Article 59Labor and Agrarian Laws and Social Legislation, p. 59

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

this Act, he shall pay to the SSS only the contribution

required of him and he shall continue his contribution to

such private plan less his contribution to the SSS so that

the employer's total contribution to his benefit plan and

to the SSS shall be the same as his contribution to his

private benefit plan before the compulsory coverage:

Provided ,

further ,

That

any

changes,

adjustments,

modifications,

eliminations

or

improvements

in

the

benefits to be available under the remaining private plan,

which may be necessary to adopt by reason of the

reduced

contributions

thereto

as

a

result

of

the

integration, shall be subject to agreements between the

employers and employees concerned: Provided , further ,

That the private benefit plan which the employer shall

continue

for

his

employees

shall remain under the

employer's management and control unless there is an

existing agreement to the contrary: Provided , finally , That

nothing in this Act shall be construed as a limitation on

the right of employers and employees to agree on and

adopt benefits which are over and above those Provided

under this Act.

(b) 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, may be covered by the

SSS on a voluntary basis.

(c) Filipinos recruited by foreign-based employers for

employment abroad may be covered by the SSS on a

voluntary basis.

SECTION

9-A.

Compulsory

Coverage

of

the

Self-Employed . - Coverage in the SSS shall also be

compulsory upon such self-employed persons as may be

determined by the Commission under such rules and

regulations as it may prescribe, including but not limited

to the following:

1. All self-employed professionals;

2. Partners and single proprietors of businesses;

3. Actors and actresses, directors, scriptwriters and news

correspondents who do not fall within the definition of

the term "employee" in Section 8 (d) of this Act;

4. Professional athletes, coaches, trainers and jockeys; and

5. Individual farmers and fishermen.

Unless otherwise specified herein, all provisions of this

Act

applicable

to

covered

employees

shall

also

be

applicable to the covered self-employed persons.

SECTION 10. Effective Date of Coverage . - Compulsory

coverage of the employer shall take effect on the first day

of his operation and that of the employee on the day of

his employment: Provided , That the compulsory coverage

of the self-employed person shall take effect upon his

registration with the SSS.

SECTION 11. Effect of Separation from Employment . -

When

an

employee

under

compulsory

coverage

is

separated from employment, his employer's contribution

on his account and his obligation to pay contributions

arising from that employment shall cease at the end of

the month of separation, but said employee shall be

credited with all contributions paid on his behalf and

entitled to benefits according to the provisions of this Act.

He may, however, continue to pay the total contributions

to maintain his right to full benefit.

SECTION 11-A. Effect of Interruption of Business or

Professional Income . - If the self-employed realizes no

income in any given month, he shall not be required to

pay contributions for that month. He may, however, be

allowed to continue paying contributions under the same

rules and regulations applicable to a separated employee

member:

Provided ,

That

no

retroactive

payment

of

contributions shall be allowed other than as prescribed

under Section Twenty-two-A hereof.

SECTION 12. Monthly Pension . - (a) The monthly pension

shall be the highest of the following amounts:

(1) The sum of the following:

(i) Three hundred pesos (P300.00; plus

(ii) Twenty percent (20%) of the average monthly salary

credit; plus

(iii) Two percent (2%) of the average monthly salary credit

for each credited year of service in excess of ten (10) years;

or

(2) Forth percent (40%) of the average monthly salary

credit; or

(3) One thousand pesos (P1,000.00): Provided , That the

monthly

pension

shall

in

no

case

be

paid

for

an

aggregate amount of less than sixty (60) months.

(b)

Notwithstanding

the

preceding

paragraph,

the

minimum pension shall be One thousand two hundred

pesos (P1,200.00) for members with at least ten (10)

credited years of service and Two thousand four hundred

pesos (P2,400.00) for those with twenty (20) credited

years of service.

SECTION 12-A. Dependents' Pension . - Where monthly

pension is payable on account of death, permanent total

disability or retirement, dependents' pension equivalent

to ten percent (10%) of the monthly pension or Two

hundred fifty pesos (P250.00), whichever is higher, shall

also be paid for each dependent child conceived on or

before the date of the contingency but not exceeding five

(5),

beginning

with

the

youngest

and

without

substitution: Provided , That where there are legitimate or

illegitimate children, the former shall be preferred.

SEC. 12-B. Retirement Benefits . - (a) A member who has

paid

at

least

one

hundred

twenty

(120)

monthly

contributions prior to the semester of retirement and

who: (1) has reached the age of sixty (60) years and is

already separated from employment or has ceased to be

self-employed; or (2) has reached the age of sixty-five (65)

years, shall be entitled for as long as he lives to the

monthly pension: Provided , That he shall have the option

to receive his first eighteen (18) monthly pensions in lump

sum discounted at a preferential rate of interest to be

determined by the SSS.

(b) A covered member who is sixty (60) years old at

retirement and who does not qualify for pension benefits

under paragraph (a) above, shall be entitled to a lump

sum benefit equal to the total contributions paid by him

and on his behalf: Provided , That he is separated from

employment

and

is

not

continuing

payment

of

contributions to the SSS on his own.

(c) 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.

He shall again be subject to Section Eighteen and his

employer to Section Nineteen of this Act.

(d) Upon the death of the retired member, his primary

beneficiaries as of the date of his retirement shall be

entitled to receive the monthly pension: Provided , That 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.

(e) The monthly pension of a member who retires after

reaching age sixty (60) shall be the higher of either: (1) the

monthly pension computed at the earliest time he could

have retired had he been separated from employment or

ceased to be self-employed plus all adjustments thereto;

or (2) the monthly pension computed at the time when

he actually retires.

SECTION 13. Death Benefits . - Upon the death of a

member who has paid at least thirty-six (36) monthly

contributions prior to the semester of death, his primary

beneficiaries shall be entitled to the monthly pension:

Provided , That if he has no primary beneficiaries, his

secondary beneficiaries shall be entitled to a lump sum

benefit equivalent to thirty-six (36) times the monthly

pension. If he has not paid the required thirty-six (36)

© Compiled By RGL

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