Title
Limited Portability Scheme in SSS and GSIS
Law
Republic Act No. 7699
Decision Date
May 1, 1994
The Portability Law aims to establish a unitary social security system in the Philippines, allowing workers to transfer their benefits between the Government Service Insurance System (GSIS) and the Social Security System (SSS) when changing employment sectors, while ensuring that existing benefits are not diminished.
portability law
social security system
government service insurance system
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Definitions of Key Terms

  • "Contributions": Payments made by employers or workers to either the GSIS or SSS based on membership.
  • "Portability": Transfer of funds for the benefit of a worker moving from one system to another.
  • "Sector": Employment classification as either public or private sector.
  • "System": Refers to the Social Security System (SSS) or Government Service Insurance System (GSIS).
  • "Totalization": Adding creditable service periods or contributions from both systems to determine eligibility and benefit computation.

Credit and Totalization of Contributions for Transferred and Dual Sector Workers

  • Workers transferring employment between sectors, or employed in both, will have their contributions credited in both systems.
  • Totalization applies to eligibility and computation of old-age, disability, survivorship, and other benefits.
  • Overlapping membership periods are credited only once for totalization purposes.

Consideration of Contributions in Benefit Processing

  • All contributions (both personal and employer-paid) to both GSIS and SSS are considered when processing benefits.
  • Benefits payable from each system are proportional to the contributions made to that system.

Protection of Existing Benefits

  • The Act cannot be interpreted to reduce or diminish existing benefits under laws, issuances, or company agreements.

Rulemaking and Implementation Authorities

  • The Department of Labor and Employment (for private sector) and the Civil Service Commission (for government sector), with SSS and GSIS, must promulgate implementing rules within 90 days from effectivity.
  • Conflicts in interpretation between the law and implementing rules must be resolved in favor of the workers.

Repeal and Modification of Conflicting Laws

  • All inconsistent laws, decrees, orders, rules, or regulations are repealed or modified to conform with this Act.

Effectivity of the Act

  • The Act takes effect 15 days following complete publication in the Official Gazette or in two national newspapers of general circulation, whichever occurs earlier.

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