Q: What is Social Legislation?
A: It consists of statutes, regulations and jurisprudence that afford protection to labor, especially to working women and minors, and is in full accord with the constitutional provisions on the promotion of social justice to insure the well being and economic security of all the people.
1.SOCIAL SECURITY LAW (RA 8282)
Q: What is the policy objective in the enactment of (SSS) Law?
A: It is the policy of the State to establish, develop, promote and perfect a sound and viable tax‐exempt SSS suitable to the needs of the people throughout the Phils., which shall promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden. (Sec. 2)
The enactment of SSS law is a legitimate exercise of the police power. It affords protection to labor and is in full accord with the constitutional mandate on the promotion of social justice. (Roman Catholic Archbishop of Manila v. SSS, G.R. No. 15045 Jan. 20, 1961)
Q: Are the premiums considered as taxes?
A: No. The funds contributed to the System belong to the members who will receive benefits, as a matter of right, whenever the hazards provided by the law occur. (CMS Estate, Inc., v. SSS, G.R. No.
26298 Sep.28, 1984)
Q: Are benefits received under SSS Law part of the estate of a member?
A: No. Benefits receivable under the SSS Law are in the nature of a special privilege or an arrangement secured by the law pursuant to the policy of the State to provide social security to the workingman.
The benefits are specifically declared not transferable and exempt from tax, legal processes and liens. (SSS v. Davac, et. al., G.R. No.21642, July 30, 1966)
Q: How are disputes settled?
A:
DISPUTE SETTLEMENT
Social Security Commission
(SSC)
Disputes involving:
1. Coverage 2. Benefits 3. Contributions 4. Penalties
5. Any other matter related thereto.
Note: Disputes within the mandatory period of 20 days after the submission of evidence. (Sec. 5a)
Decision, in the absence of appeal, shall be final and executory 15 days after date of notification. (Sec. 5b)
CA / SC
Decisions of SSC shall be appealable to:
1. CA – questions of law and fact (Sec.
5c)
2. SC – questions of law. (Sec. 5c)
Execution of decision
SSC may, motu proprio or on motion of any interested party, issue a writ of execution to enforce any of its decisions or awards, after it has become final and executory. (Sec. 5d)
Q: Can the SSC validly re‐evaluate the findings of the RTC, and on its own, declare the latter’s decision to be bereft of any basis?
A: No. It cannot review, much less reverse, decisions rendered by courts of law as it did in the case at bar when it declared that the CFI Order was obtained through fraud and subsequently disregarded the same, making its own findings with respect to the validity of Bailon and Alice’s marriage on the one hand and the invalidity of Bailon and Teresita’s marriage on the other. In interfering with and passing upon the CFI Order, the SSC virtually acted as an appellate court. The law does not give the SSC unfettered discretion to trifle with orders of regular courts in the exercise of its authority to determine the beneficiaries of the SSS. (SSS vs.
Teresita Jarque Vda. De Bailon, G.R. No. 165545, Mar. 24, 2006, J. Carpio‐Morales)
Q: Who is an employer (Er)?
A: Any person, natural or juridical, domestic or foreign, who carries into the Phils. any trade, business, industry, undertaking or activity of any kind and uses the services of another person who is under his orders as regards the employment, except the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government: Provided, That a self‐employed person shall be both Ee and Er at the same time.
(Sec 8[c])
Q: Who is an employee (Ee)?
A: Any person who performs services for an Er in which either or both mental and physical efforts are used and who receives compensation for such services, where there is an Er‐Ee relationship:
Provided, That a self‐employed person shall be both Ee and Er at the same time. (Sec. 8[d])
Q: What is employment?
A: GR: Any service performed by an Ee for his Er.
XPNs:
1. Employment purely casual and not for the purpose of occupation or business of the Er;
2. Service performed on or in connection with an alien vessel by an Ee if he is employed when such vessel is outside the Phils;
3. Service performed in the employ of the Phil. Government or instrumentality or agency thereof;
4. Service performed in the employ of a foreign government or international organization, or their wholly‐owned instrumentality:
5. Such other services performed by temporary and other Ees which may be excluded by regulation of the SSC. Ees of bona fide independent contractors shall not be deemed Ees of the Er engaging the services of said contractors. (Sec. 8[j])
Q: What is a contingency?
A: The retirement, death, disability, injury or sickness and maternity of the member.
a.Coverage
Q: Who are covered by SSS?
A:
1. Compulsory Coverage
a. All Ees not over 60 years of age and their Ers;
b. Domestic helpers whose income is not less than P 1000/month and not over 60 years of age and their Ers;
Limitations:
a. Any benefit earned by the Ees under private benefit plans existing at the time of the approval of the Act shall not be
discontinued, reduced or otherwise impaired;
b. Existing private plans shall be integrated with the SSS but if the Er under such plan is contributing more than what is required by this Act, he shall pay to the SSS the amount required to him, and he shall continue with his contributions less the amount paid to SSS;
c. Any changes, adjustments, modifications, eliminations or improvements in the benefits of the remaining private plan after the integration shall be subject to agreements between the Ers and the Ees concerned; and d. The private benefit plan which
the Er shall continue for his Ees shall remain under the Ers management and control unless there is an existing agreement to the contrary
c. All self‐employed – considered both an Er and Ee
d. Professionals;
e. Partners and single proprietors of business;
f. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term
“Ee”;
g. Professional athletes, coaches, trainers and jockeys; AND
h. Individual farmers and fisherman.
(Sec. 9) 2. Voluntary
a. Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage ; (Sec. 9[b])
b. Filipinos recruited by foreign‐based Ers for employment abroad may be covered by the SSS on a voluntary basis; (Sec. 9[c])
c. Ee separated from employment to maintain his right to full benefits d. Self‐employed who realizes no
income for a certain month
3. By Agreement
Any foreign government, international organization, or their wholly‐owned
instrumentality employing workers in the Phils., may enter into an agreement with the Phil. government for the inclusion of such Ees in the SSS except those already covered by their respective civil service retirement systems.
Q: When is the compulsory coverage deemed effective?
A:
1. Employer – on the first day of operation 2. Employee – on the day of his employment 3. Compulsory coverage of self‐employed –
upon his registration with the SSS
Q: What is the effect of separation of an employee from his employment under compulsory coverage?
A:
1. His Ers obligation to contribute arising from that employment shall cease at the end of the month of separation,
2. But said Ee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of R.A. 9282.
3. He may, however, continue to pay the total contributions to maintain his right to full benefit. (Sec. 11)
Note: The above provision recognizes the “once a member, always a member” rule.
Q: What is the effect of interruption of business or professional income?
A: If the self‐employed member realizes no income in any given month:
1. He shall not be required to pay contributions for that month.
2. He may, however, be allowed to continue paying contributions under the same rules and regulations applicable to a separated Ee member:
3. Provided, that no retroactive payment of contributions shall be allowed other than as prescribed under Sec.22‐A. (Sec. 11‐A)
Q: On her way home from work, Asteria Benedicta, a machine operator in a sash factory, enters a movie house to relax. But she is stabbed by an unknown assailant. Her claim for benefits under the SSS Law is denied on the ground that her injury is not work‐connected. Is the denial legal? Why?
A: No. It is not necessary, for the enjoyment of benefits under the SSS Law that the injury is work‐
connected. What is important is membership in the SSS and not the causal connection of the work of the Ee to his injury or sickness.
Claims based on work‐connected injuries or occupational diseases are covered by the State Insurance Fund.
b.Exclusions from coverage
Q: Enumerate the kinds of employment which are excepted from compulsory coverage under the SSS Law.
A: Under Section 8(j) of R.A. 1161, as amended, the following services or employments are excepted from coverage:
1. Employment purely casual and not for the purpose of occupation or business of the employer;
2. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines;
3. Service performed in the employ of the Philippine Government or instrumentality or agency thereof;
4. Service performed in the employ of a foreign government or international organization, or their wholly‐owned instrumentality:
Provided, however, That this exemption notwithstanding, any foreign government, international organization or their wholly‐
owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems:Provided, further, That the terms of such agreement shall conform with the provisions of this Act on coverage and amount of payment of contributions and benefits: Provided, finally, That the provisions of this Act shall be supplementary to any such agreement;
and
5. Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors.
c.Benefits
Q: What are the benefits under the SSS Act?
A:
1. Monthly Pension 2. Retirement Benefits 3. Death Benefits 4. Disability Benefits 5. Funeral Benefits 6. Sickness Benefits 7. Maternity Benefits
Q: Are the benefits provided for in the SSS Law transferable?
A: Benefits provided for in the SSS Law are not transferable and no power of attorney or other document executed by those entitled thereto in favor of any agent, attorney or any other person for the collection thereof on their behalf shall be recognized, except when they are physically unable to collect personally such benefits. (Sec.15, R.A.
1161, as amended)
Q: What are the reportorial requirements of the Er and self‐employed?
A:
1. Er ‐ Report immediately to SSS the names, ages, civil status, occupations, salaries and dependents of all his covered Ees
2. Self‐employed ‐ Report to SSS within 30 days from the first day of his operation, his name, age, civil status, occupation, average monthly net income and his dependents
Monthly Pension
Q: How much is the monthly pension?
A:
1. The monthly pension shall be the highest of the following amounts:
a. The sum of the following:
ii. P300.00; plus
iii. 20% of the average monthly salary credit; plus
iv. 2% of the average monthly salary credit for each credited year of service in excess of 10 years; or
b. 40% of the average monthly salary credit; or
c. P1,000.00, provided that the monthly pension shall in no case be paid for an aggregate amount of less than sixty (60) months (Sec. 12 [a]) 2. Minimum Pension
a. P1,200.00 ‐ members with at least 10 credited years of service
b. P2,400.00 for those with 20 credited years of service. (Sec. [b])
Q: What will happen to the monthly pension of a retiree in case of death?
A:
1. Upon the death of the retired member, his primary beneficiaries as of the date of his retirement will get 100% of his monthly pension plus the dependent's pension for each child.
Note: The above phrase “primary beneficiaries (as of the date of his retirement) was declared unconstitutional by the SC in Dycaico v. SSS and SSC (G.R. No.
16137, June 6, 2006) because it is in violation of the equal protection, due process and social justice.
2. If he dies within 60 months from the start of his pension and he has no primary beneficiaries, his secondary beneficiaries will receive a lump sum benefit equivalent to the difference of 60 multiplied by the monthly pension and the total monthly pensions paid by the SSS excluding the dependent's pension. (Sec. 12‐B [d])
Q: Bonifacio and Elena are living together as husband and wife without the benefit of marriage. Bonifacio declared Elena and their children as his primary beneficiaries in his self‐
employed data record in SSS. A few months prior to his death, Bonifacio married Elena.Is Elena entitled to the survivor’s pension?
A: Yes, she is considered primary beneficiary of Bonifacio. The phrase “Upon the death of the retired member, his primary beneficiaries as of the date of his retirement will get 100 per cent of his monthly pension xxx” of Sec. 12‐B d of RA 8282 is unconstitutional because it violates the: (1) equal protection clause because it impermissibly discriminates against dependent spouses whose
respective marriages to the SSS members were contracted after the latter’s retirement; (2) due process clause because it outrightly deprives spouses who married the SSS members after their retirement of the survivor’s pension, a property interest, without giving them opportunity to be heard; and (3) social justice.
Further, the survivorship pension applied for was classified as death benefits. Hence, the contingency that gives rise to the entitlement of Elena is the death of Bonifacio and not his retirement. (Dycaico v. SSS, G. R. No. 16137, June 6, 2006)
Q: When is the monthly pension and dependent’s pension suspended?
A:
1. Upon the reemployment or resumption of self‐employment
2. Recovery of the disabled member from his permanent total disability
3. Failure to present himself for examination at least once a year upon notice by the SSS. (Sec. 13‐A [b])
Retirement Benefit
Q: What is a retirement benefit?
A: It is a cash benefit paid to a member who can no longer work due to old age.
Q: What are the types of retirement benefits?
A:
1. Monthly Pension ‐ Lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement .
2. Lump Sum Amount ‐ Granted to a retiree who has not paid the required 120 monthly contributions.
Q: Who are entitled for retirement benefits?
A:
1. A member who
a. has paid at least 120 monthly contributions prior to the semester of retirement;
b. at least 60 years old; and
c. already separated from employment or has ceased to be self‐employed, OR
2. At least 65 years old, shall be entitled for as long as he lives to the monthly pension; (Sec 12‐B [a])
3. A member
a. At least 60 years old at retirement;
and
b. Does not qualify for pension benefits under paragraph (a) above ‐ entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf;
c. Must be separated from employment and is not continuing payment of contributions to the SSS on his own. (Sec. 12‐B [b])
Q: What happens when the retirement pensioner is re‐employed or resumes self‐employment?
A: The monthly pension of a retirement pensioner who resumes employment and is less than 65 years old will be suspended. He and his Er will again be subject to compulsory coverage. (Sec. 12‐B [c])
Q: Are the children of a retiree member entitled to the dependent's pension?
A: Yes (Sec. 12[A]). However, only 5 minor children, beginning from the youngest, are entitled to the dependents' pension. No substitution is allowed.
Where there are more than 5 legitimate and illegitimate children, the legitimate ones will be preferred.
Q: For how long will the dependent child receive the pension?
A: Until the child reaches 21 years of age, gets married, gets employed and earns P300 a month or more, 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.
Death Benefit
Q: When is a beneficiary entitled to death benefits?
A:
1. Upon death of a member, if he has paid at least 36 monthly contributions prior to the semester of death:
a. primary beneficiaries shall be entitled to the monthly pension; or b. If there are no primary beneficiaries,
secondary beneficiaries shall be
entitled to a lump sum benefit equivalent to 36 times the monthly pension.
2. Upon death of a member If he has not paid the required 36 monthly contributions prior to the semester of death:
a. Primary or secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the monthly pension multiplied by the number of monthly contributions paid to the SSS: or
b. 12 times the monthly pension, whichever is higher. (Sec. 13)
Disability Benefit
Q: What is a disability benefit?
A: It is a cash benefit paid to a member who becomes permanently disabled, either partially or totally.
Q: What is the difference between death benefits and Permanent Total Disability benefits?
A:
Death Benefits PTD Benefits Requisite
at least 36 monthly contributions Benefits payable to whom Primary Beneficiaries Member
Failure to make 36 monthly payments Benefits shall be in lump sum equivalent to the monthly pension times the number of monthly contributions paid to SSS or 12 times the monthly
pension, whichever is higher.
Q: What is the effect of the death of the PTD pensioner?
A:
1. Primary beneficiaries are entitled to receive monthly pension as of the date of disability.
2. No primary beneficiaries and he dies within 60 months from the start of his monthly pension ‐ secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the 5‐
year guaranteed period excluding the dependents’ pension. (Sec. 13‐A [c])
Q: What is the effect of retirement or death to partial disability pension?
A: Disability pension shall cease upon his retirement or death. (Sec 13‐A [j])
Funeral Benefit
Q: What is the funeral benefit?
A: A funeral grant equivalent to P12, 000.00 shall be paid, in cash or in kind, to help defray the cost of expenses upon the death of a member or retiree.
(Sec. 13‐B)
Sickness Benefit
Q: What is sickness benefit?
A: It is a daily cash allowance paid for the number of days a member is unable to work due to sickness or injury.
Q: What are the requirements to be entitled for sickness benefit?
A:
1. The member paid at least 3 monthly contributions in the 12‐month period immediately preceding the semester of sickness or injury
2. Confined for more than 3 days in a hospital or elsewhere with the approval of the SSS
3. He has used all current company sick leaves with pay for the current year 4. Notified his Er or the SSS, if he is a
separated, voluntary or self‐employed member
Q: Who will pay sickness benefits? and how much
Q: Who will pay sickness benefits? and how much