Limited Portability Scheme in SSS and GSIS

Section 2(a) defines “Contributions” as contributions paid by the employer or worker to either GSIS or SSS on account of the worker’s membership.
Section 2(a) defines “Portability” as the transfer of funds for the account and benefit of a worker who transfers from one system to the other.
Section 2(a) defines “Sector” as employment in either the public or private sector.
Section 2(a) defines “System” as either:
- SSS, created under Republic Act No. 1161, as amended; or
- GSIS, created under Presidential Decree No. 1146, as amended.
Section 2(a) defines “Totalization” as adding up periods of creditable services or contributions under each of the Systems for purposes of eligibility and computation of benefits.

Section 3 applies to a covered worker who transfers employment from one sector to another or is employed in both sectors.
Section 3 requires that the worker’s creditable services or contributions in both SSS and GSIS be credited to the worker’s service or contribution record in each System.
Section 3 requires that the credited records be totalized for purposes of old-age, disability, survivorship, and other benefits.
Section 3 provides that totalization applies when the covered member does not qualify for benefits in either or both Systems without totalization.
Section 3 limits totalization by requiring that overlapping periods of membership be credited only once for purposes of totalization.

Section 4 requires that all contributions paid by the covered member personally and those paid by the employers to both Systems be considered in processing benefits the member can claim from either or both Systems.
Section 4 provides that the amount of benefits to be paid by one System must be in proportion to the number of contributions actually remitted to that System.

Section 5 commands that nothing in the Act shall diminish or reduce benefits enjoyed by a covered worker arising from existing laws, issuances, company policies or practices, or agreements between the employer and the employees.

Section 6 requires the Department of Labor and Employment for the private sector and the Civil Service Commission for the government sector, together with SSS and GSIS, to promulgate implementing rules within ninety (90) days from the effectivity of the Act.
Section 6 directs that the implementing rules must be necessary to implement the Act’s provisions.
Section 6 mandates that any conflict in interpretation between the law and the implementing rules and regulations must be resolved in favor of the workers.

Section 7 repeals or modifies laws, decrees, orders, rules, and regulations, or parts thereof, that are inconsistent with the Act.

Section 8 provides that the Act takes effect fifteen (15) days after complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier.
The Act was Approved on May 1, 1994 and is Republic Act No. 7699.