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| GSIS and SSS Years can now be combined under the Portability Law |
GSIS and SSS Years can now be combined under the Portability Law
Admittedly most of us move from one job to another in a move to find a higher pay and better career. Many government retirees have had a history in the private sector. In certain cases, they don’t have enough years of service in the government to qualify to any GSIS retirement program.
With the help of RA 7699, otherwise known as the Portability Law, government retirees who do not meet the required number of years provided under PD 1146 and RA 8291 can still avail of retirement and other benefits.
Under the scheme, you may combine your years of service in the private sector represented by your contributions to the Social Security System (SSS) with your government service and contributions to the GSIS to satisfy the required years of service under PD 1146 and RA 8291.
However, if you have satisfied the required years of service under the GSIS retirement option you have chosen, you would not be allowed to incorporate your contributions to the SSS anymore for availment of additional benefits.
In case of death, disability and old age, the periods of creditable services or contributions to the SSS and GSIS shall be summed up to entitle you to receive the benefits under either PD 1146 or RA 8291.
If qualified under RA 8291, all the benefits shall apply EXCEPT the cash payment. The reason for this is that the Portability Law or RA 7699 provides that only benefits common to both Systems (GSIS and SSS) shall be paid. Cash payment is NOT included in the benefits provided by the SSS.
Portability Law is an Act Instituting Limited Portability Scheme in the Social Security Insurance Systems by Totalizing the Workersʹ Creditable Services or Contributions in each of the Systems”
Pursuant to Section 6 of Republic Act No. 7699 entitled “An Act Instituting Limited Portability Scheme in the Social Security Insurance Systems by Totalizing the Workersʹ Creditable Services or Contributions in each of the Systems” the following Rules and Regulations are hereby promulgated to effectively implement the provisions of the Act.
RULE I : COVERAGE
Section 1. These rules and regulations shall apply to all worker‐members of the Government Service Insurance System (GSIS) and/or Social Security System (SSS) who transfer from one sector to another, and who wish to retain their membership in both Systems.
RULE II : INTERPRETATION
Section 1. These rules shall be interpreted in the light of the Declaration of Policy found in Section I of the Act:
“ It is hereby declared the policy of the State to promote the welfare of our workers by
recognizing their efforts in productive endeavors and to further improve their conditions by
providing benefits for their long years of contribution to the national economy.”
Toward this end, nothing in the Act shall be construed to diminish or reduce the
benefits being enjoyed by a cover worker arising from existing laws, issuances and company
policies or practices or agreements between the employer and the employees and any
conflicting interpretation of the law and the implementing rules and regulations shall be
resolved in favor of the workers.
RULE III. DEFINITION OF TERMS
Section 1. As used in these rules, the following terms shall mean:
a) Contributions – shall refer to the contributions paid by the employer or worker to
either the Government Service Insurance System (GSIS) or the Social Security System
(SSS) on account of the workerʹs membership.
b) Portability – shallreferto the transfer of funds forthe account and benefit of a worker
who transfers from one system to the other.
c) Sector – shall refer to employment either in the public or private sector.
d) System – shall refer to either the GSIS as created under Commonwealth Act No. 186 as
amended by Presidential Decree No. 1146 or the SSS as created under Republic Act No.
1161, as amended.
e) Totalization – shall refer to the process of adding up the period of creditable services
or contributions under each of the Systems, for purposes of eligibility and computation
of benefits.
f) Creditable services – for the public sector, the following shall be considered creditable
services:
1.1 All previous services rendered by an official/employee pursuant to an
appointment whether permanent, provisional or temporary.
1.2 All previous services rendered by an official/employee pursuant to a duly
approved appointment to a position in the Civil Service with compensation or
salary;
1.3 The period during which an official/employee was on authorized sick leave of
absence without pay not exceeding one year;
1.4 The period during which an official or employee was out of the service as a
result of illegal termination of his service as finally decided by the proper
authorities; and
1.5 All previous services with compensation or salary rendered by elective officials.
g) Period of contribution – for the private sector, the periods of contribution shall refer to
the periods during which a person renders services for an employer with
compensation or salary and during which contributions were paid to SSS. For the
purpose of this Section, a self‐employed person shall be considered an employee and
employer at the same time.
h) Eligibility – means the workers has satisfied the requirements for entitlement to the
benefits provided for under the Act.
i) Overlapping of periods – shall refer to the periods during which a worker
simultaneously contributes to both Systems.
j) Benefits – shall refer tot he following:
1. Old‐age benefit 2. Disability benefit
3. Survivorship benefit
4. Sickness benefit
5. Medicare benefit, provided that the member shall claim said benefit from the
System where he was last a member, and
6. Such other benefits common to both System that may be availed of through
totalization.
RULE IV : LIMITED PORTABILITY OF FUNDS
Section 1. The process involved in the prompt payment of money benefits to eligible
members shall be the joint responsibility of the GSIS and SSS.
Section 2. The System or Systems responsible for the payment of money benefits due a
covered worker shall release the same within fifteen (15) working days from receipt of the
claim, subject to the submission of the required documents and availability of the complete
employee/employer records in the System.
RULE V : TOTALIZATION
Section 1. All creditable services or periods of contributions made continuously or in the
aggregate of a worker under either of the Sectors shall be added up and considered for
purposes of eligibility and computation of benefits.
Section 2. All services rendered or contributions paid by a member personally and those that
were paid by the employers to either System shall be considered in the computation of
benefits, which may be claimed from either or both Systems. However, the amount of benefits
to be paid by one System shall be in proportion to the services rendered/periods of
contributions made to that System.
Section 3. Totalization shall apply in the following instances:
a) If a worker is not qualified for any benefits from both Systems;
b) If a worker in the public sector is not qualified for any benefits in the GSIS; or
c) If a worker in the private sector is not qualified for any benefits from the SSS.
For the purpose of computation of benefits, totalization shall apply in all cases so that
the contributions made by the worker‐member in both Systems shall provide maximum
benefits which otherwise will not be available. In no case shall the contribution be lost or
forfeited.
Section 4. If after totalization the worker‐member still does not qualify for any benefit listed in Rule III, Section 1 (j), the member will then get whatever benefits correspond to his/her
contributions in either or both Systems.
Section 5. If a worker qualifies for benefits in both Systems, totalization shall not apply.
Section 6. The process of totalization of creditable services or periods of contributions and
computation of benefits provided for under the Act shall be the joint responsibility of the
GSIS and the SSS.
Section 7. Overlapping periods of creditable services or contributions in both Systems shall
be credited only once for purposes of totalization.
RULE VI : RESPONSIBILITY
Section 1. The GSIS and the SSS shall be responsible for the recording and documentation of
the creditable services and/or periods of contributions of the members respectively.
Section 2. For purposes of the Act, accreditation of services or periods of contributions of the
members shall be undertaken by the GSIS for the public sector and by the SSS for the private
sector.
Section 3. Complaints and questions relative to the creditable services or periods of
contributions as well as computation of benefits shall be brought before the System concerned
and shall be resolved in accordance with the policies and procedures adopted by the said
System.
RULE VII : APPLICABILITY
Section 1. The benefits herein provided shall apply to active or inactive members of either
System as of date of effectivity of the Act which is May 20, 1994.
EFFECTIVITY
Section 1. These implementing rules and regulations shall take effect immediately.
Souce: http://www.gsis.gov.ph/
recognizing their efforts in productive endeavors and to further improve their conditions by
providing benefits for their long years of contribution to the national economy.”
Toward this end, nothing in the Act shall be construed to diminish or reduce the
benefits being enjoyed by a cover worker arising from existing laws, issuances and company
policies or practices or agreements between the employer and the employees and any
conflicting interpretation of the law and the implementing rules and regulations shall be
resolved in favor of the workers.
RULE III. DEFINITION OF TERMS
Section 1. As used in these rules, the following terms shall mean:
a) Contributions – shall refer to the contributions paid by the employer or worker to
either the Government Service Insurance System (GSIS) or the Social Security System
(SSS) on account of the workerʹs membership.
b) Portability – shallreferto the transfer of funds forthe account and benefit of a worker
who transfers from one system to the other.
c) Sector – shall refer to employment either in the public or private sector.
d) System – shall refer to either the GSIS as created under Commonwealth Act No. 186 as
amended by Presidential Decree No. 1146 or the SSS as created under Republic Act No.
1161, as amended.
e) Totalization – shall refer to the process of adding up the period of creditable services
or contributions under each of the Systems, for purposes of eligibility and computation
of benefits.
f) Creditable services – for the public sector, the following shall be considered creditable
services:
1.1 All previous services rendered by an official/employee pursuant to an
appointment whether permanent, provisional or temporary.
1.2 All previous services rendered by an official/employee pursuant to a duly
approved appointment to a position in the Civil Service with compensation or
salary;
1.3 The period during which an official/employee was on authorized sick leave of
absence without pay not exceeding one year;
1.4 The period during which an official or employee was out of the service as a
result of illegal termination of his service as finally decided by the proper
authorities; and
1.5 All previous services with compensation or salary rendered by elective officials.
g) Period of contribution – for the private sector, the periods of contribution shall refer to
the periods during which a person renders services for an employer with
compensation or salary and during which contributions were paid to SSS. For the
purpose of this Section, a self‐employed person shall be considered an employee and
employer at the same time.
h) Eligibility – means the workers has satisfied the requirements for entitlement to the
benefits provided for under the Act.
i) Overlapping of periods – shall refer to the periods during which a worker
simultaneously contributes to both Systems.
j) Benefits – shall refer tot he following:
1. Old‐age benefit 2. Disability benefit
3. Survivorship benefit
4. Sickness benefit
5. Medicare benefit, provided that the member shall claim said benefit from the
System where he was last a member, and
6. Such other benefits common to both System that may be availed of through
totalization.
RULE IV : LIMITED PORTABILITY OF FUNDS
Section 1. The process involved in the prompt payment of money benefits to eligible
members shall be the joint responsibility of the GSIS and SSS.
Section 2. The System or Systems responsible for the payment of money benefits due a
covered worker shall release the same within fifteen (15) working days from receipt of the
claim, subject to the submission of the required documents and availability of the complete
employee/employer records in the System.
RULE V : TOTALIZATION
Section 1. All creditable services or periods of contributions made continuously or in the
aggregate of a worker under either of the Sectors shall be added up and considered for
purposes of eligibility and computation of benefits.
Section 2. All services rendered or contributions paid by a member personally and those that
were paid by the employers to either System shall be considered in the computation of
benefits, which may be claimed from either or both Systems. However, the amount of benefits
to be paid by one System shall be in proportion to the services rendered/periods of
contributions made to that System.
Section 3. Totalization shall apply in the following instances:
a) If a worker is not qualified for any benefits from both Systems;
b) If a worker in the public sector is not qualified for any benefits in the GSIS; or
c) If a worker in the private sector is not qualified for any benefits from the SSS.
For the purpose of computation of benefits, totalization shall apply in all cases so that
the contributions made by the worker‐member in both Systems shall provide maximum
benefits which otherwise will not be available. In no case shall the contribution be lost or
forfeited.
Section 4. If after totalization the worker‐member still does not qualify for any benefit listed in Rule III, Section 1 (j), the member will then get whatever benefits correspond to his/her
contributions in either or both Systems.
Section 5. If a worker qualifies for benefits in both Systems, totalization shall not apply.
Section 6. The process of totalization of creditable services or periods of contributions and
computation of benefits provided for under the Act shall be the joint responsibility of the
GSIS and the SSS.
Section 7. Overlapping periods of creditable services or contributions in both Systems shall
be credited only once for purposes of totalization.
RULE VI : RESPONSIBILITY
Section 1. The GSIS and the SSS shall be responsible for the recording and documentation of
the creditable services and/or periods of contributions of the members respectively.
Section 2. For purposes of the Act, accreditation of services or periods of contributions of the
members shall be undertaken by the GSIS for the public sector and by the SSS for the private
sector.
Section 3. Complaints and questions relative to the creditable services or periods of
contributions as well as computation of benefits shall be brought before the System concerned
and shall be resolved in accordance with the policies and procedures adopted by the said
System.
RULE VII : APPLICABILITY
Section 1. The benefits herein provided shall apply to active or inactive members of either
System as of date of effectivity of the Act which is May 20, 1994.
EFFECTIVITY
Section 1. These implementing rules and regulations shall take effect immediately.
Souce: http://www.gsis.gov.ph/