HOLST v= SEPRESENTATIVES:
RECEIVED
JUL 20

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

SEVENTEENTH CONGRESS
irst Regular Session

House Bill No. 1864

'ECISTRATION UNIT
BILLS AND INDEX SERVICE

Introduced by Rep. Christopher de Venecia_

E

<PLANATORY NOTE

Filipinos are known to be one of the most skillful and talented workers in the world

In fact, our services are sought after by most of the employers, even abroad. Our dedication,

perseverance and trustworthiness is incomparable, which is why many Filipinos have made it

to the top of their careers. Yet most importantly, aside from the success stories of famous

Filipinos, are the lives of silent, everyday heroes— the workers

Our workers are the most vital resources of the country. They constitute 41.8% (42.1
Million) of the total population with Labor Force Participation Rate (LFPR) of 63.3% (2015
statistics). Their taxes go a long way— in infrastructure, health, education, agriculture,
industry and many more: hence, their contributions are inevitable to the development of our

country. Therefore. as recognition to their participation in nation-building, it is important that

the rights of our workers are protected and that all their contributions are maximized and
reciprocated. With the existence of social security insurance systems such as the GSIS and
SSS. our workers are provided with sound benefit plans which are supposed to be
advantageous to the worker

Consequently. because of the competitiveness of the labor sector and the availability

of pos

. workers tend to transfer from the private to public enterprises and vice versa. Hence.

IS or SS

their accounts from either GS are transferred, in a way “ladderized,” subject to the
limitations stated under the Portability Law. However, the portability law has yet to clarify
and resolve certain issues which arise from transferring one account to the other.

In view of the foregoing, this bill aims at enhancing the guidelines of transferring an
account from one social security insurance system to another thereby amending Republic Act

7699 otherwise known as the Portability Law.

[Oe uly

REP. CHRISTOPHER DE VENECIA
4" District, Pangasinan



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

SEVENTEENTH CONGR!
First Regular Session

186

House Bill No. >

Introduced by Rep. Christopher de Vene

AN ACT
ENHANCING THE GUIDELINES OF TRANSFERRING AN ACCOUNT FROM
ONE SOCIAL SECURITY INSURANCE SYSTEM TO ANOTHER AMENDING FOR
THE PURPOSE REPUBLIC ACT 7699 OTHERWISE KNOWN AS THE
PORTABILITY LAW

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

assembled:

Seetion 1. Declaration of Policy. It is hereby declared the policy of the State to ensure

that the rights of our workers are protected and that all their contributions during their

productive years are maximized and reciprocated through setting up schemes, under Social
Security Insurance Systems, that are fair and beneficial to the workers. In view hereof, the
State shall therefore:

a Enhance the implementation of the Portability law by reviewing and amending
the guidelines of transferring an account from one system to another:

b. Ensure that all the existing laws always stand in favour of the workers.

Sec. 2. Section 3 of the Republic Act 7699 is hereby amended to read as follows:

“Sec. 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/HER creditable services or contributions in both Systems credited to
his/HER 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 cither or both
Systems without totalization [: Provided, however, That overlapping periods

of membership shall be credited only once for purposes of totalization}

IF AN EMPLOYEE HAS SIMULTANEOUSLY BEEN EMPLOYED
TO BOTH PRIVATE AND GOVERNMENT ENTITIES AND HAS
CONTRIBUTED TO BOTH SSS AND GSIS AT THE SAME TIME,
HIS/HER CREDITABLE SERVICES OR CONTRIBUTIONS DURING
THE OVERLAPPING PERIOD OF MEMBERSHIP SHALL BE ADDED
AND TOTALIZED IN ORDER TO QUALIFY FOR A BENEFIT FROM
EITHER OF THE TWO SYSTEMS. THE COMPUTATION THEREOF
SHALL BE BASED FROM THE TOTAL CREDITABLE SERVICES OR
CONTRIBUTIONS HE/SHE HAS RENDERED,

IF AN EMPLOYEE HAS ALREADY SATISFIED THE
REQUIREMENTS SET BY ONE SYSTEM TO AVAIL OF A
RETIREMENT PLAN PRIOR TO TRANSFERRING TO ANOTHER,
HIS/HER PREVIOUS SERVICES SHALL BE INCLUDED IN THE
COMPUTATION OF SERVICE. IF AFTER COMPUTATION, THE
EMPLOYEE HAS QUALIFIED FOR BOTH SYSTEMS, HE/SHE SHALL
BE GIVEN OPTION TO CHOOSE WHICHEVER BENEFIT HE/SHE
INTENDS TO AVAIL. PROVIDED, HOWEVER, THAT A MEMBER HAS
NOT CLAIMED ANY OF THE CORRESPONDING BENEFITS HE/SHE IS
ENTITLED TO FROM THE TIME HE/SHE HAS QUALIFIED FOR THE
BENEFIT FROM EITHER OF THE TWO SYSTEMS. PROVIDED.
FURTHER, THAT AN EMPLOYEE WHO IS ALREADY BEYOND THE
MANDATORY REQUIREMENT AGE OF SIXTY FIVE (65) BUT HAS
NOT OBTAINED THE REQUIRED NUMBER OF CREDITABLE
SERVICES FOR RETIREMENT PURPOSES SHALL HAVE THE OPTION
TO CONTINUE HIS/HER ACCOUNT IN EITHER OF THE SYSTEMS BY
PAYING BOTH LIFE AND RETIREMENT PREMIUMS.”

See. 3. Section 4 of the Republic Act 7699 is hereby amended to read as follows:

See. 4. All contributions paid by such member personally, and those

that were paid by his/HER employers to both Systems shall be considered in


the processing of benefits which he/SHE can claim from either or both
Systems: Provided, however, That the amount of benefits to be paid by one
System shall be in proportion to the number of contributions actually remitted

to that System.

See. 4. Implementing Agencies. The Department of Labor and Employment for the

private sector and the Civil Service Commission for the

2overnment sector, together with the

SSS and the GSIS shall, within ninety (90) days from the effectivity of this Act, promulgate
the rules and regulations necessary to implement the provisions hereof: Provided, That any
conflict in the interpretation of the law and the implementing rules and regulations shall be

resolved in favor of the workers.

See. 5

ealing Clause. All laws, decrees, orders. rules and regulations. or parts

thereof. wt

ch are inconsistent with the provisions of this Act are hereby repealed or

modified accordingly

See. 6. Effectivity. This Act shall take effect fifteen (15) days after its publication in

at least two (2) newspapers of general circulation.

Approved.