Authority for the Increase and Legal Basis
- The Employees' Compensation Commission (ECC) adopted a resolution approving a 10% across-the-board increase in EC pension for public sector employees.
- This action is pursuant to Article 177 (e) of Presidential Decree No. 442 (Labor Code of the Philippines), granting the ECC powers to upgrade benefits subject to Presidential approval.
- The increase must maintain the actuarial stability of the State Insurance Fund (SIF) and require no increase in contributions.
Financial Feasibility and Actuarial Study
- An actuarial study by the Government Service Insurance System (GSIS) determined the SIF can finance the pension increase without compromising its stability.
- The increase does not require additional contributions from the National Government or other employers.
Increase in EC Pension Amount
- The EC pension amount for public sector employees shall be increased by 10% across-the-board.
- The increase is effective from May 1, 2015.
- The stability of the SIF is guaranteed and no corresponding increase in employer contributions is imposed.
Appropriation and Disbursement of Funds
- The ECC and GSIS are directed to appropriate and release necessary funds from the SIF reserves to cover the increased pension benefits.
Implementation and Rules
- The ECC is tasked to formulate and issue the implementing rules and regulations necessary for enforcing this order.
Repeal of Inconsistent Provisions
- Any prior orders, proclamations, rules, or regulations inconsistent with this order are repealed, amended, or modified accordingly.
Separability Clause
- If any provision is declared invalid or unconstitutional, the rest of the order remains valid and enforceable.
Effectivity of the Order
- The order takes effect immediately upon publication in a newspaper of general circulation.
- The law is formally dated and enacted by the President and the Executive Secretary in Manila on September 11, 2015.