Compulsory Coverage
- Coverage in the SSS is compulsory for all employees under 60 years old and their employers.
- Benefits already earned under existing private plans shall not be reduced or impaired.
- Private plans existing during compulsory coverage shall be integrated with the SSS plan.
- Employer pays only required SSS contributions, balancing total contributions between private plan and SSS.
- Adjustments to private plans due to integration are subject to employer-employee agreement.
- Private plans remain under employer control unless agreed otherwise.
- Employers and employees may agree on additional benefits exceeding the SSS.
- Filipinos recruited for foreign employment may voluntarily assume SSS coverage under commission rules.
Retirement Benefits
- Eligibility for retirement pension requires:
- Payment of at least 120 monthly contributions.
- Age 60 with separation from employment or earning less than 250 pesos/month, or age 65.
- Permanent total disability with at least 36 monthly contributions.
- Pension amount is calculated based on a formula involving average monthly salary credit with different percentages for salary brackets and increments for contributions over 120.
- Special provisions for members covered before June 18, 1962, aged 50 or over at coverage.
- Minimum monthly pension is set at 45 pesos.
- Pension suspension occurs if:
- The retiree under 65 is re-employed earning 250 pesos or more per month.
- Disability retiree recovers or fails to submit annual medical examination.
Death and Permanent Disability Benefits
- Upon death of covered employee, beneficiaries receive:
- Basic lump sum plus increments for contributions over 120.
- Eligibility conditions include 18 contributions within last 36 months or a payment ratio not less than 80%.
- If conditions unmet, benefit is adjusted by multiplying by 1.25 times the payment ratio.
- Death benefits not less than total contributions or 500 pesos.
- Minimum benefit applies for deaths occurring within the month of coverage.
Payment of Allowances
- Employers must pay allowances promptly every regular payday or bi-monthly in cases of direct SSS payment.
- Allowances begin only after exhausting all current fully paid sick leaves.
Penalty Provisions on Contributions
- Employers who are delinquent may remit contributions within 6 months of the Act without penalty.
- Failure to remit within the grace period incurs a 3% penalty calculated from original due date.
- Administrator may allow payment plans covering up to December 31, 1973, without penalty if submitted before April 19, 1973.
Mortgagors Insurance Account
- SSS may insure interests on mortgaged properties or lives of mortgagors.
- Establishes separate Mortgagors Insurance Account for related assets and liabilities.
- Funds in this account are exclusive and not liable for other SSS obligations.
- SSS may reinsure with private companies.
- Insurance Commission conducts financial examinations every two years limited to this insurance operation.
- SSS to pay for examination expenses.
- General insurance laws apply unless conflicting with SSS law.
Penal Provisions for Fraud and Noncompliance
- False claims or statements for benefits or loans are punishable under Revised Penal Code Article 172.
- Failure or refusal to comply with SSS Act or regulations leads to fines (500 to 5,000 pesos), imprisonment (6 months to 1 year), or both.
- Failure/refusal to register employees, deduct and remit contributions incurs both fine and imprisonment mandatorily.
Effectivity
- The decree forms part of the law and takes effect immediately upon issuance.