Amendments to Social Security Law R.A. 1161

The actuary must submit a valuation report every five years or more frequently if necessary.
Actuarial studies must address benefit increases and financial stability.
Benefit increases must maintain actuarial soundness of the reserve fund.
Benefit increases do not require higher contribution rates.
The Social Security Commission may adopt rules, subject to the President's approval.

"Compensation" includes all actual remuneration, including cost of living allowances and non-cash remuneration's cash value.
Remuneration exceeding 3,000 pesos per month is excluded.
"Average daily salary credit" is calculated by dividing the sum of the six highest monthly salary credits in the preceding twelve months by 180 days.

Monthly pension shall not be less than 200 pesos.
Total pension payments should not be less than sixty times the monthly pension, except for secondary beneficiaries.
Surviving pensioners as of December 31, 1986, receive a 20% increase in their monthly pensions.

Primary beneficiaries of deceased retired pensioners are entitled to 80% of the monthly pension.
Dependents receive dependents' pension.
If no primary beneficiaries and death occurs within 60 months from pension start, secondary beneficiaries get a lump sum:
1. Twenty times the monthly pension or
2. Difference between sixty times the monthly pension and total pensions paid, whichever is greater.

Primary beneficiaries receive 80% of monthly pensions.
Dependents receive dependents' pension.
Secondary beneficiaries receive lump sum benefits under similar conditions as for retired pensioners.

A funeral grant of 2,000 pesos is provided upon the death of a covered member, permanently totally disabled employee, or retiree.

Monthly contribution schedules for employees and self-employed members are prescribed according to salary brackets effective January 1, 1987.
Contribution percentages vary by salary bracket.
Maximum covered earnings/compensation capped at 3,000 pesos per month.
Contributions consist of employer and employee shares for employees; lump-sum for self-employed.

All funds collected are to be deposited and disbursed like other public special funds.
Administrative and operational expenses capped at 12% of yearly contributions plus 3% of other revenues.
Unused allowable expense amounts cannot be carried forward to subsequent years.

Revenues not required for current expenses accumulate into the Reserve Fund.
Portions of Reserve Fund not needed for benefit obligations are invested as the Investment Reserve Fund.
Target average annual income on investment is at least 9%.
Permissible investments include:
- Real estate, government bonds, direct housing loans (not exceeding 30% for housing/hospital-related investments), short/medium-term loans (max 10%), corporate bonds and debentures with financial soundness criteria (max 10%), preferred stocks (max 10%), and common stocks of listed companies (max 10%).
Strict financial criteria apply for corporate securities investments to ensure solvency and regular dividends.