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

SIXTEENTH CONGRESS
Second Regular Session

5756

House Bill No.

Introduced by Rep. Gina P. de Venecia and Rep. Rufus B, Rodriguez

EXPLANATORY NOTE

Filipinos are known to be one of the most skilful 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% (40.1
Million) of the total population with Labor Force Participation Rate (LFPR) of 63.8%. 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 posts, workers tend to transfer from the private to public enterprises and vice versa. Hence,
their accounts from either GSIS or SSS 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.

REP,| Hit Ion ENECIA /DRIGUEZ
4™ District, Pangasinan 28? District, Cagayan de Oro City



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

SIXTEENTH CONGRESS
Second Regular Session

House Bill No.__ 5756

Introduced by Rep. Gina P, de Venecia and Rep. Rufus B. Rodriguez

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:

Section 1, Declaration of Policy. Ibis 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 either 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 HER OF THE SYSTEMS BY
PAYING BOTH LIFE AND RETIREMENT PREMIUMS.”

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

“Sec. 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 government 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.

Sec. 5. Repealing Clause, All laws, decrees, orders, rules and regulations, or parts

thereof, which are inconsistent with the provisions of this Act are hereby repealed or

modified accordingly,

See. 6. Liffectivity. This Act shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation,

Approved,