EXCLUSIONS FROM COVERAGE [SEC

8 [J]]

(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 instrumentalities; and

(5) Services performed by temporary and other employees which may be excluded by SSS regulation. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors.

A.3. BENEFITS

i. Monthly pension [Sec.12]

Computation of monthly pension

The monthly pension shall be the highest of the following amounts:

(1) P300 + [20% x [average monthly credit]]

+ [2% x [average monthly credit] x [# of cash credited years of service in excess of 10 years]];

(2) 40% x [average monthly credit];

(3) P1,000; provided, that the monthly pension shall in no case be paid for an aggregate amount of less than 60 months.

Note: Notwithstanding the abovementioned, minimum pension is P1,200 for members with at least 10 years credit service, P2,400 for those with 20 years.

ii. Dependents’ pension [Sec. 12-A]

(1) Paid on account of members’

I. death, II. retiring, or

III. permanent total disability;

(2) Paid to each child conceived on or prior to contingency, but not exceeding 5,

beginning with the youngest and preferring the legitimate;

(3) Amount is either P250 or 10% of the monthly pension as computed above, whichever is higher.

iii. Retirement benefits [Sec. 12-B]

Eligibility requirements (1) 120 monthly contributions;

(2) Age

I. 65 years old; or

II. a member who has reached 60 years may also avail if he is already separated from

employment or has ceased to be self-employed.

Benefit – entitlement to monthly pension from retirement until death.

The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than sixty-five [65] years old.

In Case of Death of Member

(1) His/her primary beneficiaries as of the date of his/her retirement shall be entitled to receive the monthly pension;

or

(2) If he/she has no primary beneficiaries AND he/she dies within sixty [60] months from the start of his/her monthly pension, his/her secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the dependents’ pension.

Lump Sum Alternative

Member may opt to receive his first 18 monthly pensions in lump sum but such is discounted at a preferential rate of interest.

Lump Sum Eligibility

A 60 year old member with less than 120 monthly contributions who is no longer employed or self-employed, and who is not continuing contributions independently, he is entitled to a lump sum equal to his total contributions paid.

iv. Permanent disability benefits [Sec. 13-A]

Eligibility requirement

(1) 36 monthly contributions prior to the semester of disability; same as death benefit; the only difference is that the pension is paid directly to the member.

(2) In case the permanently disabled member dies, it would be given the same treatment as a retiree dying.

(3) For permanent partial disability, the pension is not lifetime. [e.g. loss of thumb

entitles member to only 10 months of pension, while loss of arm 50 months]. It shall be paid in lump sum if the period is less than 12 months.

(4) For multiple partial disabilities, they shall be additive when related or deteriorating – the percentage shall be equal to the number of months the partial disability is entitled to, divided by 75 months. [e.g. loss of sight in one eye à 25/75; loss of arm à 50/75; if both occur due to same cause, then 25/75 + 50/75 = 100% so treated as if it were permanent total disability]

Lump Sum Alternative

A member is entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve [12] times the monthly pension, whichever is higher.

Lump Sum Eligibility

A member who has not paid at least 36 monthly contributions

Note: A member who [1] has received a lump sum benefit; and [2] is reemployed or has resumed self-employment not earlier than one [1] year from the date of his disability shall again be subject to compulsory coverage and shall be considered a new member.

In Case of Death of Member

(1) His primary beneficiaries as of the date of disability shall be entitled to receive the monthly pension; OR

(2) If he has no primary beneficiaries and he dies within sixty [60] months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period excluding the dependents’

pension.

v. Death benefits [Sec. 13]

Eligibility requirement

36 monthly contributions prior to the semester of death.

Benefit – monthly pension to primary or a lump sum benefit equivalent to thirty-six [36]

times the monthly pension secondary beneficiaries.

To those ineligible – lump sum benefit which shall be the higher between the two:

• [monthly pension] x 12; or

• [monthly pension] x [# of monthly contributions]

vi. Funeral benefits [13-B]

P12,000 in cash or in kind, upon death of member

vii. Loan

Social Security Commission Resolution No.

669. Moreover, several SSS-issued circulars such as Circular No. 21-P and No. 52 pertain to the treatment of salary loans, sometimes providing for more flexible payment terms or condonation for delinquent payers; Santiago v. CA and SSS, GR # L-39949 [1984] resolved an issue involving the treatment of salary loan repayments; SSS website also shows loans

viii. Sickness benefits [Sec. 14]

Eligibility requirements and other conditions

(1) Inability to work due to sickness or injury (2) Confined for at least 4 days either in a

hospital or elsewhere with SSS approval;

(3) At least 3 months of contributions in the 12 month period immediately before the semester of sickness or injury has been paid;

(4) All company sick leaves with pay for the current year have been used up;

(5) Maximum of 120 days per 1 calendar year

sickness and confinement is 240 days for 2 consecutive years];

(6) The employer has been notified, or, if a separated, voluntary or self-employed member, the SSS directly notified within 5 days of confinement;

(7) Notice to employer or SSS not needed when confinement is in a hospital; notice to employer not required as well when Employee became sick or injured while working or within premises of the employer.

Benefit: daily cash allowance paid for the number of days a member is unable to work due to sickness or injury equivalent to 90% x [average daily salary credit]

Note: One hundred percent [100%] of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof if the following conditions are met:

(1) The employer notified the SSS of the confinement within five calendar days after receipt of the notification from the employee member

(2) If the notification to the SSS is made by the employer beyond five calendar days after receipt of the notification from the employee member, he shall be reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the SSS.

(3) 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 [1] year from the last day of confinement.

ix. Maternity leave benefits [Sec. 14-A]

Eligibility Requirements [2000, 2005, 2007, 2010 Bar Question]

(1) A female member

(2) Paid at least three [3] monthly contributions in the twelve-month period immediately preceding the semester of her childbirth or miscarriage

(3) She shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide;

Process

The full payment shall be advanced by the employer within thirty [30] days from the filing of the maternity leave application;

Coverage

The maternity benefits provided under this section shall be paid only for the first four [4]

deliveries or miscarriages;

Employer’s Reimbursement

That the SSS shall immediately reimburse the employer of one hundred percent [100%]

of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof.

Note: All of these benefits are tax-exempt.

A.4. BENEFICIARIES