Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Mani:

',
? RECA i

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 403.3

Introduced by Rep. H, Harry L. Roque, Jr.

EXPLANATORY NOTE

Republic Act No. 7699 (RA 7699), otherwise known as “The Portabilit
declares as State policy the promotion of the welfare of our workers by recognizing their
efforts in productive endeavors and the improvement of their conditions by providing benefits
for their long years of contribution to the national economy.

RA 7699 was enacted on 27 April 1994 and signed by President Fidel V. Ramos on
01 May 1994 to enable retirees who lack the required number of years of service either in the
government or in the private sector, to qualify for pension, by adding the retiree’s years of
service from the other sector to complete the number of years of service required. The
government requires fifteen (15) years in order to qualify for pension from GSIS, with age
sixty-five (65) as retirement age, while the private sector requires ten (10) years of service to
qualify for pension from the SSS, with age sixty (60) as retirement age.

The portability of years of service from one system to another aptly describes the
name “Portability Law”.

However, RA 7699 inadvertently and unjustly excluded a certain class of workers
from benefiting from The Portability Law when it added the phrase “in case the covered
member does not qualify for such benefits in either or both Systems without totalization” in
Section 3 thereof.

Such class of workers are those workers who have earlier qualified for retirement
benefits in either the SSS or GSIS, then subsequently transferred to the other sector in the
latter part of their careers, rendering years of service which fall short of qualifying for
retirement benefits in the other social security system, These workers, being inadvertently
excluded from the benefits of The Portability Law by, are forced to retire in the social
security system where they earlier qualified, even though they have also rendered many years
of service to the other sector. Under the law as currently worded, they are forced to receive
pension based on their carlier (and necessarily lower) compensation without option for
transferring years of service to the latter social security system to receive pension based on
their later and higher compensation schedule, while a worker who has worked nine (9) years
in the private sector and subsequently worked six (6) years in the public sector will be

+ Sec. 3, Provisions of any general or special law or rules and regulations to the contrary
notwithstanding, @ covered worker who transfers employment from one sector to another or is
employed in both sectors shall have his credible services or contributions in both Systems credited to
his service or contribution record in each of the Systems and shall be totalized for purposes of old-
age, disability, survivorship and other benefits in case the covered member does not qualify for such
benefits in either or both Systems without totalization: Provided, however, That overlapping periods
‘of membership shall be credited only once for purposes of tot



allowed to transfer years of service to GSIS and receive pension based on their most current
(and higher) compensation rate.

It is unfair and unjust to exclude such workers from the coverage of The Portability
Law solely for the reason that they have earlier qualified in one social security system,
because this class of workers has also given long years of their lives thereafter to the other
scetor, still contributing to the national economy.

To give meaning and substance to the State policy eloquently provided in Section | of
RA 7699, which is, to repeat, “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,” the said class of workers should
also be free to enjoy the benefits of The Portability Law.

In view thereof, this bill aims to amend RA7699 to delete the restrictive clause
Section 3 of RA 7699 and explicitly include workers who have qualified for benefits in one
system but is subsequently employed in the other sector, thereby allowing the worker to opt
to retire in the latter system based justly on the worker’s later compensation schedule.

In view of the foregoing, the approval of this bill is earnestly sought

AU

REP. H. HARRY L. ROQUE, JR.
Party List -KABAYAN


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

ENTH CONGRESS,
First Regular Session

House Bill No. A032

Introduced by Rep. H. Harry L. Roque, Jr.

AN ACT
AMENDING REPUBLIC ACT NO. 7699, OTHERWIS
“PORTABILITY LAW”

KNOWN AS THE

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 3 of Republic Act No. 7699, otherwise known as the
“Portability Law”, is hereby amended to read as follows:

“SECTION. 3. Provisions of any general or special law or rules and
regulations to the contrary notwithstanding, a covered worker who transfers
employment from one sector to another or is employed in both sectors shall
have his creditable services or contributions in both Systems credited to his
service or contribution record in each of the Systems and shall be totalized for
purposes of old-age, disability, survivorship and other benefits [in case the
covered member does not qualify for such benefits in either or both Systems
without totalization]; Provided, however, That overlapping periods of
membership shall be credited only once for purposes of totalization

“TOTALIZATION SHALL APPLY IN THE FOLLOWING
INSTANCES:

"AIF A WORKER IS NOT QUALIFIED FOR ANY
BENEFITS FROM BOTH SYSTEMS; OR

"B.IF A WORKER IN THE PUBLIC SECTOR IS NOT
QUALIFIED FOR ANY BENEFITS FROM THE GSIS;
OR

"C.IF A WORKER IN Th
QUALIFIED FOR ANY BENEFITS FROM THI

“D.IF A WORKER QUALIFIES FOR BENEFITS IN ONE
SYSTEM BUT IS SUBSEQUENTLY EMPLOYED IN
THE OTHER SECTOR: PROVIDED, THAT THE
WORKER HAS NOT AVAILED OF THE BENEFITS IN
ONE SYSTEM: PROVIDED, FURTHER, THAT THE
WORKER MUST HAVE CONTRIBUTED AT LEAST
SEVENTY-FIVE PER CENTUM (75%) OF THE



REQUIRED. CONTRIBUTIONS, OF

CORRESPONDING SYSTEM WHERE THEY §
SOCIAL SECURITY BENEFITS: PROVIDED, FINALLY,
THAT ONLY THE NUMBER OF YEARS N

BC. 2, Separability Clause. ~ All laws, presidential decrees or i
, letters of instruction, administrative orders, rules and regu

tary to oF
ent with the provisions of this Act are hereby repealed, modified or amended

accordingly,

SEC. 3. Effectivity. ~ This Act shall take effect fifteen (15) days aft
publication in at least two (2) newspapers of general circulation.

its complete

Approved,