SLIDE 1

RA 8282 - SSS
Introduction
The concept of social security evolved from an age-old search of man for protection against poverty, which breeds grave
social ills that not only threaten his survival but also erode his sense of human dignity. It, therefore, becomes the duty of the
State to operate a mechanism that would provide such protection to its people.
Legislative History
On Jan. 26, 1948, Pres. Manuel A. Roxas proposed a bill seeking to establish a social security system for wage earners
and low-salaried employees. This was recommended to Congress in his State of the Nation Address.
After the death of President Roxas, Pres. Elpidio Quirino created the Social Security Study Commission on July 7, 1948.
The creation of the Commission was his first official act upon his assumption to office. Based on the report of the Study
Commission, a draft of the Social Security Act was submitted to Congress.
In 1954, Rep. Floro Crisologo, Senators Cipriano Primicias and Manuel Briones introduced bills based on the report of the
Social Security Study Commission in the House of Representatives and in the Senate. These bills were consolidated and
enacted into Republic Act (RA) 1161, better known as the Social Security Act of 1954.
However, business and labor groups objected to the Social Security Act resulting in a deferment of its implementation.
In 1957, amendatory bills were presented in Congress. These bills were the bases of RA 1792, which amended the original
Social Security Act.
On Sep. 1, 1957, the Social Security Act of 1954 or the Social Security Law (SS Law) was finally implemented, marking a
significant milestone in the social security program.
Thus, with the implementation of the SS law, the government also adopted the social insurance approach to social security,
covering the employed segment of the labor force in the private sector. In 1993, household helpers earning at least P1,000
were included in the compulsory coverage of employees.
In 1980, some groups of self-employed persons were also required to contribute to the social security fund from which
benefits are paid upon the occurrence of a contingency provided by law. Self-employed farmers and fisherfolks were
included in the program in 1992, while workers in the informal sector earning at least P1,000 a month such as ambulant
vendors and watch-your-car boys, were covered in 1995.
The Social Security System (SSS) administers social security protection to workers in the private sector. On the other
hand, the Government Service Insurance System (GSIS) takes care of workers in the public sector.
Programs of SSS
The SSS administers two programs namely:
1. The Social Security Program; and
2. The Employees? Compensation Program (EC).
Social Security provides replacement income for workers in times of death, disability, sickness, maternity and old age.
On May 1, 1997, Pres. Fidel V. Ramos signed RA 8282, further strengthening the SSS. Also known as the Social Security
Act of 1997, it amended RA 1161, providing for better benefit packages, expansion of coverage, flexibility of investments,
stiffer penalties for violators of the law, condonation of penalties of delinquent employers and the establishment of a
voluntary provident fund for members.
The EC program, started in 1975, provides double compensation effective June 1984 to the worker when the illness, death,
or accident occurs during work-related activities. EC benefits are granted only to members with employers other than
themselves.

SSS used to administer the Medicare program for hospitalization and other medical needs of the private sector workers;
and the Government Service Insurance System (GSIS), for the public sector workers. However, with the passage of

Republic Act 7875 or the National Health Insurance Act of 1995, the SSS and GSIS transferred the administration of the
Medicare program to the Philippine Health Insurance Corporation (PhilHealth) for an integrated and comprehensive
approach to health development effective July 1999.
SSS retirement, death, and total disability pensioners prior to the effectivity of RA 7875 on March 4, 1995 are entitled to
hospitalization benefits under Phil-Health. Pensioners upon the effectivity of RA 7875 on March 4, 1995 and thereafter are
no longer covered except when they meet the qualification requirements set by Phil-Health.
SLIDE 2
Social Security System
Policy
It is the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt social security
system suitable to the needs of the people throughout the Philippines which shall promote social justice and provide
meaningful protection to members and their families against the hazards of disability, sickness, maternity, old-age, death
and other contingencies resulting in loss of income or financial burden. (Sec. 2, RA 8282)
Effectivity: May 24, 1997
Vision
Viable protection through generations.
Universal protection provided to all residents of the Philippines, citizens and non-citizens alike, regardless of creed,
gender, age, geographic location and economic status, especially the disadvantaged.
Equitable - fair and uniform coverage to all; benefits shall be meaningful and able to sustain a decent standard of living.
World-class service - prompt, accurate and courteous service shall be provided.
Compulsory Coverage
Coverage of Employees
a. A private employee who is not over 60 years old
b. A household-helper earning at least P1,000 a month is covered starting Sept. 1, 1993.
A household-helper is any person who renders domestic or household services exclusively to a household
employer such driver, gardener, cook, governess, and other similar occupations.
c. A Filipino seafarer upon the signing of the standard contract or employment between the seafarer and the manning
agency which, together with the foreign ship owner, act as employers.
d. An employee of a foreign government, international organization or their wholly-owned instrumentality based in the
Philippines, which entered into an administrative agreement with the SSS for the coverage of its Filipino workers.
Coverage of Employers
a.An employer, or any person who uses the services of another person in business, trade, industry or any undertaking.
A social, civil, professional, charitable and other non-profit organization which hire the services of employees are
considered employers.
b. A foreign government, international organization or its wholly-owned instrumentality such as embassy in the Philippines,
may enter into an administrative agreement with the SSS for the coverage of its Filipino employees.
Coverage of Self-Employed Persons
A self-employed person, regardless of trade, business or occupation, with an income of at least P1,000 a month and not
over 60 years old, should register with the SSS. Included but not limited to are the following self-employed persons: selfemployed professionals; business partners, single proprietors and board directors; actors, actresses, directors,
scriptwriters and news correspondents who do not fall with the term employee; professional athletes, coaches, trainers
and jockeys; farmers and fisherfolks; and workers in the informal sector such cigarette vendors, watch-your-car-boys,
hospitality girls, among others.

RP v. Asiapro Cooperative

Respondent Asiapro, as a cooperative, is composed of owners-members. Its primary objectives are to provide savings and
credit facilities and to develop other livelihood services for its owners-members.

In the discharge of the aforesaid primary objectives, respondent cooperative entered into several Service Contracts with
Stanfilco a division of DOLE Philippines, Inc. and a company based in Bukidnon. The owners-members do not receive
compensation or wages from the respondent cooperative. Instead, they receive a share in the service surplus which the
respondent cooperative earns from different areas of trade it engages in, such as the income derived from the said Service
Contracts with Stanfilco. The owners-members get their income from the service surplus generated by the quality and
amount of services they rendered, which is determined by the Board of Directors of the respondent cooperative.
In order to enjoy the benefits under the Social Security Law of 1997, the owners-members of the respondent cooperative,
who were assigned to Stanfilco requested the services of the latter to register them with petitioner SSS as self-employed
and to remit their contributions as such
SSS sent a letter to Asiapro that based on the Service Contracts it executed with Stanfilco, respondent cooperative is
actually a manpower contractor supplying employees to Stanfilco and for that reason, it is an employer of its ownersmembers working with Stanfilco. Thus, respondent cooperative should register itself with petitioner SSS as an employer
and make the corresponding report and remittance of premium contributions in accordance with the Social Security Law
Who should determine e-e?
Since the existence of an employer-employee relationship between the respondent cooperative and its owners-members
was put in issue and considering that the compulsory coverage of the SSS Law is predicated on the existence of such
relationship, it behooves the petitioner SSC to determine if there is really an employer-employee relationship that exists
between the respondent cooperative and its owners-members.
The question on the existence of an employer-employee relationship is not within the exclusive jurisdiction of the National
Labor Relations Commission (NLRC). Article 217 of the Labor Code enumerating the jurisdiction of the Labor Arbiters and
the NLRC provides that:
ART. 217.
xxx

JURISDICTION OF LABOR ARBITERS AND THE COMMISSION. (a) . . . .

xxx

xxx

6.
Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other
claims, arising from employer-employee relations, including those of persons in domestic or household service, involving
an amount exceeding five thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement.
Although the aforesaid provision speaks merely of claims for Social Security, it would necessarily include issues on the
coverage thereof, because claims are undeniably rooted in the coverage by the system. Hence, the question on the
existence of an employer-employee relationship for the purpose of determining the coverage of the Social Security System
is explicitly excluded from the jurisdiction of the NLRC and falls within the jurisdiction of the SSC which is primarily charged
with the duty of settling disputes arising under the Social Security Law of 1997.
In determining the existence of an employer-employee relationship, the following elements are considered: (1) the
selection and engagement of the workers; (2) the payment of wages by whatever means; (3) the power of dismissal; and
(4) the power to control the worker's conduct, with the latter assuming primacy in the overall consideration. The most
important element is the employer's control of the employee's conduct, not only as to the result of the work to be done, but
also as to the means and methods to accomplish.
All elements are present in this case.

First. It is expressly provided in the Service Contracts that it is the respondent cooperative which has the exclusive
discretion in the selection and engagement of the owners-members as well as its team leaders who will be assigned at
Stanfilco.
Second. The weekly stipends or the so-called shares in the service surplus given by the respondent cooperative to its
owners-members were in reality wages, as the same were equivalent to an amount not lower than that prescribed by
existing labor laws, rules and regulations, including the wage order applicable to the area and industry; or the same shall
not be lower than the prevailing rates of wages. It cannot be doubted then that those stipends or shares in the service
surplus are indeed wages, because these are given to the owners-members as compensation in rendering services to
respondent cooperative's client, Stanfilco
Third. It is also stated in the above-mentioned Service Contracts that it is the respondent cooperative which has the power
to investigate, discipline and remove the owners-members and its team leaders who were rendering services at Stanfilco.
Fourth. It is the respondent cooperative which has the sole control over the manner and means of performing the services
under the Service Contracts with Stanfilco as well as the means and methods of work. Also, the respondent cooperative is
solely and entirely responsible for its owners-members, team leaders and other representatives at Stanfilco.
SSS v. CA
Whether or not an agricultural laborer who was hired on "pakyaw" basis can be considered an employee entitled to
compulsory coverage and corresponding benefits under the Social Security Law.
SC:
There was no shred of evidence to show that Tana was only a seasonal worker. All witnesses, including Ayalde, testified
that Tana and his family resided in the plantation. The only logical explanation for this set up was that Tana was working for
most part of the year exclusively for Ayalde. A closer scrutiny of the records revealed that while Ayalde may not have
directly imposed on Tana the manner and methods to follow in performing his tasks, she did exercise control through her
overseer. Under the circumstances, the relationship between Ayalde and Tana has more of the attributes of employeremployee than that of an independent contractor hired to perform a specific project.
Lazaro v. SSC
Is a sales supervisor of a company engaged in the sale of home appliances an employee of such company?
SSC, as upheld by the Court of Appeals, found that Laudato was a sales supervisor and not a mere agent. As such,
Laudato oversaw and supervised the sales agents of the company, and thus was subject to the control of management as
to how she implements its policies and its end results. SC disinclined to reverse this finding, in the absence of
countervailing evidence from Lazaro and also in light of the fact that Laudato's calling cards from Royal Star indicate that
she is indeed a sales supervisor.
SSC v. Alba
Whether an administrator could be considered an employer? Yes.
Far Alba was no ordinary administrator. He was no less than the son of the hacienda's owner and as such he was an
owner-in-waiting prior to his father's death.
Lamboso testified that he was selected and his services were engaged by Far Alba himself. Corollarily, Far Alba held the
prerogative of terminating Lamboso's employment. Lamboso also testified in a direct manner that he had been paid his
wages by Far Alba. This testimony was seconded by Lamboso's co-worker.
Not to be forgotten is the definition of an employer under Article 167 (f) of the Labor Code which deals with employees'
compensation and state insurance fund. It defines a person as "any individual, partnership, firm, association, trust,
corporation or legal representative thereof". Plainly, Far Alba, as the hacienda administrator, acts as the legal
representative of the employer and is thus an employer within the meaning of the law liable to pay the SS contributions.
Voluntary Coverage
Coverage of Separated Members
A member who is separated from employment or ceased to be self-employed/OFW/non-working spouse and would like to
continue paying his/her contributions.

Coverage of Overseas Filipino Workers (OFWs)

A Filipino recruited in the Philippines by a foreign-based employer for employment abroad; having a source of income in
the foreign country; and permanent resident in a foreign country.
Coverage of non-working Spouse of SSS Members
A person legally married to a currently employed and actively paying SSS member who devotes full time in the
management of household and family affairs may be covered on a voluntary basis provided there is approval of the
working spouse. The person should never have been a member of the SSS. The contributions will be based on 50% of the
working spouses last posted monthly salary credit but in no case shall it be lower than P1,000.
Effectivity of coverage
Compulsory coverage
1. For an employee on the first day of employment
2. For an employer on the first day the employer hires employee/s.
Employer is given 30 days from date of employment to report the employee for coverage to SSS.
3. For self-employed upon payment of first valid contribution, in case of initial coverage.
Voluntary coverage
1. For OFW upon first payment of contribution, in case of initial coverage.
2. For non-working spouse upon first payment of contribution.
3. For separated member on the month the person resumed payment of contribution.
Legal Dependents of Member
The legal beneficiaries of a member are:
Legally married dependent spouse until he or she remarries;
Dependent legitimate, legitimated or legally adopted and illegitimate children.
These two are primary beneficiaries.
If single, benefits will go to dependent parents who are considered secondary beneficiaries.
In absence of both primary and secondary, any other person designated by member.
Dependents
(1) The legal spouse entitled by law to receive support from the member;
(2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not gainfully employed,
and has not reached twenty-one (21) years of age, or if over twenty-one (21) years of age, he is congenitally or
while still a minor has been permanently incapacitated and incapable of self-support, physically or mentally; and
(3) The parent who is receiving regular support from the member
SSS v. Bailon
Clemente G. Bailon (Bailon) and Alice P. Diaz (Alice) contracted marriage in Barcelona, Sorsogon.
More than 15 years later, Bailon filed before the then Court of First Instance (CFI) of Sorsogon a petition to declare Alice
presumptively dead.
By Order, the CFI granted the petition.
Close to 13 years after his wife Alice was declared presumptively dead, Bailon contracted marriage with Teresita Jarque
(respondent) in Casiguran, Sorsogon.
Bailon, who was a member of the Social Security System (SSS) since 1960 and a retiree pensioner thereof, died.
Respondent thereupon filed a claim for funeral benefits, and was granted P12,000 by the SSS
Cecilia Bailon-Yap (Cecilia), who claimed to be a daughter of Bailon and one Elisa Jayona (Elisa) contested before the
SSS the release to respondent of the death and funeral benefits. She claimed that Bailon contracted three marriages in his
lifetime, the first with Alice, the second with her mother Elisa, and the third with respondent, all of whom are still alive; she,
together with her siblings, paid for Bailon's medical and funeral expenses; and all the documents submitted by respondent
to the SSS in support of her claims are spurious
SSS cancelled the pension.
Respondent protested asserting that her marriage with Bailon was not declared before any court of justice as bigamous or
unlawful, hence, it remained valid and subsisting for all legal intents and purposes as in fact Bailon designated her as his
beneficiary.

When raised to SSC, it held that Teresita Jarque-Bailon is not the legitimate spouse and primary beneficiary of SSS
member Clemente Bailon.
SC:
That the SSC is empowered to settle any dispute with respect to SSS coverage, benefits and contributions, there is no
doubt. In so exercising such power, however, it cannot review, much less reverse, decisions rendered by courts of law as it
did in the case at bar when it declared that the December 10, 1970 CFI Order was obtained through fraud and
subsequently disregarded the same, making its own findings with respect to the validity of Bailon and Alice's marriage on
the one hand and the invalidity of Bailon and respondent's marriage on the other.
In interfering with and passing upon the CFI Order, the SSC virtually acted as an appellate court. The law does not give the
SSC unfettered discretion to trifle with orders of regular courts in the exercise of its authority to determine the beneficiaries
of the SSS.
In the case at bar, as no step was taken to nullify, in accordance with law, Bailon's and respondent's marriage prior to the
former's death in 1998, respondent is rightfully the dependent spouse-beneficiary of Bailon.
Employment services excluded
1. Purely casual employment and not for the purpose of occupation or business of the employer (Mansal v PP GoCheco Lumber Co.GR No.L-8017)
2. Services performed or in connection with an alien vessel by an employee if he/she is employed when such vessel
is outside the Philippines
3. Services performed in the employ of the Philippine government
4. Service performed in the employ of a foreign government or international organization, or their wholly-owned
instrumentality unless there is an agreement with the Philippine Government for the inclusion of such employees in
the SSS
5. Such other temporary services performed by temporary employees which may be excluded by regulation.
Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the
service of said contractors.
Duties of employee-members
Among others:
Secure SS number
Ensure they are reported for coverage by their employers
Pay their monthly share.
Duties of employer-members
Among others:
Require presentation of SS number of prospective employee
Report all employees for SS coverage within 30 days from date of employment
Deduct from the employees the monthly SS contributions based on schedule of contributions; pat their share of
contributions including Employees Compensation and remit these contributions to SSS or accredited banks within
first 10 calendar days following the month when said contributions are due and applicable
Submit a summary of all contributions
Issue official receipts and maintain official records of employment and deductions
Remit to SSS all salary, educational, stocks investment or privatization loan amortization of their employees and
submit a form
Submit a summary of all employees loan amortization
Advance SS and EC sickness benefits once approved by SSS
Advance SS maternity benefits due
File for reimbursement for all legally advanced sickness and maternity benefits
Benefits under social security program
Covered employees are entitled to a package of benefits under social security and EC in the event of death,
disability, sickness, maternity, and old-age
Self-employed and voluntary members also get same benefits except those benefits under the EC program
Sickness benefit
A daily cash allowance paid for the number of days a member is unable to work due to sickness or injury. The
amount is equivalent to 90% of the members average daily salary credit.

Requirements:
1. He is unable to work due to sickness or injury and confined either in a hospital or at home for at least 4 days;
2. He has paid at least 3 months of contributions within the 12-month period immediately before the semester of
sickness/injury
In computing, exclude the semester of sickness. A semester refers to two consecutive quarters ending in the
quarter of sickness. A quarter refers to three consecutive months ending March, June, September or December.
3. He has used up all company sick leaves with pay; and
4. He has notified the employer or SSS, if separated, voluntary or self-employed.
Notify employer within 5 calendar days after start of sickness/injury and employer must notify SSS within 5 days
after receipt of notification. Notice is not required if members confinement is in hospital or member got sick while
working or within company premises.
For example: SSS member gets sick in October 2006 for 20 days.
a. The semester of sickness would be from July 2006 to December 2006.
b. The 12-month period would be from July 2005 to June 2006 (where the six highest monthly salary credits will be
chosen).
In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year, nor
shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this section be carried
forward and added to the total number of compensable days allowable in the subsequent year.
Effect of failure or delay in notification
If employees notifies beyond period, confinement shall be deemed to have started not earlier than the fifth day.
If employer notifies beyond period, employer shall be reimbursed only for each day of confinement starting from
the 10th calendar day immediately preceding the date of notification to SSS.
If employee notified the employer but the latter failed to notify SSS, employer shall have no right to recover the
daily sickness allowance advanced.
Prescribed period in filing a claim of a member confined in hospital/home:
1. For hospital, claim for benefit must be filed within 1 year from last day of confinement;
2. For home, 1 year from start of illness.
Failure to file the claim within the prescribed period will result to denial of claim.
Maternity Benefit
It is a daily cash allowance granted to female member who was unable to work due to childbirth or miscarriage.
It is equivalent to 100% of members average daily salary credit multiplied by 60 days for normal delivery pr
miscarriage, 78 days for caesarian section delivery.
Qualifications for entitlement:
1. She has paid at least three monthly contributions within the 12-month period immediately preceding the semester
of her childbirth or miscarriage
2. She has given the required notification of her pregnancy through her employer if employed, or to SSS if separated,
voluntary or self-employed.
For example: SSS member gives birth in December 2006.
a. The semester of contingency would be from July 2006 to December 2006.
b. The 12-month period before the semester of contingency would be from July 2005 to June 2006.
Deliveries covered:
Only for the first four deliveries or miscarriages shall be paid starting May 24, 1997 (effectivity of RA 8282)
Notice required:

As soon as pregnancy is confirmed, member must notify immediately employer or SSS, if unemployed, etc. and probable
date of childbirth at least 60 days from date of conception. Employer must in turn notify SSS after receipt of notification.
Failure to observe the rule may result in denial.
Can a member apply for sickness benefit if she has been paid maternity benefit?
No, because as a rule, no member can be entitled to two benefits for the same period.
Disability Benefit
Disability any restriction or lack (lack from impairment) of ability to perform an activity in the manner or within the range
considered normal for a human being.
Impairment any loss or abnormality of psychological, physiological, or anatomical structure or function.
Who is qualified?
A member who suffers partial or total permanent disability with at least one monthly contribution paid to the SSS prior to the
semester of contingency.
Some partial permanent disabilities:
one thumb
one index finger
one middle finger
one ring finger
one little finger
hearing of one ear
hearing of both ears
sight of one eye

one big toe

one hand
one arm
one foot
one leg
one ear
both ears

Some total permanent disabilities:

1. Complete loss of sight of both eyes
2. Loss of two limbs at or above the ankles or wrists
3. Permanent complete paralysis of two limbs
4. Brain injury resulting to incurable imbecility or insanity
5. Such cases as determined and approved by SSS
Ortega v. SSC
Claims under the Labor Code for compensation and under the Social Security Law for benefits are not the same as to their
nature and purpose.
On the one hand, the pertinent provisions of the Labor Code govern compensability of work-related disabilities or when
there is loss of income due to work-connected or work-aggravated injury or illness.
On the other hand, the benefits under the Social Security Law are intended to provide insurance or protection against the
hazards or risks of disability, sickness, old age or death, inter alia, irrespective of whether they arose from or in the course
of the employment.
And unlike under the Social Security Law, a disability is total and permanent under the Labor Code if as a result of the
injury or sickness the employee is unable to perform any gainful occupation for a continuous period exceeding 120 days
regardless of whether he loses the use of any of his body parts.
Types of disability benefits:
Monthly pension cash benefit paid to a disabled member who has paid at least 36 monthly contributions to the SSS prior
to the semester of disability.
In addition to monthly pension, supplemental allowance of P500 is paid to the total or partial disability pensioner.
Lump sum amount granted to those who have not paid the required 36 monthly contributions.
Is monthly pension for life?
The member who suffers from permanent total disability shall receive monthly pension for life. However, the said monthly
pension shall be suspended: (1) if he recovers from his permanent total disability; (2) if he resumes employment; (3) if he

fails to report for annual physical exam upon notice by SSS. Domiciliary service (if member is unable to report to SSS for
exam) can be requested.
The member who suffers from permanent partial disability shall receive his monthly pension for the duration of a certain
number of months assessed based on the degree of his disability.
Prescriptive period in filing a disability claim:
10 years from the date of occurrence of disability.
Retirement Benefit
It is a cash benefit either in monthly pension or lump sum paid to a member who can no longer work due to old age.
Who may qualify?
1. A member who is 60 years old, separated from employment or ceased to be self-employed, and has paid at
least 120 monthly contributions prior to the semester of retirement.
2. A member who is 65 years old whether employed or not and has paid at least 120 monthly contributions prior to
the semester of retirement.
Dycaico v. SSS
Bonifacio S. Dycaico, member of the SSS, In his self-employed data record, he named the petitioner, Elena P. Dycaico,
and their eight children as his beneficiaries. At that time, Bonifacio and Elena lived together as husband and wife without
the benefit of marriage.
In June 1989, Bonifacio was considered retired and began receiving his monthly pension from the SSS. He continued to
receive the monthly pension until he passed away on June 19, 1997. A few months prior to his death, however, Bonifacio
married the petitioner on January 6, 1997.
Shortly after Bonifacio's death, the petitioner filed with the SSS an application for survivor's pension. Her application,
however, was denied on the ground that under Section 12-B(d) of Republic Act (Rep. Act) No. 8282 or the Social Security
Law 2 she could not be considered a primary beneficiary of Bonifacio as of the date of his retirement.
Sec. 12-B. Retirement Benefits
xxx
xxx
xxx
(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to
receive the monthly pension. . . .
SSC opined that under Section 12-B(d) of Rep. Act No. 8282, the primary beneficiaries who are entitled to survivor's
pension are those who qualify as such as of the date of retirement of the deceased member. Hence, the petitioner, who
was not then the legitimate spouse of Bonifacio as of the date of his retirement, could not be considered his primary
beneficiary.
SC:
The proviso "as of the date of his retirement" in Section 12-B(d) of Rep. Act No. 8282, which qualifies the term "primary
beneficiaries," is unconstitutional for it violates the due process and equal protection clauses of the Constitution.
Due process:
The proviso "as of the date of his retirement" in Section 12-B(d) of Rep. Act No. 8282 runs afoul of the due process clause
as it outrightly deprives the surviving spouses whose respective marriages to the retired SSS members were contracted
after the latter's retirement of their survivor's benefits. There is outright confiscation of benefits due such surviving spouses
without giving them an opportunity to be heard.
Equal protection:
Results in the classification of dependent spouses as primary beneficiaries into two groups:
(1)
Those dependent spouses whose respective marriages to SSS members were contracted prior to the
latter's retirement; and
(2)
Those dependent spouses whose respective marriages to SSS members were contracted after the latter's
retirement.
For Underground Mineworkers:
1. Has reached the age of 55 years old and is an underground mineworker for at least 5 years (either continuous or
accumulated) prior to the semester of retirement but whose actual date of retirement is not earlier than March 13,
1998; separated from employment or in the case of self-employed, has ceased self-employment, and has paid at
least 120 monthly contributions prior to the semester of retirement.

2. has reached the age of 60 years old whether employed or not and has paid at least 120 monthly contributions
prior to the semester of retirement.
Types of retirement benefits:
1. Monthly pension
2. Lump sum amount
Aside from retirement benefit, retiree is entitled to a 13th month pension payable every December. All retiree pensioners
prior to effectivity of RA 7875 on March 4, 1995 are automatically considered members of PhilHealth and he and his legal
dependents are entitled to its hospitalization benefits.
Death Benefit
It is a cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member.
Types of death benefit:
1. Monthly pension
2. Lump sum amount
Beneficiaries:
Primary: (1) Legitimate dependent spouse until the person remarries; (2) dependent legitimate, legitimated or
legally adopted and illegitimate children who are not yet 21 years old.
Secondary: In the absence of primary, dependent parents.
In their absence, any other person designated by member in record.

Signey v. SSS

Who is entitled to the social security benefits of a Social Security System (SSS) member who was survived not only by his
legal wife, but also by two common-law wives with whom he had six children?
In the case at bar, the existence of a prior subsisting marriage between the deceased and Editha is supported by
substantial evidence. Petitioner, who has fully availed of her right to be heard, only relied on the waiver of Editha and failed
to present any evidence to invalidate or otherwise controvert the confirmed marriage certificate registered under LCR
Registry No. 2083 on 21 November 1967. She did not even try to allege and prove any infirmity in the marriage between
the deceased and Editha.
SSC found (affirmed by CA and SC) based on the SSS field investigation report that even if Editha was the legal wife, she
was not qualified to the death benefits since she herself admitted that she was not dependent on her deceased husband
for support inasmuch as she was cohabiting with a certain Aquilino Castillo.
Resolving the determinative question of who between petitioner and the illegitimate children of the deceased are the
primary beneficiaries lawfully entitled to the social security benefits accruing by virtue of the latter's death, CA held that
based on Section 8 (e) of R.A. No. 8282, a surviving spouse claiming death benefits as a dependent must be the legal
spouse. Petitioner's presentation of a marriage certificate attesting to her marriage to the deceased was futile, according to
the appellate court, as said marriage is null and void in view of the previous marriage of the deceased to Editha as certified
by the Local Civil Registrar of Cebu City.
The appellate court also held that the law is clear that for a child to be qualified as dependent, he must be unmarried, not
gainfully employed and must not be 21 years of age, or if over 21 years of age, he is congenitally or while still a minor has
been permanently incapacitated and incapable of self-support, physically or mentally. And in this case, only the illegitimate
children of the deceased with Gina namely, Ginalyn and Rodelyn, are the qualified beneficiaries as they were still minors at
the time of the death of their father. Considering petitioner is disqualified to be a beneficiary and the absence of any
legitimate children of the deceased, it follows that the dependent illegitimate minor children of the deceased should be
entitled to the death benefits as primary beneficiaries.
Whoever claims entitlement to the benefits provided by law should establish his or her right thereto by substantial
evidence. Since petitioner is disqualified to be a beneficiary and because the deceased has no legitimate child, it follows
that the dependent illegitimate minor children of the deceased shall be entitled to the death benefits as primary
beneficiaries. The SSS Law is clear that for a minor child to qualify as a "dependent, the only requirements are that he/she
must be below 21 years of age, not married nor gainfully employed.

In this case, the minor illegitimate children Ginalyn and Rodelyn were born on 13 April 1996 and 20 April 2000, respectively.
Had the legitimate child of the deceased and Editha survived and qualified as a dependent under the SSS Law, Ginalyn
and Rodelyn would have been entitled to a share equivalent to only 50% of the share of the said legitimate child. Since the
legitimate child of the deceased predeceased him, Ginalyn and Rodelyn, as the only qualified primary beneficiaries of the
deceased, are entitled to 100% of the benefits.

SSS v. De Los Santos

The obvious conclusion then is that a wife who is already separated de facto from her husband cannot be said to be
"dependent for support" upon the husband, absent any showing to the contrary. Conversely, if it is proved that the husband
and wife were still living together at the time of his death, it would be safe to presume that she was dependent on the
husband for support, unless it is shown that she is capable of providing for herself.
Respondent herself admits that she left the conjugal abode on two (2) separate occasions, to live with two different men.
The first was in 1965, less than one year after their marriage, when she contracted a second marriage to Domingo Talens.
The second time she left Antonio was in 1983 when she went to the US, obtained a divorce, and later married an American
citizen.
In fine, these uncontroverted facts remove her from qualifying as a primary beneficiary of her deceased husband.
Monthly pension depends on members paid contributions, including the credited years of service (CYS) and the number
of dependent minor children but not to exceed five.
In addition to death benefit, beneficiaries are entitled to 13th month pension payable every December and funeral benefit
expenses which is paid to whoever shouldered the funeral expenses of the deceased member. Funeral grant is P20,000
(effective Sept. 1, 2000).
If deceased member is survived by legitimate, legitimated or legally adopted and illegitimate children, how is monthly
pension to be divided?
If survived by less than five, the illegitimate minor children will be entitled to 50% of the share of the legitimate, legitimated
or legally adopted and 100% of the dependents pension (equivalent to 10% of the members monthly pension or P250
whichever is higher). Only five minor children, beginning from the youngest, are entitled to dependents pension. When
there are more than 5, the legitimate, legitimated or legally adopted shall be preferred.
For how long will the dependent child receive the pension?
When the child reaches 21 years old, gets married, gets employed or dies. However, the dependents pension is granted
for life to children who are over 21 years old, provided they are incapacitated and incapable of self-support due to physical
or mental disability which is congenital and acquired during minority.
Contributions
SSS 10.4% of the monthly salary credit not exceeding P15,000 and payable by both employer (7.07%) and employee
(3.33%) effective Jan. 1, 2007.
EC Starting Jan. 1, 2007, P10 for a monthly salary credit of P14,500 and below and P30 for employees with an MSC of
P15,000 and payable only by employer.
SS Number
The SS number assigned to a member is the lifetime number and must always be used in all transactions with the SSS.
The member should not secure another number at any other time.
If the member wishes to secure another SS card and cannot remember the SS number, it is advisable to inquire from the
SSS servicing branch.
If a member has more than one SS number, this will cause delay in processing of the claim for benefits or loans in the
future. Thus, it is important that a member should have only one SS number. Therefore, he/she should write or visit the

SSS servicing branch to request for the cancellation of the other number/s and consolidation of all of the contributions
under the retained number. From then on, the retained number should be used in all transactions with the SSS.
Right to Institute
Sec. 22 - The right to institute the necessary action against the employer may be commenced within twenty (20) years
from the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the
case may be.
Lo v. CA
Private respondents application was denied because the SSS records showed that he became a member only in 1983,
and contributions in his favor were remitted only from October 1983 to September 1984. As private respondent knew that
SSS contributions were deducted from his salary since compulsory SSS coverage took effect in 1957, he filed a petition
with the Social Security Commission against Jose Lo and his son Rafael Lo, who took over the management of the
company. The Commission upheld private respondent's claim and ordered petitioner and Jose Lo to remit to the SSS the
unpaid contribution in favor of private respondent, including penalties and charges.
Petitioner filed a petition for review with the Court of Appeals, which affirmed the decision of the Commission. When the
appellate court denied his motion for reconsideration, petitioner filed this petition for review by certiorari. He contended that
the lower court erred in ruling that the claim had not yet prescribed. Petitioner claimed that Payment of SS premium, as
stated in the Decision, is an obligation created by law hence, without need of demand, it becomes due on the date when
such payment should be made. Hence, under Article 1150 [of the Civil Code], the right of action to recover unremitted SS
premium accrues on the date it is payable and may be brought beginning such date.
SC:
Supreme Court dismissed the petition, and affirmed the decision of the Court of Appeals. Section 22 (b), par. 2, of
Republic Act No. 1161, or the SSS Law, expressly provides that the right to institute the necessary action against the
employer may be commenced within twenty years from the time the delinquency is known or the assessment is made by
the SSS, or from the time the benefit accrues, as the case may be. The provision is clear that the period of prescription
commences to run only upon the discovery of the violation, which took place in 1985. When the complaint was filed on
August 14, 1985, less than one year had passed since private respondent discovered the delinquency. Therefore, the claim
was timely instituted.
Penal Clause
Who are liable and what are the penalties.
Who can file?
(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee
concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action
may be filed by the SSS in the city or municipality where the SSS office is located, if the violation was committed within its
territorial jurisdiction or in Metro Manila, at the option of the SSS. Consent by the SSS is not required
Garcia v. SSC
SSC found Garcia, the sole surviving director of Impact Corporation, petitioner herein, liable for unremitted SSS
contributions.
Issue is whether or not petitioner, as the only surviving director of Impact Corporation, can be made solely liable for the
corporate obligations of Impact Corporation pertaining to unremitted SSS premium contributions and penalties therefore.
Petitioner challenges the finding of the Court of Appeals that under Section 28 (f) of the Social Security Law, a mere
director or officer of an employer corporation, and not necessarily a "managing" director or officer, can be held liable for the
unpaid SSS premium contributions.
Section 28 (f) of the Social Security Law provides the following:
(f)
If the act or omission penalized by this Act be committed by an association, partnership, corporation or any
other institution, its managing head, directors or partners shall be liable to the penalties provided in this Act for the
offense.
SC:
This Court though finds no need to resort to statutory construction. Section 28 (f) of the Social Security Law imposes
penalty on:
(1)
the managing head;

(2)
directors; or
(3)
partners, for offenses committed by a juridical person
The said provision does not qualify that the director or partner should likewise be a "managing director" or "managing
partner. The law is clear and unambiguous
Although a corporation once formed is conferred a juridical personality separate and distinct from the persons comprising
it, it is but a legal fiction introduced for purposes of convenience and to subserve the ends of justice. The concept cannot
be extended to a point beyond its reasons and policy, and when invoked in support of an end subversive of this policy, will
be disregarded by the courts.
Tan v. Ballena
In answer to criminal complaint for violation of SS law, petitioners interposed the defenses of lack of criminal intent and
good faith as their failure to remit was brought about by alleged economic difficulties, and they have already agreed to
settle their obligations with the SSS through a memorandum of agreement to pay in installments.
SC:
As held by the Court of Appeals, the claims of good faith and absence of criminal intent for the petitioners' acknowledged
non-remittance of the respondents' contributions deserve scant consideration. The violations charged in this case pertain to
the SSS Law, which is a special law. As such, it belongs to a class of offenses known as mala prohibita.
Social Security Commission
Composed of the Secretary of Labor and Employment or his duly designated undersecretary, the SSS president and seven
(7) appointive members, three (3) of whom shall represent the workers group, at least one of whom shall be a woman;
three (3), the employers group, at least one (1) of whom shall be a woman; and one (1), the general public whose
representative shall have adequate knowledge and experience regarding social security, to be appointed by the President
of the Philippines.
To carry out the purposes of this Act, the Social Security System, hereinafter referred to as SSS, a corporate body, with
principal place of business in Metro Manila, Philippines is created.
The System shall be directed and controlled by the SSC.
Any dispute arising under RA 8282 with respect to coverage, benefits, contributions and penalties thereon or any other
matter related thereto, shall be cognizable by the Commission, and any case filed with respect thereto shall be heard by
the Commission, or any of its members, or by hearing officers duly authorized by the Commission and decided within
twenty (20) days after the submission of the evidence. The filing, determination and settlement of disputes shall be
governed by the rules and regulations promulgated by the Commission.
SSS v. Atlantic Gulf
Which body has jurisdiction to entertain a controversy arising from the non-implementation of a dacion en pago agreed
upon by the parties as a means of settlement of private respondents' liabilities?
From the allegations of respondents' complaint, it readily appears that there is no longer any dispute with respect to
respondents' accountability to the SSS. Respondents had, in fact, admitted their delinquency and offered to settle them by
way of dacion en pago subsequently approved by the SSS.
The controversy lies in the non-implementation of the approved and agreed dacion en pago on the part of the SSS. As
such, respondents filed a suit to obtain its enforcement which is, doubtless, a suit for specific performance and one
incapable of pecuniary estimation beyond the competence of the Commission.
Court Review. The decision of the Commission upon any disputed matter may be reviewed both upon the law and the
facts by the Court of Appeals. For the purpose of such review, the procedure concerning appeals from the Regional Trial
Court shall be followed as far as practicable and consistent with the purposes of this Act. Appeal from a decision of the
Commission must be taken within fifteen (15) days from notification of such decision. If the decision of the Commission
involves only questions of law, the same shall be reviewed by the Supreme Court. No appeal bond shall be required. The
case shall be heard in a summary manner, and shall take precedence over all cases, except that in the Supreme Court,
criminal cases wherein life imprisonment or death has been imposed by the trial court shall take precedence. No appeal
shall act as a supersedeas or a stay of the order of the Commission unless the Commission itself, or the Court of Appeals
or the Supreme Court, shall so order.

Criminal offenses for violations of the law are within the jurisdiction of the regular courts.
OTHERS IN SSS:
Chua vs. CA
On 20 August 1985, private respondents filed a Petition with the SSC for SSS coverage and contributions against petitioner
Reynaldo Chua, owner of Prime Mover Construction Development, claiming that they were all regular employees of the
petitioner in his construction business.
Private respondents claimed that they were assigned by petitioner in his various construction projects continuously in the
following capacity: masons, carpenters and fine graders, in petitioner's various construction projects.
Private respondents alleged that they were illegally dismissed and that petitioner did not report them to the SSS for
compulsory coverage in flagrant violation of the Social Security Act.
Petitioner: respondents were not regular employees, but project employees whose work had been fixed for a specific
project or undertaking the completion of which was determined at the time of their engagement, thus, not entitled to
coverage under the SSS.
SSC ruled in favor of private respondents. CA affirmed.
Issue: Whether private respondents were entitled to compulsory SSS coverage.
Ruling: Yes. Well-settled is the rule that the mandatory coverage of Republic Act No. 1161, as amended, is premised on the
existence of an employer-employee relationship.
There is no dispute that private respondents were employees of petitioner. Petitioner himself admitted that they worked in
his construction projects, although the period of their employment was allegedly co-terminus with their phase of work.
Even without such admission from petitioner, the existence of an employer-employee relationship between the parties can
easily be determined by the application of the "control test," the elements of which are enumerated above. It is clear that
private respondents are employees of petitioner, the latter having control over the results of the work done, as well as the
means and methods by which the same were accomplished. Suffice it to say that regardless of the nature of their
employment, whether it is regular or project, private respondents are subject of the compulsory coverage under the SSS
Law, their employment not falling under the exceptions provided by the law. This rule is in accord with the Court's ruling in
Luzon Stevedoring Corp. v. SSS to the effect that all employees, regardless of tenure, would qualify for compulsory
membership in the SSS, except those classes of employees contemplated in Section 8(j) of the Social Security Act
Despite the insistence of petitioner that they were project employees, the facts show that as masons, carpenters
and fine graders in petitioner's various construction projects, they performed work which was usually necessary
and desirable to petitioner's business which involves construction of roads and bridges.
Moreover, while it may be true that private respondents were initially hired for specific projects or undertakings,
the repeated re-hiring and continuing need for their services over a long span of time the shortest being two
years and the longest being eight have undeniably made them regular employees. This Court has held that an
employment ceases to be co-terminus with specific projects when the employee is continuously rehired due to the
demands of the employer's business and re-engaged for many more projects without interruption.
Taxi Driver compulsorily covered?
Based on an Article I found
Allow me, however to present the following comments and observations relative to your proposal:
1. Legal basis for SSS coverage of drivers of public transport
The legal basis for the compulsory SSS coverage of drivers of public transport may be derived from SSS Circular No. 79-T
published on 03 April 1970 (Annex A). Said circular provides the bases of coverage, premium contribution, and allowable
daily deduction or earnings of jeepney drivers of jeepney operators, salient features of which are as follows:

a. Basis of Coverage - Jeepney drivers are employees of jeepney operators and, as such are required under the Social
Security Law to be reported for coverage by their employee (Please refer to the Supreme Court ruling in the case of the
NATIONAL LABOR UNION vs. DINGLASAN, L-7945, 23 March 1956).
b. Basis of Premium Contribution - If the earnings of jeepney driver cannot be determined by records, then the basis of the
premium contribution to the SSS is the minimum wage as authorized by Law (Please refer to Supreme Court ruling in the
case of MALATE TAXICAB 7 GARAGE, INC. vs. THE CIR AND NIU (G.R. NO. 1-8718, PROM. May 11, 1956, 52 O.G, No.
6,p. 3034)
They (taxi drivers) are EE just like jeepney drivers are EE to their operators. Even if they receive "boundary basis"
compensation there is still an ER-EE relationship. The method of fixing compensation is not determinative of an EE-ER
relationship. As long as the ER exercises the right to control (not necessarily actual control), there is EE-ER relationship.
25. There is also a question about independent contractor vis-a-vis labor only contractor? That means substantial
capitalization requirement under the LC
Ans: You can avail the benefits and be a member under SSS law if there exist an employer- employee relationship. In labor only
contractor, there could exist an employer- employee relationship between the contractor- employee and the principal. The principal is
bound to register the contractor employee under the SSS law, and pay its contribution. The principal has power of control to the
contractor employees and not the labor only contractor because the latter is only an agent of the principal.
Independent contractors and principal do not have employer- employee relationship because the principal has no power to
control the means and tools in making the job done. The principal is only concerned on the result. However, they can be a member of
SSS under the category of self- employed depending on their wage earned.
Both do not have substantial capitalization. Under the Labor Code, two (2) elements must exist for a finding of labor-only
contracting: (a) the person supplying workers to an employer does not have substantial capital or investment in the form of tools,
equipment, machineries, work premises, among others, and (b) the workers recruited and placed by such persons are performing
activities directly related to the principal business of such employer.
FEDERICO MANSAL, plaintiff-appellant, vs. P. P. GOCHECO LUMBER CO., defendant-appellee.
1.EMPLOYER AND EMPLOYEE: WORKMEN'S COMPENSATION; EMPLOYER, WHEN LIABLE. When an employee suffers
personal injury from any accident arising out of and in the course of his employment . . . his employer shall pay
compensation . . . As to the finding of the court that the employment of the appellant was merely casual, because it was not
continuous, it was already held by us that it is not the continuity of employment that renders the employer responsible but
whether the work of the laborer is part of the business or occupation of the employer. In order that an employer may not be
responsible for any injury to a laborer it is necessary that the "employment is purely casual and is not for the purposes of the
occasion or business of the employer."

3.ID.; ID.; ID.; EMPLOYMENT IS PURELY CASUAL. Casual means occasional, coming without regularity. The work is
purely casual when it is not a part of the business in which the employer is engaged.

It will be noted that in order that an employer may not be responsible for an injury to a laborer it is necessary that the "employment
is purely casual and is not for the purposes of the occupation or business of the employer." Casual means occasional, coming
without regularity. The work is purely casual when it is not a part of the business in which the employer is engaged. The
clause "is not for the purposes of the occupation or business of the employer" complements and explains the term "purely casual". In
a sawmill, for example, if a power unit running the mill gets out of order and a mechanic is contracted to fix the engine,
the work of the mechanic would be considered as purely casual, because the reparation of the mill is not the actual work
or business of the sawmill but the sawing of lumber. But the piling up of lumber is work directly connected with the
business of a lumber yard. Lumber must be sorted and piled up in groups according to sizes to facilitate handling and
sale. The piling up of lumber is, therefore, an ordinary part of the work in a lumber yard.
CASE: SSC v. Rizal Poultry and Livestock Association, Inc., et al.,
(GR no. 167050, June 1, 2011)
Issue:
Whether res judicata applies so as to preclude the SSC from resolving anew the existence of employer-employee relationship, which issue was previously
determined in the NLRC case?

SC:
Res judicata in the concept of conclusiveness of judgment applies. The judgment in the NLRC case pertaining to a finding of an absence of employeremployee relationship between Angeles and respondents is conclusive on the SSC case.
11. Benefits employer needs to advance

Advance SS and EC sickness benefits once approved by SSS

Advance SS maternity benefits due
File for reimbursement for all legally advanced sickness and maternity benefits
1.

Date of efficacy of compulsory coverage EE

Effectivity of Coverage
Compulsory coverage
1.
For an employee on the first day of employment
2.

Appeal from SSC

Court Review The decision of the Commission upon any disputed matter mat be reviewed both upon the law and the facts by the Court of Appeals. For
the purpose of such review, the procedure corcerning appeals from the Regional Trial Court shall be followed as far as practicable and consistent with the
purposes of this Act. Appeal from a decision of the Commission must be taken within fifteen (15) days from notification of such decision. If the decision of
the Commission involves only questions of law, the same shall be reviewed by the Supreme Court. No appeal bond shall be required. The case shall be
heard in a summary manner, and shall take precedence over all cases, except that in the Supreme Court, criminal cases wherein life imprisonment or
death has been imposed by the trial court shall take precedence. No appeal shall act as a supersedeas or a stay of the order of the Commission unless
the Commission itself, or the Court of Appeals or the Supreme Court, shall so order. [RA 8282, Sec. 5C]

How appeal is taken?

By verified petition for review (The Revised Rules of SSC [1997]).

Note: 1990 Rules of SCC state that it is by notice of appeal.

26-27. How many years prescriptive period under SSS law

Sickness Benefit
Prescribed period in filing a claim of a member confined in
hospital/home:
For hospital, claim for benefit must be filed within 1 year from last day of confinement;
For home, 1 year from start of illness.
Failure to file the claim within the prescribed period will result to denial of claim.
Disability Benefit
10 years from the date of occurrence of disability
Right to Institute (NOT A CRIMINAL ACTION)
Sec. 22 - The right to institute the necessary action against the employer may be commenced within twenty (20) years from the
time the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the case may be.
(normally from the time of discovery)

SLIDE 6
RA 8291 - GSIS
Introduction
1987 Constitution has given constitutional recognition to the obligation of the state to retirees by providing that the
state shall from time to time review to upgrade the pensions and other benefits due to retirees of both government
and private sector (Art. XVI, Sec. 8)
Another feature of 1987 Constitution is to the effect that pensions or gratuities are not considered as additional,
double or indirect compensation (Art. IX, B, The Civil Service Commission, Sec. 8, par. 2).
As a consequence, a retiree who is reappointed to a government position shall receive the compensation for the
position without violating the constitutional prohibition imposed on elective or appointive public officers or
employees against receiving additional, double or indirect compensation (id., par. 1).
Objectives and scope:
Revised the 20-year old charter of GSIS (PD 1146)
Aims to expand and increase the coverage and benefits of GSIS;
Introduce institutional reforms for GSIS to have more flexibility and thus perform its mission of providing social
security protection more effectively.

Effectivity
June 24, 1997, 15 days after it was published on June 9, 1997. It was approved on May 30, 1997
Repeal of retirement laws
PD 1146
RA 660
RA 1616
Who are covered?
Compulsory for all employees:
Appointive or elective
Whether temporary, casual, permanent or contractual w/ e-e relationship
(so those under job orders are not covered)
Who are receiving basic pay or salary but not per diems, honoraria or allowances; and
Who have not reached the compulsory retirement age of 65 yrs.
When coverage takes effect
Upon the employees assumption to duty pursuant to a valid appointment or election and oath of office.
Are elective officials still covered after their term of office expires?
Compulsory coverage shall cease upon expiration of term.
They have the option to continue with life insurance so long as they will pay both the employee and employer
shares.
On social security coverage, said official shall continue to be a member and shall be entitled to benefits that
provide for contingencies (death, disability or separation) subject to satisfaction of eligibility conditions.
Who are not covered?
Employees who have separate retirement schemes under special laws and are therefore covered by their
respective retirement laws, such as the members of the Judiciary, Constitutional Commissions, and other
similarly situated government officials;
Uniformed members of AFP & PNP including BJMP;
Those who are not receiving basic pay or salary
Contractuals who have no employer and employee relationship with the agencies they serve

17. Coverage of judges under GSIS.

Sec. 5. "Payment of premium for retirement insurance shall begin on the last day of June,
nineteen hundred and fifty-one or of the calendar month the employee entered the service
or became covered by his retirement plan, whichever is the later date, and that for life
insurance shall begin on the last day of the calendar month preceding the month in which
one's insurance takes effect: Provided, however That retirement premiums shall not be
required of Justices of the Supreme Court and the Court of Appeals, and Judges of the
Courts of First Instance, Agrarian Relations, Industrial Relations, Tax Appeals and Juvenile
and Domestic Relation Courts, officers and enlisted men of the Armed Forces of the
Philippines who as hereby excluded from said benefit.

RA 9946 amends RA 910 provides for retirement benefits of justices of the Supreme Court,
Court of Appeals and trial court judges.

10.2.1 The compulsory life policy of a regular member whose membership classification
has been converted to special member by virtue of his appointment as a Judge, Justice or

their equivalent, shall be terminated upon separation from his old position. He shall be
provided LEP coverage upon assumption to duty to his new position
When does a contractual have e-e relationship with his employer?
Person was selected and engaged by the employer
Employer pays the salary
Employer has the power of dismissal
Employer has the power to control the means and the result of the work to be done
Compensation
Is the basic pay or salary received by an employee pursuant to his election/appointment.
Does not include per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in
addition to basic pay (RA 8291, Sec. 1)
Contributions
Member
First P10,000
In excess of P10,000

9%
2%

Employer
12%
12%

Who is responsible for remittance of contributions?

employer
Date of remittance?
First ten days of calendar month following the month to which contributions apply.
Effect of non-remittance?

All loan privileges of member shall be suspended

Determination of eligibility to and computation of benefits will be made subject to deduction of contribution
arrearages and service loans accounts plus surcharges from proceeds of claim
Penalties on delayed remittances?
Aside from penal provisions, interest of not less than 2% per month.
Penal Provisions?
Official or employee who fails to include in annual budget the amount corresponding to e-e contributions or who
fails by more than 30 days to remit the amount from the time such amount becomes due
Employee, who after deducting, fails to remit to GSIS within 30 days from date they should be remitted
Penal provisions?
Heads of offices of national government, etc. who shall fail, refuse or delay the payment, turn-over, remittance or
delivery of such amounts to GSIS
Membership in GSIS
Enjoyment of life insurance, retirement and other social security protection such as disability, survivorship,
separation and unemployment benefits
Members of judiciary and constitutional commissions are covered by GSIS with life insurance only; retirement laws
are governed by special laws
Is part time service included in the computation of total service rendered?
As a rule, all full-time service with compensation from date of original appointment or election shall be
computed for purpose of determining retirement benefits.

service shall mean full-time service w/ compensation. Part time service w/ compensation shall be
converted to full time equivalent.
Part-time shall be converted using a 40-hour per week and 52-week per year as basis.

Valdez v. GSIS
Petitioner would want SC to reverse CA ruling rejecting his assertion that his services rendered in the MECO, MMSU,
PHIVIDEC and as OIC Vice-Governor of Ilocos Norte should be credited in the computation of his retirement benefits.
SC:
Aside from having been rendered part-time in said agencies, the said positions were without compensation as defined in
Section 2 (i) of R.A. No. 8291.
Benefits
Contingencies compensable?
Retirement
Separation
Unemployment
Disability
Survivorship
Death (Life Insurance and Funeral)
New benefits?
Unemployment benefit
Separation benefit
Improvement of existing benefits?
Increase in Average Monthly Compensation (AMC) Limit: from AMC limit of P3,000 to P10,000
Increase in the Revalued Average Monthly Compensation (RAMC): from P140 to P700
Full enjoyment of 5-year lump sum benefit (no more discounted per PD 1146 where retiree receives only 52.17
months while it is full 60 months at present)
Liberalization of eligibility requirements
Allocation of at least 40% of the Social Insurance Fund (SIF) to member Loans
Retirement
Conditions:
rendered at least 15 yrs. of service
at least 60 years old at time of retirement
not receiving monthly pension from permanent total disability
Options:
- lump sum payment of basic monthly pension multiplied by 60 plus basic monthly pension for life upon expiration of 5 year
period
- cash payment of 18 times the basic monthly pension plus basic monthly pension for life payable immediately upon
retirement but without 5-year guaranteed period.
If rendered at least 15 years service but is less than 60 years at time of separation or resignation, member will be entitled
to cash payment equivalent to 18 times his basic monthly pension payable at the time of separation or resignation and
upon reaching the age of 60 years, he will be entitled to basic monthly pension payable monthly for life.
This is denominated as separation benefit but in reality a combination of separation and retirement benefits.
Entitlement to retirement is premised on service of at least 15 years.
Member who is 60 years old upon retirement but with less than 15 years of service is not entitled to retirement.
What he gets is a separation benefit consisting of cash benefit equivalent to 100% of his average monthly

compensation for each year of service he paid contributions but not less than P12,000 provided he has at least 3
years but less than 15 years of service.
Member who has at least 15 years of service may retire at 60 or may continue in the service until 65 (compulsory
retirement age)
If he has less than 15 years, he may be allowed to continue in the service in accordance with existing civil service
rules and regulations. Extension of service is no longer mandatory in contrast to PD 1146.

Notice by employer
It shall be the duty of the Employer to notify its Employee at least Ninety (90) days in advance of the date of his/her
compulsory retirement.
Separation
Separation benefit
A cash payment of 18 times the Basic Monthly Pension at time of separation and a life pension to start at the age
of 60 will be given to those who separate from the service with at least 15 years service and are below 60 years of
age.
Under PD 1146, separated member will have to wait until he is 60 years of age to receive any separation benefit.
Separation: Who are eligible?
Types:
- rendered at least 3 years but less than 15 years
(cash payment equivalent to 100% of Average Monthly Compensation for every year of service payable upon reaching 60
or upon separation whichever comes later if not receiving monthly pension from permanent total disability)
- rendered at least 15 years & who is below 60 at time of resignation/separation
(cash payment equivalent to 15 times the basic Monthly Pension payable upon separation plus monthly pension starting
60)
Separation
IRR, Rule II, Sec. 2.5:
Member separated for cause
automatically forfeited
Unless terms of resignation or separation provide otherwise
Member separated not for cause
shall continue to be member & entitled subject to qualification & other prescription
Unemployment
The benefit is paid when a permanent employee is involuntarily separated from the service as a result of the abolition of his
office or position usually resulting from reorganization.
Who is eligible?
Permanent employee who has paid 12 monthly contributions.
Duration of benefit depends on length of service; ranges from 2 mos. to a maximum of 6 mos.
Equivalent of benefit 50% of the average monthly compensation
Options Those who have more than 15 years service may either avail of retirement or separation benefits as the
case may be.
Disability
Any loss or impairment of the normal functions of the physical or mental faculties of a member, which reduces or eliminates
his capacity to continue with his current gainful occupation or engage in any other gainful occupation (IRR, Sec. 1.18)
Evaluation of disability as a contingency is vested solely in GSIS ( IRR, Sec. 9.3.1)
General condition for entitlement is that the disability was not due to misconduct, notorious negligence, habitual
intoxication or willful intention to kill himself or another (IRR, Sec. 9.3.2)
Permanent Total Disability
A member who becomes permanently and totally disabled when he/she is in the service and has paid at least 180
monthly contributions (monthly income benefit for life equivalent to basic monthly pension plus cash payment
equivalent to 18 times his basic monthly pension effective on date of disability)

A member who becomes permanently and totally disabled are eligible when (a) he is in the service at time of
disability or (b) separated from the service and has paid at least 36 monthly contributions within the last 5 years
immediately preceding the disability or has paid a total of at least 180 monthly contributions (monthly income
benefit for life equivalent to the basic monthly pension)
A member who becomes permanently and totally disabled when he is separated from service with at least 3 years
of service but has not paid 36 monthly contributions within the last 5 years is still eligible (cash payment equivalent
to 100% of the AMC) for every year of service but not less than P12,000)
Disabilities considered permanent total?
Complete loss of sight in both eyes
Loss of two limbs at or above ankle or wrist
Permanent complete paralysis of 2 limbs
Brain injury resulting in incurable imbecility or insanity
Other cases as may be determined by GSIS
Permanent Partial Disability
A member who becomes permanently and partially disabled when
- when he is in the service at time of disability; or
- separated from service and has paid 36 monthly contributions within the last 5 years immediately
preceding the disability or has paid a total of at least 180 monthly contributions.
Permanent Partial?
Any finger
Any toe
One arm
One hand
One foot or leg
One or both ears
Hearing of one or both ears
Sight of one eye
Other cases as may be determined
Temporary Total Disability
Accrues or arises when there is complete but temporary incapacity to continue with a member's present employment or
engage in any gainful occupation due to the loss or impairment of the normal function of the physical and/or mental
faculties of the member. In effect, this loss or impairment can be reversed to the point where the member can continue with
his previous employment or engage in another gainful occupation
Gainful employment
Any productive activity that provides the member with income at least equal to the minimum compensation of government
employees (IRR, Sec. 1.17)
Temporary Total Disability
A member who suffers temporary total disability for reasons not due to grave misconduct, notorious negligence,
habitual intoxication or willful intention to kill himself or another may be entitled if:
- he is in service at time of disability and has exhausted sick leave credits; or
- if separated, has rendered at least 3 years of service and has paid at least 6 monthly contributions in the
twelve month period immediately preceding his disability.
Disability
A written notice of sickness or injury shall be given by a member or anybody in his/her behalf within five (5) working
days from the date of the occurrence of the contingency.
An application for disability benefits must be filed with the GSIS within Four (4) years from the date of the
occurrence of the contingency, fully supported by required papers and documents.
Disability - forfeiture of disability benefits if member refuses or deliberately fails to:
(a) have himself/herself medically treated by a physician when required by the GSIS; or
(b) take the prescribed medication; or
(c) have himself/herself confined in a hospital without justifiable reason, when such confinement is required by the GSIS; or

(d) avail himself/herself of such rehabilitation facilities as may be duly recommended by the GSIS and made available for
him/her; or
(e) observe such precautionary and/or preventive measures as prescribed by a physician or expressly required of him/her
to prevent the aggravation or continuance of his/her disability.
(f) report on his/her re-employment.
Survivorship
Those granted to surviving and qualified beneficiaries of the deceased member or pensioner to cushion them against the
adverse economic, psychological and emotional loss resulting from the death of a wage earner or pensioner.
Who are eligible?
If at time of death, a member was in the service and has rendered at least 3 years of service (primary beneficiaries
to receive survivorship pension plus cash payment; secondary beneficiaries or legal heirs entitled to cash payment)
If at time of death, a member was in the service with less than 3 years service or was separated from the service
with at least 3 years of service and has paid 36 monthly contributions within the 5-year period immediately
preceding his death or has paid a total of at least 180 monthly contributions prior to death (primary beneficiaries to
receive survivorship pension plus cash payment; secondary beneficiaries or legal heirs entitled to cash payment)
Primary Beneficiaries

The legitimate spouse, until he/she remarries, and the dependent children.
Secondary Beneficiaries
(a) the dependent parents; and
(b) the legitimate descendants
Who are dependents?
(a) the legitimate spouse dependent for support;
(b) any legitimate, legitimated and/or legally adopted child, including any illegitimate child, who is unmarried, not gainfully
employed, who has not attained the age of majority, or being at the age of majority but incapacitated and incapable of selfsupport due to a mental or physical defect acquired prior to age of majority; and
(c) the parents dependent upon the member for support.
Gainful employment
Any productive activity that provides the member with income at least equal to the minimum compensation of government employees (IRR, Sec. 1.17)

GSIS v. Montesclaros
Facts:
SB member Nicolas Montesclaros married Milagros Orbiso. Nicolas was a 72-year old widower when he married Milagros
who was then 43 years old. Nicolas died. Milagros then filed with the GSIS a claim for survivorship pension under PD 1146.
The GSIS denied the claim because under Section 18 of PD 1146, the surviving spouse has no right to survivorship
pension if the surviving spouse contracted the marriage with the pensioner within three years before the pensioner
qualified for the pension.
SC:
Section 18 of Presidential Decree No. 1146 void for being violative of the constitutional guarantees of due process and
equal protection of the law. The proviso is unduly oppressive in outrightly denying a dependent spouse's claim for
survivorship pension if the dependent spouse contracted marriage to the pensioner within the three-year prohibited period.
There is outright confiscation of benefits due the surviving spouse without giving the surviving spouse an opportunity to be
heard. The proviso also violated the equal protection clause because it discriminates the dependent spouse who contracts
marriage to the pensioner within three years before the pensioner qualified for the pension.
Funeral
Shall be paid upon the death of:
(a) an active member; or
(b) a member who has been separated from the service, but who is entitled to future separation or retirement benefit; or
(c) a member who is a pensioner (excluding survivorship pensioners); or
(d) a retiree who at the time of his/her retirement is at least 60 years old but opts to retire under RA 1616; or
(e) a member who retired under RA 1616 prior to the effectivity of RA 8282 with at least 20 years service regardless of age.
Amount is initially P12,000 but shall be increased to at least P18,000 after five years.

The funeral benefit shall be paid to one of the following in the order in which they appear herein below:
(a) the surviving spouse;
(b) the legitimate child who spent for the funeral services; or
(c) any other person who can show incontrovertible proofs of having borne the funeral expenses.
Compulsory Life Insurance
All employees, including the members of the Judiciary and the Constitutional Commissioners, but excluding the uniformed
members of the Armed Forces of the Philippines (AFP), the Philippine National Police and the Bureau of Fire Protection
(BFP) and Bureau of Jail Management and Penology.
Life Insurance Benefits
Maturity Benefit. Upon maturity of the life insurance, the face amount less any indebtedness against the policy, shall be
paid to the member;
Death Benefit. When a member dies prior to the maturity of his/her insurance and during its continuance, the GSIS shall
pay to the designated Beneficiaries or to his/her legal heirs, as the case may be, the face amount less any indebtedness
thereon.
Accidental Death Benefit When the death of the member is accidental in accordance with Section 10.9.2 of IRR, the
GSIS shall pay the designated beneficiaries or the legal heirs, as the case may be, an additional amount equivalent to the
face amount of his/her compulsory insurance;
Waiver of Premiums. When a member is separated due to total and permanent disability, the contributions that may
become due and payable during the period of disability shall be deemed waived and considered paid.
Cash Surrender Value (CSV). After his/her insurance shall have been in force for one (1) year, a member separated
from the service prior to the maturity of the insurance may be paid the cash value less any indebtedness thereon unless
the terms of his/her separation provide otherwise;
Insurance Loans. Upon application, a member who has been insured for at least one (1) year may be granted an
insurance loan in an amount not exceeding Fifty Percent (50%) of the cash value of his/her insurance at the time of
application.
Dividends. An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least
one (1) year, based on records submitted by the employer. A Dividend Allocation Formula shall be determined and
circularized by the GSIS for this purpose.
Adjudication of Claims
GSIS has original & exclusive jurisdiction to settle any dispute arising under RA 8291 w/ respect to:
- coverage
- entitlement to benefits
- collection & payment of contributions
- any other matter related to any or all of the foregoing which is necessary for their determination

Which body of GSIS vested with Quasi-Judicial Functions? Board of Trustees

Prescriptive Period?
- 4 years from date of contingency except life & retirement benefits which do not prescribe.
Tax Exemption

RUBIA V. GSIS
- exemption of GSIS from execution does not cover refund of amortization payment
CITY OF DAVAO V. RTC
- on real property taxes, GSIS tax-exempt status in previous law was withdrawn under RA 7160
but restored under Sec. 39 RA 8291

Legal Fees
A.M. No. 08-2-01-0, February 11, 2010
Facts:
GSIS seeks exemption from the payment of legal fees imposed on government-owned or controlled corporations under
Section 22, Rule 141 (Legal Fees) of the Rules of Court. GSIS anchors its petition on Section 39 of its charter, RA 8291.
Issue:

May the legislature exempt GSIS from legal fees imposed by the Court on government-owned and controlled corporations
and local government units?
SC:
Since the payment of legal fees is a vital component of the rules promulgated by this Court concerning pleading, practice
and procedure, it cannot be validly annulled, changed or modified by Congress. As one of the safeguards of this Court's
institutional independence, the power to promulgate rules of pleading, practice and procedure is now the Court's exclusive
domain. That power is no longer shared by this Court with Congress, much less with the Executive.
Congress could not have carved out an exemption for the GSIS from the payment of legal fees without transgressing
another equally important institutional safeguard of the Court's independence fiscal autonomy. Any exemption from the
payment of legal fees granted by Congress to government-owned or controlled corporations and local government units
will necessarily reduce the JDF and the SAJF. Undoubtedly, such situation is constitutionally infirm for it impairs the Court's
guaranteed fiscal autonomy and erodes its independence.
What is the effect of re-employment?
A member who is re-employed is considered a new entrant if he was paid separation or retirement benefits
corresponding to his previous services.

GSIS Vs NLRC
Private respondents were security guards of a security agency assigned to Tacloban branch of GSIS.
o
The security guards thereafter filed an illegal dismissal against the agency and GSIS, separation pay, salary differential, 13th month and unpaid
salary
o
GSIS filed the present petition contending the error committed because it is exempt from execution per charter.
o
SC:

The fact that there is no actual and direct employer-employee relationship between petitioner and respondents does not absolve the former
from liability for the latters monetary claims. When petitioner contracted DNLs security services, petitioner became an indirect employer of respondents,
pursuant to Article 107 of the Labor Code.

After DNL Security failed to pay the respondents the correct wages and other monetary benefits, petitioner, as principal, became jointly and
severally liable, as provided in Articles 106 and 109 of the Labor Code.

Citing GSIS vs. RTC of Pasig, SC did not agree with petitioner that the enforcement of the decision is impossible because its charter
unequivocally exempts it from execution.

Petitioners charter should not be used to evade its liabilities to its employees, even to its indirect employees, as mandated by the Labor Code.

10. COA Disallowances

As a general rule, they cannot be deducted except when his monetary liability contractual or otherwise in favor of gsis member
separated for cause automatically forfeit unless terms of resignation or separation provide otherwise member separated not for cause
shall continue to be member and entitled subject to qualification and other prescription
what is COA disallowances?
Disallowance - the disapproval in audit of a transaction, either in whole or in part. The term applies to the audit of disbursements as
distinguished from "charge" which applies to the audit of revenues/receipts.

the scope of its audit and examination, establish the techniques and methods required therefor, and promulgate accounting and
auditing rules and regulations including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or
unconscionable expenditures, or uses of government funds and properties.

Section 4. Audit Disallowances/ Charges/ Suspensions - In the course of the audit, whenever there are differences arising from the
settlement of accounts by reason of disallowances or charges, the auditor shall issue Notices of Disallowances/Charge (ND/NC) which
shall issue Notices of Disallowance/Charge (ND/NC) which shall be considered as audit decisions, recommendations or dispositions
shall be supported by applicable laws, regulations, jurisprudence and the generally accepted accounting and auditing principles. The
Auditor may issue Notices of Suspension (NS) for transactions of doubtful legality/validity/ propriety to obtain further explanation or
documentation.

"SEC. 39. Exemption from Tax, Legal Process and Lien

"The funds and/or the properties referred to herein as well as the benefits, sums or monies corresponding to the benefits under this
Act shall be exempt from attachment, garnishment, execution, levy or other processes issued by the courts, quasi-judicial agencies or
administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members, including
his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties, or
incurred relative to or in connection with his position or work except when his monetary liability, contractual or otherwise, is in favor
of the GSIS.
GSIS VS COA
the main controversy of whether COA disallowances could be deducted from retirement benefits because the Board ordered the
dismissal of respondents claim for alleged lack of jurisdiction, before it could even decide on the principal issue.
the lone issue is whether COA disallowances could be legally deducted from retirement benefits on the ground that these were
respondents monetary liabilities to the GSIS under the said provision. There is no dispute that the amounts deducted by GSIS
represented COA disallowances. Thus, the only question left for the Board to decide is whether the deductions are allowed under RA
8291.

provision of law clearly states that no amount whatsoever could be legally deducted from retirement benefits, even those amounts
representing COA disallowances.
47.5. Exemption of all Funds of the GSIS from Tax, Attachment, Execution, Levy or Other Legal Processes.- The funds and/or the
properties referred to herein as well as the benefits, sums or monies corresponding to the benefits under this Act shall be exempt
from attachment, garnishment, execution, levy or other processes issued by the courts, quasi judicial agencies or administrative
bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members, including his pecuniary
accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties, or incurred
relative to or in connection with his position or work except when his monetary liability, contractual or otherwise, is in favor of the
GSIS.

Portability of benefits
(Portability law RA 7699)

A member of GSIS who does not qualify for old age and other benefits by reason of non-fulfillment of the required
period of service may be able to qualify for such benefits by making use of the period during which he rendered
services to a private employer and for which contributions were paid to SSS. This is allowed under RA 7699
(approved May 1, 1994)
The Act instituted a limited portability scheme in the GSIS and SSS by totalizing the workers creditable services or
contributions in each of the Systems.
Portability refers to transfer of funds for the benefit and account of a worker who transfers from one system to the other
(RA 7699, Sec. 2 [b]).
Totalization refers to the process of adding up the periods of creditable services or contributions in each of the Systems
for purposes of eligibility and computation of benefits. For purposes of totalization, overlapping periods of membership shall
be considered once only (Sec. 3)
Overlapping period refers to the period during which a worker contributes simultaneously to GSIS and SSS.
-

The totalization of service credits is only restored to when the retiree does not qualify for benefits in either or both
of the systems.

Gamogamo vs PNOC
Can justices and judges avail of the portability scheme? NO. They have different retirement. Their coverage in GSIS is only
LIFE INSURANCE.

In GSIS Law, there is no Maternity leave? In SSS, there is maternity leave.

EMPLOYEES COMPENSATION
Presumption of compensability