LABOR LAW AND SOCIAL LEGISLATION > III. SOCIAL LEGISLATION > A. Social Security System Law - R.A. No. 11199

Introduction

Republic Act No. 11199, also known as the Social Security Act of 2018, was enacted to amend and expand the Philippine Social Security System (SSS). The law modernizes the SSS, enhancing its capacity to provide meaningful social security benefits to Filipino workers, self-employed individuals, and voluntary members.

Below is an exhaustive discussion of its provisions, salient features, and implementing rules:

I. Objectives of R.A. No. 11199

Universal Coverage: To ensure that every Filipino is provided with adequate protection against economic and social distress due to disability, sickness, maternity, old age, death, and other contingencies.
Sustainability: To strengthen the SSS fund by adopting actuarial soundness to secure long-term benefits for members.
Efficiency: To enhance the operational capabilities of the SSS, ensuring efficient delivery of benefits and services.

II. Salient Features of R.A. No. 11199

Expanded Coverage:
- Mandatory Membership:
  - Private-sector employees, household helpers, and overseas Filipino workers (OFWs) are mandatorily covered.
  - Includes self-employed individuals earning at least ₱1,000 per month.
- Voluntary Membership:
  - Includes non-working spouses of SSS members, OFWs who do not fall under mandatory coverage, and former members who wish to continue contributions.
Enhanced Benefits:
- Increased pension benefits, allowing periodic adjustments in pension levels.
- Inclusion of unemployment insurance for members who lose their jobs involuntarily.
- Additional benefits for maternity leave and sickness.
Flexible Contribution Scheme:
- Regular adjustments to contributions to ensure fund viability.
- Increased contributions from 11% to 12% starting 2019, with provisions for further increments up to 15% by 2025.
- Contributions shared between employers (8%) and employees (4%).
Unemployment Insurance Benefit:
- Qualified members can claim financial assistance for up to two months.
- Conditions:
  - At least 36 months of contributions, with 12 months made within the 18 months preceding unemployment.
  - Certification of involuntary separation from the Department of Labor and Employment (DOLE).
Actuarial Solvency:
- Institutionalized provisions for periodic actuarial studies to ensure fund sufficiency and long-term viability.
- Authority granted to the SSS to adjust benefits, contributions, and investments to maintain solvency.
Governance:
- Reorganization of the SSS Board to include representatives from labor, employers, and the government.
- The President of the Philippines is authorized to appoint members of the board.
- Board members are held accountable for the efficient management of funds.
Penalties and Enforcement:
- Imposition of stricter penalties for employers failing to remit contributions.
- Civil and criminal liabilities for fraudulent claims and misrepresentation.

III. Covered Benefits under the Social Security Act of 2018

Sickness Benefit:
- Daily cash allowance for members unable to work due to illness or injury.
- Conditions:
  - At least 3 months of contributions within the 12-month period preceding the illness.
  - Certification of sickness by a qualified physician.
Maternity Benefit:
- 105 days of paid maternity leave for live childbirth, with an additional 15 days for solo parents.
- Coverage includes miscarriage or emergency termination of pregnancy.
Retirement Benefit:
- Monthly pension for members reaching the age of 60 (optional retirement) or 65 (mandatory retirement).
- Lump-sum payment is an alternative for members who do not qualify for monthly pensions.
Disability Benefit:
- Monthly or lump-sum cash benefits for members suffering from partial or total permanent disability.
- Medical certification and proof of disability required.
Death and Funeral Benefits:
- Monthly pension for primary beneficiaries (spouse and children).
- Lump-sum funeral assistance for burial expenses.
Unemployment Insurance:
- Temporary financial aid for members who are involuntarily separated from employment.

IV. Administrative Powers of the SSS

Collection and Enforcement:
- Authority to collect contributions and impose penalties on delinquent employers.
- Garnishment of bank accounts or other assets of employers refusing to remit contributions.
Investment Management:
- Authority to invest in government securities, equities, real estate, and infrastructure projects to grow the SSS fund.
- Investments are subject to strict fiduciary regulations.
Rule-Making Authority:
- Power to issue rules and regulations consistent with the Social Security Act.
- Adjustments to benefits and contributions are made through board resolutions.

V. Penalties for Violations

Employer Violations:
- Failure to remit contributions: Fines ranging from ₱5,000 to ₱20,000 per affected employee.
- Imprisonment of 6 years and 1 day up to 12 years.
Fraudulent Claims:
- Imprisonment of 6 years and 1 day up to 12 years, plus full restitution of the fraudulent claim.
Obstruction of Enforcement:
- Fines and imprisonment for individuals obstructing the enforcement of SSS rules.

VI. Implementation and Monitoring

Digital Transformation:
- Integration of online platforms for contributions, benefit claims, and inquiries.
- Mobile applications and digital kiosks for member convenience.
Collaboration with Other Agencies:
- Partnership with DOLE for unemployment insurance certification.
- Collaboration with government financial institutions for investment opportunities.
Annual Reporting:
- SSS is mandated to submit annual reports on fund performance, actuarial studies, and governance reforms to Congress and the Office of the President.

Conclusion

R.A. No. 11199 represents a significant milestone in the development of social security in the Philippines. By expanding coverage, enhancing benefits, and ensuring sustainability, the law seeks to provide meaningful protection for Filipino workers and their families. Its successful implementation depends on efficient governance, strict enforcement, and active participation from stakeholders.