the month of coverage is entitled to the minimum benefit.
- For partial but permanent disability, the benefit amount is the percentage of:
- the sum of (i) the benefit described for permanent total disability and (ii) five-twelfths of one percent of the basic lump sum amount for each monthly contribution in excess of one hundred twenty,
- with due regard to the degree of disability as the Commission may determine.
- The decree sets limits on adding degrees of disability for permanent partial cases:
- the percentage degree of disability shall not be additive for distinct, separate and unrelated permanent partial disabilities; and
- it shall be additive for deteriorating and related permanent partial disabilities up to a maximum of one hundred percent.
- If the maximum is reached at one hundred percent, the employee is deemed permanently totally disabled.
Prohibition on fees for benefit claims
- Section 17 prohibits any agent, attorney, or other person in charge of the preparation, filing or pursuing any claim for benefit under the Act from demanding or charging any fee for services, and it nullifies any stipulation to the contrary.
- The law prohibits the retention or deduction of any amount from any benefit granted under the Act for payment of fees for such services.
- Violations of Section 17 are punished by a fine of not less than five hundred pesos nor more than five thousand pesos, or imprisonment for not less than six month nor more than one year, or both, at the discretion of the court.
Penal clause for false statements in claims and loans
- Section 28(a) is amended to establish liability for persons who, for the purpose of causing payment under the Act or an agreement thereunder:
- make false statement or representation as to any compensation made, in any claim for any benefit payable under the Act; or
- make false statement or representation as to any compensation made in any application for loan with the SSS; and
- who make or cause to document in connection with such claim or loan.
- The penalties for the conduct described in Section 28(a) are the penalties provided for in Article One hundred seventy-two of the Revised Penal Code.