Former Insurance Commissioner Emmanuel F. Dooc (right, photo at right) officially took the helm of the Social Security System (SSS) on November 23, 2016, after the ceremonial turnover of leadership from outgoing SSS President and CEO (PCEO) Emilio S. de Quiros, Jr.

Dooc’s professional accomplishments and vast experience in the insurance industry – having worked in a global insurance firm for a number of years, being at the helm of the Insurance Commission, and serving as an Honorary Insurance Commissioner of the State of Louisiana, USA, among many others – are expected to

VOL. XVI NO. 4 QUEZON CITY DECEMBER 2016

OFFICIAL PUBLICATION OF THE SOCIAL SECURITY SYSTEM

Constitutionalist and UE Law Dean chairs Social Security

Commission

What's Inside...

Joint Resolution eyed ......................p. 2SSS tightens ER compliance...........p. 4Infra investments planned ...............p. 4SSS position at House hearing........p. 5Legal Forum ....................................p. 7

SSS Newsletter

(Continued on Page 3)

bring positive developments to SSS’ efforts in continually improving its operations, services, and finances.

A B a l d o m e r o B . Aguinaldo Awardee for 2016, Dooc was recognized for his pioneering leadership in the field of insurance, such as ensuring that Filipinos are secured by inclusive and qual i ty coverage , and helping raise the life insurance coverage rate to 37.35 percent of the population through micro-insurance, among others. The Award is given by the Department of Finance (DOF) to outstanding officials of DOF and its attached agencies.

Dooc holds a Bachelor of Science degree in Elementary Education from Mabini Colleges. He topped the teachers’

Lawyer Amado D. Valdez (at right), the former Dean of the University of the East (UE) College of Law and a noted constitutionalist, has been appointed Chairman of the Social Security Commission (SSC), the governing board of the Social Security System (SSS). He took his oath of office in October 2016.

Dean Valdez’s stint in national government started during the term of then President Corazon Aquino wherein he served as director of the Bureau of

Emmanuel F. Dooc is new SSS President and CEO

Agrarian Legal Assistance and member of the Cabinet Assistance System. In 2001, he worked as Government Corporate Counsel with the rank of Presiding Justice of the Court of Appeals. He was also a Senior Undersecretary at the Office of the President and concurrent Executive Director of the Presidential Commission on the Visiting Forces Agreement. Aside from his business and corporate law practice, he was also involved in legal aid work, such as with the Integrated Bar of the Philippines.

A columnist with People’s Tonight, Dean Amado Valdez is also a radio personality through the program, “Mag-payo Nga Kayo,” aired over DZMM, which he co-hosts with May Valle-Ceniza.

Other personalities have also been appointed by President Rodrigo R. Duterte and have been sworn in as new Social

examination in the school division of Camarines Norte, and even earned a Certificate on Teaching the Visually Impaired from the Philippine Normal University – degrees that helped him as a public school teacher for various special groups. He later earned his Bachelor of Laws degree from San Beda College.

(Continued on Page 2)

SSS eyes signed joint resolution on P2,000 pension increase before year-end

2 SSS NEWSLETTER DECEMBER 2016

Philippines and Denmark ink social security accord

Filipino workers employed in Denmark will be entitled to social security benefits under the same conditions applicable to Danish nationals under the bilateral agreement signed by the two countries, according to the SSS that led the negotiations for the Philippines.

The agreement, which was ratified last year and is already in effect, will benefit Filipino and Danish nationals with current or previous work in the Philippines and Denmark who have been covered by social security legislation in either or both countries.

The Philippine agencies involved in the agreement’s implementation include the SSS and the Government Service Insurance System, while their Danish counterparts are the Pensionsstyrelsen and the Denmark Pension Agency.

SSS disburses P7.2-B for 13th month pensions

The SSS released a total of P7.2 billion for this year’s 13th month pensions, which its pensioners would receive in time for the Christmas season.

SSS Officer-in-Charge of Benefits Administration Division Normita M. Doctor said pensioners under the Social Security (SS) and Employees’ Compensation (EC) programs, except partial disability pensioners, are entitled to the 13th month benefit, as well as recipients of dependents’ pensions.

“Pensioners will also get their regular pension for December in accordance with their contingency date,” she said.

Doctor added the SSS released the funds and checks for 13th month pensions to its partner banks and to the postal office, respectively, as early as November 14, 2016, so that pensioners can receive them directly at their bank accounts or through checks sent via registered mail.

The Social Security System (SSS) expects the signing of the joint resolution from the House of Representatives and the Senate on the proposed pension increase before end-2016 to pave the way for the release of the initial P1,000 benefit at the start of 2017.

Social Security Commission (SSC) Chairman Dean Amado D. Valdez said that in order for pensioners to receive the additional P1,000 in January 2017, the SSS would need the formal approval of the proposal before the year ends, since pensions are disbursed to banks a month prior to their scheduled release.

He explained that the joint resolution would first have to be passed by the House and the Senate, and then a Commission Resolution shall be sent to Malacañang for the formal approval of President Rodrigo R. Duterte, before SSS can implement it.

“SSS is also guided by the Department of Finance in ensuring that the implementation of the proposed pension increase will not drive the fund to the brink of bankruptcy. We don’t want to be seen as irresponsible,” Dean Valdez said.

The SSC chairman added that Finance Secretary Carlos G. Dominguez III is keen on ensuring that SSS funds would last at least until 2039. SSS funds are currently projected to last until 2042, but granting the entire P2,000 pension increase in 2017 will shorten fund life to only until 2025.

The SSS continues to work closely with legislators, whom Dean Valdez credited for recognizing the need to grant higher pensions while still preserving the long-term viability of SSS funds for the benefit of currently-paying members who are future SSS pensioners.

SSS OFFICIALS AT HOUSE COMMITTEE HEARING. The SSS delegation, led by Chairman Amado D. Valdez, presented the agency’s proposal to grant the P2,000 across-the-board pension increase in two (2) tranches, during the hearing of the House Committee on Government Enterprises and Privatization held on November 15, 2016. Bottom photo shows Dean Valdez (seated, center) elaborating on the SSS proposal.

He started his corporate career at the Tax Division of SGV and Company. He later moved to Hongkong in 1988 to work as Vice President for Operations at American International Assurance, Ltd. In 1997, he moved back to Manila to serve as First Vice President and General Counsel of Philam Life and General Insurance Company. Later on, he was appointed as Chief Compliance and Governance Officer for all member-companies of the Philam Group, before being promoted to Senior Vice President.

He was appointed by then President Benigno S. Aquino III to Acting Insurance Commissioner on January 5, 2011, a post he held until the passage of Republic Act No. 10607, or the Revised Insurance Code of 2012. He was re-appointed to a fresh six-year term under the Revised Insurance Code on December 4, 2013. He was also a member of the Anti-Money Laundering Council from 2011 to 2016.

However, President Rodrigo R. Duterte chose him to head the SSS instead, effective November 2016.

Emmanuel Dooc... (From Page 1)

DECEMBER 2016 SSS NEWSLETTER 3Constituionalist and (From Page 1)

Security Commissioners. In total, there are eight new SSC members (including new SSS President and Chief Executive Officer Emmanuel Dooc who serves as SSC Vice Chairman) while one, Commissioner Diana B. Pardo-Aguilar, was re-appointed from the previous SSC.

• Representative of the 1BAP Partylist in the 16th Congress (2013-2016)

• Department Secretary (2008-2010)• Presidential Adviser for New Government

Centers (2007-2008)• Chief Executive Officer of PNOC Development

& Management Corporation (2004-2005) and of Philippine Reclamation Authority (2006)

• Chairman of the GRP Negotiating Panel for Talks with the CPP/NPA/NDF (2001-2004)

• Justice Secretary (1991-1992 and 1998) • Solicitor General (1996-1998)• DOJ Undersecretary (1986-1991)• B.A. Political Science - Manuel L. Quezon

University• Bachelor of Laws - Ateneo de Manila University

SILVESTRE H. BELLO IIICommissioner/Ex-Officio as Secretary of Department of Labor and Employment

MICHAEL G. REGINOCommissioner Representing the General Public

• SVP/CEOofSt.AugustineGold&CopperLtd.• Exec.DirectorofTVIResourcesDev't.Phils.• President and Board Director of San Agustin

Services, Agata Mining Ventures, andExplorationDrillingCorp.

• President of Golden Haven Memorial Parks(2005-2014), CamellaHomes (2002-2005), andMGSGroupofCompanies(1993-2002)

• Finance and Treasury Manager at NorthernFoods,Corp.(1986-1989)

• Economics InstructoratAteneodeZamboangaUniversity(1981-1983)

• B.A.MajorinEconomics-AteneodeZamboangaUniversity

• MasterinBusinessAdministration(Academics)-AteneodeManilaUniversity

• Former SSS employee assigned to Region IX in Davao City for 31 years, in varying positions: Section Head (1999-2009); Team Head (1999); Officer IV (1993-1999); Officer III (1989-1993); Field Representative (1985-1989); Claims Processor (1982-1985); Clerk (1978-1982); and Contractual Employee (1977-1978)

• Teacher, Department of Education (1966-1977)• Teacher, Philippine Women’s College of Davao • Bachelor of Secondary Education - University

of Mindanao• Master in Education - University of Mindanao• Master in Public Administration - University of

Southern Philippines

• Active law practitioner specializing in labor cases, seamen’s disability and death compensation claims, and OFW claims

• Labor Arbiter, National Labor Relations Commission - NCR (1986-1990)

• Assistant Attorney at Siguion Reyna, Montecillo and Ongsiako Law Offices (1973-1976)

• Staff Attorney at National Mines and Allied Workers’ Union (1976-1981)

• Founder and First National President of the Christian Labor Organization of the Philippines

• Bachelor of Arts - University of the Philippines• Bachelor of Laws - San Beda College• Master of Laws - University of New South Wales

ANITA BUMPUS-QUITAINCommissioner Representing Women in Workers’ Group

ARTHUR L. AMANSECCommissioner Representing the Workers’ Group

JOSE GABRIEL M. LA VIÑACommissioner Representing the Employers’ Group

• Director of Philippine International Trading Corporation and of the Alumni Association of the Asian Institute of Management (AIM)

• Founder and President of Brightspeed Inc. (2012-present), Kia Diliman, Inc. (2008-2012), Texahoma Trading Corp. (2003-2012), and JML Records (1994-2000)

• Owner/Manager of Digital Rivers (2000-2007)• General Manager of Hotel Ramon (1998-2002)• Trustee and Treasurer of AFS Intercultural

Services (2007-2010)• Social Media Director of the Duterte 2016

Presidential Campaign• B.A. Philosophy - Ateneo de Manila University• Master in Entrepreneurship - AIM

GONZALO T. DUQUECommissioner Representing the Workers’ Group

• Chancellor of Lyceum Northwestern University based in Dagupan (also served as Executive Vice President, Chairman of the Board of Trustees, and University President for 17 years)

• Consultant, Commission on Higher Education (2009) and to the House Committee on Higher Education (2005)

• Director (1994-1996) and Deputy Administrator (1996-1998), Philippine Overseas Employment Administration

• Vice Governor of Pangasinan (1987-1992)• B.A. Political Science - San Beda College• Bachelor of Laws - San Beda College• Ph.D. Educational Management - University of

the Visayas• Ph.D. Humanities - University of Baguio

DIANA B. PARDO AGUILARCommissioner Representing Women in the Employers’ Group

• Investment banker and entrepreneur with extensive experience in various fields

• Member of the SSC since August 2010 wherein she was Chairperson of the Investment Oversight Committee and represented SSS in the Boards of Directors of Security Bank Corporation and of Philex Petroleum Corporation

• Board Member of Capital Markets Development Board, Employers Confederation of the Philippines, and the Philippine Chamber of Commerce and Industry

• Director of Philippine Seven Corporation, Wenphil Corporation, Electronic Commerce Payment Networks, Inc., and Gate Distribution Enterprises, Inc.

• Director and Treasurer of Asian Holdings Corporation• B.S. Computer Science - De La Salle University• Master in Business Administration, Major in International

Finance - Pepperdine University in Malibu, California, USA

4 SSS NEWSLETTER DECEMBER 2016

SSS tightens enforcement of employer compliance, collects P1.4-B thru legal action

The Social Security System (SSS) is looking at investing in infrastructure as a source of additional revenue that will enable the fund to grant higher pensions and benefits, citing that this is the start of an “economic revolution.”

Social Security Commission Chairman Amado D. Valdez said that, “This an opportunity for SSS members, who comprise the working class, to take part in the investment economy and experience owning a road development project that would generate lifetime earnings.”

He said that individually, SSS members have financial limitations that prevent them from participating in investment activities.

“But through SSS members’ pooled contributions, we can empower them to become vital players in investing in road development projects that have been dominated by large companies,” he added.

SSS eyes infra investments as funding source for higher pensions and benefits

SSS eyes infra investments as funding source for higher pensions and benefits

The SSS charter allows the agency to allot up to 30 percent of its investment reserve fund for domestic infrastructure projects such as roads, bridges, ports and telecommunications as long as these come with a government guarantee and would prioritize SSS in the distribution of earnings.

“Beyond our primary aim of enhancing SSS revenues so that the fund can provide higher benefits, investing in infrastructure also has a multiplier effect that can boost national economic growth,” Valdez said.

SSS took its cue from a similar move by the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan, two of the largest Canadian pension funds, which earlier this year partnered with a Mexican infrastructure company for a toll road development project in Mexico.

Valdez said SSS is open to a Public-Private Partnership (PPP) arrangement that fully complies with the requirements set by the Social Security Act of 1997. The law provides strict guidelines to ensure the safety, liquidity, and good yield of SSS investments.

“We plan to make it compulsory for PPP proponents to reserve for SSS the right of first refusal to 25 percent equity participation,” he added.

The SSS manages an investment portfolio valued at P470.14 billion as of September 2016. Government securities accounted for the largest share at 39 percent or P180.46 billion, followed by equities at 24 percent or P111.22 billion and member loans at 18 percent or P85.93 billion.

Apart from enhancing the fund’s long-term viability and benefit levels, SSS also aims to improve the automation of its procedures and other aspects of SSS operations to deliver better services to its members and their beneficiaries.

Employers who disregard their obligations with the Social Security System (SSS) can expect criminal and civil legal actions against them following the directive from the new SSS management to intensify the agency’s enforcement of compliance with the law.

Senior Vice President and Chief Legal Counsel Voltaire P. Agas noted that SSS has initiated legal actions such as issuance of demand letters and filing of cases against over 34,000 delinquent employers since 2010, bringing in almost P1.4 billion in collections to date.

“We will not hesitate to go after and file cases against those discovered to be violators of the Social Security (SS) Act, such as non- and under-reporting of employees, as well as non- and under-remittance of contributions. For the past several years, SSS has been actively going after delinquent employers, and we

will continue to strengthen our campaign to ensure employer compliance,” he said.

The efforts of SSS also resulted in a total of 41 employer convictions since 2010, with a corresponding collectible delinquency of P61.66 million. SSS plans to further bring down employer delinquency using the full strength of the law.

Agas emphasized the need for the pension fund to maximize the powers provided by the SS Act so that it can increase its contribution collections to enable the fund to grant higher pensions and benefits.

Under the law, employers who fail to report workers for SSS coverage and remit employees’ monthly contributions will be punished with a fine of P5,000 to P20,000, imprisonment of six years up to 12 years, or both based on the discretion of the court. Employers with delinquent employee contributions are also charged a monthly

penalty of three percent until the overdue SSS premiums are fully paid.

“Employers who deduct SSS payments from their workers’ salaries but fail to remit these to the SSS are likewise guilty of committing the crime of estafa, which is also punishable by imprisonment under the Revised Penal Code,” Agas said.

He also urged employees to take an active role in asserting their right to social security protection by reporting to any SSS branch their employers who neglect to report them for SSS coverage, under-report their salaries resulting in lower contribution payments, or fail to remit their contributions on time.

“Every private company, regardless of its size, should fully comply with the SSS obligations provided by the SS Act. It is the mandate of the law and everybody has to follow,” Agas said.

DECEMBER 2016 SSS NEWSLETTER 5

The Social Security System (SSS) presented its position during the deliberations of the House Committee on Government Enterprises and Privatization (CGEP) for the P2,000 pension increase and the rationalization of the powers, duties and accountabilities of the Social Security Commission (SSC). During the Committee’s meeting on September 7, 2016, the SSS reiterated its position that a pension increase is possible as long there is a sustainable source of funding.

The CGEP members agreed to adopt the committee reports involving the same or similar legislative measures previously approved by the 16th Congress.

Chief Actuary and Senior Vice President George S. Ongkeko, Jr. said that the SSS has always been supportive of the proposal to increase pensions as long as provisions on additional sustainable source of funding will also be included to avoid the shortening of fund life.

“We are one with legislators in their desire to provide higher pensions for SSS pensioners. However, we also have to look after the welfare of other members and ensure that the SSS fund life is intact,” said Ongkeko.

The proposed P2,000 pension increase would require about P56 billion for the first year of implementation. The SSS expects this required amount to rise as the number of pensioners grow annually.

SSS currently pays benefits to about two million pensioners who yearly receive 12 regular monthly pensions and the 13th month pension. Last year alone, SSS paid about P102 billion in pensions.

“Granting higher pensions without parallel provisions on the source of funding can result in billions in annual net losses for the system,” Ongkeko said.

The 2015 actuarial valuation of SSS shows that the contribution rate must be increased to at least 17 percent to implement the pension increase while maintaining its financial status. At

present, SSS funds are projected to last until 2042, but will be shortened to 2025 if the pension increase will be effected without the additional source of funds.

“We made computations for all the legislative proposals on the across-the-board pension increase. All of it, including those with proposed gradual or staggered pension increases, should have a corresponding increase in contribution or an additional and sustainable source of funding,” Ongkeko noted.

For instance, every P500 pension increase requires a 1.5 contribution rate increase, equivalent to an average of five peso-additional contribution every day.

Representative Prospero Pichay Jr. from First District of Surigao del Sur said that instead of the contribution rate increase, he is looking at the government providing subsidy to SSS to cover for the huge pension hike being proposed.

“SSS contributions were money entrusted by the people to SSS, hence, the need to protect it. Pag nagsara ang SSS, maybe, the Congress will be blamed,” he said during an interview with reporters after the committee meeting.

Aside from the pension increase, the CGEP also tackled the proposal to rationalize the powers, duties and account-abilities of the SSC to equip it with the means to address the political, social, and economic challenges confronting the SSS. The SSC is comprised of representatives from the employer and labor sectors, the government, and the general public.

Based on House Bill 2158, the SSC will have the authority to determine the minimum and maximum monthly salary credits, the schedule and rate of contribution, and to condone penalties on contributions and loan amortization, among others, without the need for prior approval of the Philippine President.

A total of 15 bills propose an increase on the SSS pension, while nine cite varied amendments to the SSS Charter.

SSS presents position on House proposals on pension reform and charter amendment

LEGAL FORUM (From Page 7)

to the SSS, this time applying for an Employees’ Compensation (EC) claim. However, is Edmond’s untimely death considered compensable under EC?

The amended rules of the EC and State Insurance Fund discusses the grounds and enumerates the limitations for the compensability of the death of an employee, which are as follows:

“Rule III. Compensability. Sec. 1. Grounds – (a) For the injury and the resulting disability or death to be compensable, the injury must be the result of accident arising out of and in the course of employment.”

“Rule IV. Liability. Sec. 1. Limitation – No compensation shall be allowed to the employee or his dependents when the injury, sickness, disability, or death was occasioned by any of the following: (1) his intoxication; (2) his willful intention to injure or kill himself or another; or (3) his notorious negligence.”After thorough investigation on the

circumstances surrounding Edmond’s demise, the SSS denied his wife’s EC claim. Even though his death happened “in the course of his employment” as he was driving to his place of employment and not to any other unauthorized place, just as his wife claims, the denial stemmed out of these observations: (1) that there was a deviation from usual route in going to his workplace from his home or residence, and (2) that there was “notorious negligence” on the part of Edmond because the motorcycle he drove had no plate number, making it illegal to use.

Prior to the awarding of an EC benefit, it is primordial to determine the circumstances surrounding the injury or death. Only in the absence of any proof of intoxication, notorious negligence, or willful intention to injure or kill himself or another, can an accident or injury incurred in the course of employment be favorably interpreted for the benefit of the member or his survivors.

P H O T O N E W S

NEW PARTNER BANK. The SSS formally sealed its partnership with CitySavings Bank through the signing of an agreement for Sickness, Maternity, and Employees’ Compensation Payment thru-the-Bank (SMEC-PTB) Program last December 15, 2016, at the SSS Main Office in Quezon City. In the photo (from left to right) are SSS Assistant Vice President (AVP) for Sickness, Maternity, and Disability Benefit Administration Department Jocelyn M. Evangelista, SSS President and Chief Executive Officer (PCEO) Emmanuel F. Dooc, SSS Chairman Amado D. Valdez, CitySavings Bank Chairman Eugene S. Acevedo and PCEO Catalino S. Abacan, and SSS AVP for Retirement, Death, and Funeral Benefits Administration Department Normita M. Doctor.

HIRA SERVICE OF KOREA STUDY VISIT. Twenty delegates from the Health Insurance Review and Assessment (HIRA) Service of the Republic of Korea paid a visit to SSS on December 9, 2016 to learn more about its various benefit programs and to benchmark the HIRA health care system against that of the Philippines. The study visit was facilitated by the Special Events Management Team of the Corporate Communications Department, with the special participation of Member Relations Department Manager Fernando F. Nicolas (11th from right) as speaker.

MONEYWISE FINANCIAL WELLNESS SEMINAR. Atty. Marichelle L. Reyes (top photo), Officer-in-Charge of the SSS Voluntary Provident Fund Department, and Ms. Lorna L. Dumlao (bottom photo), Senior Program Specialist of the SSS Overseas Filipino Workers (OFWs) Management Department, were guest speakers during CBB Production’s Moneywise Financial Wellness Seminar held on November 18, 2016 at the Metro Tent in Ortigas, Pasig City. Attended by more than 200 participants, said seminar aimed to bring financial literary to people through the advocacy campaign of Moneywise, which is a weekly 30-minute TV program aired over GMA News TV. Reyes and Dumlao both shared their expertise with the audience by discussing the SSS Personal Equity and Savings Option or PESO Fund, and the SSS Flexi-Fund for OFWs, respectively. Both are voluntary provident funds offered by SSS for members who want to save more for their future financial security.

SSS AT DZBB TRABAHO NEGOSYO FAIR. The SSS participated in the fourth leg of RGMA Network, Inc.’s series of jobs and business fairs dubbed “DZBB Trabaho Negosyo Fair” last December 1 and 2, 2016 at StarMall Alabang. In support of DZBB’s goal of helping in nation-building, particularly in giving Filipinos quality employment, the SSS rendered its services to job hunters and aspiring entrepreneurs such as the issuance of SSS numbers, processing of SSS IDs, and setting-up a help desk for members’ general inquiries.

The SSS receives numerous queries on legal issues about membership, benefit eligibility, employer liability, and others. In this section, we feature interesting cases from actual members (names have been changed) and the corresponding replies from the SSS Legal Department. Please note that these are legal opinions on specific cases and are based on existing

laws and jurisprudence, as well as SSS rules and regulations.

L fegal

orumCan a denied Sickness Benefit reimbursement claim still be reconsidered?

Diana, an employed SSS member, was unable to work due to sickness for a month from February 6 to March 7, 2013. Her employer notified the SSS of her illness on July 30, 2013. On September 27, 2013, Diana was advanced the sickness benefit payment by her employer, whose claim for sickness benefit reimbursement was, in turn, filed with SSS on October 23, 2013.

According to Section 14 (c) of Republic Act No. 8282, also known as the Social Security Act of 1997, “…the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one-year period immediately preceding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital in which case the claim for benefit or reimbursement must be filed within one year from the last date of confinement.”

The claim for reimbursement of Diana’s employer, despite falling within the one-year prescriptive period, was initially denied by the SSS servicing branch. The latter said it needed further clarification from the former as to the paid company sick leaves during Diana’s confinement. On October 22, 2015, the completed sickness benefit reimbursement claim was re-filed by the employer.

Given that the initial claim was denied, can the employer’s re-filing of sickness benefit reimbursement – which was done two years later – still be reconsidered and granted by the SSS?

Applying the above-quoted provision, the counting of the one-year prescriptive period must be reckoned from the date of the last day of Diana’s confinement, which is March 7, 2013. The initial submission of the sickness benefit reimbursement claim was made by the employer on October 23, 2013, only a little over seven months later.

If there was a need for the SSS to clarify some information in the initial submission of the claim for sickness benefit reimbursement, this must not be taken against the employer and even to Diana, because such clarification was only made known to them upon the initial filing of reimbursement claim.

Thus, when Diana’s employer re-filed its claim for reimbursement, even if two years later, this should not be considered as the date of filing of reimbursement claim because early on — specifically on October 23, 2013 — the SSS has already been notified of the said claim for sickness benefit reimbursement.

Thus, the employer’s re-filed claim for reimbursement must be given due consideration by SSS.

Can a second wife claim entitlement to Death Benefit?

Criselda is filing for a death benefit claim as the surviving spouse of member, Armando, who passed away on March 6, 2015. But is she entitled to receive such death benefit claim when her deceased husband actually contracted two marriages, with her being the second wife?

Document from the Philippine Statistics Authority revealed that Armando married a certain Nenita on December 30, 1965. However, the latter left the house sometime in July 1979 and had been absent since then up to the present. With the intent to marry Criselda, Armando instituted a summary proceeding for the declaration of the presumptive death of his absent spouse, Nenita. On October 21, 1995, Amado wed Criselda, and shortly after their marriage, a favorable judgement on the petition was issued and later on, the decision became final on November 23, 1995 and December 8, 1995, respectively.

The law in point in this case is Article 41 of the Family Code, which states, “A marriage contracted by any person during subsistence of a previous marriage shall be

null and void, unless before the celebration of the subsequent marriage, the prior spouse had been absent for four consecutive years and the spouse present has a well-founded belied that the absent spouse was already dead. In case of disappearance where there is danger of death under the circumstances set forth in the provisions of Article 391 of the Civil Code, an absence of only two years shall be sufficient.”

It further states that, “For the purpose of contracting the subsequent marriage under the preceding paragraph, the spouse present must institute a summary proceeding as provided in this Code for the declaration of presumptive death of the absentee, without prejudice to the effect of reappearance of the absent spouse.”

Taking into consideration the said law, the SSS denied the death claim filed by Criselda as it was anchored on the contention that before her marriage to Armando in October 1995, the decision on the petition of presumptive death of Nenita was not yet final. Before a surviving spouse could remarry, there should be a final judgment that the other spouse has been judicially presumed dead, and the mere filing of the said petition would not suffice.

Therefore, Criselda is not entitled to the death benefit claim.

What are the grounds and limitations on Employees’ Compensation?

Edmond has been employed as a maintenance technician in a Subic-based electronics firm since 2000. After work on May 15, 2014, he attended a relative’s birthday party in Tarlac, where he spent the night. The following morning, riding a borrowed motorcycle coming from Tarlac to his office in Subic, Edmond unfortunately figured in a vehicular accident, instantly causing his death.

Funeral and death benefits were settled by Edmond’s wife with SSS on July 11, 2014. Three months later, she came back

(Continued on Page 5)

Editorial

8 SSS NEWSLETTER DECEMBER 2016

SSS Charter Amendments Needed NowFor the past several years and under different administrators,

the Social Security System (SSS) has been pushing for changes in its Charter, which was enacted nearly two decades ago — changes that would provide the pension fund better investment flexibility to bolster generation of revenues and allow granting of higher benefits.

Newly-appointed Chairman Dean Amado D. Valdez noted that SSS investment capabilities based on the provisions under the Social Security Act of 1997 are limited amid current market trends. As it is, the SSS Charter limits the powers of the Social Security Commission (SSC) to invest the reserve fund only in private securities, housing, real estate, short and medium-term member loans, government financial institutions and corporations, infrastructure projects, foreign currency denominated investments, and any particular industry that the SSC deems profitable.

The SSS aims to aggressively push for direct capital infusion of the pension funds to tollway constructions under the Private-Public Partnership (PPP) to generate lifetime income, and to provide more meaningful benefits to its members. This is the first time that SSS is considering this kind of investment activity.

“In the past, SSS invested in the South Luzon Tollways through corporate bonds, which generated a yield of close to seven percent. This time, we want to explore the possibility of funding for new tollways, income of which is for a lifetime. We plan to invest 25 to 30 percent of our reserve fund in these road development projects and we expect the same rate of return, if not better,” Dean Valdez said.

The SSS wants to include new investment vehicles wherein it can invest its reserve fund without compromising the basic investment principles of safety, good yield, and liquidity. Thus, legislation needs to be passed immediately to help SSS significantly increase its income and allow it to enhance the benefits for members.

SSS has announced plans to implement a two-tranched P2,000 pension hike. The first P1,000 across-the-board pension increase will be given in 2017, and the additional P1,000 in 2022, or earlier with corresponding legislation. This is the best option for SSS so as not to exhaust its fund.

“Hindi dapat isang kahig, isang tuka ang pension fund dahil ito ang aasahan nating pondo pagtanda natin o kapag may sakit tayo at hindi na tayo makagpagtrabaho. Kaya ang request natin sa Kongreso ay P1,000 muna para mapaikot natin ang fund sa investments with sovereign guarantee. Win-win tayo,” Dean Valdez noted.

Here’s hoping that Congress listens.

From the Mailbox

SSS Newsletter

Executive Editor • MARISSU G. BUGANTE Editor-in-Chief • JUSTINA B. HUGO

Managing Editor • JOSEPHINE ANNE E. MINESArt Director • GRACE B. BURGOS

Writers • JOSEPHINE ANNE E. MINES, MARIE GRACE V. ANTIGA, IRIS JOY P. ABARQUEZ, LIZA ANGELICA D. BARRAL, RONA T. CAPPAL, JHOANNA LYN H.

GARCIA, BARBARA RAIZZA J. JUAN, BERNADETTE JOY L. LAREZAPhotographers • REY L. SOLIS, DANILO C. SORIANOIn-charge of Circulation • MEL CHRISTIAN S. TINGZON

SSS Newsletter is published quarterly by the Corporate Communications Department (CCD) of the Social Security System for its members and the general public. Please send comments

or suggestions to the CCD, 7th Floor, SSS Building, East Avenue, Quezon City.

Mr. Lacson was diagnosed with acute conjunctivitis that lasted for a week. He filed a partial disability claim but it was denied, and he wants to know why.SSS: Partial permanent disabilities are defined as complete and permanent loss or use of any of the following body parts: one thumb, one hand, one ring finger, one leg, hearing of both ears, one big toe, one middle finger, one foot, hearing of one ear, both ears, one index finger, one arm, one little finger, one ear and sight of one’s eye. Since member’s acute conjunctivitis did not result to complete or permanent loss of eyesight, it is not compensable as a disability — thus, the denial of the claim.Mrs. Juan discovered that the SSS housing loan that her late husband took out has not been paid in years and has accrued penalty and interest. The property is now foreclosed but with a redemption period that will expire next year. She is requesting for the condonation of the penalty and interest and is asking how she can buy back the property.SSS: Currently, there is no condonation program for housing loans and SSS does not have the authority to waive any portion of her late husband’s loan obligation. Since the property has already been foreclosed, the heirs must settle the loan amount in full. Failure to redeem on or before the redemption expiration will make the property an acquired asset of SSS. In accordance with the approved guidelines of the Acquired Asset Disposal Program, as occupants of the property, the heirs shall be given the opportunity to repurchase the property. Ms. Santos filed for retirement in March 2016 and was informed that her outstanding salary loan would be deducted from her retirement claim. A month later, the SSS Loan Restructuring Program (LRP) was opened, and since her retirement claim was still being processed, she decided to avail herself of the LRP. Her application was denied.SSS: According to the terms and conditions for the LRP, among those eligible are “member-borrowers with final benefits application (death, total disability, and retirement) whose contingency date is on or before the last day of the availment period of the restructuring program.” Said final benefit claim must be filed within the availment period. Which means the retirement claim should have been filed within April 28, 2016 to April 27, 2017. Hence, the denial of her LRP application.