LABOR LAW AND SOCIAL LEGISLATION

III. SOCIAL LEGISLATION

B. Government Service Insurance System Law - R.A. No. 8291

3. Benefits

The Government Service Insurance System (GSIS) operates under Republic Act No. 8291, also known as the "GSIS Act of 1997." This law outlines the benefits granted to members of the GSIS, which includes government employees, their dependents, and beneficiaries. Below is an exhaustive list and explanation of benefits under the GSIS Law.

A. SOCIAL INSURANCE BENEFITS

Compulsory Life Insurance
- All GSIS members are automatically covered by a life insurance policy.
- Types of Coverage:
  - Enhanced Life Policy (ELP) for regular members.
  - Optional Life Policy (OLP) for members who wish to augment their existing coverage.
- Benefits:
  - Death benefits for beneficiaries.
  - Funeral benefits to help with burial expenses.
  - Accrued dividends (if applicable).
Retirement Benefits
- Provided to members who have rendered service and reached retirement age or completed the required years of service.
- Modes of Retirement:
  - Under R.A. 8291:
    - Eligibility: Minimum of 15 years of service and 60 years old upon retirement.
    - Options:
      - 5-Year Lump Sum: Member receives a 60-month pension upfront with a resumption of monthly pensions after five years.
      - Cash Payment and Pension: Lump sum equivalent to 18 months' worth of the Basic Monthly Pension (BMP) and a corresponding monthly pension thereafter.
  - Under R.A. 1616:
    - Gratuity-based benefit for those with at least 20 years of service.
    - Refund of personal contributions without government counterpart.
  - Under P.D. 1146:
    - Older law applicable to members prior to R.A. 8291; offers a similar benefit structure to R.A. 8291.
Disability Benefits
- For members who are rendered permanently or temporarily disabled.
- Categories:
  - Permanent Total Disability (PTD): Lifetime monthly pension or cash benefit.
  - Permanent Partial Disability (PPD): Lump sum or monthly pension based on the degree of disability.
  - Temporary Total Disability (TTD): Daily cash benefit for the duration of the disability, up to 120 days (extendable to 240 days).
Survivorship Benefits
- Granted to the qualified beneficiaries of deceased GSIS members or pensioners.
- Eligibility:
  - Primary beneficiaries: Legal spouse and dependent children.
  - Secondary beneficiaries: Designated individuals or legal heirs (if no primary beneficiaries exist).
- Types of Benefits:
  - Lifetime monthly pension for eligible spouse.
  - Dependent children receive an equivalent of 10% of the BMP until they reach majority age.
Funeral Benefits
- Provided to assist with burial and funeral expenses of deceased members or pensioners.
- Fixed amount of PHP 30,000 to PHP 50,000, subject to periodic adjustments by the GSIS Board.

B. LOAN PRIVILEGES

Policy Loan
- Members can borrow against their life insurance policy's cash value.
Consolidated Loan (Conso-Loan)
- Combines salary loans, emergency loans, and other loan accounts into one.
Emergency Loan
- Available during calamities or emergencies declared by the government.
Housing Loan
- Assistance for members to purchase, construct, or renovate a house.
Educational Loan
- Available to assist members in funding their children’s education.
Pension Loan
- Exclusively for old-age pensioners, subject to age and pension rate limitations.

C. SEPARATION BENEFITS

For members who leave government service before qualifying for retirement benefits.
Types:
- Cash Payment: Refund of accumulated personal and government contributions, plus interest.
- Deferred Pension: Members with at least 15 years of service but below the minimum retirement age (60) may receive a pension upon reaching retirement age.

D. EMPLOYEES' COMPENSATION (EC) BENEFITS

Provides compensation for work-related contingencies.
Coverage:
- Sickness or injury.
- Permanent disability.
- Death resulting from work-related causes.
Benefits:
- Daily sickness allowance.
- Monthly disability pension.
- Funeral benefit for work-related death.

E. OPTIONAL BENEFITS

Members may avail themselves of optional products offered by GSIS, such as additional life insurance or housing benefit schemes.

F. PORTABILITY LAW BENEFITS

Under R.A. 7699, members who transfer between the GSIS and the Social Security System (SSS) may combine their service years from both institutions to qualify for retirement, disability, or survivorship benefits.

Key Notes:

Beneficiaries:
- Primary: Legal spouse, dependent children, and legitimate/illegitimate parents.
- Secondary: Designated individuals or legal heirs.
Contributions:
- Members contribute 9% of their monthly salary, while the government (as employer) contributes 12%.
Claim Requirements:
- Proper documentation such as proof of membership, service record, and necessary medical or legal certificates.
Administration:
- The GSIS Board of Trustees oversees policy implementation and benefits adjustments.
Exemptions:
- Members of the judiciary, constitutional commissions, and uniformed personnel have their own retirement systems but may be covered under GSIS for specific benefits.

This comprehensive guide on GSIS benefits ensures members and beneficiaries understand their entitlements, the conditions for claiming them, and the corresponding procedures under R.A. 8291.

Social Security System Law (RA No. 11199): Benefits Overview

Republic Act No. 11199, also known as the Social Security Act of 2018, governs the Social Security System (SSS) in the Philippines. This law consolidates provisions on social security benefits to ensure better coverage and protection for workers and their dependents. Here is an exhaustive discussion of the benefits under the SSS as provided by the law:

1. Overview of Benefits

The SSS provides members and their beneficiaries with protection against the following contingencies:

Sickness
Maternity
Disability
Unemployment
Retirement
Death
Funeral expenses

Each benefit is subject to eligibility requirements, computation based on contributions, and specific conditions as prescribed by law.

2. Types of Benefits

a. Sickness Benefit

Eligibility:
- The member must have at least three (3) months of contributions within the 12-month period immediately preceding the semester of sickness.
- The member must be unable to work due to sickness or injury.
- All leave credits must be used up.
Amount:
- Daily cash allowance equivalent to 90% of the member's average daily salary credit (ADSC).
- Payable for a maximum of 120 days in one calendar year.
Filing Period:
- Must be filed within 60 days from the start of illness.

b. Maternity Benefit

Eligibility:
- Female members with at least three (3) months of contributions within the 12-month period preceding the semester of childbirth or miscarriage.
Amount:
- Cash allowance equivalent to 100% of ADSC.
- Duration:
  - 105 days for live childbirth (additional 15 days for solo parents).
  - 60 days for miscarriage or emergency termination of pregnancy.
Additional Notes:
- The benefit is now available for all covered female members regardless of civil status.

c. Disability Benefit

Eligibility:
- Member must be unable to perform work due to permanent total or partial disability.
- At least one (1) monthly contribution before the semester of disability.
Types:
- Partial Disability: For specific loss of body functions or parts.
- Total Disability: For conditions such as complete loss of eyesight or severe impairments.
Amount:
- Monthly pension or lump-sum payment based on number and amount of contributions.
- Monthly pension includes an additional allowance of PHP 500.

d. Unemployment Benefit

Eligibility:
- Must have paid at least 36 monthly contributions, 12 of which should be within the 18 months before the involuntary separation.
- Must not be over 60 years of age.
Amount:
- Cash benefit equivalent to 50% of the member's ADSC.
- Payable for a maximum of two (2) months.
Conditions:
- Applicable only for involuntary separation (e.g., retrenchment, redundancy).

e. Retirement Benefit

Eligibility:
- At least 120 monthly contributions.
- Member is 60 years old (optional retirement) and separated from employment or self-employed.
- Compulsory retirement age is 65 years.
Types:
- Monthly Pension: Payable for life for qualified retirees.
- Lump-Sum Payment: Equivalent to the total contributions paid plus interest, granted if the member has less than 120 contributions.
Additional Notes:
- A retiree receiving a monthly pension is entitled to a 13th-month pension every December.
- Dependents’ pension is also provided for qualified beneficiaries.

f. Death Benefit

Eligibility:
- At least one (1) monthly contribution before the semester of death.
Types:
- Monthly Pension: For primary beneficiaries (spouse and dependent children).
- Lump-Sum Payment: For secondary beneficiaries if there are no primary beneficiaries.
Amount:
- Computed based on the contributions and credited years of service.
- Includes a PHP 500 monthly allowance.

g. Funeral Benefit

Amount:
- Lump-sum cash benefit ranging from PHP 20,000 to PHP 40,000, depending on the number of contributions.
Eligibility:
- Payable to whoever paid for the funeral expenses.

3. General Provisions on Benefit Computation

Average Daily Salary Credit (ADSC):
- Computed by dividing the total salary credits for the last 60 months by the number of days in that period.
Monthly Pension Computation:
- Formula considers credited years of service (CYS) and ADSC.
Credited Years of Service (CYS):
- Based on the total number of contributions divided by 12.

4. Supplemental Allowances

Additional monthly allowances:
- PHP 500 for disability and death pensioners.
- 13th-month pension for retirement and death pensioners.

5. Filing and Processing of Claims

Claims must be filed within the prescriptive periods set by the SSS.
Online filing options are now available via the SSS website or mobile app.
Members should ensure complete documentation for faster processing.

6. Funding and Sustainability

Contributions from employees, employers, self-employed individuals, and voluntary members finance these benefits.
RA No. 11199 provides for contribution increases and adjustments to ensure fund viability and expanded coverage.

7. Recent Amendments and Key Provisions

Universal access to maternity benefits.
Introduction of unemployment insurance.
Gradual increase in contribution rates (current at 14%, increasing incrementally to 15% by 2025).
Expanded coverage for overseas Filipino workers (OFWs).

Understanding and availing SSS benefits require timely compliance with contribution requirements and adherence to filing procedures. The Social Security Act of 2018 aims to provide equitable and adequate social protection to all covered members.