Social Security System

Social Security System Identification Card

An active SSS member with at least one monthly contribution and SSS pensioners may apply for the new SS ID by filling out and submitting an SSS Form E-6 to the nearest SSS branch that has facilities for SS ID capture.

SSS Form E-6 must be submitted together with any of the following primary documents:

Passport Professional Regulation Commission (PRC) card Seaman's book

In the absence of any of these documents, the applicant may present any two of the following documents, provided at least one document contains the applicant's photograph:

Driver's license Valid National Bureau of Investigation (NBI) clearance School or company ID Postal ID Senior citizen card Major credit card Voter's ID Savings account passbook Alien certificate of registration Government Service Insurance System (GSIS) member's record Certification from the Office of Southern/Northern Cultural Communities or Office of

Muslim Affairs Taxpayer Identification Number (TIN) card

When you submit your application, the SSS will immediately obtain your personal data (i.e. your fingerprints, facial image, signature, and personal identification number will be electronically recorded) for transfer to your new ID card. The ID card will be mailed to the address you specified on your Form E-6. If you do not receive your ID within 30 days from the date on which you applied, you may inquire from any SSS branch in your area.

The new SSS ID card is issued free for first-time applicants. However, a replacement fee will be charged under the following circumstances:

when the ID card is lost when the ID card is damaged when the applicant avails of the option to omit the printing of the date of birth on the card

You may download a copy of SSS Form E-6 by following this link.

Registration Procedure

How can one register with the SSS?

1. General Requirements

A person registering with the SSS for the first time as an employee, self-employed, non-working spouse or OFW should submit, together with the SSS registration form, a photocopy of his/her birth or baptismal certificate or passport. In the absence of these documents, any two of the following documents:

o record of employment o GSIS member's record o certificate from the National Archive o birth/baptismal certificate of children o marriage contract o driver’s license o school records or voter’s ID card o Alien Certificate of Registration, or o joint affidavit of two disinterested parties attesting to the correct name and/or fact

of birth of the person concerned

A married person should also submit his or her marriage contract upon registration. If reporting children, he or she should submit the birth or baptismal certificate of the child, if legitimate; proof of filiation showing acknowledgment of the child, if illegitimate; or decree of adoption, if legally adopted.

The original or certified true copies of these documents should be presented to the SSS for authentication.

2. For Employees

An employee should accomplish SSS Form E-1 (Personal Data Record) and submit it together with the general requirements.

3. For Employers

o Single Proprietorships An owner of a single proprietorship business should accomplish and submit SSS Forms R-1 (Employer's Data Record) and R-1A (Initial or Subsequent List of Employees).

o Partnerships Any of the partners of a partnership firm should accomplish SSS Forms R-1 (Employer's Data Record) and R-1A (Initial or Subsequent List of Employees) and submit these forms together with a photocopy of the Articles of Partnership. The original copy of the Articles of Partnership must be presented for authentication.

o Corporations A corporation must accomplish SSS Forms R-1 (Employer's Data Record) and R-1A (Initial or Subsequent List of Employees) signed by its President or any of the corporate officers or incorporators and submit these forms together with the photocopy of the Articles of Incorporation. The original copy of the Articles of Incorporation must be presented to the SSS for authentication.

o Household-Helper Employers A household-helper employer who has an existing SS number should use his personal SS number as his employer number in all transactions with regard to his household-helper. If the employer has no existing SS number, he should get his SS number by accomplishing SSS Form E-1 (Member's Data Record).

4. For Self-Employed Members

A self-employed person should accomplish SSS Form RS-1 (Self-Employed Data Record) and submit it together with the general requirements. If the self-employed member has employees, he should also register as an employer and secure an employer ID number that his company must use in all transactions with the SSS.

5. For Voluntary Members

o Separated Members

A member who is separated from employment or ceased to be self-employed/ overseas Filipino worker/ non-working spouse and would like to continue paying his contributions should get in touch with the nearest SSS office. Being a previous member, he will not be issued a new number. It is only his membership status that will be changed from covered employee, self-employed, OFW or non-working spouse to a voluntary paying member.

o Non-Working Spouses

A non-working spouse should accomplish SSS Form NW-1 (Non-Working Spouse Data Record) and submit it, duly signed by the working spouse, with a copy of his marriage certificate. In the absence of the marriage certificate, the applicant may submit a copy of SSS Form E-1 or E-4 of the working spouse where his name is reported.

o Overseas Filipino Workers (OFWs)

An OFW should accomplish SSS Form OW-1 (Overseas Worker Record Form) and submit it together with the general requirements.

How can a member change the data in his membership records?

Changes in a member's record should be reported immediately to the nearest SSS office by accomplishing SSS Form E-4 (Member's Data Amendment Form). He should submit a photocopy of the following:

marriage certificate for change of status birth or baptismal certificates of children for change or addition of dependents birth or baptismal certificate for correction of birth date and name

In case of non-availability of birth record or baptismal certificate, submit a certificate of loss or non-availability from the local civil registrar of the place where the member was born and from the parish priest of the locality where the member was baptized, together with any two of the following documents:

record of employment GSIS member's record certificate from the National Archive Alien Certificate of Registration birth/baptismal certificates of children marriage contract school records passport joint affidavit of two disinterested parties attesting to the correct name and/or fact of birth

of the person concerned

The original or certified true copies of the documents should be presented to the SSS for authentication.

Who are considered the legal dependents of a member?

The legal beneficiaries of a married member are his legally married spouse, legitimate, legitimated, legally adopted or illegitimate children. These are his primary beneficiaries.

If he is single, his benefits will go to his dependent parents, who are considered his secondary beneficiaries.

In the absence of both primary and secondary beneficiaries, whoever is designated by the member in his membership record becomes the legal beneficiary.

When the member loses his SS ID card or cannot remember his SS number, should he secure another SS number?

No. The SS number assigned to a member is his lifetime number and must always be used in all transactions with the SSS. He should not secure another number at any other time.

If he wishes to secure another SS ID and cannot remember his SS number, he may inquire from the nearest SSS office.

Duties and Responsibilities

What are the duties and responsibilities of an SSS employee-member?

An SSS member should:

1. secure an SS number; 2. ensure that he is reported by his employer to the SSS; 3. pay his monthly share of contributions and ensure that these contributions are remitted to

the SSS by his employer; 4. ensure that SSS Form R3s (Quarterly Collection Lists), where his name is included, are

submitted to the SSS by his employer every quarter; 5. pay his monthly loan amortization, if any, through salary deduction and ensure that these

payments are remitted to the SSS by his employer; 6. update or correct his personal records with the SSS by submitting a duly filled-up SSS

Form E-4 (Member's Data Amendment Form) and supporting documents, such as marriage certificate for change of status, or birth or baptismal certificate for change or correction of name or date of birth, to avoid delays in the processing of benefit claims; and

7. be conscious of changes and improvements in SSS policies and benefit structure.

What are the duties and responsibilities of an SSS employer-member?

An employer is obliged to:

1. require the presentation of the SS number of prospective employees; 2. report all his employees for SS coverage within one month from date of employment by

submitting an 3. accomplished SSS Form R-1A at the membership counter of the nearest SSS office; 4. deduct from his employees the monthly SS contribution based on the schedule of

contributions; pay his share of contributions including Employees' Compensation (EC) and remit these contributions to any SSS-accredited bank within five days after the covered month;

5. submit a summary of all his employees' contributions (Contribution Collection List) together with a copy of the Special Bank Receipt (SBR) and SSS Form R-5 (Payment Return Form) to the nearest SSS branch or Postal Services Office within 10 days after the applicable quarter;

An employer may also participate in the SSSNet, a computer service using the electronic data interchange technology, designed to hasten the posting of employees contributions for faster processing and availment of benefits and loan privileges. Employers who are using this facility shall pay their employees' contributions and transmit both the employee

and employer contributions data on or before the 10th day following the month when said contributions are due and applicable.

Or, the employer may opt to participate in the R3 Tape/ Diskette Project, which allows the submission of the quarterly summary of employees' contributions thru a computer tape or diskette. This system is a better alternative to manual reporting as it minimizes encoding errors and processing time. Under this scheme, the employer shall submit the R3 tape or diskette on or before the last working day of the applicable month.

6. issue official receipts and maintain official records of employment and remittances for all contributions deducted from his employees every month or indicate such deductions from his employees' pay envelopes; A household helper employer should submit an accomplished SSS Form H-3 (Quarterly Collection List for Househelpers) together with the SSS Form R-5s. Household helpers employers in the National Capital Region may enroll in the Auto-Debit Arrangement System, which allows the one-time enrollment of the employer's bank account for the automatic payment of monthly SS contributions and loan repayments. This arrangement is open at the United Coconut Planters Bank, Far East Bank and Trust Co., Equitable Bank, Bank of the Philippine Islands, Metropolitan Bank and Trust Co. and the Philippine National Bank.

7. remit to the SSS all salary, educational, stocks investment or privatization loan amortization of his employees and submit an accomplished SSS Form ML-1 (Quarterly Salary/ Educational/ Calamity/ Stock Investment Loan Payment Return Form) to any of the SSS-accredited banks on or before the 20th day of the month after the applicable quarter; submit a summary of all employees' loan amortization thru an accomplished SSS Form ML-2 (Collection List) with copies of the SBRs and SSS Form ML-1 to the nearest branch or Postal Services Office within 10 days after the applicable quarter;

An employer may also participate in the Salary Loan Repayment Tape/Diskette project, which allows the submission of the quarterly summary of employees' loan repayment thru a computer tape or diskette. This system provides the employer with convenience and hastens the posting of member's loan repayments. Under this scheme, the employer shall submit the ML-2 tape or diskette on or before the last working day of the applicable month.

8. advance SS and EC sickness benefits due his employees once these are approved by the SSS;

9. advance SS maternity benefits due to qualified female employees; 10. file for reimbursement for all legally advanced sickness and maternity benefits; 11. keep his employees updated on the changes in SSS policies and increases in their

benefits; 12. ensure that all forms submitted are properly and accurately accomplished; 13. inform SSS of any change in company address, business name, or temporary/permanent

cessation of business operations thru the submission of a duly notarized SSS Form R-8 (Employer's Data Amendment Form);

14. submit annually an updated SSS Form L-501 (Specimen Signature Card); and,

15. certify Medicare forms and other SSS-related documents for the employees when required for purposes of their claims.

What are the duties and responsibilities of a voluntary/self-employed member?

A voluntary/self-employed member should:

1. pay his contributions using SSS Form RS-5 (Contributions Payment Return Form) monthly or in accordance with the prescribed schedule; In case of change in monthly earnings or contribution, he should notify the nearest SSS office in writing.

2. update or correct his personal records with the SSS by submitting a duly filled-up SSS Form E-4 (Member's Data Amendment Form) and supporting documents such as marriage certificate;

3. be conscious of changes and improvements in SSS policies and benefit structure.

Self-employed and voluntary members in the National Capital Region may enroll in the Auto-Debit Arrangement System, which allows the one-time enrollment of the member's bank account for the automatic payment of monthly SSS contributions and loan repayments. This arrangement is open at the United Coconut Planters Bank, Far East Bank and Trust Co., Equitable Bank, Bank of the Philippine Islands, Metropolitan Bank and Trust Co., and the Philippine National Bank.

Contributions

Monthly contributions based on the gross compensation of SSS members are payable under two programs, as follows:

1. SSS - 9.4% average monthly compensation not exceeding P15,000 and payable by both employer (6.07%) and employee (3.33%).

2. EC - 1% of average monthly compensation not exceeding P1,000 and payable only by the employer.

What is the basis for determining the monthly salary credit and monthly contributions of an SSS member?

1. For an employee - The monthly salary credit should be based on the total actual remuneration from employment, including cost of living allowance, as well as the cash value of any remuneration paid in kind as stated in the Social Security Law of 1997, Sec. 8 (f).

The monthly contributions of a member can be determined based on his monthly salary credit which will be according to the Table of Contributions.

2. For self-employed or voluntary members - the monthly earnings declared at the time of registration shall be the basis of his monthly salary credit. However, the declared

earnings should not be lower than P1,000 per month except for the OFWs whose lowest monthly salary credit is pegged at P3,000.

What is the minimum/maximum monthly salary credit of a member?

The minimum monthly salary credit is P1,000 and the maximum is P15,000 beginning January 2002.

What are the different modes of paying the SSS contributions?

SSS contributions may be paid through:

accredited banks; over-the-counter transactions at the Cashiering Department in the SSS head office; electronic data interchange (EDI) for enrolled employer members; automatic debit arrangement (ADA) with banks.

How should the member pay his monthly contributions?

1. For an employee, including household helpers - monthly through salary deduction, starting on the first month of employment.

The employer should use SSS Form R-5 (Contributions Payment Return) for payments over-the-counter and through accredited banks. Household employers may also pay through ADA.

2. For a self-employed member, including farmers and fisherfolks - monthly, upon approval of membership.

The self-employed should use SSS Form RS-5 (Contributions Payment Return for Self-employed/ Voluntary Members) for payment through accredited banks or over-the-counter. He may also pay through ADA.

3. For a voluntary member, including non-working spouses and OFWs - monthly. The voluntary member should use SSS Form RS-5 (Contributions Payment Return for Self-employed/ Voluntary Members) for payment through accredited banks or over-the-counter. He may also pay through ADA.

Self-employed and voluntary members are allowed to change their monthly salary credit (MSC) once in a given year without a need for a written request. Increase or decrease in MSC shall be up to 20 percent of the current MSC but in no case shall it be lower than P1,000 (P3,000 for OFWs). Increase made in excess of 20 percent shall require the presentation and submission of a copy of the income tax return (ITR) for the prior year, duly received by the Bureau of Internal Revenue (BIR).

Retroactive payment of contributions will not be allowed for self-employed and voluntary members.

When is the remittance of contributions due?

1. For employers

1. Employers who remit through the electronic data interchange (EDI) system - on or before the 10th day of the month following the applicable month

2. Household employers who remit through automatic debit arrangement (ADA) - deducted from bank account every 10th day of the month following the applicable month

3. Employers, including household helper employers, who remit over-the-counter or through banks - on or before the 5th calendar day of the month following the applicable month

2. For self-employed and voluntary members 1. Self-employed and voluntary members who remit through automatic debit

arrangement (ADA) - deducted from bank account on or before the 10th day of the month following the applicable month

2. Self-employed and voluntary members who remit over-the-counter or through banks - on or before the 5th day of the month following the applicable month

When and how should employers report their contribution payments to the SSS?

1. Employers who remit through the electronic data interchange (EDI) system - monthly, through the Monthly Collection List (MCL), on or before the 10th day of the month following the applicable month.

2. Household employers who remit through automatic debit arrangement (ADA) - reporting is done between the SSS and the bank upon enrollment of the employer.

3. Employers, including household employers, who remit over-the-counter or through banks - within the first 10 days after every quarter ending in March, June, September and December using the Contribution Collection List (SSS Form R-3) with the copies of the validated SSS Form R-5 and SBR; or within the first 5 days following the applicable month using R-3 diskette with copies of the validated Form R-5 and SBR and transmittal letter.

Old Age, Disability, and Survivors

Regulatory Framework

First and current law: 1954 (old age, disability, and survivors), with 1997 amendment.

Type of program: Social insurance system.

Coverage

Private-sector employees up to age 60 earning at least 1,000 pesos a month; domestic employees up to age 60 earning at least 1,000 pesos a month; and all self-employed persons up to age 60 with 1,000 pesos or more in monthly income.

Voluntary coverage for Filipinos recruited by a foreign-based employer for employment abroad; insured persons who are no longer eligible for compulsory coverage; and nonworking spouses of insured persons.

Special systems for government employees and military personnel.

Source of Funds

Insured person: 3.33% of monthly gross insured earnings. The insured monthly earnings are set according to 29 income classes.

Voluntarily insured persons pay the combined insured person and employer contributions of 9.4% of monthly gross insured earnings, according to 29 income classes. Voluntarily insured nonworking spouse's contributions are based on 50% of the monthly gross insured earnings of the working spouse. Voluntary contributions may be paid in advance for a period of up to 5 years, in which case the payable amount is adjusted by a discount factor.

The minimum insured monthly earnings for contribution and benefit purposes are 1,000 pesos (5,000 pesos for voluntarily insured overseas workers).

The maximum insured monthly earnings for contribution and benefit purposes are 15,000 pesos.

The above contributions also finance cash sickness and maternity benefits and funeral benefits.

Self-employed person: Pays the combined insured person and employer contributions of 9.4% of monthly gross insured earnings, according to 29 income classes. Contributions may be paid in advance for a period of up to 5 years, in which case the payable amount is adjusted by a discount factor.

The minimum insured monthly earnings for contribution and benefit purposes are 1,000 pesos.



Employer: 6.07% of the employee's monthly insured earnings.

The minimum insured monthly earnings for contribution and benefit purposes are 1,000 pesos.



Government: Any deficit.

The minimum and maximum insured monthly earnings for contribution purposes are adjusted periodically by the Social Security Commission, subject to the approval of the President of the Philippines.

Qualifying Conditions

Old-age pension: Age 60 with 120 months of contributions before the 6-month period prior to retirement. Employment or self-employment must cease. Age 65, regardless of employment, with 120 months of contributions.

Age 55 (underground mineworkers) if involuntarily unemployed or ceased self-employment and worked underground for at least 5 years.

The pension is suspended if an old-age pensioner resumes employment or self-employment before age 65. There is no employment test after age 65.

Old-age settlement: Age 60 with less than 120 months of contributions.

Disability pension: Permanent total or partial disability with 36 months of contributions before the 6-month period prior to the onset of disability. The insured must have an assessed degree of disability of at least 20%. A Social Security System doctor assesses the degree of disability annually.

The pension is suspended if the disability pensioner recovers, resumes employment (in the case of total disability), or fails to report for the annual physical examination.

Disability grant: Permanent total or partial disability with less than 36 months of contributions.

Survivor pension: Payable for the death of the insured. The insured had 36 months of contributions prior to the 6-month period before death; the death of an old-age pensioner or disability pensioner.

Eligible survivors are the surviving spouse and up to five dependent children younger than age 21 (no limit if disabled), unless married or earning 300 pesos or more a month from employment. The spouse's benefit ceases on remarriage, with the spouse's part transferred to the eligible surviving children.

Survivor grant: A lump sum is payable if the deceased had less than 36 months of contributions.

Eligible survivors are the surviving spouse and up to five dependent children younger than age 21 (no limit if disabled), unless married or earning 300 pesos or more a month from employment. In the absence of spouse and dependent children, the benefit is payable to dependent parents or to the person named by the deceased.

Funeral grant: Payable to the person who organizes the funeral.

Old-Age Benefits

Old-age pension: The monthly pension is equal to 300 pesos, plus 20% of the insured's average monthly insured earnings, plus 2% of the insured's average monthly insured earnings for each year of service in excess of 10 years or 40% of the insured's average monthly insured earnings, whichever is greater.

Average monthly insured earnings are equal to the sum of the last 60 months' insured earnings immediately before the 6-month period prior to the claim divided by 60, or the sum of all monthly insured earnings paid immediately before the 6-month period prior to the claim, divided by the number of monthly contributions paid in the same period, whichever is greater.

The minimum pension is 1,200 pesos a month if the insured contributed for at least 10 years but for less than 20 years; 2,400 pesos with at least 20 years of contributions.

There is no maximum monthly pension.

Partial lump sum: The insured may choose to receive the first 18 monthly pension payments (not including dependent supplements and the 13th pension payment in the first year) in a lump sum.

Dependent supplement: 10% of the old-age pension or 250 pesos, whichever is greater, is provided to each of the five youngest children younger than age 21 conceived on or before the insured's retirement (no limit if disabled). The supplement ceases before age 21 if a child marries or earns 300 pesos or more a month from employment.

Schedule of payments: Thirteen payments a year. (Newly retired pensioners may choose to receive the first 18 monthly pension payments as a lump sum, discounted at a preferable rate of interest. In such cases, the periodic pension is payable from the 19th month.)

Benefit adjustment: Periodic ad hoc adjustment of benefits based on price and wage changes and on the financial health of the fund, subject to approval by the Social Security Commission.

Old-age settlement: Employee and employer contributions plus 6% interest.

Permanent Disability Benefits

Disability pension: The monthly pension is equal to 300 pesos plus 20% of the insured's average monthly insured earnings, plus 2% of the insured's average monthly insured earnings for each

year of service in excess of 10 years or 40% of the insured's average monthly insured earnings, whichever is greater.

Average monthly insured earnings are equal to the sum of the last 60 months' insured earnings immediately before the 6-month period prior to the claim divided by 60, or the sum of all monthly insured earnings paid immediately before the 6-month period prior to the claim divided by the number of monthly contributions paid in the same period, whichever is greater.

The minimum pension is 1,000 pesos a month if the insured has less than 10 years of contributions; 1,200 pesos with at least 10 years but less than 20 years; or 2,400 pesos with at least 20 years of contributions.

There is no maximum disability pension.

Dependent supplement (permanent total disability): 10% of the disability pension or 250 pesos, whichever is greater, is provided to each of the five youngest children younger than age 21 conceived on or before the onset of disability (no limit if disabled). The supplement ceases before age 21 if a child marries or earns 300 pesos or more a month from employment.

Partial disability: The pension is reduced in proportion to the assessed degree of disability. The total pension benefit is paid in a lump sum if the payment period is less than 12 months.

Supplementary allowance (permanent total and partial disability): 500 pesos a month.

Schedule of payments: Thirteen payments a year.


Disability grant: For permanent total disability, a lump sum equal to the insured's monthly pension times the number of monthly contributions or 12 times the monthly pension, whichever is greater.

Partial disability: The grant for a permanent partial disability is a lump sum equal to the insured's monthly pension times the number of monthly contributions times the assessed total degree of disability, or 12 monthly pension's times the assessed degree of disability, whichever is greater.


Survivor Benefits

Survivor pension: 100% of the monthly old-age pension that would have been payable to the deceased.

The minimum monthly pension is 1,000 pesos if the deceased contributed for at least 10 years; 1,200 pesos with at least 10 but less than 20 years; 2,400 pesos with at least 20 years of contributions.

There is no maximum survivor pension.

Dependent supplement: 10% of the deceased's pension or 250 pesos, whichever is greater, is paid to each of the five youngest children younger than age 21 conceived on or before the date of death (no limit if disabled). The supplement ceases before age 21 if a child marries or earns 300 pesos or more a month from employment.

Survivors of an old-age or a permanent total disability pensioner: 100% of the deceased's pension plus dependent supplements. In the absence of a surviving spouse and dependent children and if the insured died within 60 months after first receiving a pension, a lump sum equal to 60 months' pension less the value of the pension already paid is payable to dependent parents. In the absence of dependent parents, the benefit is payable to the person named by the deceased.

Schedule of payments: Thirteen payments a year.


Survivor grant: The lump sum is equal to the deceased's monthly old-age pension times the number of monthly contributions, or 12 monthly pensions, whichever is greater.


Funeral grant: 20,000 pesos to the person who pays for the funeral expenses. (A 20,000 pesos memorial service assistance program package may be provided by accredited life insurance companies.)


Administrative Organization

A tripartite Social Security Commission is responsible for the general management, supervision, and regulation of the program.

Social Security System collects contributions and pays benefits under the direction and control of the Social Security Commission.

Sickness and Maternity


First and current laws: 1954 (sickness), with 1997 amendment; 1969 (medical benefits), with 1995 amendment; and 1977 (maternity), with 1997 amendment.

Type of program: Social insurance system. Cash and medical benefits.

Coverage

Cash sickness and maternity benefits: Private-sector employees up to age 60; domestic employees earning at least 1,000 pesos a month; and all self-employed persons with 1,000 pesos or more in monthly income.

Voluntary coverage for Filipinos recruited by a foreign-based employer for employment abroad, insured persons who are no longer eligible for compulsory coverage, and nonworking spouses of insured persons.

Special system for government employees except for maternity benefits.

Medical benefits: Private- and public-sector employees up to age 60; domestic employees earning at least 1,000 pesos a month; and all self-employed persons with 1,000 pesos or more in monthly income.

Full coverage is provided to pensioners and retired persons, and limited coverage is provided to certain categories of people with low or no income.

Voluntary coverage for Filipinos recruited by a foreign-based employer for employment abroad and certain other groups of people.

Source of Funds

Insured person

Cash sickness and maternity benefit: See source of funds under Old Age, Disability, and Survivors, above.

Medical benefits: Employed persons, 1.25% of gross monthly insured earnings (earnings are fixed according to 12 income classes); none for pensioners and their dependents or for certain categories of people with low or no income; voluntary contributors pay 100 pesos a month.

The minimum monthly earnings for contribution purposes for medical benefits are 4,000 pesos.

The maximum monthly earnings for contribution purposes for medical benefits are 15,000 pesos.

Self-employed person


Medical benefits: 100 pesos a month.



Employer


Medical benefits: 1.25% of the employee's monthly insured earnings.



Government: Pays the cost of medical benefits for certain categories of people with low or no income; any deficits.

The contribution is payable monthly except for the self-employed and voluntary members, who may pay contributions monthly, quarterly, semiannually, or annually.

The minimum and maximum insured monthly earnings for contribution purposes are adjusted periodically by the Social Security Commission, subject to the approval of the President of the Philippines.


Cash sickness benefits: Three months of contributions in the last 12 months immediately before the 6-month period prior to the onset of sickness. The insured must be hospitalized or incapacitated at home for at least 4 days. Medical certification must be provided.

Cash maternity benefits: Three months of contributions in the last 12 months immediately before the 6-month period prior to the childbirth or miscarriage. The insured is covered for four deliveries, including miscarriages. Medical certification of the pregnancy and a birth certificate are necessary.

Medical benefits: Three months of contributions in the last 12 months before the first day of incapacity; contribution conditions are waived for pensioners, retired persons, and certain categories of people with low or no income.

Sickness and Maternity Benefits

Sickness benefit: A daily allowance equal to 90% of the insured's average daily insured earnings. Daily insured earnings are equal to the sum of the 6 highest months' insured earnings in the 12 months before the 6-month period prior to the onset of sickness divided by 180. The benefit is payable after a 3-day waiting period (unless for an injury or an acute disease) for up to 120 days in a calendar year. The payment of benefit must not exceed 240 days for the same illness.

Maternity benefit: 100% of the insured's average daily insured earnings. Daily insured earnings are equal to the sum of the 6 highest months' insured earnings in the 12 months before the 6-month period prior to the delivery or miscarriage divided by 180. The benefit is payable for 60 days for a miscarriage or a noncaesarian childbirth; 78 days for a caesarian childbirth.

Workers' Medical Benefits

Services are delivered by accredited health care providers and are paid directly by the health fund according to a fixed schedule.

Cost sharing: There is some cost sharing for general and specialist care, hospital care, laboratory and X-ray fees, surgery, and medicines.

Inpatient treatment is limited to 45 days a year.

Dependents' Medical Benefits

Same as for the insured person, except the limit on inpatient treatment of 45 days is shared among all eligible dependents (in addition to the 45 days for the insured person).

Eligible dependents are the spouse; unmarried and nonemployed legitimate, acknowledged, and illegitimate children and legally adopted or stepchildren younger than age 21 (no limit if disabled); and parents aged 60 or older with income below a specified amount who are not covered through other means.


Cash sickness and maternity benefits: A tripartite Social Security Commission is responsible for the general management, supervision, and regulation of the program.

Employers pay sickness and maternity benefits directly to their employees and are reimbursed by the Social Security System. The Social Security System pays benefits to self-employed and voluntary members.

Social Security System collects contributions and administers benefits under the direction and control of the Social Security Commission.

Medical benefits: The Department of Health (http://www.doh.gov.ph) provides policy coordination and guidance.

Philippine Health Insurance Corporation (http://www.philhealth.gov.ph) collects contributions for the medical care program and administers the provision of benefits. Medical care is provided by accredited providers.

Work Injury


First and current law: 1974 (work injury), implemented in 1975, with 1996 amendment.

Type of program: Social insurance system.

Coverage

Employers and employed persons, including domestic employees and Filipinos recruited by a foreign-based employer for employment abroad, not older than age 60.

There is no voluntary coverage.

Exclusions: Self-employed persons.

Special systems for government employees and military personnel.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1% of insured's monthly insured earnings up to 1,000 pesos a month. The contribution does not vary according to the assessed risk level of the employer or accident rate.

Government: Any deficit.

The maximum insured monthly earnings for contribution purposes are adjusted periodically by the Social Security Commission, subject to the approval of the President of the Philippines.


Work injury benefits: One month of contributions.

Temporary Disability Benefits

90% of the insured's average daily insured earnings. Daily insured earnings are equal to the sum of the 6 highest months' insured earnings during the last 12 months divided by 180. The benefit

is payable from the first day of disability for a work-related injury or sickness for up to 120 days; may be extended up to 240 days if further treatment is required.

Average monthly insured earnings are equal to the sum of the last 60 months' insured earnings immediately before the 6-month period prior to the claim divided by 60, or the sum of all monthly insured earnings paid immediately before the 6-month period prior to the claim, divided by the number of monthly contributions paid in the same period, whichever is greater.

The minimum daily benefit is 10 pesos.

The maximum daily benefit 200 pesos.

The benefit is suspended if the beneficiary does not provide a doctor's monthly medical report.

Permanent Disability Benefits

Permanent disability pension: The monthly pension equals 115% of the insured's old-age pension (115% of the sum of 300 pesos, plus 20% of the insured's average monthly insured earnings, plus 2% of the insured's average monthly insured earnings for each year of service in excess of 10 years or 115% of 40% of the insured's average monthly insured earnings, whichever is greater).

The minimum monthly pension is 2,000 pesos.


Dependent supplement (permanent total disability): 10% of the disability pension or 250 pesos, whichever is greater, for each of the five youngest children younger age 21 (no limit if disabled). The supplement ceases before age 21 if a child marries or earns 300 pesos or more a month from employment.

Partial disability: The pension is equal to the permanent total disability pension but is paid for a limited period according to the schedule in law for each particular disability. If the awarded duration of the pension is less than a year, the pension is paid as a lump sum.

Supplementary pension (permanent total and partial disability): 575 pesos a month.

The insured must have an assessed degree of disability of at least 20%. The degree of disability is assessed annually by a Social Security System doctor. The pension is suspended if the beneficiary is gainfully employed (in the case of total disability), fails to undergo an annual physical examination, does not provide a doctor's quarterly medical report, or is fully rehabilitated.

Workers' Medical Benefits

Medical, surgical, and hospital services; appliances; and rehabilitation.

Survivor Benefits

Survivor pension: 100% of the monthly permanent total disability pension to which the deceased would have been entitled.

Dependent supplement: 10% of the deceased's monthly pension for each of the five youngest children younger than age 21 (no limit if disabled). The supplement ceases before age 21 if a child marries or earns 300 pesos or more a month from employment.

In the absence of an eligible spouse or dependent children, the pension (excluding dependent supplements) is payable to dependent parents for up to 60 months.

The minimum monthly pension is 2,000 pesos.


Survivors of a permanent total disability pensioner: 100% of the insured's monthly permanent disability pension plus dependent supplements.

The pension is shared between the spouse and dependent children younger than age 21 (no limit if disabled) who are not married or earning 300 pesos or more a month from employment.

In the absence of an eligible spouse or dependent children, the insured's monthly pension (excluding dependent supplements) is payable to dependent parents for 60 months minus the number of months the pension was paid to the deceased before his or her death.

Funeral grant: 10,000 pesos payable to the person who paid for the funeral.


Department of Labor and Employment provides general supervision.

Employees' Compensation Commission, part of the Department of Labor, initiates and coordinates program policies and determines contribution rates.

Social Security System collects contributions and pays permanent disability benefits. Employers pay temporary disability benefits directly to their employees and are reimbursed by the Social Security System.

Mandate

Declaration of 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. Toward this end, the State shall endeavor to extend social security protection to workers and their beneficiaries." (Section 2, RA 8282)

http://www.gov.ph/faqs/socialsecurity.asp

http://www.ssa.gov/policy/docs/progdesc/ssptw/2004-2005/asia/philippines.html

http://www.lawphil.net/administ/sss/sss.html

SOCIAL SECURITY SYSTEM

CORAZON DE LA PAZ-BERNARDOPresident and CEO

of SSSINTERVIEW

A dependable social insurance program plays an important role in the dispensation of social justice, and the turnaround experienced by the Philippine SSS over the past few years is not only good news for them but a lesson for us all

ow will we look after ourselves when we are old? This question has in the past decade wrought many a furrowed brow as national pension funds worldwide began issuing pessimistic predictions of their ability to pay out to future generations. As part of the

introduction of the Philippine Social Security System (SSS) website asserts, “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.” However, what happens if our social security systems fail us? What if we lose this last recourse? This is the question that many of us have been grappling with throughout the past decade.

Obviously, the best answer would be for national pension funds to become healthy again. The introduction on the Philippines’ website continues, “It therefore becomes the duty of the state to operate a mechanism that would provide such protection to its people,” and it is in this statement that perhaps the first step towards erasing this global worry is to be found – a solid commitment on the part of national governments. This is something the Philippines has, and combined with some wily maneuvering from SSS President and CEO

http://www.lawphil.net/administ/sss/sss.html

http://www.ssa.gov/policy/docs/progdesc/ssptw/2004-2005/asia/philippines.html

http://www.gov.ph/faqs/socialsecurity.asp

Corazon de la Paz-Bernardo, its social security system has over the past few years managed to turn itself from a loss-making institution into a profit maker and a regional model. It is an institution that many governments around the world are watching.

Since Ms. De la Paz-Bernardo began at SSS in 2001, its membership has grown by more than five million people, it has improved collections by 15%, managed to encourage many members to up their contributions, implemented a range of new technologies, designed an array of new and innovative programs for Overseas Filipino Workers (OFWs), sold off assets and, most importantly, pulled itself out of the red and back into the black.

Hardly surprising, then, that the organization’s head, Ms. De la Paz-Bernardo, was unanimously reelected as president of the International Social Security Association last year for another three-year term. She comments, “When I came into the SSS in 2001, we went through a difficult period of facing a shortened actuarial life. While things have vastly improved since then and our actuarial life has lengthened to where we can breathe a little easier, we still look for other ways of improving the longevity of the fund life. You see, with the idea of fund perpetuity comes the concept of members’ confidence. Many members refuse to pay their premiums if they know that our fund life is drastically short. That was the situation we found ourselves in back then, when the 1999 actuarial evaluation indicated that we only had 12 to 15 years before the fund life would dry up, basically because we were paying out more benefits than we were collecting. Fortunately, we were able to reverse that, and we are doing much better now because of the many reforms that we have instituted.”

Among the most effective of these, Ms. De la Paz-Bernardo lists an increase in contribution rates, which have been upped twice over the past few years. In March 2003, the 8.4% contribution rate was increased to 9.4%, for the first time in 24 years. In 2007, this rate was upped again to 10.4%. The SSS has also increased its maximum salary base while refining credited years of service aimed at bringing members’ actual contributions closer to their due benefits.

In addition, the organization made a number of operational enhancements in order to increase collection and income while reducing expenses and rationalizing benefits. These include the implementation of a nationwide branch teller system and other payment avenues for members, the hiring and deployment of account officers, the implementation of cost-control measures, and the rationalization of benefit payments through confirmation of pensioners and more stringent eligibility requirements.

Finally, according to the SSS CEO, prudent investments have formed a crucial part of the organization’s turnaround. It has invested in some of the top companies in the country including PLDT, Ayala, Metrobank, San Miguel, and Meralco. She says, “These are big names in the private sector, which give us assurance that our money will be looked after. They have to be safe havens for our funds. We also have real properties in some of the best locations in the country. It is a really stable organization and hopefully we can nurture it better.”

The SSS has also designed a new flexi-fund program for OFWs, which encourages additional savings at a time when their earning capacity is high. In order to facilitate the OFW contributions, SSS is now in talks with remittance company iRemit (which already allows payments through its overseas branches) and Ventaja International Corporation to enable OFWs to make contributions with an electronic banking card, while the possibility of online transactions is in the pipeline.

INTERVIEW WITH CORAZON DE LA PAZ-BERNARDOPresident and CEO of SSS

CORAZON DE LA PAZ-BERNARDOPresident and CEO

of SSS

As of today, how many Filipinos are benefiting from the services of SSS?

Today we have over 27 million people benefiting from their SSS membership. There are about 1.2 million Filipinos receiving pension payments for retirement, disability and old age. And, of course, there are the beneficiaries or dependents of these disabled and old age pensioners who have died.

Actual studies have shown that our pensioners are often also the heads of their families. As such, their monthly pensions are used not just for themselves, but also by their families for sending children to school, paying rent, or whatever. This is because of the extended family system inherent in the Filipino culture, wherein members of the family help each other. However, we are encouraging people to not just solely rely on their pensions but to find other income sources, if needed, especially since the pension that they get from the SSS or other pension institutions is meant to be just a partial replacement of their former income.

On a day-to-day basis, we service easily almost 400 thousand people in our branches here and overseas, many of them requesting information on their accounts and applying for benefits.

Since you assumed office in 2001, there are 5 million more members that registered to SSS. What are the key reasons of your performance?

It's not just about the number of the member registrations but more importantly, the level of compliance. We are asking our members to be more aware of their SSS obligations by paying their contributions regularly and, if possible, on a higher salary bracket. This will eventually ensure that they get higher levels of benefits. We have also designed our loan programs wherein borrowers must fulfill their loan obligations; otherwise, they would not be eligible for their social security benefits.

We have initiated an expansion of our membership, not only to cover the employed people, but also those who are self-employed and the voluntary members. There are about 8 million of the self-employed farmers, fishermen and informal sector workers, as well as practicing

professionals. On top of that, we have 19 million employed members. We also have a lot of employers who are members.

We require the coverage and payment of premiums of house helpers by their employers because this as a way of helping them when they retire or are no longer able to work, so that they can be covered for health insurance purposes or for social security programs.

In fact, we are starting a campaign of making members aware that even in times of difficulty, it is prudent to continue their active membership, because this is the time when they need us the most. For example, even if they lose their employment, we encourage them to continue paying as Voluntary Members at a salary bracket that they can afford, so that their contribution records do not have gaps. If they continue their membership, there are more benefits that they can avail of, especially when contingencies arise. The funds of SSS do not come from our government, but from the savings of our members. Thus, they will be helping themselves if they continue to contribute.

When I came into the SSS in 2001, we went through a difficult period of facing a shortened actuarial life. While things have vastly improved since then and our actuarial life has lengthened to where we can breathe a little easier, we still look for other ways of improving the longevity of the fund life. You see, with the idea of fund perpetuity comes the concept of members' confidence. Many members refuse to pay their premiums if they know that our fund life is drastically short. That was the situation we found ourselves in back then, when the 1999 actuarial evaluation indicated that we only had 12 to 15 years before the fund life would dry up, basically because we were paying out more benefits than we were collecting!

Fortunately, we were able to reverse that, and we are doing much better now because of the many reforms that we had instituted and the cooperation of our own employees to give up some of their benefits. They also worked very hard without increases in pay and promotion because they love SSS. Everybody had to sacrifice. Knowing that our charter strictly defines what and how much we can spend in terms of operational expenses, our employees themselves started to think of ways to best improve our collections, realizing that their own income would not go up unless SSS' financial footing becomes stronger.

In terms of improving the performance of SSS, I must mention that several measures have been implemented since 2001 that effectively strengthened the SS Fund, among the most effective of which were as follows:

1. Contribution rate increased twice. In March 2003, the 8.4 percent contribution rate was increased to 9.4 percent, for the first time in 24 years. The rate was again increased effective January 2007, from 9.4 percent to 10.4 percent.

2. Maximum salary base was increased and credited years of service (CYS) was redefined. In 2002, the maximum monthly salary level upon which contributions are based was raised to P15,000 from P12,000. The CYS was also redefined to equal 12 months contributions in a year. The above measures were aimed at bringing members' actual contributions closer to their due benefits.

3. Operational enhancements. Various operational initiatives were made to increase collection and income, while reducing expenses and rationalizing benefits. These include the implementation of nationwide branch tellering system and other payment avenues for members, the hiring and deployment of account officers, the implementation of cost-control measures, and the rationalization of benefit payments through confirmation of pensioners

and more stringent eligibility requirements.

4. Prudent investments. To ensure that its funds continue growing, the SSS has some investments in the top companies of the country, such as: PLDT, Ayala, Metrobank, San Miguel, Meralco, etc. These are big names in the private sector, which give us assurance that our money will be looked after. They have to be safe havens for our funds. We also have real properties in some of the best locations in the country. It is a really stable organization and hopefully, we can nurture it better.

We have seen that, over the years, the SSS has provided homes, education, healthcare, and businesses to our members. The SSS, because of its funds, is able to come up with a pool of resources, which the government and the private sector can tap to implement infrastructure and social projects. It is not just about social services, but also economic development.

However, I must emphasize that the SSS is apolitical. We have no qualms in saying "NO" to politicians when they ask us to do things which we don't believe would be right for the System. We also don't just accept offers for people to work with us.

Can you elaborate on the 25% stake that SSS sold to Banco de Oro?

The sale was first made in 2006. There was a tender from the SM Investments Group to buy our shares. We took advantage of it, but the condition that the Social Security Commission (the highest policy-making body within SSS) imposed was that there must be the concurrence of the Supreme Court. At that time, there was still a pending case against selling our shares. The Supreme Court eventually decided that we could sell. We were able to get the order in September. That was finalized just last week; we executed the sale last Friday and we got the payment.

How do you plan to use this money?

We are looking at the best option under the best circumstances. As you know, the whole world market is going through a state of uncertainty. We have to make sure that wherever we put our money, it is within our charter, and that it will give us a safe return for our principal, as well as a better yield than what we would normally get from other sources. This is part of what our investments people are looking at now. Right now, the money is going to be deposited in the bank. However, we are exploring various possibilities for putting our money in long-term investments.

Last September, you were re-elected by acclamation as President of the International Social Security Association (ISSA) for another three-year term. How you compare the efficiency of the SSS in the Philippines with the other social security systems in other countries?

I was re-elected unopposed to a new three-year term as ISSA President; it's an honor that I proudly share with my countrymen. I was first elected in 2004, and I believe that one of the reasons why I was considered a viable candidate then was because the ISSA members have seen the quality of our people who have attended these international meetings, including our past SSS presidents.

The SSS must be one of the best organizations in the world; otherwise, they would not think of me as a serious contender for the ISSA top position. Officials from developing countries often visit the SSS and try to learn many of our programs, particularly how we have become

successful in implementing them. We have someone here who used to be called "Professor" by our neighbors, he is the former Asia-Pacific Regional Director of ISSA and he is seen as a good person to give advice on how to start Social Security Programs. We even have actuaries here in the SSS who have acted as consultants to our neighboring countries on how they can jumpstart some of their programs. The Filipinos are well known in this part of the world in providing good instruction and example.

Social Security System has sold a total of P149 million worth of acquired houses and lots last year at government-sponsored housing fairs as part of efforts to reduce the housing backlog in the country.

Since its establishment in 1957, the SSS has viewed housing as one of its important functions. We course our housing loan program through the banks to facilitate processing, thus members can borrow directly from the bank, and they can get even higher amounts than what we can afford to lend. We offer direct housing loans only to OFWs and trade union members.

We actually contributed 80% of the housing loan program of the government in the 1990s. Unfortunately, we then had a big problem of collecting them. That is why we decided to work through the banks with good credit investigators, so that we can be assured that our money will come back to us, and we will be able to use it for other purposes.

Until today, we have regular loan programs to provide housing for our members. Part of the program that we have with Vice President Noli De Castro, who is the country's "Housing Czar", is to allow as many of our members (and even non-members) working in government to buy the houses foreclosed by SSS at prices affordable to them. We also have an ongoing housing loan penalty condonation and restructuring program to help delinquent-paying members save the houses that they are about to lose. We try to offer schemes that will allow them to continue owning their houses, such as waiving interests and penalties so that they can take care of unpaid accounts. We are giving amnesties on penalties, provided that they pay the principal. We are helping them as much as we can.

The SSS Flexi-Fund Program is offered to OFWs who are either: 1) recruited from the Philippines by a foreign-based employer for employment abroad; 2) earning income in a foreign country; and 3) residing permanently in a foreign country. Can you tell us more about this program?

We have both a provident fund and a social insurance program for our overseas Filipino workers (OFWs). The basic social security program is defined benefit, whereas the Flexi-Fund Program is defined contribution. The Flexi-Fund is a program exclusively for OFWs in which they give us an amount higher than the regular premium that they are expected to pay, and thus, they are able to save with us at a rate normally higher than what they would get from the banks. Anything given to us in excess of the maximum contribution amount goes to the OFW's Flexi-Fund account.

We have seen people depositing up to P300,000 under the Flexi-Fund Program because they see that their money is safer with us, and it is yielding more interest. They can then withdraw their Flexi-Fund savings at some point to enable them to build homes, start businesses when they return home, or help educate their children.

The tendency for OFWs is to send all of their money to their families back home, and they don't save anything for themselves and for the future of their families. That is why it is best

that they learn to save something on their own, so that when they return home, there is something to draw from.

A lot of locals want to take part in the Flexi-Fund Program, but we are still studying if we can really afford to do all these things at the same time. There is also the PERA Bill, which has been pending for some time, where on top of all these social insurance programs, you can set aside a certain amount, and it will serve as a provident fund. This is complete with tax-deductible features.

According to Vice President Noli de Castro "OFWs should be placed under mandatory SSS coverage to provide them adequate social protection". Do you see this happening in the near future?

Yes, we would definitely like this to be implemented, but it would require a change in our Charter, which could take some time as this will have to pass through Congress. We recognize that OFWs are among the most vulnerable sectors of society in terms of social security protection, because more often than not, they are not covered by the social security institutions of the country where they are working. They basically leave their and their families' future up to chance. This is why we are really moving from country to country and entering into bilateral agreements with countries for the mutual social security coverage of our people.

Nevertheless, the move towards mandatory membership of OFWs to SSS has to be gradual. Our systems and mechanisms need to be prepared to receive the increased influx of transactions from OFWs. We have reached the point in our operations where, by sheer size, peculiarities, and dispersion of our membership, we really have to re-examine how we can most effectively deal with them. Thus, a move towards electronic or online transactions is inevitable.

In the meantime, we have made it easier for OFWs to pay their contributions by giving them quarterly payment schemes. They are even allowed to pay one year in advance. We also have this web-based application that allows them to make payments. We are working on a venture with major service providers to allow OFWs to remit their contributions and receive their benefit payments through an electronic bankcard.

You recently entered into a tie-up with iRemit, allowing OFWs to pay their SSS contributions via iRemit's Electronic Overseas Collection Service. How would this new agreement ease the contribution of OFWs to SSS?

Filipinos are spread all over the world. They could be in ships or in houses where they are not allowed to go out often. They need to be able to access a remittance system so that they can pay their SSS contributions wherever they are. This is one of the principal reasons why it was thought that we could have iRemit to help us to expedite the payment.

The other thing is to ease the posting, wherein once they make a payment, it would be credited to their accounts immediately. With this electronic system, the money is recorded in their accounts within 2 to 3 days. They like that because if they want to avail of the benefits, these could easily be given. With millions of Filipinos abroad, this is one way that we can service them very efficiently.

Another thing we have is the branch tellering service, although it is not yet available in our branches overseas. Here in the Philippines, most of our branches have tellers to receive

payments from members. Before, it was a no-no to accept cash in our offices because of the security risks, thus, we went to the banks for efficiency. But as time passed, there was less number of banks in ratio to the number of our members. It has come to a point when the banks started to refuse servicing members who were only paying minimum amounts. To be able to collect P100 thousand, you almost need to collect on a minimum basis from a thousand people. Can you imagine a small bank being swamped by 30 people all at the same time?

Thus, we thought that members already in our premises should be allowed to pay there. Also, because they have the opportunity to interact with our own employees, they can then be enlightened on the fact that if they would pay us the amount more reflective of their true income, they would then get more benefits. It's self-declaration. It is hard for us to audit whether they are telling us their correct income amount or not. There is person-to-person contact between the contributors and our employees, and it is explained to them what the benefits are in paying at a higher rate. But we have seen that we have increased collections because of the personal interactions between the persons paying and our collectors.

Recently SSS has been designated by the President to spearhead the National ID Program.

Yes, the SSS has been appointed to take charge of the Unified Multi-Purpose ID System, not the National ID Program. We are now working closely with the other agencies that produce their own IDs for their members so that we can come up with a unified, inter-operable ID card. At the same time, we have to clarify issues on how to fund the ID production. If the SSS were made to produce the funding for it, this would mean that we would produce IDs other than what we need for our members. However, we cannot spend SSS money for non-SSS members. Our total SSS membership is around 27 million at the present, of whom only around 10 million have been issued their biometrics ID cards.

What message would you like to leave to the readers of USA Today?

We are striving to make a success out of our social security programs so that the SSS can be stronger and generate more revenues. In that way, we can have more SSS members who will benefit from our programs. We hope for the continued trust and cooperation of the Filipino community in North America. Let us work together for a better and more viable SSS, and ultimately, for a stronger Philippines.

Thank you for this interview, we wish you the best in your future endeavors.

http://www.unitedworld-usa.com/reports/philippines2008/interview09.asp

SOCIAL SECURITY SYSTEM (SSS)

HISTORY On January 26, 1948, President 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.

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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 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 to 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 Sept. 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.

The SSS administers two programs namely:1. The Social Security Program; and

2. The Employees' Compensation (EC) Program.

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 in 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 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.

The SSS used to administer the Medicare program for hospitalization and other medical needs of private sector workers. The Government Service Insurance System (GSIS) performed this role for 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.

VISION The SSS aims to develop and promote a viable, universal and equitable social security protection scheme through world-class service

MISSION 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. Toward this end, the State shall endeavor to extend social security protection to workers and their beneficiaries."

SOCIAL SECURITY SYSTEM (SSS) BENEFITS

TYPE OF BENEFIT

QUALIFYING CONDITIONS

AMOUNT OF BENEFIT

Sickness At least 3 contributions within 12-month period prior to

Maximum Daily Allowance=90% of average daily

semester of sickness salary credit

Maternity At least 3 contributions within 12-month period prior to semester of childbirth or miscarriage

Daily maternity benefit=100% of average daily salary credit multiplied by 60 days or 78 days for caesarian deliveryUp to first 4 deliveries or miscarriages only

Retirement 120 monthly contibutions;Age- 60 yrs (optional); 65 yrs (mandatory

Monthly pension: P1,200 - if with at least 10 Credited Years of Service (CYS); P2,400 - if with 20 CYS 13th month pensionLump sum: less than 36 contributions; appropriate lump sum

Partial Disability At least 36 contributions prior to semester of contingency

Monthly pension: P1,000 - if with less than 10 CYS; P1,200 - if with at least 10 CYS; P2,400 - if with at least 20 CYS13th month pension

Permanent Total Disability

At least 36 contributions prior to semester of contingency

Monthly pension: P1,000 - if with less than 10 CYS; P1,200 - if with at least 10 CYS; P2,400 - if with at least 20 CYS13th month pensionLump sum: less than 36 contributions; appropriate lump sum

Death At least 36 contributions prior to semester of contingency

Monthly pension: P1,000 - if with less than 10 CYS; P1,200 - if with at least 10 CYS; P2,400 - if with at least 20 CYS13th month pensionLump sum: less than 36 contributions; appropriate lump sum

Funeral At least 1 contribution P20,000

MEMBERSHIP COVERAGE As of December 2001 (actual) > Employers (ER) 633,306

> Employees (EE) 19,352,845 > Self-Employed (SE) 4,170,027

http://www.philssa.org/sss.html

Social Security System (SSS) Flexi Fund for Overseas Filipino Workers

What is the SSS Flexi-fund?

The Flexi-fund is a provident fund for overseas Filipino workers (OFWs) that features flexible payment terms. It is an additional service provided by the SSS on top of an OFWs regular SSS membership.

Why do I need the SSS Flexi-fund?

The Flexi-fund is a valuable aid in maximizing your overseas earnings. Your accumlated contributions to the Flexi-fund are investments for the future, especially when your overseas employment contract ends. The Flexi-fund is offered on top of the regular SSS benefits for retirement, disability, and death, among others, which you are also entitled to as an SSS member.

Who may enrol in the SSS Flexi-fund?

The Flexi-fund is open to OFWs who are:

recruited in the Philippines by foreign-based employers for work abroad;having a source of income in a foreign country; orresiding permanently in a foreign country.What benefits may I avail myself of from the Flexi-fund?

As a Flexi-fund member, you may withdraw your Flexi-fund contributions with interest anytime. Aside from this, members who reach the age of 60 are entitled to retirement benefits either in the form of a monthly pension or a lump sum payment. The beneficiaries of a pensioner who has passed away shall receive a lump sum benefit equivalent to the cash value of the remaining pension.

Why is the SSS Flexi-fund a good investment?

The contributions that you remit to the SSS Flexi-fund are invested in government Treasury Bills that are risk-free and yield high interest. The interest earned by your Flexi-fund deposits are based on the average 91-day Treasury Bill rate of the previous year.

When may I withdraw my SSS Flexi-fund contributions?

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An OFW-member may withdraw his contributions with interest at any time, especially in times of need.

What may SSS Flexi-fund investments be used for?

The SSS Flexi-fund provides good security for your future. It may be used to fund a business, construct a house, finance schooling, or as pension when you retire.

What is the difference between the SSS Flexi-fund and regular SSS membership?

The Flexi-fund is a voluntary provident fund that provides additional benefits to the member on top of his or her regular SSS membership. It is a pension plan and savings account rolled into one that enables your contributions to earn interest. It provides you with flexible modes of paying your contributions, and allows you to easily vary the amount that you pay. And of course, if you ever find yourself in financial need, you may withdraw your contributions at any time.

Where may I get forms for the SSS Flexi-fund?

To enrol in the Flexi-fund, simply register at SSS foreign representative offices located in various countries. You may also download SSS Form OW-1 from this web site. After filling out the form, you may send it by mail or fax to the following address:

International Affairs and Branch Expansion Office3/F SSS Bldg., East AvenueQuezon City, 1100 PhilippinesTelefax: (632) 435-9814email: [email protected]

How do I qualify for the SSS Flexi-fund?

You must first be an SSS member before becoming a member of the Flexi-fund. First-time members should first make sure that their monthly contribution to the regular social security program is at the maximum bracket. For existing SSS members, present your latest SSS Form RS-5 as proof that your contribution payment is at the maximum bracket.

How long do I have to pay my SSS Flexi-fund contributions?

You may pay your Flexi-fund contributions anytime, provided you continue paying the maximum required contribution under your regular SSS membership. Any excess amount is included in your Flexi-fund account. Even when your overseas employment contract is over, you may still continue your contributions to the Flexi-fund. Your Flexi-fund contributions will only cease when you stop your contributions to the regular social security program.

How and where may I remit my SSS Flexi-fund contributions?

Simply fill up SSS Form RS-5, which is available from any SSS office, and remit your payment at any of the following accredited collecting banks or companies:

Allied BankAsiatrust BankBank of the Philippine Islands (BPI)Equitable PCI BankInternational Exchange BankLand Bank of the PhilippinesMetrobankPhilippine National Bank (PNB)Rizal Commercial Banking Corporation (RCBC)Security BankLuzon Brokerage Corporation (LBC)

(Please visit Social Security System http://www.sss.gov.ph website for regular update and complete information)

(This information from Philippine Government's Department or Offices is for General Public access intended to inform Filipino Overseas Workers and their beneficiaries, if you need more details, please visit Social Security System (SSS) http://www.sss.gov.ph website for complete and more updated information)

http://vanie.ofw-connect.com/SSS_Flexi_fund_OFWs.htm

Social Security System Programmes

The Social Security System (SSS) administers two programs namely:

1. The Social Security Program; and2. The Employees' Compensation Program (EC).

Scope of the programs

Social security provides replacement income for workers in times of death, disability, sickness, maternity and old age.

The EC program, started in 1975, provides double compensation 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.

Finance of the programs

http://vanie.ofw-connect.com/SSS_Flexi_fund_OFWs.htm

http://vanie.ofw-connect.com/www.sss.gov.ph/%20

Monthly contributions based on the compensation of SSS members are payable under the two programs, as follows:

SSS - 8.4% average monthly compensation not exceeding P10,000 and payable by both employer (5.04%) and employee (3.36%).

EC - 1% of average monthly compensation not exceeding P1,000 and payable only by the employer.

Coverage of employees

A private employee, whether permanent, temporary or provisional, who is not over 60 years old, is subject to compulsory coverage.

On Sept. 1, 1993, SSS provided for the coverage of household helpers earning at least P1,000 a month. A household helper is any person who renders domestic services exclusively to a household such as a driver, gardener, cook, or governess and other similar occupations.

A Filipino seafarer should be covered by the SSS upon the signing of the standard contract of employment between the seafarer and the manning agency, together with the foreign ship owner as employers. This ruling was upheld by the Philippine Supreme Court in the case of Ben Sta. Rita vs. The Court of Appeals, the People of the Philippines and the SSS, General Report Nos. 119891, 247 Supreme Court Records Annotated 484 dated Aug. 21, 1995. Such standard contract, which stipulates for the SSS coverage of Filipino seafarers was required for overseas employment pursuant to a Memorandum of Agreement between the SSS and the Department of Labor and Employment signed on July 14, 1988.

An employee of a foreign government, international organization or their whollyowned instrumentality based in the Philippines, which entered into an administrative agreement with the SSS for the coverage of its Filipino workers, is subject to compulsory coverage.

With the approval of the Social Security Act of 1997 or RA 8282, effective May 24, 1997, the parent, spouse or child below 21 years old, of the owner of a single proprietorship business is subject to compulsory coverage.

Children below 15 years of age are also subject to compulsory coverage under RA 8282. A monthly report is required for submission to the Department of Labor and Employment (DOLE), if a child below 15 years old is reported for SSS coverage without a working permit.

Coverage of employers

An employer, or any person who uses the services of another person in business, trade, industry or any undertaking must be registered with the SSS. Social, civic, professional, charitable and other non-profit organizations, which hire the services of employees, are considered "employers."

A foreign government, international organization or their wholly owned instrumentalities such as embassies based in the Philippines, may enter into a memorandum of agreement with the SSS on a voluntary basis, for the coverage of its Filipino employees.

Coverage of self-employed members

A self-employed person, regardless of trade, business or occupation, with an income of at least P1,000 a month, who is not over 60 years old, should register with the SSS. Included in the self-employed group are persons such as:

self-employed professionals; business partners, single proprietors and board directors; actors, actresses, directors, scriptwriters and news reporters who are not under an

employer-employee relationship; professional athletes, coaches, trainers and jockeys; farmers and fisherfolks; and workers in the informal sector such as cigarette vendors, watch-your-car boys, and

hospitality girls, among others.

Coverage of overseas workers in countries with bilateral agreements with the Philippines

An overseas worker may be covered on a voluntary basis if he is employed in a country that has signed an agreement with the Philippine government to include Filipinos and their nationals in the social security coverage of either country, e.g. United Kingdom.

Coverage of Overseas Filipino Workers (OFWs)

A Filipino recruited by a foreign-based employer for employment abroad or one who legitimately entered a foreign country (i.e. tourist, student) and is eventually employed may be covered on a voluntary basis. He should not be over 60 years old.

He may also apply for coverage as an OFW, if he was an SSS member and was separated from employment.

If he is already paying voluntarily, he may also apply to change his membership status to a voluntary OFW member.

Coverage of non-working spouses of SSS members

A person legally married to a currently employed and actively paying SSS member who devotes his full time in the management of his household and family affairs may be covered on a voluntary basis provided he has the approval of his working spouse. He should never have been a member of the SSS. His contributions will be based on 50 per cent of the working spouse's last posted monthly salary credit but in no case shall it be lower than P1,000.

Social Security Program

Sickness Benefit

Eligibility

The sickness benefit is a daily cash allowance paid for the number of days a member is unable to work due to sickness or injury.

A member is qualified to avail himself of this benefit if:

he is unable to work due to sickness or injury and is thus confined either in the hospital or at home for at least four days;

he has paid at least three monthly contributions within the 12-month period immediately before the semester of sickness;

he has used up all current company sick leaves with pay for the current year; he has notified his employer or the SSS, if he is a separated, voluntary or self-employed

member.

Amount of benefit

The amount of an employee’s sickness benefit is computed as the daily sickness allowance times the approved number of days. Effective May 24, 1997, the daily sickness allowance is 90 per cent of the average daily salary credit.

The sickness benefit is computed by:

Excluding the semester of sickness. A semester refers to a period of two consecutive quarters ending in the quarter of sickness. A quarter refers to a period of three consecutive months ending on the last day of March, June, September or December.

Counting 12 months backwards starting from the month immediately before the semester of sickness.

Identifying the six highest monthly salary credits within the 12-month period. Monthly salary credit means the compensation base for contributions and benefits related to the total earnings for the month. (The maximum covered earnings or compensation increases by P1,000 beginning at P7,000 in 1994 and every January of each year thereafter until the maximum of P12,000 is reached.)

Adding the six highest monthly salary credits to get the total monthly salary credit. Dividing the total monthly salary credit by 180 days to get the average daily salary credit. Multiplying the average daily salary credit by 90 per cent to get the daily sickness

allowance. Multiplying the daily sickness allowance by the approved number of days to arrive at the

amount of benefit due.

Duration pf benefit

A member can be granted sickness benefit for a maximum of 120 days in one calendar year. Any unused portion of the allowable 120 days sickness benefit cannot be carried forward and added to the total number of allowable compensable days in the subsequent year.

The sickness benefit shall not be paid for more than 240 days on account of the same illness. If the sickness or injury still persists after 240 days, the claim will be considered a disability claim.

Disability Benefit

Eligibility

Disability benefit is a cash benefit paid to a member who becomes permanently disabled, either partially or totally.

A member who suffer partial or total permanent disability, with at least one monthly contribution paid to the SSS prior to the semester of contingency, is qualified.

The complete and permanent loss of use of any of the following parts of the body fall under permanent partial disability:

one thumb one big toe one index finger one hand one middle finger one arm one ring finger one foot one little finger one leg hearing of one ear one ear hearing of both ears both ears sight of one eye

The following fall under permanent total disability:

complete loss of sight of both eyes; loss of two limbs at or above the ankle or wrists; permanent complete paralysis of two limbs; brain injury causing insanity; and other cases as determined and approved by the SSS.

Amount of benefit

There are two types of this benefit. They are:

the monthly pension; and the lump sum amount.

The monthly pension is a cash benefit paid to a disabled member who has paid at least 36 monthly contributions to the SSS prior to the semester of disability.

The lump sum amount is granted to those who have not paid the required 36 monthly contributions.

The amount of the monthly pension will be based on the member's number of paid contributions and his years of membership.

The lowest monthly pension is P1,000 for members with less than 10 calendar years of service (CYS); P1,200 for those with at least 10 CYS and P2,400 for those with at least 20 CYS.

For permanent total disability, the lump sum is equivalent to the monthly pension times the number of monthly contributions paid to the SSS or the monthly pension times 12, whichever is higher.

For permanent partial disability, the lump sum is equivalent to the monthly pension time the number of monthly contributions times the percentage of disability in relation to the whole body or the monthly pension times 12 times the percentage of disability, whichever is higher.

In addition to the monthly pension, a supplemental allowance of P500 is paid to the total or partial disability pensioner. The allowance will provide additional financial assistance to meet his extra needs arising from his disability.

As a disability pensioner, he and his dependents are also entitled to Medicare benefits under the administration of the Philippine Health Insurance Corporation (PhilHealth).

Duration of benefit

Only totally and permanently disabled members will receive a lifetime monthly pension. However, this pension will be suspended if the pensioner recovers from his illness, resumes employment or fails to report for physical examination when notified by the SSS. The member may request for a domicilliary or a home visit if his disability inhibits his activity.

The monthly pension of a partially disabled member is limited to a certain number of months according to the degree of his disability. If with deteriorating and related permanent partial disability, the percentage degree of disability of the previously granted claim shall be deducted from the percentage degree of disability of the present claim.

The monthly pension is given in a lump sum if it is payable for less than 12 months.

Dependent's Pension

Eligibility

The dependent legitimate, legitimated, legally adopted and illegitimate children, conceived on or before the date of contingency of a totally disabled pensioner will each receive a dependent's pension equivalent to 10 per cent of the member's monthly pension or P250, whichever is higher.

Only five minor children, beginning from the youngest, are entitled to the dependents' pension. No substitution is allowed.

Where there are more than five legitimate and illegitimate children, the legitimate ones will be preferred.

The minor children of a partially disabled pensioner are not entitled to the dependents' pension.

Duration of benefit

The dependent's pension stops when the child reaches 21 years old, gets married, gets employed and earns P300 or more a month, or dies. However, the dependent's 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 defect which is congenital or acquired during minority.

Employees' Compensation Program

Eligibility to EC benefits

Employees should be duly reported to the SSS; Employees' sickness, injury or death is work-connected; and The SSS has been duly notified of such sickness, injury or death.

An injury, disability or death resulting from an employment accident is compensable if:

The employee is injured at the place where his work requires him to be; The employee is performing his official functions; and If the injury is sustained elsewhere, the employee is executing an order for the employer.

Medical services

Medical services, appliances and supplies provided to the afflicted member beginning on the first day of injury or sickness, during the subsequent period of his disability, and as the progress of his recovery may require. These benefits, however, are limited to the ward services only of an accredited hospital and physician. Ward services consist of all the services an in-patient would ordinarily receive in a hospital.

Rehabilitation services

Rehabilitation services, consisting of medical, surgical and hospital treatment. The SSS also provides as soon as practicable, a balanced program of remedial treatment for handicapped members.

Income cash benefit for temporary total disability or sickness

An income cash benefit equivalent to 90 per cent of the average daily salary credit with a minimum of P10 and a maximum of P200 (effective Nov. 1, 1996). It is payable for a period not longer than 120 consecutive days. If the injury requires more treatment, the period may be extended up to 240 days. If it persists after this period, the injury will be considered as permanent total disability.

This benefit is advanced by the employer every regular pay day. The amount legally paid by the employer is reimbursed 100 per cent by the SSS.

Income cash benefit for permanent total disability

Permanent total disability (loss of two limbs, permanent complete paralysis of two limbs, etc.). This benefit is a monthly pension paid for as long as the injured lives plus 10 per cent for each of the five dependent children beginning with the youngest and without substitution. The monthly pension is guaranteed for five years but will be suspended if the employee is gainfully employed, recovers from his permanent total disability, fails to present himself for examination at least once a year upon notice by the SSS or fails to submit a quarterly medical report certified by his attending physician as required under Section 5, Rule IV of the EC law. The minimum monthly income benefit is P2,000.

Beginning Jan. 1, 1991, a permanent total or permanent partial disability pensioner is also given a supplemental allowance in addition to his monthly pension. This allowance will provide him additional financial assistance to meet his extra needs arising from the disability. Effective May 1, 1993, the supplemental allowance is P575 a month.

Upon the death of an EC permanent total disability pensioner, the SSS will pay to the primary beneficiaries 100 per cent of the monthly pension. In addition, his dependents will be paid the dependent's pension.

If he has no primary beneficiaries, the SSS will pay to his secondary beneficiaries the remaining balance of the five-year guaranteed period, excluding the dependent's pension.

Income cash benefit for permanent partial disability

Permanent partial disability (such as loss of one thumb, finger, leg). A monthly pension is provided to the member, equivalent to the pension for permanent total disability, but limited to the number of months designated by law for a particular disability. The minimum monthly pension is P2,000.

However, if the period of permanent partial disability pension is less than a year the benefit may be paid in lump sum.

Income cash benefit for death

A monthly pension is provided to the deceased member's primary beneficiaries, plus 10 per cent of such benefit for each of five dependent children, subject to some limitations.

In the absence of primary beneficiaries, the secondary beneficiaries are entitled to the monthly pension but not to exceed 60 months. The minimum monthly pension for the death benefit is P2,000.

A funeral benefit of P10,000 will also be paid to any person who actually shouldered the burial expenses of the deceased member or permanent total disability pensioner.

Source: Social Security System (SSS)

http://wallis.kezenfogva.iif.hu/eu_konyvtar/projektek/vocational_rehabilitiation/philippi/phi_rap/comp.htm



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