SSS and GSIS contributions may combine to meet the required number of years to avail retirement and other benefits. - PH Trending

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Wednesday, 14 June 2017

SSS and GSIS contributions may combine to meet the required number of years to avail retirement and other benefits.

R.A. 7699 or also known as Portability Law 


 - the law allows members who are set to retire but did not meet the required number of contributions to still avail retirements benefits by combining the number of contributions both SSS and GSIS to satisfy the required years of service.

Currently the GSIS requires a minimum of 15 years contribution to qualify for pension, while SSS requires at least ten years

Under RA 7699, otherwise known as the Portability Law, government retirees who do not meet the required number of years provided under PD 1146 and RA 8291 may still avail themselves of retirement and other benefits.

Under this law, retirees may combine their years of service in the private sector represented by contributions to the Social Security System (SSS) with their government service and contributions to the GSIS to satisfy the required years of service under PD 1146 and RA 8291.

However, if retirees have already satisfied the required years of service under the GSIS retirement option they have chosen, they would not be allowed to incorporate their  contributions to the SSS anymore for availment of additional benefits.

In case of death, disability and old age, the periods of creditable services or contributions to the SSS and GSIS shall be added to entitle retirees to receive the benefits under either PD 1146 or RA 8291.

If qualified under RA 8291, all the benefits shall apply EXCEPT the cash payment. The Portability Law provides that only benefits common to both Systems (GSIS and SSS) shall be paid. Cash payment is NOT included in the benefits provided by the SSS.

“An Act Instituting Limited Portability Scheme in the Social Security Insurance Systemsby Totalizing the Workersʹ Creditable Services or Contributions in each of the Systems”

Pursuant to Section 6 of Republic Act No. 7699 entitled “An Act Instituting Limited Portability Scheme in the Social Security Insurance Systems by Totalizing the Workersʹ  Creditable Services or Contributions in each of the Systems” the following Rules and Regulations are hereby promulgated to effectively implement the provisions of the Act.

RULE I : COVERAGE

Section 1. These rules and regulations shall apply to all worker‐members of the Government
Service Insurance System (GSIS) and/or Social Security System (SSS) who transfer from one
sector to another, and who wish to retain their membership in both Systems.

RULE II : INTERPRETATION

Section 1. These rules shall be interpreted in the light of the Declaration of Policy found in Section I of the Act:

“ It is hereby declared the policy of the State to promote the welfare of our workers by
recognizing their efforts in productive endeavors and to further improve their conditions by
providing benefits for their long years of contribution to the national economy.”

Toward this end, nothing in the Act shall be construed to diminish or reduce the
benefits being enjoyed by a cover worker arising from existing laws, issuances and company policies or practices or agreements between the employer and the employees and any conflicting interpretation of the law and the implementing rules and regulations shall be resolved in favor of the workers.

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