Republic Act No.

8291 - Implementing Rules and

Regulations
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Pursuant to Section 53 of Section 1 of Republic Act No. 8291, otherwise nown as the
!o"ern#ent Ser"ice $nsurance S%ste# Act of 199&, the i#ple#enting rules an' regulations are
hereb% a'opte' an' pro#ulgate' to carr% out the pro"isions of the law.
RULE I DEFINII!N !F ER"#
Section 1. (nless the conte)t otherwise in'icates, the following ter#s shall #ean*
1.1 A++,(N- $N ARR.ARS / An account which re#ains unpai' after 'ue 'ate.
1.2 A++,(N- $N 0.1A(2- / An account in arrears which beca#e 'ue an' 'e#an'able an'
re#ain unpai'.
1.3 A+- / Refers to Republic Act No. 8291, otherwise nown as the
!o"ern#ent Ser"ice $nsurance S%ste# Act of 199&.
1.3 A4+ / Refers to A"erage 4onthl% +o#pensation. -his refers to the a"erage salar% recei"e'
b% the #e#ber 'uring the last 35 #onths of cre'itable ser"ice prece'ing his separation,
retire#ent, 'isabilit%, or 'eath, or, if with less than 35 #onths of cre'itable ser"ice, the actual
nu#ber of #onths of the cre'itable ser"ice.
1.5 AP2 6 Refers to Auto#atic Polic% 2oan or Auto#atic Pre#iu# 2oan. -his is the a#ount that
will be 'e'ucte' fro# the +ash 7alue8-er#ination 7alue of a life insurance polic% to eep the
polic% in force.
1.5 9.N.1$- / -he a#ount that !S$S is obligate' to pa% the #e#ber upon the occurrence of a
co"ere' contingenc% that is pa%able un'er the Act.
1.& 9$22$N! / -he process of sen'ing notices or state#ents to go"ern#ent agencies, #e#bers,
or borrowers to re#in' or 'e#an' pa%#ent for accounts that are falling 'ue or are past their 'ue
'ates.
1.8 9,AR0 / -he 9oar' of -rustees of the !S$S.
1.9 +AS: 0$7$0.N0 6 -he su# of #one% pai' to polic%hol'ers whose life insurance policies
ha"e been in force for at least one %ear sub;ect to a#ount an' con'itions reco##en'e' b%
Actuar% an' appro"e' b% the 9oar'.
1.1< +AS: PA=4.N- / A benefit pa%able to a #e#ber upon separation, 'isabilit% or
retire#ent, or to the beneficiaries upon the 'eath of the #e#ber, un'er con'itions pro"i'e' b%
law.
1.11 +AS: 7A2(. / Accu#ulate' a#ount earne' base' on pre#iu# pa%#ent while the 2.P
is in force.
1.12 +2A$4 / A re>uest fro# the #e#ber or his beneficiaries for pa%#ent of benefits that #a%
be 'ue as pro"i'e' un'er this Act.
1.13 +2$P / Refers to +lai#s an' 2oans $nter'epen'enc% Polic%. -his is a #echanis# which
ensures the collection of unpai' accounts fro# the procee's of a loan or clai# of a #e#ber or
his beneficiaries.
1.13 +,4P.NSA-$,N 6 -he fi)e' #onthl% salar% recei"e' b% an e#plo%ee e)clu'ing
allowances, per 'ie#s, bonuses, o"erti#e pa%, honoraria an' other e#olu#ents not integrate'
into the fi)e' #onthl% salar%.
1.15 +,N-$N!.N+$.S / ."ents such as separation fro# the ser"ice, retire#ent, 'isabilit% or
'eath which are pa%able un'er this Act.
1.15 +,N-R$9(-$,N / -he a#ount pa%able to the !S$S b% the #e#ber an' go"ern#ent
agenc% or e#plo%er to which he belongs.
1.1& +S7 / Refers to +ash Surren'er 7alue, which is the a#ount to be pai' to the polic%hol'er
of 2ife .n'ow#ent Polic% ?2.P@ or optional life insurance policies when he is separate' fro#
the ser"ice before #aturit% 'ate of the polic% or when a polic%hol'er is consi'ere' a case of
Per#anent -otal 0isabilit% ?P-0@.
1.18 +(RR.N- 0A$2= +,4P.NSA-$,N. A -he actual 'ail% co#pensation or the fi)e'
#onthl% co#pensation 'i"i'e' b% twent%6two ?22@ 'a%s.
1.19 0.P.N0.N-S / -he ?a@ legiti#ate spouse 'epen'ent for support on the #e#ber or
pensioner, ?b@ legiti#ate8legiti#ate' legall% a'opte' chil', inclu'ing the illegiti#ate chil', who
is un#arrie', not gainfull% e#plo%e', not o"er the age of #a;orit%, or is o"er the age of #a;orit%
but incapacitate' an' incapable of self6support 'ue to a #ental or ph%sical 'efect ac>uire' prior
to age of #a;orit%, an' ?c@ the parents 'epen'ent upon the #e#ber for support.
1.2< 0$SA9$2$-= / An% loss or i#pair#ent of the nor#al functions of the ph%sical an'8or
#ental faculties of a #e#ber, which re'uces or eli#inates his capacit% to continue with his
current gainful occupation or engage in an% other gainful occupation resulting in the loss of
inco#e.
1.21 .2P / Refers to .nhance' 2ife Polic%. -his is a co#pulsor% life insurance co"erage issue'
b% !S$S after Bul% 31, 2<<3.
1.22 1(N.RA2 9.N.1$- / 9enefit inten'e' to help 'efra% the e)penses inci'ental to the
burial an' funeral of the 'ecease' #e#ber, pensioner or retiree.
1.23 !A$N1(2 ,++(PA-$,N / An% pro'ucti"e acti"it% that pro"i'es inco#e of at least e>ual
to the pre"ailing #ini#u# co#pensation of go"ern#ent e#plo%ees.
1.23 !,7.RN4.N- A!.N+= 6 An% go"ern#ent office whether national or local, legislati"e
bo'ies, go"ern#ent6owne' an' controlle' corporations ?!,++@ with original charters,
go"ern#ent financial institutions ?!1$s@, constitutional co##issions, ;u'iciar%, Ar#e' 1orces of
the Philippines, the Philippine National Police, 9ureau of Bail 4anage#ent an' Penolog%
?9B4P@ an' 9ureau of 1ire Protection ?91P@.
1.25 $N7.S-4.N-S / A#ounts of #one% or other resources #easure' in ter#s of #one%
place' on acti"ities for the purpose of earning profits.
1.25 2.P6 Refers to 2ife .n'ow#ent Polic%. -his is the life insurance polic% issue' to regular
#e#bers prior to August 1, 2<<3 or to special #e#bers after the i#ple#entation of this Act.
1.2& 4.49.R / A go"ern#ent e#plo%ee recei"ing co#pensation while in the ser"ice of a
go"ern#ent agenc% b% "irtue of an appoint#ent or election to public office an' irrespecti"e of
status of appoint#ent.
1.28 A+-$7. 4.49.R. A A #e#ber of !S$S, whether regular or special, who is in the
go"ern#ent ser"ice.
1.29 $NA+-$7. 4.49.R. / A #e#ber who is separate' fro# the ser"ice, either b%
resignation, retire#ent, 'isabilit%, 'is#issal, or retrench#ent.
1.3< R.!(2AR 4.49.RS / -hose who, together with the go"ern#ent agenc% to which the%
belong, are re>uire' to re#it life an' retire#ent pre#iu# contributions as #an'ate' un'er
Section 5 of RA 8291.
1.31 SP.+$A2 4.49.RS / -hose who, together with the go"ern#ent agenc% to which the%
belong, are re>uire' to re#it life insurance pre#iu#s onl%.
1.32 P.NS$,N / A #onthl% specifie' cash a#ount that a >ualifie' #e#ber will recei"e upon
retire#ent or when consi'ere' as a case of per#anent total 'isabilit%.
1.33 PR.S+R$P-$,N P.R$,0 / -he allowable perio' within which to file a clai# for benefit
or benefits.
1.33 R+S / Refers to Recor' of +re'itable Ser"ice. -he R+S inclu'es ser"ice perio's with
correspon'ing pre#iu# contributions an' ser"es as basis for co#puting benefits.
1.35 R.6.4P2,=4.N- / Subse>uent re6entr% in go"ern#ent ser"ice after separation fro#
ser"ice.
1.35 R.$NS-A-.4.N- ,1 P,2$+= / -he restoration of the effecti"it% of the life insurance
polic% upon pa%#ent of the re>uire' pre#iu#s un'er ter#s an' con'itions of the .2P.
1.3& -.R4$NA-$,N 7A2(. / Accu#ulate' a#ount earne' base' on pre#iu# pa%#ent while
the .2P is in force.
RULE II "E"$ER#%I& !F %E '#I#
#ection 2. (ompulso)* "embe)s+ip
2.1. All go"ern#ent personnel, whether electi"e or appointi"e, irrespecti"e of status of
appoint#ent, pro"i'e' the% are recei"ing fi)e' #onthl% co#pensation an' ha"e not reache' the
#an'ator% retire#ent age of 55 %ears, are co#pulsoril% co"ere' as #e#bers of the !S$S an'
shall be re>uire' to pa% contributions.
2.2. :owe"er, e#plo%ees who ha"e reache' the retire#ent age of 55 or #ore shall also be
co"ere', sub;ect to the following rules*
An e#plo%ee who is alrea'% be%on' the #an'ator% retire#ent age of 55 shall be co#pulsoril%
co"ere' an' be re>uire' to pa% both the life an' retire#ent pre#iu#s un'er the following
situations*
1. An electi"e official who at the ti#e of election to public office is below
55 %ears of age an' will be 55 %ears or #ore at the en' of his ter# of office, inclu'ing the
perio'8s of his re6election to public office thereafter without interruption.
2. Appointi"e officials who, before reaching the #an'ator% age of 55, are appointe' to
go"ern#ent position b% the Presi'ent of the Republic of the Philippines an' shall re#ain in
go"ern#ent ser"ice at age be%on' 55.
2.3. +ontractual e#plo%ees inclu'ing casuals an' other e#plo%ees with an e#plo%ee6
go"ern#ent agenc% relationship are also co#pulsoril% co"ere', pro"i'e' the% are recei"ing fi)e'
#onthl% co#pensation an' ren'ering the re>uire' nu#ber of woring hours for the #onth.
2.3. +lasses of 4e#bership / 4e#bership in the !S$S is classifie' either b% t%pe or status of
#e#bership.
2.3.1 As to t%pe of #e#bers, there are regular an' special #e#bers*
a. Regular 4e#bers / are those e#plo%e' b% the go"ern#ent of the Republic of the Philippines,
national or local, legislati"e bo'ies, go"ern#ent6owne' an' controlle' corporations ?!,++@
with original charters, go"ern#ent financial institutions ?!1$s@, e)cept unifor#e' personnel of
the Ar#e' 1orces of the Philippines, the Philippine National Police, 9ureau of Bail 4anage#ent
an' Penolog% ?9B4P@ an' 9ureau of 1ire Protection ?91P@, who are re>uire' b% law to re#it
regular #onthl% contributions to the !S$S.
b. Special 4e#bers / are constitutional co##issioners, #e#bers of the ;u'iciar%, inclu'ing
those with e>ui"alent rans, who are re>uire' b% law to re#it regular #onthl% contributions for
life insurance policies to the !S$S in or'er to answer for their life insurance benefits 'efine'
un'er RA 8291.
2.3.2. As to status of #e#bership, there are acti"e an' inacti"e #e#bers.
a. Acti"e #e#ber / refers to a #e#ber of the !S$S, whether regular or special, who is still in the
go"ern#ent ser"ice an' together with the go"ern#ent agenc% to which he belongs, is re>uire' to
pa% the #onthl% contribution.
b. $nacti"e #e#ber / a #e#ber who is separate' fro# the ser"ice either b% resignation,
retire#ent, 'isabilit%, 'is#issal fro# the ser"ice, retrench#ent or, who is 'ee#e' retire' fro#
the ser"ice un'er this Act.
#ection , E-clusion .)om (ompulso)* (o/e)age
3.1 -he following e#plo%ees are e)clu'e' fro# co#pulsor% co"erage*
3.1.1. (nifor#e' personnel of the Ar#e' 1orces of the Philippines ?A1P@, Philippine National
Police ?PNP@, 9ureau of 1ire Protection ?91P@ an' 9ureau of Bail 4anage#ent an' Penolog%
?9B4P@C
3.1.2. 9aranga% an' Sanggunian ,fficials who are not recei"ing fi)e' #onthl% co#pensationC
3.1.3. +ontractual .#plo%ees who are not recei"ing fi)e' #onthl% co#pensationC an'
3.1.3. .#plo%ees who 'o not ha"e #onthl% regular hours of wor an' are not recei"ing fi)e'
#onthl% co#pensation.
#ection 0 &olic* 'o/e)ning "embe)s+ip Administ)ation
-he basic polic% go"erning #e#bership a'#inistration shall be length of ser"ice with
correspon'ing pai' pre#iu#s.
3.1 -he basic principles un'er this polic% are*
3.1.1 4e#bership in the !S$S carries with it the legal obligation to pro#ptl% re#it the re>uire'
#onthl% pre#iu# contributions. -hus the e)tent of the benefits to which a #e#ber is entitle'
will 'epen' upon the le"el of co#pliance in the re#ittance of his pre#iu# contributions.
3.1.2 !o"ern#ent agencies where the #e#bers are e#plo%e' ha"e the legal obligation to re#it
on ti#e the #onthl% pre#iu# contributions 'ue fro# #e#bers concerne', both for personal an'
go"ern#ent shares. $n case of 'ela%, the% ha"e the legal obligation to pa% interest as #a% be
prescribe' b% the 9oar' but not less than two percent ?2D@ si#ple interest per #onth.
3.1.3 1or purposes of co#puting the benefits un'er the social insurance laws a'#inistere' b% the
!S$S, a #e#berEs perio' of ser"ice in go"ern#ent will onl% be recogniFe' b% !S$S as cre'itable
ser"ice if the #onthl% co#pulsor% pre#iu#s correspon'ing to sai' perio' ha"e been pai' an'
re#itte', inclu'ing the interests if there are 'ela%s in their re#ittance.
3.1.3 $n case of un'erpa%#ent of the #onthl% pre#iu# contributions 'ue, onl% such portion of
the perio' of ser"ice proportionatel% e>ui"alent to the a#ount actuall% recei"e' shall be
recogniFe' as cre'itable ser"ice for purposes of co#puting the benefits un'er the a'#inistration
of !S$S.
3.1.5 -he a#ount of #onthl% contributions 'ue fro# a #e#ber is base' on his fi)e' #onthl%
co#pensation.
3.1.5 -he co#pulsor% life insurance co"erage e)ten'e' to the #e#bers is 'epen'ent on the
ti#el% re#ittance of the pre#iu#s 'ue for the co"erage. -hus, the sai' co"erage #a% lapse for
failure to re#it the re>uire' pre#iu#s.
#ection 1 E..ecti/it* o. "embe)s+ip
-he effecti"e 'ate of #e#bership shall be the 'ate of the #e#berEs assu#ption to 'ut% on his
original appoint#ent or election to public office.
#ection 2 *pes o. (ompulso)* Li.e Insu)ance
-he !S$S is a'#inistering two ?2@ t%pes of co#pulsor% life insurance progra#s for its #e#bers.
1irst is the life $nsurance polic% with an en'ow#ent plan or 2ife .n'ow#ent Polic% ?2.P@ as
'istinguishe' fro# the secon' progra# which is ter#e' as .nhance' 2ife Polic% ?.2P@.
5.1 2ife .n'ow#ent Polic% ?2.P@ is an insurance polic% issue' to #e#bers prior to
August 1, 2<<3. $t has the following features*
5.1.1 $t pro"i'es co"erage against 'eath whether 'ue to natural or acci'ental causes, per#anent
total 'isabilit%, an' cash benefits upon #aturit% or separation fro# the ser"ice.
5.1.2 -he effecti"e 'ate of co"erage is the 'ate of appoint#ent regar'less of the status thereof, or
assu#ption to 'ut%, whiche"er is later an' applicable.
5.1.3 -he t%pe of insurance plans issue' to #e#bers 'epen's on the age nearest the #e#berEs
birth 'ate at the ti#e of effecti"it%, as follows*
Age 9racet Plan of $nsurance
3< %ears an' below .n'ow#ent at 35
31 %ears to 3< .n'ow#ent at 55
31 %ears to 59 .n'ow#ent at 55
5< %ears an' o"er ,r'inar% 2ife
5.1.3 -he a#ount of insurance is base' on the plan of insurance, the age of the #e#ber at the
effecti"it% of the plan, an' the fi)e' #onthl% pa% of the #e#ber. An insurance factor base' on
the age an' t%pe of insurance is applie' to the annual salar% to get the a#ount of insurance.
5.1.5 After the first %ear of co"erage, the plan earns cash "alue an' increases with the regular
pa%#ent of pre#iu#s on the plan.
5.1.5 $n case of non6pa%#ent of the pre#iu#s, an AP2 will be applie' against the cash "alue
pro"i'e' that the polic% has enough cash "alue, less polic% loan, to co"er the AP2. Pro"i'e'
further, that such non6pa%#ent shall not e)ten' to #ore than 12 #onths. $n the case non6pa%#ent
e)ten's to
#ore than 12 #onths, the polic% shall be lapse' an' the re#aining cash "alue shall be the see'
fun' of the reinstate' polic%.
5.1.& 4e#bers +o"ere' un'er 2.P
-he following #e#bers are co"ere' un'er 2.P*
a. Regular #e#bers whose policies were issue' before August 1, 2<<3 an' who ha"e opte' to
continue with their en'ow#ent 8 or'inar% life plans.
b. Special #e#bers
5.2 .nhance' 2ife Polic% ?.2P@ is a co#pulsor% life insurance co"erage issue' b%
!S$S to regular #e#bers after Bul% 31, 2<<3.
5.2.1 +o"erage
a. Regular #e#bers who entere' the ser"ice after Bul% 31, 2<<3.
b. Regular #e#bers whose 2.P policies #ature' on or after Bul% 31,
2<<3.
c. Regular #e#bers un'er 2.P who opte'8will opt to con"ert their e)isting 2.P into .2P.
'. Regular #e#bers whose 2.P polic% lapse' b% reason of non6 pa%#ent of life insurance
pre#iu#s but who, after Bul% 31, 2<<3, ha"e starte' to re#it the pre#iu#s 'ue for co#pulsor%
life insurance co"erage.
5.2.2 -he insurance co"erage is a %earl% co"er auto#aticall% issue' to a new #e#ber of !S$S
base' on his fi)e' #onthl% co#pensation. Ghile this 'oes not ha"e an en'ow#ent polic%, this
pro"i'es a higher for# of 'eath benefit for the fa#il%, an' at the sa#e ti#e, it has ter#ination
"alue which can be with'rawn upon separation or retire#ent.
5.2.3 Age an' length of ser"ice will no longer be a factor in 'eter#ining the a#ount of insurance
co"erage.
5.2.3 .2P of newl% appointe' e#plo%ee shall be effecti"e for a perio' of 9< 'a%s fro# 'ate of
assu#ption to 'ut%, e"en without receipt of the correspon'ing life insurance pre#iu#s 'ue an'
e"en if !S$S has not recei"e' an% for#al notice of his assu#ption to 'ut%, sub;ect to the
following con'itions*
a. -he new e#plo%ee is recei"ing fi)e' #onthl% co#pensation.
b. $n case the e#plo%ee 'ies within 9< 'a%s fro# the 'ate of assu#ption to 'ut%, the
correspon'ing 'eath benefit or the procee's of the life insurance shall be pai' to the legal heirs,
sub;ect to presentation of proof that the e#plo%ee was appointe' to the position an' assu#e'
office within the sai' perio'. Pre#iu#s 'ue the !S$S shall be 'e'ucte' fro# the procee's of the
life insurance benefit.
c. $n case no pa%#ent of the #onthl% pre#iu# contributions for life insurance is #a'e after the
9<6'a% ter#, the life insurance co"erage issue' shall auto#aticall% lapse an' the legal heirs of
the #e#ber shall not be entitle' to life insurance benefits in case of his 'eath.
5.2.5 No supple#ental policies will be issue' in case of a';ust#ent in the salar% of the
polic%hol'er.
5.2.5 .2P will earn ter#ination "alue, which can be with'rawn upon separation or retire#ent.
5.2.& $n case of non6pa%#ent of the pre#iu#s, an AP2 will be applie' against the ter#ination
"alue of the polic%, pro"i'e' that the sai' polic% has enough ter#ination "alue, less polic% loan,
to co"er the pre#iu#s 'ue for the life insurance co"er. Pro"i'e' further, that such non6pa%#ent
shall not be #ore than 12 #onths.
5.2.8 $n case non6pa%#ent is #ore than 12 #onths, the polic% shall be lapse' an' the re#aining
ter#ination "alue shall be the see' fun' of the reinstate' polic%.
#ection 3 Automatic &olic* Loan 4A&L5 6 -he AP2 is a feature of a !S$S life insurance polic%
that eeps the polic% in force in case of non pa%#ent of pre#iu#s b% taing out a loan a#ount
against the unrestricte' portion of the polic%Es accu#ulate' +ash 7alue ?+7@ or -er#ination
7alue ?-7@.
&.1 -he AP2 shall onl% be applie' if the polic% has*
&.1.1 An unpai' pre#iu# after the grace perio'C an'
&.1.2 .arne' sufficient +7 or -7 to co"er the unpai' pre#iu#s or a fraction thereof, an' polic%
loan, inclu'ing correspon'ing interest thereon.
&.2 $n the case of 2.P or .2P, if the pre#iu# contribution pai' is not sufficient to co"er the life
insurance pre#iu# for the #onth, after 'e'ucting the retire#ent pre#iu#, AP2 e>ui"alent to the
a#ount of the unpai' pre#iu#, or a fraction thereof, shall be applie'.
&.3 -he interest rate shall be the sa#e as the interest rate for polic% loan. -he interest charge' on
the AP2 of a polic%hol'er shall be in'epen'ent of the interest charge' on the agenc% for 'ela%e'
re#ittances.
&.3 -he for#ula for co#puting the AP2 9alance as of a gi"en 'ate shall be as follows*
AP2 9alance ?current #onth@ H AP2 9alance ?pre"ious #onth@ I $nterest 'ue on AP2 9alance
?pre"ious #onth@ I (npai' Pre#iu# 0ue for the +urrent 4onth ?full or partial@
#ection 8 &olic* Lapsation
8.1 9asic Rules on Polic% 2apsation. 6 A polic% shall be consi'ere' lapse' when*
8.1.1 -he co#bine' outstan'ing balances of its AP2 an' Polic% 2oan ha"e e)cee'e' the +ash
7alue or -er#ination 7alue. -he regular polic% loan of a lapse' polic% an' the AP2, if an%, shall
be 'ee#e' pai' b% the accu#ulate' +78-7 of the polic%C or
8.1.2 -he polic% has no pa%#ent for twel"e ?12@ #onths, or the total unpai' pre#iu#s is e>ual to
twel"e ?12@ #onths, e"en if there is still balance in the cash or ter#ination "alue of the polic%.
After the auto#atic lapse of a co#pulsor% life insurance polic%, the following shall be 'one*
a. $f the #e#ber is still in the ser"ice, the +78-7 balance shall be use' as see' fun' of his new
.2P polic% or shall for# part of the ter#ination "alue of his reinstate' .2P, as the case #a% be.
b. $f the #e#ber is alrea'% separate' fro# the ser"ice, the +78-7 balance shall be use' to pa%
his other e)isting loan obligations with the !S$S an' an% e)cess shall be pai' to the
polic%hol'er, sub;ect to the filing of a clai#, otherwise, the +78-7 balance will beco#e the see'
fun' of his new .2P, or a''e' to the ter#ination "alue of his reinstate' .2P, in case of re6entr%
in go"ern#ent ser"ice.
c. -he #onthl% pre#iu# billing for lapse' policies shall continue in case the #e#ber is still in
the ser"ice.
8.2. 9asic rules on Polic% Reinstate#ent an' +on"ersion fro# 2.P to .2P are as follows*
8.2.1 2apse' polic% shall auto#aticall% be reinstate' on the 'ate the life insurance pre#iu#s are
pai' an' re#itte' to the !S$S for the account of the #e#ber effecti"e on the beginning of the
'ue #onth co"ere' b% the pa%#ent.
8.2.2 4e#ber with lapse' 2.P shall be issue' an .2P upon receipt of first pre#iu# un'er the
new co"erage, pro"i'e' he is still in the ser"ice.
8.2.3 1or #e#bers whose 2.P has lapse' an' were issue' new .2P, all unposte' life insurance
pa%#ents prior to polic% lapse but poste' after polic% lapse shall be a''e' to the ter#ination
"alue of the new .2P.
8.2.3 After con"ersion fro# 2.P polic% to .2P polic%, an% e)cess pa%#ent, after appl%ing the
pa%#ent to the current #onth an' the prece'ing unpai' #onths where the #e#ber was gi"en a
grace perio', shall be a''e' to the -7 of the .2P.
#ection 9 "embe)6s #e)/ice &)o.ile
1or purposes of establishing 'ata for e"er% #e#ber, a 4e#berEs Ser"ice Profile ?4SP@
is create' in the !S$S 'atabase.
-he 4SP basicall% contains the ser"ice profile of e"er% #e#ber which inclu'es a#ong others,
the 'ate of first entr% in go"ern#ent ser"ice, the perio's in go"ern#ent ser"ice, the respecti"e
agencies an' the position the #e#ber has ser"e', the salaries recei"e', the -otal 2ength of
Ser"ice ?-2S@ an' the Recor' of +re'itable Ser"ice ?R+S@.
(p'ates are #a'e on the basis of changes in personal 'ata, salaries, pro#otion, transfers, an'
separation of a #e#ber.
A #e#ber separate' fro# the ser"ice b% reason of resignation, retire#ent, 'isabilit%, 'is#issal
fro# the ser"ice, retrench#ent or in an% #anner of separation fro# the go"ern#ent agenc% to
which he is e#plo%e', shall continue to be a #e#ber although classifie' un'er inacti"e status
an' his #e#bership shall be #aintaine' in the 'atabase of !S$S. Ghate"er future benefits he is
entitle' to shall be pa%able to the #e#ber once the% beco#e 'ue.
#ection 17 !t+e) &olicies A..ecting "embe)s+ip Administ)ation
1<.1. $n the case of #e#bers whose pre#iu#s were re#itte' to !S$S but later foun' to be
ineligible for +o#pulsor% 4e#bership*
1<.1.1 -he policies of these #e#bers shall be ter#inate'. All re#itte' pa%#ents for both
personal an' go"ern#ent shares shall be applie' to the e)isting obligations of the #e#ber, if
an%, sub;ect to the policies an' proce'ures on e)cess pa%#ents.
1<.1.2 $n cases where the #e#ber has no other personal obligation to the !S$S, he shall be
refun'e' the personal share for life an' retire#ent, without interest, recone' fro# the 'ate the
#e#ber beca#e ineligible for co#pulsor% #e#bership. -he heirs of the #e#ber shall no longer
be entitle' to the benefit in case a contingenc% occurre' prior to the ter#ination of the polic%.
1<.1.3 -he go"ern#ent share for both life an' retire#ent shall be applie' to the e)isting
obligation of the agenc%.
1<.2 ,n the +on"ersion 8 Reclassification of a Regular 4e#ber to Special 4e#ber
-he co#pulsor% life polic% of a regular #e#ber who is con"erte'8reclassifie' to special #e#ber
shall be ter#inate' an' pro"i'e' a 2.P co"erage, an', henceforth be consi'ere' as a special
#e#ber.
1<.2.1 -he co#pulsor% life polic% of a regular #e#ber whose #e#bership classification has
been con"erte' to special #e#ber b% "irtue of his appoint#ent as a Bu'ge, Bustice or their
e>ui"alent, shall be ter#inate' upon separation fro# his ol' position. :e shall be pro"i'e' 2.P
co"erage upon assu#ption to 'ut% to his new position.
1<.2.2 All outstan'ing obligations of the reclassifie' #e#ber shall be collecte' fro# the +ash
Surren'er 7alue ?+S7@ or -er#ination 7alue ?-7@ of his ter#inate' .2P polic%. Pa%#ent of
+S7 or -7 shall be sub;ect to the filing of a clai#.
1<.2.3 An% re#aining -7 of the .2P shall be sub;ect to +2$P.
1<.2.3 At the ti#e of his ter#ination as a regular #e#ber, he shall be entitle' to whate"er
benefits accruing to hi# at the ti#e of his separation.
Shoul' the regular #e#ber >ualif% for separation benefits, filing of clai# for the sai' benefits
shall prescribe after four ?3@ %ears fro# the 'ate of contingenc%. :owe"er, a separate' #e#ber
with 15 %ears of ser"ice can still clai# for retire#ent benefits at age 5< an' #a% choose to
recei"e either the 5 %ear lu#p su# an' pension after the 56%ear guarantee' perio' or 18 #onths
94P an' pension i##e'iatel%, sub;ect to the A4+ li#it then pre"ailing at the ti#e of filing.
1<.2.5 $f the regular #e#ber is si)t% ?5<@ %ears ol' an' with total length of ser"ice ?-2S@ of
fifteen ?15@ %ears, he shoul' be entitle' to retire#ent benefit, sub;ect to filing of clai#.
1<.3 ,n the +on"ersion of Special 4e#ber to Regular 4e#ber
1<.3.1 -he life insurance polic% of a special #e#ber whose #e#bership classification has been
con"erte' to regular #e#ber b% "irtue of his appoint#ent to a position eligible for regular
co"erage shall be ter#inate' upon separation fro# his ol' position. :e shall be pro"i'e' with
.2P co"erage as a regular #e#ber effecti"e upon assu#ption to 'ut% to his new position.
1<.3.2 -he co"erage un'er .2P shall be gui'e' b% the following*
a. $f the #e#ber is acti"e, his #e#bership #aster recor's ?inclu'ing
4SP@ shall be tagge' to 'enote the con"ersion fro# 2.P to .2P.
b. -he #e#ber shall be co"ere' un'er .2P i##e'iatel% after the con"ersion of his #e#bership
classification in the 'atabase has been effecte'.
1<.3.3 $f the #e#ber ha' pre"ious ser"ices as a regular #e#ber an' has been pai' separation or
retire#ent benefits, he shall be consi'ere' as a new entrant when re6e#plo%e' in the go"ern#ent
ser"ice.
1<.3.3 -he ser"ices ren'ere' as a special #e#ber shall not be consi'ere' part of R+S for
purposes of co#puting retire#ent an' other benefits un'er RA
8291. :owe"er, such ser"ices shall be consi'ere' onl% for purposes of 'eter#ining eligibilit% to
retire#ent an' other benefits.
1<.3 ,n 4e#bers :ol'ing 4ultiple Positions
1<.3.1 A #e#ber hol'ing two or #ore part6ti#e positions in go"ern#ent shall be issue' onl%
one co#pulsor% life insurance polic% an' shall onl% earn ser"ice cre'it in the position that he
selects as basis for co"erage. Part ti#e e#plo%#ent refers to a ;ob with co#pensation, co"ere'
b% a "ali' appoint#ent whose ter# specifies woring hours of less than fort% hours per wee,
whether in a single agenc% or #ultiple agencies.
1<.3.2 1or #e#bers e#plo%e' in two or #ore agencies in go"ern#ent, !S$S shall onl%
recogniFe one ?1@ Re#itting Agenc% ?RA@ an' it shall be the RA correspon'ing to the position
for which he has been co"ere' b% !S$S.
1<.3.3 An% a''itional co#pulsor% life insurance polic% issue' to a #e#ber on account of a
secon' position that he #a% ha"e in go"ern#ent shall be in"ali' an' therefore cancelle'
i##e'iatel%.
1<.3.3 All life pre#iu#s pai' on the cancelle' polic% issue' in connection with the other
position shall be a''e' to the cash "alue or ter#ination "alue of the acti"e polic%.
1<.3.5 After selecting one of two part ti#e ;obs as basis for co"erage, the #e#ber shall not ha"e
the option to transfer the co"erage to the other unless, his ser"ices in the co"ere' part ti#e ;ob is
ter#inate'.
1<.5 Non6Per#anent .#plo%ees Gho Are 0ail% Gage .arners* -hese e#plo%ees are not
>ualifie' to be !S$S #e#bers if the% are not recei"ing fi)e' #onthl% co#pensation.
1<.5.1 -he #onthl% e>ui"alent of the salar% of non6per#anent e#plo%ee who is pai' on a 'ail%
basis shall be his 'ail% wage rate #ultiplie' b% 22 'a%s.
1<.5.2 -he salar% recor' in the 4SP of a non6per#anent 'ail% wage earner shall be
correspon'ingl% a';uste' when he is grante' an increase in the 'ail% wage rate. :owe"er, if his
'ail% wage rate is 'ecrease', the original co#putation of his #onthl% salar% shall re#ain.
1<.5.3 Pa%#ent of retire#ent pre#iu#s ?both Personal an' !o"ern#ent Share@
for non6per#anent ser"ices ?casual, te#porar%, contractual@ prior to RA
8291 b% #e#bers who are still in the acti"e ser"ice shall no longer be allowe'.
1<.5 +hange in 0ate of 9irth
1<.5.1 -he 'ate of birth reflecte' in the #e#berEs infor#ation sheet or agenc% re#ittance a'"ice
shall be a'opte'.
1<.5.2 +hange of 'ate of birth shall be gi"en 'ue course un'er the following con'itions*
a. -he re>uest for change is #a'e while the #e#ber is still in the go"ern#ent ser"iceC an'
b. -he re>uesting #e#ber sub#its the original cop% of the court or'er or birth certificate
authenticate' b% the National Statistics ,ffice ?NS,@ as supporting 'ocu#ent.
J Ghen sub#itting a court or'er, the #e#ber shall in'icate in the re>uest for change of 'ate of
birth, the contact nu#ber of the court who or'ere' the change of 'ate of birth, inclu'ing the
branch an' pro"ince where the court is locate'.
J 1or NS,6authenticate' birth certificate, the official water#ar of NS, shoul' be present in the
'ocu#ent. 1ailure on the part of the #e#ber to co#pl% with the sai' re>uire#ents shall be a
groun' for re;ecting the re>uest.
1<.5.3 Notwithstan'ing the change in the #e#berEs 'ate of birth, the original a#ount of
insurance as co#pute' 'uring the issuance of the polic% shall not be change' an' it shall not
result in an% a';ust#ent in the en'ow#ent plan un'er 2.P.
RULE III
(!LLE(I!N AND RE"IAN(E!F (!NRI$UI!N# AND !%ER A"!UN#
#ection 11 Amounts o. (ont)ibution.
RULE I DEFINII!N !F ER"#
Section 1. (nless the conte)t otherwise in'icates, the following ter#s shall #ean*
1.1 A++,(N- $N ARR.ARS / An account which re#ains unpai' after 'ue 'ate.
1.2 A++,(N- $N 0.1A(2- / An account in arrears which beca#e 'ue an' 'e#an'able an'
re#ain unpai'.
1.3 A+- / Refers to Republic Act No. 8291, otherwise nown as the
!o"ern#ent Ser"ice $nsurance S%ste# Act of 199&.
1.3 A4+ / Refers to A"erage 4onthl% +o#pensation. -his refers to the a"erage salar% recei"e'
b% the #e#ber 'uring the last 35 #onths of cre'itable ser"ice prece'ing his separation,
retire#ent, 'isabilit%, or 'eath, or, if with less than 35 #onths of cre'itable ser"ice, the actual
nu#ber of #onths of the cre'itable ser"ice.
1.5 AP2 6 Refers to Auto#atic Polic% 2oan or Auto#atic Pre#iu# 2oan. -his is the a#ount that
will be 'e'ucte' fro# the +ash 7alue8-er#ination 7alue of a life insurance polic% to eep the
polic% in force.
1.5 9.N.1$- / -he a#ount that !S$S is obligate' to pa% the #e#ber upon the occurrence of a
co"ere' contingenc% that is pa%able un'er the Act.
1.& 9$22$N! / -he process of sen'ing notices or state#ents to go"ern#ent agencies, #e#bers,
or borrowers to re#in' or 'e#an' pa%#ent for accounts that are falling 'ue or are past their 'ue
'ates.
1.8 9,AR0 / -he 9oar' of -rustees of the !S$S.
1.9 +AS: 0$7$0.N0 6 -he su# of #one% pai' to polic%hol'ers whose life insurance policies
ha"e been in force for at least one %ear sub;ect to a#ount an' con'itions reco##en'e' b%
Actuar% an' appro"e' b% the 9oar'.
1.1< +AS: PA=4.N- / A benefit pa%able to a #e#ber upon separation, 'isabilit% or
retire#ent, or to the beneficiaries upon the 'eath of the #e#ber, un'er con'itions pro"i'e' b%
law.
1.11 +AS: 7A2(. / Accu#ulate' a#ount earne' base' on pre#iu# pa%#ent while the 2.P
is in force.
1.12 +2A$4 / A re>uest fro# the #e#ber or his beneficiaries for pa%#ent of benefits that #a%
be 'ue as pro"i'e' un'er this Act.
1.13 +2$P / Refers to +lai#s an' 2oans $nter'epen'enc% Polic%. -his is a #echanis# which
ensures the collection of unpai' accounts fro# the procee's of a loan or clai# of a #e#ber or
his beneficiaries.
1.13 +,4P.NSA-$,N 6 -he fi)e' #onthl% salar% recei"e' b% an e#plo%ee e)clu'ing
allowances, per 'ie#s, bonuses, o"erti#e pa%, honoraria an' other e#olu#ents not integrate'
into the fi)e' #onthl% salar%.
1.15 +,N-$N!.N+$.S / ."ents such as separation fro# the ser"ice, retire#ent, 'isabilit% or
'eath which are pa%able un'er this Act.
1.15 +,N-R$9(-$,N / -he a#ount pa%able to the !S$S b% the #e#ber an' go"ern#ent
agenc% or e#plo%er to which he belongs.
1.1& +S7 / Refers to +ash Surren'er 7alue, which is the a#ount to be pai' to the polic%hol'er
of 2ife .n'ow#ent Polic% ?2.P@ or optional life insurance policies when he is separate' fro#
the ser"ice before #aturit% 'ate of the polic% or when a polic%hol'er is consi'ere' a case of
Per#anent -otal 0isabilit% ?P-0@.
1.18 +(RR.N- 0A$2= +,4P.NSA-$,N. A -he actual 'ail% co#pensation or the fi)e'
#onthl% co#pensation 'i"i'e' b% twent%6two ?22@ 'a%s.
1.19 0.P.N0.N-S / -he ?a@ legiti#ate spouse 'epen'ent for support on the #e#ber or
pensioner, ?b@ legiti#ate8legiti#ate' legall% a'opte' chil', inclu'ing the illegiti#ate chil', who
is un#arrie', not gainfull% e#plo%e', not o"er the age of #a;orit%, or is o"er the age of #a;orit%
but incapacitate' an' incapable of self6support 'ue to a #ental or ph%sical 'efect ac>uire' prior
to age of #a;orit%, an' ?c@ the parents 'epen'ent upon the #e#ber for support.
1.2< 0$SA9$2$-= / An% loss or i#pair#ent of the nor#al functions of the ph%sical an'8or
#ental faculties of a #e#ber, which re'uces or eli#inates his capacit% to continue with his
current gainful occupation or engage in an% other gainful occupation resulting in the loss of
inco#e.
1.21 .2P / Refers to .nhance' 2ife Polic%. -his is a co#pulsor% life insurance co"erage issue'
b% !S$S after Bul% 31, 2<<3.
1.22 1(N.RA2 9.N.1$- / 9enefit inten'e' to help 'efra% the e)penses inci'ental to the
burial an' funeral of the 'ecease' #e#ber, pensioner or retiree.
1.23 !A$N1(2 ,++(PA-$,N / An% pro'ucti"e acti"it% that pro"i'es inco#e of at least e>ual
to the pre"ailing #ini#u# co#pensation of go"ern#ent e#plo%ees.
1.23 !,7.RN4.N- A!.N+= 6 An% go"ern#ent office whether national or local, legislati"e
bo'ies, go"ern#ent6owne' an' controlle' corporations ?!,++@ with original charters,
go"ern#ent financial institutions ?!1$s@, constitutional co##issions, ;u'iciar%, Ar#e' 1orces of
the Philippines, the Philippine National Police, 9ureau of Bail 4anage#ent an' Penolog%
?9B4P@ an' 9ureau of 1ire Protection ?91P@.
1.25 $N7.S-4.N-S / A#ounts of #one% or other resources #easure' in ter#s of #one%
place' on acti"ities for the purpose of earning profits.
1.25 2.P6 Refers to 2ife .n'ow#ent Polic%. -his is the life insurance polic% issue' to regular
#e#bers prior to August 1, 2<<3 or to special #e#bers after the i#ple#entation of this Act.
1.2& 4.49.R / A go"ern#ent e#plo%ee recei"ing co#pensation while in the ser"ice of a
go"ern#ent agenc% b% "irtue of an appoint#ent or election to public office an' irrespecti"e of
status of appoint#ent.
1.28 A+-$7. 4.49.R. A A #e#ber of !S$S, whether regular or special, who is in the
go"ern#ent ser"ice.
1.29 $NA+-$7. 4.49.R. / A #e#ber who is separate' fro# the ser"ice, either b%
resignation, retire#ent, 'isabilit%, 'is#issal, or retrench#ent.
1.3< R.!(2AR 4.49.RS / -hose who, together with the go"ern#ent agenc% to which the%
belong, are re>uire' to re#it life an' retire#ent pre#iu# contributions as #an'ate' un'er
Section 5 of RA 8291.
1.31 SP.+$A2 4.49.RS / -hose who, together with the go"ern#ent agenc% to which the%
belong, are re>uire' to re#it life insurance pre#iu#s onl%.
1.32 P.NS$,N / A #onthl% specifie' cash a#ount that a >ualifie' #e#ber will recei"e upon
retire#ent or when consi'ere' as a case of per#anent total 'isabilit%.
1.33 PR.S+R$P-$,N P.R$,0 / -he allowable perio' within which to file a clai# for benefit
or benefits.
1.33 R+S / Refers to Recor' of +re'itable Ser"ice. -he R+S inclu'es ser"ice perio's with
correspon'ing pre#iu# contributions an' ser"es as basis for co#puting benefits.
1.35 R.6.4P2,=4.N- / Subse>uent re6entr% in go"ern#ent ser"ice after separation fro#
ser"ice.
1.35 R.$NS-A-.4.N- ,1 P,2$+= / -he restoration of the effecti"it% of the life insurance
polic% upon pa%#ent of the re>uire' pre#iu#s un'er ter#s an' con'itions of the .2P.
1.3& -.R4$NA-$,N 7A2(. / Accu#ulate' a#ount earne' base' on pre#iu# pa%#ent while
the .2P is in force.
RULE II "E"$ER#%I& !F %E '#I#
Section 2. +o#pulsor% 4e#bership
2.1. All go"ern#ent personnel, whether electi"e or appointi"e, irrespecti"e of status of
appoint#ent, pro"i'e' the% are recei"ing fi)e' #onthl% co#pensation an' ha"e not reache' the
#an'ator% retire#ent age of 55 %ears, are co#pulsoril% co"ere' as #e#bers of the !S$S an'
shall be re>uire' to pa% contributions.
2.2. :owe"er, e#plo%ees who ha"e reache' the retire#ent age of 55 or #ore shall also be
co"ere', sub;ect to the following rules*
An e#plo%ee who is alrea'% be%on' the #an'ator% retire#ent age of 55 shall be co#pulsoril%
co"ere' an' be re>uire' to pa% both the life an' retire#ent pre#iu#s un'er the following
situations*
1. An electi"e official who at the ti#e of election to public office is below
55 %ears of age an' will be 55 %ears or #ore at the en' of his ter# of office, inclu'ing the
perio'8s of his re6election to public office thereafter without interruption.
2. Appointi"e officials who, before reaching the #an'ator% age of 55, are appointe' to
go"ern#ent position b% the Presi'ent of the Republic of the Philippines an' shall re#ain in
go"ern#ent ser"ice at age be%on' 55.
2.3. +ontractual e#plo%ees inclu'ing casuals an' other e#plo%ees with an e#plo%ee6
go"ern#ent agenc% relationship are also co#pulsoril% co"ere', pro"i'e' the% are recei"ing fi)e'
#onthl% co#pensation an' ren'ering the re>uire' nu#ber of woring hours for the #onth.
2.3. +lasses of 4e#bership / 4e#bership in the !S$S is classifie' either b% t%pe or status of
#e#bership.
2.3.1 As to t%pe of #e#bers, there are regular an' special #e#bers*
a. Regular 4e#bers / are those e#plo%e' b% the go"ern#ent of the Republic of the Philippines,
national or local, legislati"e bo'ies, go"ern#ent6owne' an' controlle' corporations ?!,++@
with original charters, go"ern#ent financial institutions ?!1$s@, e)cept unifor#e' personnel of
the Ar#e' 1orces of the Philippines, the Philippine National Police, 9ureau of Bail 4anage#ent
an' Penolog% ?9B4P@ an' 9ureau of 1ire Protection ?91P@, who are re>uire' b% law to re#it
regular #onthl% contributions to the !S$S.
b. Special 4e#bers / are constitutional co##issioners, #e#bers of the ;u'iciar%, inclu'ing
those with e>ui"alent rans, who are re>uire' b% law to re#it regular #onthl% contributions for
life insurance policies to the !S$S in or'er to answer for their life insurance benefits 'efine'
un'er RA 8291.
2.3.2. As to status of #e#bership, there are acti"e an' inacti"e #e#bers.
a. Acti"e #e#ber / refers to a #e#ber of the !S$S, whether regular or special, who is still in the
go"ern#ent ser"ice an' together with the go"ern#ent agenc% to which he belongs, is re>uire' to
pa% the #onthl% contribution.
b. $nacti"e #e#ber / a #e#ber who is separate' fro# the ser"ice either b% resignation,
retire#ent, 'isabilit%, 'is#issal fro# the ser"ice, retrench#ent or, who is 'ee#e' retire' fro#
the ser"ice un'er this Act.
#ection , E-clusion .)om (ompulso)* (o/e)age
3.1 -he following e#plo%ees are e)clu'e' fro# co#pulsor% co"erage*
3.1.1. (nifor#e' personnel of the Ar#e' 1orces of the Philippines ?A1P@, Philippine National
Police ?PNP@, 9ureau of 1ire Protection ?91P@ an' 9ureau of Bail 4anage#ent an' Penolog%
?9B4P@C
3.1.2. 9aranga% an' Sanggunian ,fficials who are not recei"ing fi)e' #onthl% co#pensationC
3.1.3. +ontractual .#plo%ees who are not recei"ing fi)e' #onthl% co#pensationC an'
3.1.3. .#plo%ees who 'o not ha"e #onthl% regular hours of wor an' are not recei"ing fi)e'
#onthl% co#pensation.
#ection 0 &olic* 'o/e)ning "embe)s+ip Administ)ation
-he basic polic% go"erning #e#bership a'#inistration shall be length of ser"ice with
correspon'ing pai' pre#iu#s.
3.1 -he basic principles un'er this polic% are*
3.1.1 4e#bership in the !S$S carries with it the legal obligation to pro#ptl% re#it the re>uire'
#onthl% pre#iu# contributions. -hus the e)tent of the benefits to which a #e#ber is entitle'
will 'epen' upon the le"el of co#pliance in the re#ittance of his pre#iu# contributions.
3.1.2 !o"ern#ent agencies where the #e#bers are e#plo%e' ha"e the legal obligation to re#it
on ti#e the #onthl% pre#iu# contributions 'ue fro# #e#bers concerne', both for personal an'
go"ern#ent shares. $n case of 'ela%, the% ha"e the legal obligation to pa% interest as #a% be
prescribe' b% the 9oar' but not less than two percent ?2D@ si#ple interest per #onth.
3.1.3 1or purposes of co#puting the benefits un'er the social insurance laws a'#inistere' b% the
!S$S, a #e#berEs perio' of ser"ice in go"ern#ent will onl% be recogniFe' b% !S$S as cre'itable
ser"ice if the #onthl% co#pulsor% pre#iu#s correspon'ing to sai' perio' ha"e been pai' an'
re#itte', inclu'ing the interests if there are 'ela%s in their re#ittance.
3.1.3 $n case of un'erpa%#ent of the #onthl% pre#iu# contributions 'ue, onl% such portion of
the perio' of ser"ice proportionatel% e>ui"alent to the a#ount actuall% recei"e' shall be
recogniFe' as cre'itable ser"ice for purposes of co#puting the benefits un'er the a'#inistration
of !S$S.
3.1.5 -he a#ount of #onthl% contributions 'ue fro# a #e#ber is base' on his fi)e' #onthl%
co#pensation.
3.1.5 -he co#pulsor% life insurance co"erage e)ten'e' to the #e#bers is 'epen'ent on the
ti#el% re#ittance of the pre#iu#s 'ue for the co"erage. -hus, the sai' co"erage #a% lapse for
failure to re#it the re>uire' pre#iu#s.
#ection 1 E..ecti/it* o. "embe)s+ip
-he effecti"e 'ate of #e#bership shall be the 'ate of the #e#berEs assu#ption to 'ut% on his
original appoint#ent or election to public office.
#ection 2 *pes o. (ompulso)* Li.e Insu)ance
-he !S$S is a'#inistering two ?2@ t%pes of co#pulsor% life insurance progra#s for its #e#bers.
1irst is the life $nsurance polic% with an en'ow#ent plan or 2ife .n'ow#ent Polic% ?2.P@ as
'istinguishe' fro# the secon' progra# which is ter#e' as .nhance' 2ife Polic% ?.2P@.
5.1 2ife .n'ow#ent Polic% ?2.P@ is an insurance polic% issue' to #e#bers prior to
August 1, 2<<3. $t has the following features*
5.1.1 $t pro"i'es co"erage against 'eath whether 'ue to natural or acci'ental causes, per#anent
total 'isabilit%, an' cash benefits upon #aturit% or separation fro# the ser"ice.
5.1.2 -he effecti"e 'ate of co"erage is the 'ate of appoint#ent regar'less of the status thereof, or
assu#ption to 'ut%, whiche"er is later an' applicable.
5.1.3 -he t%pe of insurance plans issue' to #e#bers 'epen's on the age nearest the #e#berEs
birth 'ate at the ti#e of effecti"it%, as follows*
Age 9racet Plan of $nsurance
3< %ears an' below .n'ow#ent at 35
31 %ears to 3< .n'ow#ent at 55
31 %ears to 59 .n'ow#ent at 55
5< %ears an' o"er ,r'inar% 2ife
5.1.3 -he a#ount of insurance is base' on the plan of insurance, the age of the #e#ber at the
effecti"it% of the plan, an' the fi)e' #onthl% pa% of the #e#ber. An insurance factor base' on
the age an' t%pe of insurance is applie' to the annual salar% to get the a#ount of insurance.
5.1.5 After the first %ear of co"erage, the plan earns cash "alue an' increases with the regular
pa%#ent of pre#iu#s on the plan.
5.1.5 $n case of non6pa%#ent of the pre#iu#s, an AP2 will be applie' against the cash "alue
pro"i'e' that the polic% has enough cash "alue, less polic% loan, to co"er the AP2. Pro"i'e'
further, that such non6pa%#ent shall not e)ten' to #ore than 12 #onths. $n the case non6pa%#ent
e)ten's to
#ore than 12 #onths, the polic% shall be lapse' an' the re#aining cash "alue shall be the see'
fun' of the reinstate' polic%.
5.1.& 4e#bers +o"ere' un'er 2.P
-he following #e#bers are co"ere' un'er 2.P*
a. Regular #e#bers whose policies were issue' before August 1, 2<<3 an' who ha"e opte' to
continue with their en'ow#ent 8 or'inar% life plans.
b. Special #e#bers
5.2 .nhance' 2ife Polic% ?.2P@ is a co#pulsor% life insurance co"erage issue' b%
!S$S to regular #e#bers after Bul% 31, 2<<3.
5.2.1 +o"erage
a. Regular #e#bers who entere' the ser"ice after Bul% 31, 2<<3.
b. Regular #e#bers whose 2.P policies #ature' on or after Bul% 31,
2<<3.
c. Regular #e#bers un'er 2.P who opte'8will opt to con"ert their e)isting 2.P into .2P.
'. Regular #e#bers whose 2.P polic% lapse' b% reason of non6 pa%#ent of life insurance
pre#iu#s but who, after Bul% 31, 2<<3, ha"e starte' to re#it the pre#iu#s 'ue for co#pulsor%
life insurance co"erage.
5.2.2 -he insurance co"erage is a %earl% co"er auto#aticall% issue' to a new #e#ber of !S$S
base' on his fi)e' #onthl% co#pensation. Ghile this 'oes not ha"e an en'ow#ent polic%, this
pro"i'es a higher for# of 'eath benefit for the fa#il%, an' at the sa#e ti#e, it has ter#ination
"alue which can be with'rawn upon separation or retire#ent.
5.2.3 Age an' length of ser"ice will no longer be a factor in 'eter#ining the a#ount of insurance
co"erage.
5.2.3 .2P of newl% appointe' e#plo%ee shall be effecti"e for a perio' of 9< 'a%s fro# 'ate of
assu#ption to 'ut%, e"en without receipt of the correspon'ing life insurance pre#iu#s 'ue an'
e"en if !S$S has not recei"e' an% for#al notice of his assu#ption to 'ut%, sub;ect to the
following con'itions*
a. -he new e#plo%ee is recei"ing fi)e' #onthl% co#pensation.
b. $n case the e#plo%ee 'ies within 9< 'a%s fro# the 'ate of assu#ption to 'ut%, the
correspon'ing 'eath benefit or the procee's of the life insurance shall be pai' to the legal heirs,
sub;ect to presentation of proof that the e#plo%ee was appointe' to the position an' assu#e'
office within the sai' perio'. Pre#iu#s 'ue the !S$S shall be 'e'ucte' fro# the procee's of the
life insurance benefit.
c. $n case no pa%#ent of the #onthl% pre#iu# contributions for life insurance is #a'e after the
9<6'a% ter#, the life insurance co"erage issue' shall auto#aticall% lapse an' the legal heirs of
the #e#ber shall not be entitle' to life insurance benefits in case of his 'eath.
5.2.5 No supple#ental policies will be issue' in case of a';ust#ent in the salar% of the
polic%hol'er.
5.2.5 .2P will earn ter#ination "alue, which can be with'rawn upon separation or retire#ent.
5.2.& $n case of non6pa%#ent of the pre#iu#s, an AP2 will be applie' against the ter#ination
"alue of the polic%, pro"i'e' that the sai' polic% has enough ter#ination "alue, less polic% loan,
to co"er the pre#iu#s 'ue for the life insurance co"er. Pro"i'e' further, that such non6pa%#ent
shall not be #ore than 12 #onths.
5.2.8 $n case non6pa%#ent is #ore than 12 #onths, the polic% shall be lapse' an' the re#aining
ter#ination "alue shall be the see' fun' of the reinstate' polic%.
#ection 3 Automatic &olic* Loan 4A&L5 6 -he AP2 is a feature of a !S$S life insurance polic%
that eeps the polic% in force in case of non pa%#ent of pre#iu#s b% taing out a loan a#ount
against the unrestricte' portion of the polic%Es accu#ulate' +ash 7alue ?+7@ or -er#ination
7alue ?-7@.
&.1 -he AP2 shall onl% be applie' if the polic% has*
&.1.1 An unpai' pre#iu# after the grace perio'C an'
&.1.2 .arne' sufficient +7 or -7 to co"er the unpai' pre#iu#s or a fraction thereof, an' polic%
loan, inclu'ing correspon'ing interest thereon.
&.2 $n the case of 2.P or .2P, if the pre#iu# contribution pai' is not sufficient to co"er the life
insurance pre#iu# for the #onth, after 'e'ucting the retire#ent pre#iu#, AP2 e>ui"alent to the
a#ount of the unpai' pre#iu#, or a fraction thereof, shall be applie'.
&.3 -he interest rate shall be the sa#e as the interest rate for polic% loan. -he interest charge' on
the AP2 of a polic%hol'er shall be in'epen'ent of the interest charge' on the agenc% for 'ela%e'
re#ittances.
&.3 -he for#ula for co#puting the AP2 9alance as of a gi"en 'ate shall be as follows*
AP2 9alance ?current #onth@ H AP2 9alance ?pre"ious #onth@ I $nterest 'ue on AP2 9alance
?pre"ious #onth@ I (npai' Pre#iu# 0ue for the +urrent 4onth ?full or partial@
#ection 8 &olic* Lapsation
8.1 9asic Rules on Polic% 2apsation. 6 A polic% shall be consi'ere' lapse' when*
8.1.1 -he co#bine' outstan'ing balances of its AP2 an' Polic% 2oan ha"e e)cee'e' the +ash
7alue or -er#ination 7alue. -he regular polic% loan of a lapse' polic% an' the AP2, if an%, shall
be 'ee#e' pai' b% the accu#ulate' +78-7 of the polic%C or
8.1.2 -he polic% has no pa%#ent for twel"e ?12@ #onths, or the total unpai' pre#iu#s is e>ual to
twel"e ?12@ #onths, e"en if there is still balance in the cash or ter#ination "alue of the polic%.
After the auto#atic lapse of a co#pulsor% life insurance polic%, the following shall be 'one*
a. $f the #e#ber is still in the ser"ice, the +78-7 balance shall be use' as see' fun' of his new
.2P polic% or shall for# part of the ter#ination "alue of his reinstate' .2P, as the case #a% be.
b. $f the #e#ber is alrea'% separate' fro# the ser"ice, the +78-7 balance shall be use' to pa%
his other e)isting loan obligations with the !S$S an' an% e)cess shall be pai' to the
polic%hol'er, sub;ect to the filing of a clai#, otherwise, the +78-7 balance will beco#e the see'
fun' of his new .2P, or a''e' to the ter#ination "alue of his reinstate' .2P, in case of re6entr%
in go"ern#ent ser"ice.
c. -he #onthl% pre#iu# billing for lapse' policies shall continue in case the #e#ber is still in
the ser"ice.
8.2. 9asic rules on Polic% Reinstate#ent an' +on"ersion fro# 2.P to .2P are as follows*
8.2.1 2apse' polic% shall auto#aticall% be reinstate' on the 'ate the life insurance pre#iu#s are
pai' an' re#itte' to the !S$S for the account of the #e#ber effecti"e on the beginning of the
'ue #onth co"ere' b% the pa%#ent.
8.2.2 4e#ber with lapse' 2.P shall be issue' an .2P upon receipt of first pre#iu# un'er the
new co"erage, pro"i'e' he is still in the ser"ice.
8.2.3 1or #e#bers whose 2.P has lapse' an' were issue' new .2P, all unposte' life insurance
pa%#ents prior to polic% lapse but poste' after polic% lapse shall be a''e' to the ter#ination
"alue of the new .2P.
8.2.3 After con"ersion fro# 2.P polic% to .2P polic%, an% e)cess pa%#ent, after appl%ing the
pa%#ent to the current #onth an' the prece'ing unpai' #onths where the #e#ber was gi"en a
grace perio', shall be a''e' to the -7 of the .2P.
#ection 9 "embe)6s #e)/ice &)o.ile
1or purposes of establishing 'ata for e"er% #e#ber, a 4e#berEs Ser"ice Profile ?4SP@
is create' in the !S$S 'atabase.
-he 4SP basicall% contains the ser"ice profile of e"er% #e#ber which inclu'es a#ong others,
the 'ate of first entr% in go"ern#ent ser"ice, the perio's in go"ern#ent ser"ice, the respecti"e
agencies an' the position the #e#ber has ser"e', the salaries recei"e', the -otal 2ength of
Ser"ice ?-2S@ an' the Recor' of +re'itable Ser"ice ?R+S@.
(p'ates are #a'e on the basis of changes in personal 'ata, salaries, pro#otion, transfers, an'
separation of a #e#ber.
A #e#ber separate' fro# the ser"ice b% reason of resignation, retire#ent, 'isabilit%, 'is#issal
fro# the ser"ice, retrench#ent or in an% #anner of separation fro# the go"ern#ent agenc% to
which he is e#plo%e', shall continue to be a #e#ber although classifie' un'er inacti"e status
an' his #e#bership shall be #aintaine' in the 'atabase of !S$S. Ghate"er future benefits he is
entitle' to shall be pa%able to the #e#ber once the% beco#e 'ue.
#ection 17 !t+e) &olicies A..ecting "embe)s+ip Administ)ation
1<.1. $n the case of #e#bers whose pre#iu#s were re#itte' to !S$S but later foun' to be
ineligible for +o#pulsor% 4e#bership*
1<.1.1 -he policies of these #e#bers shall be ter#inate'. All re#itte' pa%#ents for both
personal an' go"ern#ent shares shall be applie' to the e)isting obligations of the #e#ber, if
an%, sub;ect to the policies an' proce'ures on e)cess pa%#ents.
1<.1.2 $n cases where the #e#ber has no other personal obligation to the !S$S, he shall be
refun'e' the personal share for life an' retire#ent, without interest, recone' fro# the 'ate the
#e#ber beca#e ineligible for co#pulsor% #e#bership. -he heirs of the #e#ber shall no longer
be entitle' to the benefit in case a contingenc% occurre' prior to the ter#ination of the polic%.
1<.1.3 -he go"ern#ent share for both life an' retire#ent shall be applie' to the e)isting
obligation of the agenc%.
1<.2 ,n the +on"ersion 8 Reclassification of a Regular 4e#ber to Special 4e#ber
-he co#pulsor% life polic% of a regular #e#ber who is con"erte'8reclassifie' to special #e#ber
shall be ter#inate' an' pro"i'e' a 2.P co"erage, an', henceforth be consi'ere' as a special
#e#ber.
1<.2.1 -he co#pulsor% life polic% of a regular #e#ber whose #e#bership classification has
been con"erte' to special #e#ber b% "irtue of his appoint#ent as a Bu'ge, Bustice or their
e>ui"alent, shall be ter#inate' upon separation fro# his ol' position. :e shall be pro"i'e' 2.P
co"erage upon assu#ption to 'ut% to his new position.
1<.2.2 All outstan'ing obligations of the reclassifie' #e#ber shall be collecte' fro# the +ash
Surren'er 7alue ?+S7@ or -er#ination 7alue ?-7@ of his ter#inate' .2P polic%. Pa%#ent of
+S7 or -7 shall be sub;ect to the filing of a clai#.
1<.2.3 An% re#aining -7 of the .2P shall be sub;ect to +2$P.
1<.2.3 At the ti#e of his ter#ination as a regular #e#ber, he shall be entitle' to whate"er
benefits accruing to hi# at the ti#e of his separation.
Shoul' the regular #e#ber >ualif% for separation benefits, filing of clai# for the sai' benefits
shall prescribe after four ?3@ %ears fro# the 'ate of contingenc%. :owe"er, a separate' #e#ber
with 15 %ears of ser"ice can still clai# for retire#ent benefits at age 5< an' #a% choose to
recei"e either the 5 %ear lu#p su# an' pension after the 56%ear guarantee' perio' or 18 #onths
94P an' pension i##e'iatel%, sub;ect to the A4+ li#it then pre"ailing at the ti#e of filing.
1<.2.5 $f the regular #e#ber is si)t% ?5<@ %ears ol' an' with total length of ser"ice ?-2S@ of
fifteen ?15@ %ears, he shoul' be entitle' to retire#ent benefit, sub;ect to filing of clai#.
1<.3 ,n the +on"ersion of Special 4e#ber to Regular 4e#ber
1<.3.1 -he life insurance polic% of a special #e#ber whose #e#bership classification has been
con"erte' to regular #e#ber b% "irtue of his appoint#ent to a position eligible for regular
co"erage shall be ter#inate' upon separation fro# his ol' position. :e shall be pro"i'e' with
.2P co"erage as a regular #e#ber effecti"e upon assu#ption to 'ut% to his new position.
1<.3.2 -he co"erage un'er .2P shall be gui'e' b% the following*
a. $f the #e#ber is acti"e, his #e#bership #aster recor's ?inclu'ing
4SP@ shall be tagge' to 'enote the con"ersion fro# 2.P to .2P.
b. -he #e#ber shall be co"ere' un'er .2P i##e'iatel% after the con"ersion of his #e#bership
classification in the 'atabase has been effecte'.
1<.3.3 $f the #e#ber ha' pre"ious ser"ices as a regular #e#ber an' has been pai' separation or
retire#ent benefits, he shall be consi'ere' as a new entrant when re6e#plo%e' in the go"ern#ent
ser"ice.
1<.3.3 -he ser"ices ren'ere' as a special #e#ber shall not be consi'ere' part of R+S for
purposes of co#puting retire#ent an' other benefits un'er RA
8291. :owe"er, such ser"ices shall be consi'ere' onl% for purposes of 'eter#ining eligibilit% to
retire#ent an' other benefits.
1<.3 ,n 4e#bers :ol'ing 4ultiple Positions
1<.3.1 A #e#ber hol'ing two or #ore part6ti#e positions in go"ern#ent shall be issue' onl%
one co#pulsor% life insurance polic% an' shall onl% earn ser"ice cre'it in the position that he
selects as basis for co"erage. Part ti#e e#plo%#ent refers to a ;ob with co#pensation, co"ere'
b% a "ali' appoint#ent whose ter# specifies woring hours of less than fort% hours per wee,
whether in a single agenc% or #ultiple agencies.
1<.3.2 1or #e#bers e#plo%e' in two or #ore agencies in go"ern#ent, !S$S shall onl%
recogniFe one ?1@ Re#itting Agenc% ?RA@ an' it shall be the RA correspon'ing to the position
for which he has been co"ere' b% !S$S.
1<.3.3 An% a''itional co#pulsor% life insurance polic% issue' to a #e#ber on account of a
secon' position that he #a% ha"e in go"ern#ent shall be in"ali' an' therefore cancelle'
i##e'iatel%.
1<.3.3 All life pre#iu#s pai' on the cancelle' polic% issue' in connection with the other
position shall be a''e' to the cash "alue or ter#ination "alue of the acti"e polic%.
1<.3.5 After selecting one of two part ti#e ;obs as basis for co"erage, the #e#ber shall not ha"e
the option to transfer the co"erage to the other unless, his ser"ices in the co"ere' part ti#e ;ob is
ter#inate'.
1<.5 Non6Per#anent .#plo%ees Gho Are 0ail% Gage .arners* -hese e#plo%ees are not
>ualifie' to be !S$S #e#bers if the% are not recei"ing fi)e' #onthl% co#pensation.
1<.5.1 -he #onthl% e>ui"alent of the salar% of non6per#anent e#plo%ee who is pai' on a 'ail%
basis shall be his 'ail% wage rate #ultiplie' b% 22 'a%s.
1<.5.2 -he salar% recor' in the 4SP of a non6per#anent 'ail% wage earner shall be
correspon'ingl% a';uste' when he is grante' an increase in the 'ail% wage rate. :owe"er, if his
'ail% wage rate is 'ecrease', the original co#putation of his #onthl% salar% shall re#ain.
1<.5.3 Pa%#ent of retire#ent pre#iu#s ?both Personal an' !o"ern#ent Share@
for non6per#anent ser"ices ?casual, te#porar%, contractual@ prior to RA
8291 b% #e#bers who are still in the acti"e ser"ice shall no longer be allowe'.
1<.5 +hange in 0ate of 9irth
1<.5.1 -he 'ate of birth reflecte' in the #e#berEs infor#ation sheet or agenc% re#ittance a'"ice
shall be a'opte'.
1<.5.2 +hange of 'ate of birth shall be gi"en 'ue course un'er the following con'itions*
a. -he re>uest for change is #a'e while the #e#ber is still in the go"ern#ent ser"iceC an'
b. -he re>uesting #e#ber sub#its the original cop% of the court or'er or birth certificate
authenticate' b% the National Statistics ,ffice ?NS,@ as supporting 'ocu#ent.
J Ghen sub#itting a court or'er, the #e#ber shall in'icate in the re>uest for change of 'ate of
birth, the contact nu#ber of the court who or'ere' the change of 'ate of birth, inclu'ing the
branch an' pro"ince where the court is locate'.
J 1or NS,6authenticate' birth certificate, the official water#ar of NS, shoul' be present in the
'ocu#ent. 1ailure on the part of the #e#ber to co#pl% with the sai' re>uire#ents shall be a
groun' for re;ecting the re>uest.
1<.5.3 Notwithstan'ing the change in the #e#berEs 'ate of birth, the original a#ount of
insurance as co#pute' 'uring the issuance of the polic% shall not be change' an' it shall not
result in an% a';ust#ent in the en'ow#ent plan un'er 2.P.
RULE III
(!LLE(I!N AND RE"IAN(E!F (!NRI$UI!N# AND !%ER A"!UN#
#ection 11 Amounts o. (ont)ibution.
11.1 Fo) Regula) "embe)s
.ffecti"e Bune 23, 199& an' up to 0ece#ber 31, 2<<2, the a#ount of contributions shall be
co#pute' as follows*
"ont+l* (ompensation 4"(5 Rate o. (ont)ibution
"embe) 'o/e)nment Agenc*
$f 4+ is e>ual to or less than the
pre"ailing
A"erage 4onthl% +o#pensation
?A4+@
'uring a particular perio'

9D


12D
$f 4+ is greater than the pre"ailing
A4+
'uring a particular perio'*
J (p to the #a)i#u# A4+ li#it
J A#ount in e)cess of the A4+ li#it

9D
2D
:owe"er, effecti"e Banuar% 1, 2<<3, the rate of contribution pa%able b% the #e#ber an'
go"ern#ent agenc% shall be 9D an' 12D respecti"el%, base' on the actual #onthl% salar% of the
#e#ber.
11.2 1or Special 4e#bers
-he Special 4e#ber shall pa% the re>uire' life insurance pre#iu#s of 3D of the fi)e' #onthl%
co#pensation for both e#plo%eesE an' go"ern#ent agenc%Es share.
#ection 12 $udgeta)* App)op)iations to (o/e) 'o/e)nment Agencies6 (ont)ibutions
-he go"ern#ent agenc% shall ensure that the necessar% a#ounts for contributions for
go"ern#ent share shall be inclu'e' in their respecti"e annual bu'gets ?or bu'getar% allocations@,
inclu'ing all a#ounts 'ue the !S$S.
#ection 1, (ollection o. (ont)ibutions
13.1. $t shall be co#pulsor% upon the go"ern#ent agenc% to 'e'uct fro# the fi)e' #onthl%
co#pensation the personal share of the #e#bers an' to pro#ptl% re#it the sa#e to !S$S.
13.2. $t is prohibite' for a go"ern#ent agenc% to 'ela% the re#ittance to !S$S of the pre#iu#
contributions 'e'ucte' fro# the co#pensation of the #e#bers an' use it for other purposes.
#ection 10 Remittance o. (ont)ibutions
13.1 .ach go"ern#ent agenc% shall re#it 'irectl% to the !S$S the e#plo%eesE an' go"ern#ent
agenc%Es contributions within the first -en ?1<@ 'a%s of the calen'ar #onth following the #onth
to which the contributions appl%. -he re#ittance b% the go"ern#ent agenc% of the contributions
to the !S$S shall tae priorit% o"er an' abo"e the pa%#ent of an% an' all obligations, e)cept
salaries an' wages of its e#plo%ees.
13.2 -he go"ern#ent agenc% shall also 'e'uct fro# the fi)e' #onthl% co#pensation of the
e#plo%ee the loan a#ortiFations ?consoli'ate' loans, polic% loan, e#ergenc% loan, housing loan,
an' other loans@, pre#iu# pa%#ents ?optional, pre6nee' an' other non6life insurance@ an' other
a#ounts 'ue the !S$S.
13.3 -he sai' a#ounts shall be re#itte' to the !S$S within the first -en ?1<@ 'a%s of the
calen'ar #onth following the #onth when the 'e'uctions were effecte', acco#panie' b%
supporting lists in the for# prescribe' b% the !S$S.
13.3 -he #e#ber has the correspon'ing responsibilit% to ensure that the re>uire' pre#iu#
contributions an' other a#ounts 'ue the !S$S that were 'e'ucte' fro# his co#pensation are
pro#ptl% re#itte' to !S$S.
#ection 11 Inte)est on Dela*ed Remittance
-he go"ern#ent agenc% shall be i#pose' interest for e"er% #onth of 'ela%, or a portion thereof,
in the re#ittance of the #onthl% pre#iu# contributions an' other a#ounts 'ue the !S$S, at the
rate of 2D per #onth si#ple interest. Such interest will begin to accrue at the en' of the #onth
following the 'ue #onth.
#ection 12 E..ects o. Non-Remittance o. (ont)ibutions and !t+e) Amounts on t+e
Eligibilit* to $ene.its o. "embe)s
15.1 All loan pri"ileges of all the #e#bers of the affecte' agencies will be suspen'e' an' the%
shall be 'is>ualifie' to recei"e the %earl% 'i"i'en's.
15.2 An% unre#itte' pre#iu# contributions an' loan a#ortiFations an' other a#ounts 'ue the
!S$S shall be 'e'ucte' fro# the procee's of the loans an' clai#s that will be 'ue the #e#ber.
#ection 13 Repo)ts on t+e #tatus o. "embe)s
-he go"ern#ent agenc% shall report changes in the #e#berEs infor#ation, if an%, e"er% #onth
as the% tae place, in the for#s or for#ats prescribe' b% the !S$S.
RULE I8 $ENEFI#
#ection 18 (ompulso)* Li.e Insu)ance $ene.its unde) t+e Li.e Endo9ment
&olic* 4LE&5
A #e#ber un'er this polic% #a% be entitle' to an% of the following benefits, 'epen'ing on the
circu#stances*
18.1 4aturit% benefits, which is the face a#ount pa%able to the #e#ber upon #aturit% of the
polic%.
18.2 +ash Surren'er 7alue, which are earne' "alues 'uring the ter# of the insurance pa%able to
the #e#ber when he is separate' fro# the ser"ice before #aturit% 'ate of the polic% or when he
is consi'ere' as a case of P-0.
18.3 0eath 9enefit, which is the face "alue of the polic% pa%able to 'esignate'
beneficiar%8beneficiaries or legal heirs, in the absence of the for#er, upon the 'eath of a #e#ber.
18.3 Acci'ental 0eath 9enefit ?A09@ is an a''itional benefit e>ui"alent to the a#ount of 0eath
9enefit when the #e#ber 'ies b% acci'ent.
$n this connection, proof #ust be presente' to sufficientl% establish that the cause of the
#e#berEs 'eath is acci'ental.
-he right to present sufficient proof to show that 'eath was acci'ental shall prescribe if the clai#
for A09 is file' four ?3@ %ears after the 'eath of the #e#ber.
18.5 +ash 0i"i'en'. A polic%hol'er is entitle' to 'i"i'en's sub;ect to the gui'elines as appro"e'
b% the !S$S 9oar'. -his is not a guarantee' benefit.
#ection 19 (ompulso)* Li.e Insu)ance $ene.its unde) t+e En+anced Li.e &olic*
4EL&5
A #e#ber un'er this polic% #a% be entitle' to an% of the following benefits, 'epen'ing on the
circu#stances*
19.1 0eath 9enefit e>ui"alent to the latest annual salar% #ultiplie' b% a#ount of insurance
?A,$@ factor which is 1.5 or 18 ti#es the current #onthl% salar% of the #e#ber or as 'eter#ine'
b% the !S$S, pa%able to the legal heirs, less all outstan'ing obligations of the #e#ber in
accor'ance with the +2$P.
19.2 -er#ination 7alue. -he polic% earns a -er#ination 7alue 'uring the life of the polic%
co#pute' fro# the percentage of life insurance pre#iu#s actuall% re#itte' an' pai' to !S$S.
19.2.1 -er#ination "alue is e>ui"alent to a percentage of #onthl% life insurance pre#iu#s as
'eter#ine' b% the !S$S, 'ue an' pai' in full, either b% 'irect re#ittance or through an AP2
facilit%.
19.2.2 -he accu#ulate' ter#ination "alue will grow at such rate as 'eter#ine' b% the Actuar%.
19.2.3 -he ter#ination "alue shall be pai' to the #e#ber upon his separation fro# the
go"ern#ent ser"ice less all in'ebte'ness of the #e#ber with the !S$S in accor'ance with +2$P.
19.3 +ash 0i"i'en'. A polic%hol'er is entitle' to 'i"i'en's, sub;ect to the gui'elines as
appro"e' b% the !S$S 9oar'. -his is not a guarantee' benefit.
#ection 27 Reti)ement $ene.its.
(n'er this Act, the retire#ent benefit consists of a #onthl% pension which is co#pute' base' on
%ears of cre'itable ser"ice an' A4+ for the last 3 %ears.
2<.1 .ligibilit%
2<.1.1 has ren'ere' at least 1ifteen ?15@ %ears of ser"iceC
2<.1.2 is at least Si)t% ?5<@ %ears of ageC an'
2<.1.3 is not recei"ing a #onthl% pension benefit fro# per#anent total 'isabilit%.
2<.2 Retire#ent 9enefit ,ptions. A retiring #e#ber has the following options*
2<.2.1 1i"e ?5@ %ear lu#p su# e>ui"alent to si)t% ?5<@ #onths of the 94P, sub;ect to
>ualification re>uire#ents, less all outstan'ing obligations of the #e#ber in accor'ance with the
+2$P, plus an ol'6age pension benefit e>ual to the 94P pa%able for life, starting on the first 'a%
of the #onth following the e)piration of the fi"e %ear guarantee' perio'C or
2<.2.2 A cash pa%#ent benefit e>ui"alent to eighteen ?18@ ti#es of the 94P, sub;ect to
>ualification re>uire#ents, less all outstan'ing obligations of the #e#ber in accor'ance with the
+2$P, plus #onthl% pension for life pa%able on the first #onth following the 'ate of retire#entC
2<.3 +on"ersion in the 4o'e of Retire#ent. +on"ersion in the #o'e of retire#ent fro# R.A.
No. 8291 to an% other retire#ent laws an' "ice "ersa a'#inistere' b% the !S$S shall not be
allowe'.
-hose who beca#e !S$S #e#bers prior to the i#ple#entation of this Act shall ha"e the option
to retire un'er P0 1135, RA 55<, or RA 1515, sub;ect to eligibilit%.
2<.3 +hange of Retire#ent 9enefit ,ption un'er RA 8291. +hange of retire#ent benefit option
fro# eighteen ?18@ #onths cash pa%#ent plus i##e'iate pension to fi"e ?5@ %ear lu#p su#, or
"ice "ersa, shall not be allowe'.
-he !S$S shall process the clai# for retire#ent benefits base' on the #e#berEs recor's in the
!S$S 'atabase.
2<.5 Processing of Retire#ent 9enefits of 4e#bers Gho 0ie' Ghile their +lai#s are
9eing Processe'
2<.5.1 1or those >ualifie' for retire#ent benefits*
a. $f the 'ecease' #e#ber opte' for fi"e %ear lu#p su# benefit as in'icate' in his8her clai# for
retire#ent application, his legal heirs shall be entitle' to fi"e6%ear lu#p su# benefit e>ui"alent
to si)t% ?5<@ #onths basic #onthl% pension ?94P@. :owe"er, the sur"i"orship pension to
>ualifie' pri#ar% beneficiaries, if an%, shall be grante' after the en' of the 56%ear guarantee'
perio', but filing of clai# for sur"i"orship benefit shoul' be 'one before the en' of the 36%ear
prescription perio'.
b. $f the 'ecease' #e#ber opte' for i##e'iate pension as in'icate' in his8her clai# for
retire#ent benefit his legal heirs shall be entitle' to retire#ent benefits e>ui"alent to eighteen
?18@ #onths of 94P, plus accrue' pension, if an%, up to the 'ate of 'eath of the retiree. -he
correspon'ing sur"i"orship pension shall be pai' to the >ualifie' pri#ar% beneficiaries, if an%,
an' shall be co#pute' fro# the 'ate of 'eath of the retiree, sub;ect to filing of clai#.
c. $n case the 'ecease' #e#ber faile' to in'icate in his8her retire#ent option, it shall be
co#pute' as if he8she opte' for i##e'iate pension.
'. -he procee's of retire#ent benefits shall be pai' an' 'istribute' to the legal heirs in
accor'ance with the law on succession un'er the +i"il +o'e of the Philippines.
2<.5.2 1or those not >ualifie' for retire#ent benefits, the !S$S shall 'eter#ine if he8she is
>ualifie' to other applicable benefits un'er RA 8291 or such other laws a'#inistere' b% the
!S$S.
2<.5 .ffects of Re6.#plo%#ent
2<.5.1 Ghen a retire'8separate' #e#ber is re6e#plo%e' or reinstate' in the ser"ice, his8her
pre"ious ser"ices cre'ite' at the ti#e of his8her retire#ent8separation for which a correspon'ing
benefit ha' been awar'e', shall be e)clu'e' in the co#putation of ser"ice. $n effect, he8she shall
be consi'ere' a new entrant.
2<.5.2 :owe"er, for those who retire' prior to the enact#ent of RA 8291, the pre"ious ser"ices
of a retire'8separate' #e#ber #a% be a''e' in the co#putation of his cre'itable ser"ices
?sub;ect to pre#iu#6base' polic%@ upon subse>uent retire#ent un'er RA 8291 onl% when both
con'itions are #et*
a. the retiree re6entere' go"ern#ent ser"ice before Bune 23, 199&C an' b. the total a#ount of
benefit pre"iousl% recei"e', if an%, inclu'ing the
prescribe' interest was refun'e' to !S$S on or before 4arch 2, 2<<5
2<.& 9asis of +o#putation of -otal Ser"ice
2<.&.1 -otal 2ength of Ser"ice ?-2S@ is the nu#ber of %ears in go"ern#ent ser"ice regar'less of
status of e#plo%#ent, with or without pre#iu# contributions.
2<.&.2 1or purposes of co#puting the total length of ser"ice un'er part6ti#e status of
e#plo%#ent, ser"ices shall be con"erte' to their full6ti#e e>ui"alent using fort%6hour wee an'
fift% two6wee a %ear as basis.
2<.8 +o#putation of +re'itable Ser"ice
-he co#putation of cre'itable ser"ice for the purpose of 'eter#ining the a#ount of benefits
pa%able shall inclu'e the perio' or perio's of ser"ice with the re>uire' pre#iu# contributions.
2<.9 +o#putation of A"erage 4onthl% +o#pensation ?A4+@
2<.9.1 -he A4+ shall be co#pute' on the basis of the a"erage salar% of the #e#ber for the last
35 #onths of cre'itable ser"ice i##e'iatel% prece'ing his retire#ent or separation.
2<.9.2 -he basis for co#puting the A4+ of a separate' or retire' #e#ber re>uesting for
co#putation of benefits shall be the pre"ailing polic% on A4+ at the ti#e the clai# is being
processe'.
2<.1< +o#putation of Re"alue' 4onthl% +o#pensation H A4+ plus Se"en :un're'
Pesos ?P&<<.<<@.
2<.11 +o#putation of 9asic 4onthl% Pension / the for#ula for co#puting the 94P #a% be
a';uste' sub;ect to the appro"al of the 9oar' upon the reco##en'ation b% the Presi'ent an'
!eneral 4anager.
As a general rule, the 94P shall onl% be co#pute' for those #e#bers or 'epen'ents8heirs of
#e#bers who are eligible to recei"e benefits un'er this law. $t shall be co#pute' on the basis of
a percentage of the RA4+ at the rate of
2.5D for e"er% %ear of cre'itable ser"ice, but in no case shall it e)cee' 9<D of the A4+ of the
#e#ber.
-he for#ula for co#puting 94P shall be* 94P H RA4+ ) ?2.5D ) R+S@
2<.12 A';ust#ent8$ncrease in Pension
Perio'ic a';ust#ents of the #onthl% pension of all e)isting pensioners shall be 'one on the basis
of what is sustainable an' pru'ent for the !S$S as reco##en'e' b% its Actuar% an' appro"e' b%
the 9oar'.
2<.13 Policies Affecting Pension A'#inistration
2<.13.1 Regar'less of the 'ate of retire#ent, the #onthl% pension shall co##ence on the 1st 'a%
of the #onth following the #onth of retire#ent.
2<.13.2 Annual Renewal of Acti"e Status ?ARAS@ of ,l' Age an' Sur"i"orship
Pensioners is re>uire' on their birth #onth e"er% %ear.
2<.13.3 .ffects of Non6renewal of Acti"e Status as Pensioner a. Suspension of pa%#ent of
#onthl% pension
b. Non6entitle#ent to cash gift if status is suspen'e' at the ti#e of 'eclaration
c. Non6entitle#ent to pension increase if status is suspen'e' at the ti#e of 'eclaration
#ection 21 #epa)ation $ene.it. - Is eit+e) one o. t+e .ollo9ing:
21.1 1or those #e#bers who are separate' fro# ser"ice an' who ha"e at least 3 %ears of ser"ice
but less than 15 %ears shall be entitle' to cash pa%#ent e>ui"alent to 1<<D of the #e#berEs
A4+ for each %ear of cre'itable ser"ice, but not less than P12,<<<.<<, pa%able upon reaching
age 5<, or upon his separation if he is alrea'% 5< %ears of age at the ti#e of separation.
21.2 A cash pa%#ent e>ui"alent to eighteen ?18@ ti#es the basic #onthl% pension pa%able at the
ti#e of resignation or separation, pro"i'e' the #e#ber resigns or separates fro# the ser"ice after
he has ren'ere' at least 15 %ears of ser"ice an' is below 5< %ears of age, plus an ol'6age pension
benefit e>ual to the basic #onthl% pension pa%able #onthl% for life upon reaching the age of
si)t% ?5<@.
21.3 Reconing 0ate of Separation of (nifor#e' PNP, 9B4P an' 91P Personnel shall be
1ebruar% 1, 1995. -he co#putation of benefit shall be base' on their basic #onthl% salar%
?pre#iu#6base'@ when the% cease' to be #e#bers of the !S$S.
21.3 Processing of Separation 9enefit of 4e#bers Gho 0ie' Ghile -heir +lai#s are
9eing Processe'
21.3.1 $f the #e#ber 'ies 'uring the pen'enc% of his clai# for separation benefit an' he has
ren'ere' at least 15 %ears of cre'itable ser"ice, his legal heirs shall be entitle' to recei"e cash
pa%#ent e>ui"alent to eighteen ?18@ ti#es the basic #onthl% pension, plus accrue' 94P, if an%,
up to the 'ate of 'eath of the #e#ber. -hereafter, the pri#ar% beneficiaries shall be entitle' to
sur"i"orship pension.
21.3.2 $f the #e#ber 'ies 'uring the pen'enc% of his clai# for separation benefit an' he has
ren'ere' less than 15 %ears of cre'itable ser"ice, his legal heirs shall be entitle' to cash pa%#ent
e>ui"alent to one hun're' percent ?1<<D@ of A4+ for each %ear of cre'itable ser"ice, but not
less than -wel"e -housan' Pesos ?P12,<<<.<<@.
#ection 22 Unemplo*ment $ene.it
22.1 +on'itions for .ntitle#ent to (ne#plo%#ent 9enefit. A #e#ber shall be entitle' to the
une#plo%#ent benefits if the following con'itions are #et*
22.1.1 he8she was a per#anent e#plo%ee at ti#e of separationC
22.1.2 his8her separation was in"oluntar% 'ue to the abolition of his8her office or position
resulting fro# reorganiFationC an'
22.1.3 he8she has been pa%ing the re>uire' pre#iu# contributions for at least one ?1@ %ear but
less than 15 %ears prior to separation.
22.2 A#ount, 0uration an' Pa%#ent ,f (ne#plo%#ent 9enefit.6 -he a#ount of une#plo%#ent
benefit is e>ui"alent to 5<D of the A4+ an' shall be pai' in accor'ance with the following
Sche'ule*
(ont)ibutions "ade $ene.it Du)ation

,ne %ear but less than three
%ears

2 #onths
-hree or #ore %ears but
less than si) %ears
3 #onths
Si) or #ore %ears but than
nine %ears
3 #onths
Nine or #ore %ears but less
than 11 %ears
5 #onths
.le"en or #ore %ears but
less than fifteen
5 #onths
22.3 -hose entitle' to #ore than two ?2@ #onths of (ne#plo%#ent 9enefits shall initiall%
recei"e two ?2@ #onthl% pa%#ents. A se"en6'a% ?&6'a%@ waiting perio' shall be i#pose' on
succee'ing #onthl% pa%#ents to 'eter#ine whether the separate' #e#ber has foun' gainful
e#plo%#ent either in the public or pri"ate sector.
22.3 $n cases of ree#plo%#ent, all accu#ulate' une#plo%#ent benefit pai' to the e#plo%ee
'uring his8her entire #e#bership with the !S$S shall be 'e'ucte' without interest fro# the
separation or retire#ent benefits, as the case #a%be, to which the #e#ber #a% be entitle' to
upon his "oluntar% resignation, separation or retire#ent.
#ection 2, Disabilit* $ene.its.
23.1 0isabilit% refers to an% loss or i#pair#ent of the nor#al functions of the ph%sical an'8or
#ental faculties of a #e#ber, which per#anentl% or te#poraril% pre"ents hi# to continue with
his wor or engage in an% other gainful occupation resulting in the loss of inco#e.
-he correspon'ing 'isabilit% benefits for each in' of 'isabilit% shall be grante' to a #e#ber
base' on the 'uration of incapacit% to wor an' actual loss of inco#e.
-here are three ?3@ in's of 'isabilit% which shall be 'eter#ine' b% the
!S$S base' on establishe' #e'ical stan'ar's*
J Per#anent -otal 0isabilit%
J Per#anent Partial 0isabilit%
J -e#porar% -otal 0isabilit%
23.2 Policies !o"erning 0isabilit% 9enefits*
23.2.1 Per#anent -otal 0isabilit% ?P-0@ / 'isabilit% 'ue to in;ur% or 'isease causing co#plete,
irre"ersible an' per#anent incapacit% that will per#anentl% 'isable a #e#ber to wor or to
engage in an% gainful occupation resulting to loss of inco#e.
-he following 'isabilities shall be 'ee#e' total an' per#anent*
a. co#plete loss of sight for both e%esC
b. loss of two li#bs at or abo"e the anle or wristsC
c. per#anent co#plete paral%sis of two li#bsC an'
'. brain in;ur% resulting in incurable i#becilit% or insanit%.
e. such other cases as #a% be 'eter#ine' an' appro"e' b% the !S$S
23.2.2 Per#anent Partial 0isabilit% ?PP0@ / arises 'ue to the co#plete an' per#anent loss of the
use of an% of the following resulting to the 'isabilit% to wor for a li#ite' perio' of ti#e*
a.1. an% finger a.2. an% toe a.3. one ar#C a.3. one han'C a.5. one footC a.5. one legC
a.&. one or both earsC
a.8. hearing of one or both earsC
a.9. sight of one e%eC
a.1<. such other cases as #a% be 'eter#ine' an' appro"e' b% the !S$S
23.2.3 -e#porar% -otal 0isabilit% ?--0@ / accrues or arises when the i#paire' ph%sical an'8or
#ental faculties can be rehabilitate' an'8or restore' to their nor#al functions, but such 'isabilit%
shall result in te#porar% incapacit% to wor or to engage in an% gainful occupation.
23.2.3 An% 'isabilit% or in;ur% as a result of, or 'ue to gra"e #iscon'uct, participation in riots,
gross an' ine)cusable negligence, un'er the influence of 'rugs or alcohol or willful intention to
in;ure or ill hi#self or another, shall not be co#pensable.
23.2.5 -he actual loss of inco#e shall refer to the nu#ber of 'a%s when a #e#ber went on lea"e
of absence without pa% ?2G,P@ recone' i##e'iatel% fro# the 'ate of co##ence#ent of
'isabilit% an' for the 'uration of entitle#ent thereto, base' on #e'ical e"aluation. An% 2G,P
incurre' after the 'uration of entitle#ent to the benefit shall not be co#pensable.
23.2.5 $f the #e#ber has two or #ore 'ifferent contingencies 'uring the sa#e perio' of benefit
entitle#ent, he shall be co#pensate' onl% once for the o"erlapping perio's.
23.2.& All in;uries, 'isabilities, illnesses an' all other infir#ities co#pensable un'er P0 525
shall not be co#pensable un'er this Act.
23.2.8 An% applicable 'isabilit% benefit shall be suspen'e' when he8she*
a. is re6e#plo%e'C or
b. reco"ers fro# his8her 'isabilit% as 'eter#ine' b% the !S$S, whose 'ecision shall be final an'
bin'ingC or
c. fails to present hi#self for #e'ical e)a#ination when re>uire' b% !S$SC or
'. is recei"ing an% other pension either fro# !S$S or another local or foreign institution or
organiFation.
23.3 +o#putation of 9enefit*
23.3.1 Per#anent -otal 0isabilit% ?P-0@
A #e#ber who beco#es per#anentl% an' totall% 'isable' shall be entitle' to the #onthl%
inco#e benefits for life e>ui"alent to the basic #onthl% pension ?94P@ effecti"e fro# the 'ate of
'isabilit%.
23.3.2 Per#anent Partial 0isabilit% ?PP0@
-he perio' of entitle#ent to PP0 benefit shall be 'eter#ine' after 'ue #e'ical e"aluationC but
such perio' of entitle#ent to the benefit shall not e)cee' 12 #onths for the sa#e contingenc%.
,nl% the lea"e of absence8s without pa% incurre' 'uring the perio' of entitle#ent, 'ul% certifie'
b% the authoriFe' officer of the agenc% where he is e#plo%e', shall be co#pensable.
-he a#ount of PP0 benefit shall be co#pute' b% 'i"i'ing the 94P
b% 3< 'a%s an' #ultipl%ing the >uotient b% the nu#ber of
co#pensable calen'ar 'a%s of lea"e of absence without pa%
?2G,P@.
23.3.3 -e#porar% -otal 0isabilit% ?--0@
-he perio' of entitle#ent to --0 benefit shall be 'eter#ine' after 'ue #e'ical e"aluation an'
proof of actual loss of wor resulting in loss of inco#e b% wa% of the incurre' actual nu#ber of
'a%s of lea"e of absence8s without pa% 'ul% certifie' b% the authoriFe' officer of the agenc%
where he is e#plo%e'C but such perio' of entitle#ent to the benefit shall not e)cee' 12< 'a%s in
one calen'ar %ear. :owe"er, if the 'isabilit% re>uires #ore e)tensi"e treat#ent that lasts be%on'
12< 'a%s, the pa%#ent of the --0 #a% be e)ten'e' b% the !S$S but not to e)cee' a total of 23<
'a%s.
,nl% the lea"e of absence8s without pa% incurre' 'uring the perio' of entitle#ent shall be
co#pensable. .ntitle#ent, howe"er, shall start fro# the fourth 'a% of the 'isabilit%.
-he a#ount of --0 benefit shall be co#pute' b% #ultipl%ing &5D of the 'ail% salar% of the
#e#ber b% the nu#ber of 'a%s of 'isabilit% base' on the #e'ical e"aluation but not to e)cee'
23< 'a%s for the sa#e contingenc%. :owe"er, the co#pute' 'ail% salar% shall not be less than
se"ent% pesos ?P&<.<<@ but not to e)cee' P33<.<< per 'a%.
23.3.3 1or the purpose of co#puting the correspon'ing benefit of inacti"e #e#bers for each
in' of 'isabilit%, the 94P, with respect to P-0 an' PP0, an' 'ail% salar%, with respect to --0,
shall be co#pute' as of the ti#e of separation fro# !S$S.
23.3 +on'itions for .ntitle#ent*
23.3.1 Per#anent -otal 0isabilit% ?P-0@
23.3.1.1. A #e#ber who beco#es per#anentl% an' totall% 'isable' shall be entitle' to the P-0
benefits when*
a. he8she is in the ser"ice at the ti#e of 'isabilit%C or
b. if separate' fro# the ser"ice, he has pai' at least thirt% si) ?35@ #onths contributions within
the fi"e %ear ?5@ perio' i##e'iatel% prece'ing his8her 'isabilit%C or has pai' a total of at least
one hun're' eight% ?18<@ #onths contributions prior to his8her 'isabilit%C
Pro"i'e', howe"er, that the following con'itions shall be #et*
J he8she is gainfull% e#plo%e' prior to the co##ence#ent of 'isabilit% resulting in loss of
inco#e as e"i'ence' b% an% incontro"ertible proof thereofC
J he8she is not a registere' #e#ber of an% social insurance institutionC an'
J he8she is not recei"ing an% other pension either fro# !S$S or another local or foreign
institution or organiFation
23.3.1.2. $n a''ition to the #onthl% inco#e benefits for life, a cash pa%#ent e>ui"alent to
eighteen ?18@ ti#es his8her basic #onthl% pension ?94P@, shall be pai' to a #e#ber who was in
the ser"ice at the ti#e of his8her per#anent total 'isabilit% an' who has pai' a total of one
hun're' eight% ?18<@ #onthl% contributions.
23.3.1.3. A separate' #e#ber who has at least three ?3@ %ears of ser"ice an' beco#es
per#anentl% an' totall% 'isable' but has not pai' a total of at least one hun're' eight% ?18<@
#onthl% contributions prior to his8her 'isabilit% shall be entitle' onl% to cash pa%#ent e>ui"alent
to one hun're' percent ?1<<D@ of his8her a"erage #onthl% co#pensation for each %ear of ser"ice
with pai' contributions but not less than twel"e thousan' pesos ?P12,<<<.<<@.
23.3.2 Per#anent Partial 0isabilit% ?PP0@
A #e#ber whose 'isabilit% is partial shall be entitle' to the PP0
benefit when*
a. he8she is in the ser"ice at the ti#e of 'isabilit%C or
b. if separate' fro# the ser"ice, he has pai' at least thirt% si) ?35@ #onths contributions within
the fi"e %ear ?5@ perio' i##e'iatel% prece'ing his8her 'isabilit%C or has pai' a total of at least
one hun're' eight% ?18<@ #onths contributions prior to his8her 'isabilit%C Pro"i'e', howe"er,
that the following con'itions shall be #et*
J he8she is gainfull% e#plo%e' prior to the co##ence#ent of 'isabilit% resulting in loss of
inco#e as e"i'ence' b% an% incontro"ertible proof thereofC
J he8she is not a registere' #e#ber of an% social insurance institutionC an'
J he8she is not recei"ing an% other pension either fro# !S$S
or another local or foreign institution or organiFation
23.3.3 -e#porar% -otal 0isabilit% ?--0@
23.3.3.1. A #e#ber shall be entitle' to the --0 benefit when*
a. he8she is in the ser"ice at the ti#e of 'isabilit%C or
b. if separate' fro# the ser"ice, he has pai' at least thirt% si) ?35@ #onths contributions within
the fi"e %ear ?5@ perio' i##e'iatel% prece'ing his8her 'isabilit%C or has pai' a total of at least
one hun're' eight% ?18<@ #onths contributions prior to his8her 'isabilit%C Pro"i'e', howe"er,
that the following con'itions shall be #et*
J he8she is gainfull% e#plo%e' prior to the co##ence#ent of 'isabilit% resulting in loss of
inco#e as e"i'ence' b% an% incontro"ertible proof thereofC
J he8she is not a registere' #e#ber of an% social insurance institutionC an'
J he8she is not recei"ing an% other pension either fro# !S$S or another local or foreign
institution or organiFation
23.3.3.2. -he pa%#ent of --0 benefit #a% be e)ten'e' b% the !S$S up to a #a)i#u# of two
hun're' fort% ?23<@ 'a%s, sub;ect to #e'ical e"aluation.
23.3.3 Notice an' 1iling of +lai#s an' ,ther 0ocu#ents Re>uire'. 6 A written notice of
sicness or in;ur% shall be gi"en b% a #e#ber or an%bo'% in his8her behalf within one ?1@ #onth
fro# the 'ate of the occurrence of the contingenc%. $f the #e#ber is in the ser"ice, the notice
shall be gi"en to the !S$SC if separate' fro# the ser"ice, the #e#ber shall notif% the !S$S
'irectl%.
-he notice #ust contain the following infor#ation*
a. Na#e an' a''ress of the #e#berC
b. :is8:er agenc% if in the go"ern#ent or e#plo%er if in the pri"ate sectorC
c. 0ate an' nature of sicness or in;ur%C
'. Place of confine#entC an'
e. An% other pertinent infor#ation that #a% be re>uire' b% the
!S$S.
23.3.5 Perio'ic 4e'ical Report / -he 'isable' #e#ber, e)cept those with per#anent partial
'isabilit%, shall sub#it annual #e'ical reports on his8her i#pair#ent, 'ul% certifie' b% his8her
atten'ing ph%sician, an'8or sub#it hi#self8herself to annual #e'ical an' ph%sical e)a#ination.
$f he8she fails to co#pl% with this re>uire#ent, the pa%#ent of his8her benefit shall be suspen'e'
an' shall be resu#e' onl% upon his8her co#pliance thereto pro"i'e' that, he8she is foun' still
entitle' to the benefits. -he benefit correspon'ing to the perio' of suspension shall also be pai'.
23.3.5 1orfeiture of 0isabilit% 9enefits. 6 All the foregoing pro"isions notwithstan'ing, an%
#e#ber who is en;o%ing 'isabilit% benefits shall auto#aticall% forfeit his8her right to the
continue' en;o%#ent thereof if he8she refuses or 'eliberatel% fails to*
a. ha"e hi#self8herself #e'icall% treate' b% a ph%sician when re>uire' b% the !S$SC or
b. tae the prescribe' #e'ications C or
c. ha"e hi#self8herself confine' in a hospital without ;ustifiable reason, when such confine#ent
is re>uire' b% the !S$SC or
'. a"ail hi#self8herself of such rehabilitation facilities as #a% be 'ul% reco##en'e' b% the !S$S
an' #a'e a"ailable for hi#8herC or
e. ,bser"e such precautionar% an' 8or pre"enti"e #easures as prescribe' b% a ph%sician or
e)pressl% re>uire' of hi#8her to pre"ent the aggra"ation or continuance of his8her 'isabilit%.
:owe"er, upon co#pliance with the re>uire#ents, his8her benefits shall be resu#e' if he8she is
still >ualifie'.
#ection 20 #u)/i/o)s+ip $ene.its
23.1 Ghen a #e#ber or pensioner 'ies, the beneficiaries shall be entitle' to the following
sur"i"orship benefits, whiche"er is applicable*
23.1.1. Sur"i"orship pension consisting of*
a. the basic sur"i"orship pension which is fift% percent ?5<D@ of the
94PC an'
b. the 'epen'ent chil'renEs pension e>ui"alent to 1<D of the 94P for each chil' but not to
e)cee' fift% percent ?5<D@ of the 94P.
23.1.2. +ash pa%#ent e>ui"alent to eighteen ?18@ #onths 94PC
23.1.3. +ash pa%#ent e>ui"alent to one hun're' percent ?1<<D@ of the A4+ for e"er% %ear of
ser"ice with pai' contributions but not less than -wel"e -housan' Pesos ?P12,<<<.<<@.
23.2 Sur"i"orship 9enefits of 4e#bers in Acti"e Ser"ice.
23.2.1. $f at the ti#e of 'eath, a #e#ber was in the ser"ice an' has ren'ere' at least fifteen ?15@
%ears of cre'itable ser"ice*
a. his pri#ar% beneficiaries shall recei"e the sur"i"orship pension an' cash pa%#ent e>ui"alent
to 18 ) the 94PC or
b. in the absence of pri#ar% beneficiaries, his secon'ar% beneficiaries shall recei"e the cash
pa%#ent e>ui"alent to 18 ) the 94PC or
c. in the absence of secon'ar% beneficiaries, the legal heirs shall recei"e the cash pa%#ent
e>ui"alent to 18 ) the 94P.
23.2.2. $f at the ti#e of 'eath, the #e#ber was in the ser"ice with less than fifteen ?15@ %ears of
cre'itable ser"iceC his pri#ar% beneficiaries shall recei"e the cash pa%#ent e>ui"alent to 1<<D
of the A4+ for e"er% %ear of cre'itable ser"ice.
23.3 Sur"i"orship 9enefits of $nacti"e 4e#bers
23.3.1. Pri#ar% beneficiaries of inacti"e #e#bers who ha"e at least 15 %ears of cre'itable
ser"ice shall recei"e the sur"i"orship pension onl%.
a. Pri#ar% beneficiaries of inacti"e #e#bers who ha"e at least 3 %ears but less than 15 %ears of
cre'itable ser"ice an' were less than 5< %ears ol' at the ti#e of 'eath shall recei"e the cash
pa%#ent e>ui"alent to 1<<D of the A4+ for e"er% %ear of cre'itable ser"ice, but not less than
P12,<<<.<<.
b. Pri#ar% beneficiaries of inacti"e #e#bers who ha"e less than 15 %ears of cre'itable ser"ice
but were at least 5< %ears ol' at the ti#e of separation an' ha"e recei"e' the correspon'ing
separation benefit, shall not be entitle' to sur"i"orship benefits. :owe"er, if the #e#ber has not
recei"e' %et his separation benefit within four %ears after his8her separation, the pri#ar%
beneficiaries shall recei"e the cash benefit e>ui"alent to 1<<D of the inacti"e #e#berEs A4+
for e"er% %ear of cre'itable ser"ice, but not less than P12,<<<.<<.
23.3 Pa%#ent of Sur"i"orship 9enefits
23.3.1.-he sur"i"orship benefits shall be pai' as follows*
a. Ghen the 'epen'ent spouse is the onl% sur"i"or, he shall recei"e the basic sur"i"orship
pensionC
b. Ghen onl% the 'epen'ent chil'ren are the sur"i"ors, the% shall be entitle' onl% to the
'epen'ent chil'renEs pension e>ui"alent to 1<D of the 94P for e"er% 'epen'ent chil', not
e)cee'ing fi"e ?5@, counte' fro# the %oungest an' without substitutionC
c. Ghen the sur"i"ors are the 'epen'ent spouse an' the 'epen'ent chil'ren, the 'epen'ent
spouse shall recei"e the basic sur"i"orship pension for life or until he re#arries or cohabits, an'
the 'epen'ent chil'ren shall recei"e the 'epen'ent chil'renEs pension.
'. Ghen the 'epen'ent spouse an' 'epen'ent chil'ren are alrea'% recei"ing the basic
sur"i"orship pension an' 'epen'ent chil'renEs pension, respecti"el%, an% subse>uent 'eath,
e#ancipation or 'is>ualification of an% one of the# shall not entitle the other beneficiaries to the
forfeite' share.
e. $n the absence of a natural guar'ian, the guar'ian 'e facto of 'epen'ent chil'ren, as well as the
ph%sicall% or #entall% incapacitate' 'epen'ent chil'ren, #ust file a Petition for !uar'ianship to
be able to clai# the sur"i"orship benefits on behalf of the 'epen'ent chil'ren.
f. Ghen the pensioner 'ies within the 56%ear perio' after recei"ing the fi"e6%ear lu#p su#, the
sur"i"orship pension shall be pai' onl% after the en' of the sai' fi"e6%ear perio'. :owe"er, filing
of clai# for sur"i"orship benefit shoul' be 'one before the en' of the 36%ear prescription perio'.
23.5 +on'itions for .ntitle#ent to Sur"i"orship 9enefits
-he pri#ar% an' secon'ar% beneficiaries, e)cept 'epen'ent chil'ren, shall be entitle' to
applicable sur"i"orship benefits, sub;ect to the following*
a. not engage' in an% gainful occupation as 'efine' in Sec 2 ?p@ of RA
8291C
b. the sur"i"ing spouse an' the 'ecease' #e#ber were li"ing together as husban' an' wifeC
c. not gainfull% engage' in a business or econo#ic acti"it% ?self6 e#plo%e'@C
'. e#plo%e'8engage' in a business or econo#ic acti"it% but recei"ing inco#e less than the
#ini#u# co#pensation of go"ern#ent e#plo%ees.
e. not recei"ing an% other pension fro# the !S$S or another local or foreign institution or
organiFationC an'
f. $n the case of the 'epen'ent spouse, pa%#ent of the basic sur"i"orship pension shall
'iscontinue when he re#arries, cohabits, or engages in co##on6law relationship.
-he foregoing con'itions, e)cept the last one, #ust be present i##e'iatel% prece'ing the 'eath
of the #e#ber or pensioner.
#ection 21 Fune)al $ene.its
25.1. 1uneral benefit is inten'e' to help 'efra% the e)penses inci'ent to the burial an' funeral of
the 'ecease' #e#ber, pensioner or retiree un'er RA 55<, RA 1515, P0 1135 an' RA 8291. $t is
pa%able to an% >ualifie' in'i"i'ual, in accor'ance with the following or'er of priorit%*
a. 2egiti#ate spouse,
b. 2egiti#ate chil' who spent for the funeral ser"ices, or
c. An% other person who can show incontro"ertible proof that he shoul'ere' the funeral e)penses
of the 'ecease'
25.2. A#ount of 1uneral 9enefit.6 -he a#ount of funeral benefit are as follows*
a. -he pre"ailing a#ount appro"e' b% the 9oar' of -rustees at the ti#e of 'eath of the #e#ber
or pensioner.
b. 1or unifor#e' #e#bers of the PNP, 9B4P an' 91P, the a#ount of funeral benefit is fi)e' at
P1<,<<<.<<.
25.3 +on'itions for .ntitle#ent.6 1uneral benefit shall be pai' upon the 'eath of*
a. an acti"e #e#berC or
b. a #e#ber who has been separate' fro# the ser"ice with #ore than 15 %ears of cre'itable
ser"ice, but entitle' to future separation or retire#ent benefitsC or
c. ol' age or 'isabilit% pensionerC or
'. a retiree who at the ti#e of his retire#ent is at least 5< %ears of age an' with at least 2< %ears
of ser"ice but who opts to retire un'er RA 1515 on or after Bune 23, 199&C or
e. a #e#ber who retire' un'er RA 1515 prior to Bune 23, 199& with at least twent% ?2<@ %ears of
ser"ice, regar'less of age.
RULE 8
AD;UDI(AI!N !F (LAI"# AND DI#&UE#
#ection 22 (ommittee on (laims - -he +o##ittee on +lai#s ?+o+@ shall e"aluate an' resol"e
issues 8 co#plaints arising fro# an% 'ispute in the settle#ent of clai#s, such as, but not li#ite'
to the following*
a. interpretation of an e)isting polic% or proce'ureC
b. no e)isting progra# or s%ste# to process a clai#C
c. no e)isting polic% as basis to process a clai#C
'. appeal fro# an aggrie"e' part% to a settle' clai#C
e. fin'ings fro# either the $nternal Au'it Ser"ices ,ffice or the +o##ission on
Au'it that are 'isputableC an'
f. i#ple#entation of an' ,r'er fro# an% +ourt, >uasi6;u'icial bo'% or 'ul% authoriFe' entit% 'ue
to its being in conflict or inconsistent with e)isting !S$S laws, policies, rules an' regulationsC
an'
g. an% other #atter relate' to an% or all of the foregoing which is necessar% for their
'eter#ination
-he +o+ shall report to the 9oar' on a regular basis the actions taen on issues8co#plaints
ele"ate' to the sai' +o##ittee.
25.1. 0isputes on clai#s shall be appeale' to the +o##ittee on +lai#s within 5< 'a%s fro# 'ate
the #e#ber recei"e' the chec representing pa%#ent of clai# benefit or notice of 'isappro"al.
-he +o##ittee on +lai#s shall e"aluate the appeal an' shall notif% the clai#ant of +o##itteeEs
'ecision.
25.2. 1urther appeal on the +o##itteeEs 'ecision shall be file' to the 9oar' within 5< 'a%s fro#
receipt of +o##itteeEs 'ecision.
#ection 23 <uasi-;udicial Functions o. t+e '#I#. - +e =uasi->udicial .unctions o. t+e '#I#
s+all be /ested in its $oa)d o. )ustees.
2&.1. -he !S$S shall ha"e original an' e)clusi"e ;uris'iction to settle an% 'ispute arising un'er
Republic Act No. 8291, +o##onwealth Act No. 185, as a#en'e', inclu'ing its i#ple#enting
rules an' regulations, policies an' gui'elines, an' other laws a'#inistere' b% the !S$S with
respect to*
2&.1.1. +o"erage of go"ern#ent agencies an' e#plo%eesC
2&.1.2. .ntitle#ent of #e#bers to the following benefits un'er these Rules*
a. Separation benefits
b. (ne#plo%#ent or in"oluntar% separation benefits c. Retire#ent benefits
'. 0isabilit% benefits
e. Sur"i"orship benefits f. 1uneral benefits
g. 2ife $nsurance benefits
2&.1.3. +ollection an' pa%#ent of contributionsC
2&.1.3. :ousing loans an' all its relate' policies, proce'ures an' gui'elinesC
2&.1.5. ,ptional 2ife $nsurance an' Pre6Nee' 9enefitsC
2&.1.5. +ri#inal actions arising fro# this ActC an'
2&.1.&. An% other #atter relate' to an% or all of the foregoing which is necessar% for their
'eter#ination.
#ection 28 %ea)ing !..ice)? &o9e)s and Duties. - An% #e#ber of the 9oar' or official of the
!S$S who is a law%er #a% be 'esignate' b% the 9oar' as :earing ,fficer, with the following
powers an' 'uties*
28.1. -o recei"e oral an' 'ocu#entar% e"i'ence of the parties to a case an' to rule on their
a'#issibilit%C
28.2. -o issue su##ons, subpoenas, subpoenas 'uces tecu#, or'ers, an' other si#ilar processes
necessar% for the proper 'eter#ination an' 'isposition of the case before hi#8herC
28.3. -o appoint a counsel 'e oficio for pauper litigants who are unable to secure the assistance
of counsel, if the% re>uest for such assistanceC
28.3. -o a'#inister oaths or affir#ationsC
28.5. -o sub#it fin'ings an' reco##en'ations to the 9oar' within the ti#e prescribe' in these
RulesC an'
28.5. -o perfor# such other acts as #a% be 'irecte' b% the 9oar' or as #a% be necessar% for the
effecti"e an' efficient 'ischarge of his8her powers an' 'uties.
#ection 29 (le)@ o. t+e '#I#.- -he +orporate Secretar% or his 'esignate' representati"e shall
be the +ler of the !S$S, with the following powers an' 'utiesC
29.1. -o issue un'er the seal of the !S$S all or'inar% writs an' processes inci'ent to pen'ing
cases, the issuance of which 'oes not in"ol"e the e)ercise of functions appertaining to the 9oar',
or :earing ,fficer or 9oar' ,fficer, an' #ae out an' sign all writs an' processes issuing fro#
the !S$S.
29.2. -o perfor#, in the absence of the 9oar' or the :earing ,fficer, all the 'uties of the 9oar'
or the :earing ,fficer recei"ing applications, petitions, in"entories, reports, an' the issuance of
all or'ers an' notices that follow as a #atter of course un'er the RuleC
29.3. -o safel% eep all recor's, papers, files, e)hibits an' public propert% co##itte' to his
charge, an' the seal of the !S$SC
29.3. -o eep a general 'ocet, each page of which shall be nu#bere' an' prepare' for recei"ing
all the entries in a single caseC an' to enter therein all cases, nu#bere' consecuti"el% in the or'er
in which the% were recei"e'C an', un'er the hea'ing of each case an' a co#plete title thereof, the
'ate of each paper file' or issue', of each or'er of ;u'g#ent entere', an' of each step taen in
the caseC
29.5. -o eep a ;u'g#ent boo containing a cop% of each ;u'g#ent ren'ere' b% the 9oar' in the
or'er of the 'ateC an' a boo of entries of ;u'g#ent or or'ers of the 9oar'C
29.5. -o eep an e)ecution boo in which he or his 'eput% shall recor' at length in chronological
or'er each e)ecution, an' the officerEs return thereon, b% "irtue of which real propert% has been
sol'C
29.&. -o prepare, for an% person 'e#an'ing the sa#e, a cop% certifie' if proper un'er the seal of
the !S$S of an% paper, recor', or'er, ;u'g#ent, or entr% in this office, for the fees prescribe' b%
this RuleC
29.8. -o co#pile the 'ecisions of the 9oar' an' cause their publication in a series to be nown
as !S$S ReportsC an'
29.9. -o eep such other boos an' perfor# such other 'uties as the 9oar' #a% 'irect.
#ection ,7 &)esc)iption.- +lai#s for benefits un'er Republic Act No. 8291, e)cept for life
insurance an' retire#ent, shall prescribe after four ?3@ %ears fro# 'ate of contingenc%.
#ection ,1 (onst)uction.- -he pro"isions of these sections shall be liberall% construe' in or'er
to pro#ote their purpose an' to assist the parties in obtaining ;ust, spee'%, an' ine)pensi"e
'eter#ination of e"er% action an' procee'ing.
#ection ,2 #uppleto)* Application o. Rules o. (ou)t.- $n the absence of an% applicable
pro"ision in these Rules, the pertinent pro"isions of the Re"ise' Rules of +ourt of the
Philippines shall, whene"er practicable an' con"enient, be applie' b% analog% or in a suppletor%
character an' effect.
#ection ,, 'ene)al &)inciples in %ea)ing and Dete)mination o. (ases.6 -he procee'ings
before the hearing officer shall be su##ar% an' non6litigious in nature an' the technicalities of
law an' proce'ure an' the rules obtaining in the courts shall not strictl% appl%.
$n the hearing, in"estigation an' 'eter#ination of an% >uestion or contro"ers%, an' in e)ercising
an% 'ut% or power un'er the law an' this Rule, the 9oar' or :earing ,fficer shall act on the
#erits of the case with the en' in "iew of pro#oting ;ustice an' e>uit%.
#ection ,0 (aption and itle.6 .ach plea'ing shall contain a caption setting forth the na#e,
KRepublic of the Philippines,L followe' b% the na#e, K!o"ern#ent Ser"ice $nsurance S%ste#L
i##e'iatel% below an', below the latter the na#e K4etro 4anila.L
-he full na#es of all the parties shall be state' in the caption of the Petition.
#ection ,1 &a)ties.6 -he part% initiating the action shall be calle' the KPetitionerL an' the part%
against who# the action is brought shall be calle' KRespon'ent.L
#ection ,2 A+o "a* File &etition.6 -he !S$S, in appropriate cases, or an% person whose rights
are or #a% be pre;u'ice' b% the operations or the enforce#ent of Republic Act No. 8291,
+o##onwealth Act No. 185, as a#en'e', inclu'ing its i#ple#enting rules an' regulations,
policies an' gui'elines an' other laws a'#inistere' b% the !S$S on #atters herein abo"e
specifie', #a% file a petition before the !S$S either personall% or through counsel.
#ection ,3 (ontents o. t+e &etition. 6 -he petition shall state the following*
3&.1. -he full na#e, a''ress an' legal capacit% of the petitionerC
3&.2. -he full na#e an' a''ress of the respon'entC
3&.3. A clear an' concise state#ent of the petitionerEs cause or causes of action, specif%ing
therein the particular section8s of the law or rule "iolate' or sue' upon. $f the basis of the action
is a rule, regulation, resolution, #e#oran'u# or or'er of the 9oar', the 'ate of the pro#ulgation
thereof shall be state' an' a cop% thereof attache'C an'
3&.3. -he relief sought.
#ection ,8 8e)i.ied &leadings. 6 All plea'ings shall be "erifie'.
#ection ,9 &)o+ibited &leading and "otions. 6 -he following plea'ings, #otions or petitions
shall not be allowe' in the cases co"ere' b% this Rule*
39.1. 4otions to 'is#iss
39.2. 4otions for a bill of particulars
39.3. 4otions for new trial, or for reopening of trial
39.3. Petitions for relief fro# ;u'g#ent
39.5. 4otions for e)tension of ti#e to file plea'ing, affi'a"its or an% other paper
39.5. 4e#oran'a
39.&. Petition for certiorari, #an'a#us prohibitions against an% interlocutor% or'er issue' b% the
9oar' or :earing ,fficer
39.8. 4otion to 'eclare the 'efen'ant in 'efault
39.9. 0ilator% #otions for postpone#ent
39.1<. Replies
39.11. -hir' part% co#plaints
39.12. $nter"entions
#ection 07 Filing and #e)/ice o. &leadings. 6 All plea'ings shall be file' with the
+ler of the !S$S at the ,ffice of the +orporate Secretar%.
-he part% filing an% plea'ings shall ser"e the respon'ent or opposing part% with a cop% thereof
an' its supporting 'ocu#ents with proof of ser"ice thereof.
#ection 01 #ummons.- (pon the filing of a petitionC the +ler of the !S$S shall i##e'iatel%
in'orse the sa#e to the :earing ,fficer for the issuance of the Su##ons.
Githin two ?2@ 'a%s fro# the receipt of the in'orse#ent fro# the +ler of the !S$S, the :earing
,fficer shall issue the correspon'ing su##ons to the respon'ent8s together with a cop% of the
petition an' other supporting 'ocu#ents
#ection 02 Responsi/e &leading.- -he respon'ent shall file his +o##ent or Answer to the
Petition within ten ?1<@ 'a%s after ser"ice of su##ons.
#ection 0, E..ect o. Failu)e to Ans9e).- Shoul' the respon'ent fail to answer the petition
within the regle#entar% ten ?1<@ 'a%s perio' herein pro"i'e', the 9oar' #otu proprio, or on
#otion of the petitioner, shall ren'er ;u'g#ent as #a% be warrante' b% the facts allege' in the
petition an' li#ite' to what is pra%e' for therein e)cept as to the a#ount of 'a#ages which the
9oar' #a% 'eci'e in its 'iscretion.
#ection 00 &)oceedings be.o)e t+e %ea)ing !..ice)
33.1. Preli#inar% +onference.6 9efore con'ucting the hearing, the :earing ,fficer #a% call the
parties to a preli#inar% conference for the purpose of 'efining an' si#plif%ing the issues in the
Petition, entering into a'#issions or stipulations of facts an' threshing out all other preli#inar%
#atters
33.2. Affi'a"its, :earing an' Bu'g#ent.6
a. Ghene"er re>uire' an' within ten ?1<@ 'a%s fro# receipt of the or'er b% the :earing ,fficer,
the parties shall sub#it the affi'a"its of witnesses an' other e"i'ences on the factual issues,
together with a brief state#ent of their positions setting forth the law an' the facts relie' upon b%
the#.
b. -he affi'a"its to be sub#itte' shall state onl% facts of 'irect personal nowle'ge of the
affiants which are a'#issible in e"i'ence, an' shall show their co#petence to testif% to the
#atters state'.
c. A "iolation of this re>uire#ent shall be cause to e)punge the ina'#issible affi'a"it or portion
thereof fro# the recor'.
'. .)cept in cri#inal actions arising fro# this Act, the :earing ,fficer shall 'eter#ine whether
the fin'ings an' reco##en'ations #a% be ren'ere', without nee' of a for#al hearing, on the
basis of the plea'ings, affi'a"its an' other e"i'ence, an' position8s state#ents sub#itte' b% the
partiesC in which case, he #a% re>uire the parties to sub#it their Position Papers within a perio'
of twent% ?2<@ 'a%s fro# notice. -he :earing ,fficer shall ren'er his fin'ings an'
reco##en'ations not later than thirt% ?3<@ woring 'a%s fro# the sub#ission of the Position
Paper or the last plea'ing.
e. $n cases where the :earing ,fficer 'ee#s it necessar% to hol' a hearing to clarif% specific
factual #atters before ren'ering his fin'ings an' reco##en'ations, he shall set the case for
hearing for the purpose. At such hearing, witnesses whose affi'a"its were pre"iousl% sub#itte'
#a% be ase' clarificator% >uestions b% the proponent an' b% the :earing ,fficer an' #a% be
cross6e)a#ine' b% the a'"erse part%.
f. -he or'er setting the case for hearing shall specif% the witnesses who will be calle' to testif%,
an' the #atters on which their e)a#ination will 'eal.
33.3. 1in'ings an' Reco##en'ations of :earing ,fficers.6 Githin thirt% ?3<@ woring 'a%s
fro# the ti#e the parties ha"e close' their respecti"e e"i'ence an' file' their last plea'ing, the
:earing ,fficer shall sub#it his fin'ings an' reco##en'ations to the 9oar', together with
'ocu#entar% an' testi#onial e"i'ence presente' in the case.
33.3. 0ecision of the 9oar'. 6 -he 9oar' shall 'eci'e the case trans#itte' to it b% the :earing
,fficer within thirt% ?3<@ 'a%s fro# its sub#ission. $f the case was hear' 'irectl% b% the 9oar', it
shall ren'er its 'ecision thereon within thirt% ?3<@ woring 'a%s fro# the ti#e case is sub#itte'
b% the parties for 'ecision.
33.5. Appeals. 6 Githin fifteen ?15@ 'a%s fro# receipt of notice of 'ecision or awar', the
aggrie"e' part% #a% appeal the 'ecision of the !S$S 9oar' of -rustees to the +ourt of Appeals
b% filing a "erifie' Petition for Re"iew un'er Rule 33 of the Re"ise' Rules of +ourt.
Pen'ing cases an' those file' prior to Bul% 1, 199&, shall be go"erne' b% the applicable rules of
proce'ures.
33.5. .)ecution of 0ecision.6 Ghen no Petition for Re"iew is file' an' there is no or'er to sta%
b% the 9oar', b% the +ourt of Appeals or b% the Supre#e +ourt, an% 'ecision or awar' of the
9oar' shall be enforce' an' e)ecute' in the sa#e #anner as 'ecisions of the Regional -rial
+ourt. 1or this purpose, the 9oar' shall ha"e the power to issue to the +it% or Pro"incial Sheriff
or its appointe' sheriff such writs of e)ecution as #a% be necessar% for the enforce#ent or such
'ecision or awar', an' an% person who shall fail or refuse to co#pl% with such
'ecision, awar', writ or process after being re>uire' to 'o so, shall, upon application b% the
!S$S, be punishe' for conte#pt.
RULE 8I FUND# !F %E '#I#
#ection 01 Funds.
35.1. All contributions 'escribe' an' pa%able un'er Rule $$$ of this $RR, together with their
earnings an' accruals, shall constitute the !S$S Social $nsurance 1un'. -he sai' 1un' shall be
use' to finance the benefits a'#inistere' b% the !S$S un'er RA 8291. $n a''ition, the !S$S
shall a'#inister the optional life insurance an' pre6nee' plans un'er this $RR, the .#plo%eeEs
+o#pensation $nsurance 1un' create' un'er P0 525, as a#en'e', the !eneral $nsurance 1un'
create' un'er Act No. 555, as a#en'e', an' such other special fun's e)isting or that #a% be
create' for special groups or persons ren'ering ser"ices to the go"ern#ent. -he !S$S shall
#aintain the re>uire' reser"es to guarantee the fulfill#ent of its obligations un'er RA 8291.
35.2. -he fun's of the !S$S shall not be use' for purposes other than what are pro"i'e' for
un'er RA 8291. 4oreo"er, no portion of the fun's of the !S$S or inco#e thereof shall accrue to
the !eneral 1un' of the national go"ern#ent an' its political sub'i"isions, instru#entalities an'
other agencies, inclu'ing go"ern#ent6owne' an' controlle' corporations e)cept as #a% be
allowe' un'er the Act.
#ection 02 Deposits and Disbu)sements.- All re"enues collecte' an' all accruals thereto shall
be 'eposite', a'#inistere' an' 'isburse' in accor'ance with the law. A #a)i#u# e)pense
loa'ing of twel"e percent ?12D@ of the %earl% re"enues fro# all sources #a% be 'isburse' for
a'#inistrati"e an' operational e)penses as #a% be otherwise appro"e' b% the Presi'ent of the
Philippines on the basis of actuarial an' #anage#ent stu'ies.
#ection 03 In/estment o. Funds.- -he fun's of the !S$S which are not nee'e' to #eet the
current obligations #a% be in"este' un'er such ter#s an' con'itions an' rules an' regulations as
#a% be prescribe' b% the 9oar'C Pro"i'e', -hat $n"est#ents shall satisf% the re>uire#ents of
li>ui'it%, safet%8securit% an' %iel' in or'er to ensure the actuarial sol"enc% of the fun's of the
!S$S.
3&.1. 1or purposes of transparenc% an' accountabilit%, the !S$S shall report to the
:ouses of +ongress, on an annual basis, in"est#ents in the following*
3&.1.1. $n interest6bearing bon's or securities or other e"i'ence of in'ebte'ness of the
!o"ern#ent of the PhilippinesC
3&.1.2. $n interest6bearing 'eposits or securities of an% 'o#estic ban 'oing business in the
PhilippinesC
3&.1.3. $n 'irect housing loans to #e#bers an' group housing pro;ects secure' b% first #ortgage,
gi"ing priorit% to the low6inco#e groupsC an' in short6an' #e'iu#6ter# loans to #e#bers such
as salar%, polic%, e'ucational, e#ergenc%, stoc purchase plan an' other si#ilar loans*
3&.1.3. $n bon's, securities, pro#issor% notes or other e"i'ence of in'ebte'ness of e'ucational or
#e'ical institutions to finance the construction, i#pro"e#ent an' #aintenance of schools an'
hospitalsC
3&.1.5. $n real estate propert%, inclu'ing shares of stocs in"ol"ing real estate propert% an'
in"est#ents secure' b% first #ortgages on real estate or other collaterals acceptable to the !S$S*
3&.1.5. $n 'ebt instru#ents an' other securities tra'e' in the secon'ar% #aretsC
3&.1.&. $n loans to, or in bon's, 'ebentures, pro#issor% notes or other e"i'ence of in'ebte'ness
of an% sol"ent corporation create' or e)isting un'er the laws of the PhilippinesC
3&.1.8. $n in"est#ents in stocs for tra'ing, whether co##on an' preferre', of an% sol"ent
corporation or financial institutions.
3&.1.9. $n in"est#ents in the e>uit% of an% establish#ent, fir# or entit%, either full% or partiall%
owne' b% !S$SC
3&.1.1<. $n 'o#estic #utual fun's inclu'ing in"est#ents relate' to the operations of #utual
fun'sC an'
3&.1.11. $n foreign #utual fun's an' in foreign currenc% 'eposits or foreign currenc%6
'eno#inate' 'ebts, non6speculati"e e>uities an' other financial instru#ents or other assets
issue' in accor'ance with e)isting laws of the countries where such financial instru#ents are
issue'*
3&.2. Recor's an' Reports.6 -he !S$S shall #aintain appropriate boos of accounts, inclu'ing
electronic recor's, to recor' its assets, liabilities, inco#e, e)penses, receipts an' 'isburse#ents
of fun's an' other financial transactions an' operations. -he !S$S shall eep an' cause to be
ept such recor's, as #a% be necessar% for the purpose of #aing actuarial stu'ies, calculations
an' "aluations of the fun's of the !S$S inclu'ing such 'ata nee'e' in the
co#putation of rates of 'isabilit%, #ortalit%, #orbi'it%, separation an' retire#ent a#ong the
#e#bers an' an% other infor#ation useful for the a';ust#ent of benefits of the #e#bers.
3&.3. .)a#ination an' 7aluation of 1un's. 6 -he !S$S shall #ae an actuarial e)a#ination an'
"aluation of its fun's in accor'ance with accepte' actuarial principles e"er% three ?3@ %ears to
coinci'e with the re"iew of the $nsurance +o##ission.
3&.3. .)e#ption of !S$S an' its Assets an' 1un's fro# -a)es, Assess#ents, 1ees, +harges, an'
0uties6State Polic%.
a. $t is 'eclare' polic% of the State that the actuarial sol"enc% of the fun's of the !S$S shall be
preser"e' an' #aintaine' at all ti#es an' that contribution rates necessar% to sustain the benefits
un'er this Act shall be ept as low as possible in or'er not to bur'en the #e#bers of the !S$S
an' their go"ern#ent agenc%.
b. Accor'ingl%, notwithstan'ing an% laws to the contrar%, the !S$S, its assets, properties,
re"enues inclu'ing all accruals thereto, an' benefits pai', are e)e#pt b% "irtue of RA 8291 fro#
all ta)es, assess#ents, fees, charges an' 'uties of all in's as well as all legal procee'ings.
c. -hese e)e#ptions shall continue unless e)pressl% an' specificall% re"oe' an' an% assess#ent
against the !S$S, as of the appro"al of RA
8291, are hereb% consi'ere' pai'C
'. All laws, or'inances, regulations, issuances, opinions or ;urispru'ence contrar% to or in
'erogation of this pro"ision are 'ee#e' repeale', superse'e' an' ren'ere' ineffecti"e an'
without legal force an' effect.
e. -hese e)e#ptions shall not be affecte' b% subse>uent laws to the contrar%, unless Section 39
of RA 8291 is e)pressl%, specificall% an' categoricall% re"oe' or repeale' b% law an' a
pro"ision is enacte' to substitute or replace the e)e#ptions grant. -his pro"ision is essential to
#aintain or protect the sol"enc% of the fun', notwithstan'ing, an' in'epen'entl% of the guarant%
of, the national go"ern#ent to secure the sol"enc% of !S$S fun's or the pa%#ents of its
liabilities to its #e#bers.
3&.5. .)e#ption of all 1un's of the !S$S fro# -a), Attach#ent, .)ecution, 2e"% or ,ther
2egal Processes.6 -he fun's an'8or the properties referre' to herein as well as the benefits, su#s
or #onies correspon'ing to the benefits un'er this Act shall be e)e#pt fro# attach#ent,
garnish#ent, e)ecution, le"% or other processes issue' b% the courts, >uasi ;u'icial agencies or
a'#inistrati"e bo'ies inclu'ing +o##ission on Au'it ?+,A@ 'isallowances an' fro# all
financial obligations of the #e#bers, inclu'ing his pecuniar% accountabilit% arising fro# or
cause' or occasione' b% his e)ercise or perfor#ance of his official functions or 'uties, or
incurre' relati"e to or in connection with his position or wor e)cept when his #onetar% liabilit%,
contractual or otherwise, is in fa"or of the !S$S.
3&.5. !o"ern#ent !uarantee. 6 -he !o"ern#ent of the Republic of the Philippines guarantees
the fulfill#ent of the obligations of the !S$S to its 4e#bers as an' when the% fall 'ue.
8II AD"INI#RAI!N
#ection 08 Implementing $od*. - -he !o"ern#ent Ser"ice $nsurance S%ste# as create' un'er
+o##onwealth Act No. 185 shall i#ple#ent the pro"isions of RA 8291.
#ection 09 &o9e)s and Functions o. t+e '#I#. 6 -he !S$S shall e)ercise the following powers
an' functions*
39.1.-o for#ulate, a'opt, a#en' an'8or rescin' such rules an' regulations as #a% be necessar%
to carr% out the pro"isions an' purposes of RA 8291, as well as ensure the effecti"e e)ecution of
the powers, functions, 'uties, an' responsibilities of the !S$S, its officers an' e#plo%eesC
39.2. -o a'opt or appro"e the annual an' supple#ental bu'get of receipts an' e)pen'itures
inclu'ing salaries an' allowances of the !S$S personnelC an' to authoriFe such capital an'
operating e)pen'itures an' 'isburse#ents of the !S$S as #a% be necessar% an' proper for the
effecti"e #anage#ent an' operation of the !S$SC
39.3. -o in"est the fun's of the !S$S, 'irectl% or in'irectl%, in accor'ance with the pro"isions of
RA 8291C
39.3. -o ac>uire, utiliFe an' 'ispose of, in an% #anner recogniFe' b% law, real or personal
propert% in the Philippines or elsewhere necessar% to carr% out the purposes of RA 8291C
39.5. -o con'uct continuing actuarial an' statistical stu'ies an' "aluations to 'eter#ine the
financial con'ition of the !S$S an', taing into consi'eration such stu'ies an' "aluations an' the
li#itations herein pro"i'e'.
39.5. Re6a';ust the benefits, contributions, pre#iu# rates, interest rates or the allocation or re6
allocation of the fun's to the contingencies co"ere'C
39.&. -o ha"e the power of successionC
39.8. -o sue an' be sue'C
39.9. -o enter into, #ae, perfor# an' carr% out contracts of e"er% in' an' 'escription with an%
person, fir# or association or corporation, 'o#estic or foreignC
39.1<. -o carr% on an% other lawful business whatsoe"er in pursuance of, or in connection with
the pro"isions of this ActC
39.11. -o ha"e one or #ore offices in an' outsi'e of the Philippines, an' to con'uct its business
an' e)ercise its powers throughout an' in an% part of the Republic of the Philippines an'8or an%
or all foreign countries, states an' territories* Pro"i'e', -hat the !S$S shall #aintain a branch
office in e"er% pro"ince where there e)ists a #ini#u# of fifteen thousan' ?15,<<<@ acti"e
#e#bers an' where the setting up of the branch office is financiall% "iableC
39.12. -o borrow fun's fro# an% source, pri"ate or go"ern#ent, foreign or 'o#estic, onl% as an
inci'ent in the securitiFation of housing #ortgages of the !S$S or to finance its recei"ables fro#
an% go"ern#ent or pri"ate entit%C
39.13. -o in"est, own or otherwise participate in e>uit% in an% establish#ent, fir#, or entit%,
'o#estic or foreignC
39.13. -o appro"e appoint#ents in the !S$S e)cept appoint#ents to positions which are polic%
'eter#ining, pri#aril% confi'ential or highl% technical accor'ing to the +i"il Ser"ice rules an'
regulationsC Pro"i'e', -hat all positions in the !S$S shall be go"erne' b% a co#pensation an'
position classification s%ste# an' >ualifications stan'ar's appro"e' b% the !S$S 9oar' of
-rustees base' on a co#prehensi"e ;ob anal%sis an' au'it of actual 'uties an' responsibilities*
Pro"i'e', further, -hat the co#pensation plan shall be co#parable with the pre"ailing
co#pensation plans in the pri"ate sector an' shall be sub;ect to perio'ic re"iew b% the 9oar' no
#ore than once e"er% four ?3@ %ears without pre;u'ice to %earl% #erit re"iew or increases base'
on pro'ucti"it% an' profitabilit%C
39.15. -o 'esign an' a'opt an .arl% Retire#ent $ncenti"e Plan ?.R$P@ an'8or financial
assistance for the purpose of retire#ent for its own personnelC
39.15. -o fi) an' perio'icall% re"iew an' a';ust the rates of interest an' other ter#s an'
con'itions for loans an' cre'its e)ten'e' to #e#bers or other persons, whether natural or
;u'icialC
39.1&. -o enter into agree#ent with the Social Securit% S%ste# or an% other entit%, enterprise,
corporation or partnership for the benefit of #e#bers transferring fro# one s%ste# to another
sub;ect to the pro"ision of Republic Act No. &599, otherwise nown as the Portabilit% 2awC
39.18. -o be able to float proper instru#ents to li>uef% long6ter# recei"ables b% selling the sa#e
in the secon'ar% #aretC
39.19. -o sub#it annuall%, not later than Bune 3<, a public report to the Presi'ent of the
Philippines an' the +ongress of the Philippines regar'ing its acti"ities in the a'#inistration an'
enforce#ent of RA 8291 'uring the prece'ing %ear, inclu'ing infor#ation an' reco##en'ations
on broa' policies for the 'e"elop#ent an' perfection of the progra#s of the !S$SC
39.2<. -o #aintain a Pro"i'ent 1un', which consists of contributions #a'e b% both the !S$S an'
its officials an' e#plo%ees an' their earnings, for the pa%#ent of benefits to such officials an'
e#plo%ees or their heirs un'er such ter#s an' con'itions as it #a% prescribeC
39.21. -o appro"e an' a'opt gui'elines affecting in"est#ents, insurance co"erage of go"ern#ent
properties, settle#ent of clai#s, 'isposition of ac>uire' assets, pri"atiFation or e)pansion of
subsi'iaries, 'e"elop#ent of housing pro;ects, increase' benefit an' loan pacages to #e#bers,
an' the enforce#ent of the pro"isions of this ActC
39.22. An% pro"ision of law to the contrar% notwithstan'ing, to authoriFe the pa%#ent of e)tra
re#uneration to the officials an' e#plo%ees 'irectl% in"ol"e' in the collection an'8or re#ittance
of contributions, loan repa%#ents an' other #onies 'ue to the !S$S at such rates an' un'er such
con'itions as it #a% a'opt* Pro"i'e', -hat the best interest of the !S$S shall be obser"e'C
39.23. -o 'eter#ine, fi) an' i#pose interest upon unpai' pre#iu#s 'ue fro# the go"ern#ent
agenc% an' e#plo%eesC
39.23. -o ensure the collection or reco"er% of all in'ebte'ness, liabilities an'8or accountabilities,
inclu'ing unpai' pre#iu#s or contributions in fa"or of the !S$S arising fro# an% cause or
source whatsoe"er, 'ue fro# all obligors, whether public or pri"ateC
39.25. 1or this purpose, the 9oar' shall 'e#an' pa%#ent or settle#ent of such obligations
within thirt% ?3<@ 'a%s fro# the 'ate the obligation beco#es 'ue, an' in the e"ent of failure or
refusal of the obligor or 'ebtor to co#pl% with the 'e#an', to initiate or institute the necessar%
or proper actions or suits, cri#inal, ci"il, a'#inistrati"e or otherwise, before the courts, tribunals,
co##issions, boar's, or bo'ies of proper ;uris'iction within thirt% ?3<@ 'a%s recone' fro# the
e)pir% 'ate of the perio' fi)e' in the 'e#an' within which to pa% or settle the accountC
39.25. -o 'esign an' i#ple#ent progra#s that will pro#ote an' #obiliFe sa"ings an' pro"i'e
a''itional resources for social securit% e)pansion an' at the sa#e ti#e affor' in'i"i'ual
#e#bers appropriate returns on their sa"ings8in"est#ents. -he
progra#s shall be so 'esigne' as to spur socio6econo#ic tae6off an' #aintain continue'
growthC an'
39.2&. -o e)ercise such powers an' perfor# such other acts as #a% be lawful, necessar%, useful,
inci'ental or au)iliar% to attain the purposes an' ob;ecti"es of RA 8291 an' carr% out its
pro"isions.
#ection 17 +e $oa)d o. )usteesB Its (ompositionB enu)e and (ompensation.
5<.1. -he corporate powers an' functions of the !S$S shall be "este' in an' e)ercise' b% the
9oar' of -rustees co#pose' of the Presi'ent an' !eneral 4anager of the !S$S an' .ight ?8@
other #e#bers to be appointe' b% the Presi'ent of the Philippines, whose representation shall be
as follows*
a. ,ne ?1@ fro# either the Presi'ent of the Philippine Public School -eachers Association
?PPS-A@ or the Presi'ent of the Philippine Association of School Superinten'ent ?PASS@C
b. -wo ?2@ fro# lea'ing organiFations or associations of go"ern#ent e#plo%ees8retireesC
c. 1our ?3@ fro# the baning, finance, in"est#ent, an' insurance sectorsC
an'
'. A recogniFe' #e#ber of the legal profession who at the ti#e of appoint#ent is also a #e#ber
of the !S$S.
-he -rustees shall elect fro# a#ong the#sel"es a +hair#an while the Presi'ent an' !eneral
4anager of the !S$S shall auto#aticall% be the 7ice6+hair#an
5<.2. -he -rustees, e)cept the Presi'ent an' !eneral 4anager who shall cease as trustee upon
his separation, shall hol' office for si) ?5@ %ears without reappoint#ent, or until their successors
are 'ul% appointe' an' >ualifie'. 7acanc%, other than through the e)piration of the ter#, shall be
fille' for the une)pire' ter# onl%. -he #e#bers of the 9oar' shall be entitle' to a per 'ie# of
-wo -housan' 1i"e :un're' Pesos ?P2, 5<<.<<@ for each boar' #eeting actuall% atten'e' b%
the#, but not to e)cee' -en -housan' Pesos ?P1<, <<<.<<@ a #onth an' reasonable
transportation an' representation allowances as #a% be fi)e' b% the 9oar'.
#ection 11 &o9e)s and Functions o. t+e $oa)d o. )ustees. 6 -he 9oar' of
-rustees shall ha"e the powers an' functions*
51.1. -o for#ulate the policies, gui'elines an' progra# to effecti"el% carr% out the purposes of
RA 8291C
51.2. -o pro#ulgate such rules an' regulations as #a% be necessar% or proper for the effecti"e
e)ecution of the powers, functions, 'uties an' responsibilities of the !S$S, its officers an'
e#plo%eesC
51.3. -o ha"e the pri#ar% 'ut% to recei"e an' hear appeals for a'#inistrati"e re#e'ies in"ol"ing
'isciplinar% actions against !S$S e#plo%ee, before such appeals are referre' to the courts as
for#al co#plaintsC
51.3. (pon the reco##en'ation of the Presi'ent an' !eneral 4anager, to appro"e the annual
an' supple#ental bu'get of receipts an' e)pen'itures of the !S$S, an' to authoriFe such
operating an' capital e)pen'itures an' 'isburse#ents of the !S$S as #a% be necessar% or proper
for the effecti"e #anage#ent, operation an' a'#inistration of the !S$S.
51.5. (pon the reco##en'ation of the Presi'ent an' !eneral 4anager, to appro"e the !S$SE
organiFational an' a'#inistrati"e structures an' staffing pattern, an' to establish, fi), re"iew,
re"ise an' a';ust the appropriate co#pensation pacage for the officers an' e#plo%ees of the
!S$S with reasonable allowances, incenti"es, bonuses, pri"ileges an' other benefits as #a% be
necessar% or proper for the effecti"e #anage#ent, operation an' a'#inistration of the !S$S,
which shall be e)e#pt fro# Republic Act No. 5&58, otherwise nown as the Salar%
Stan'ar'iFation 2aw an' Republic Act No. &33<, otherwise nown as the Attrition 2awC
51.5. -o fi) an' perio'icall% re"iew an' a';ust the rates of interest an' other ter#s an'
con'itions for loans an' cre'its e)ten'e' to its #e#bers or other persons, whether natural or
;uri'icalC
51.&. -he pro"ision of an% law to the contrar% notwithstan'ing, to co#pro#ise or release, in
whole or in part, an% clai# or to settle liabilit% to the !S$S, regar'less of the a#ount in"ol"e',
un'er such ter#s an' con'itions as it #a% i#pose for the best interest of the !S$SC
51.8. -o appro"e an' a'opt gui'elines affecting in"est#ents, insurance co"erage of go"ern#ent
properties, settle#ent of clai#s, 'isposition of ac>uire' assets, 'e"elop#ent of housing pro;ectsC
increase' benefit an' loan pacages to #e#bers, an' the enforce#ent of the pro"isions of this
Act.
51.9. -o 'eter#ine, fi) an' i#pose interest upon unpai' or unre#itte' pre#iu#s an'8or
contributionsC an'
51.1<. -o 'o an' perfor# an% an' all acts necessar%, proper or inci'ental to the attain#ent of the
purpose an' ob;ecti"es of this Act.
#ection 12 Appointment? <uali.ications? and (ompensation o. t+e &)esident and
'ene)al "anage) o. !t+e) &e)sonnel.
52.1. -he Presi'ent an' !eneral 4anager of the !S$S shall be its +hief .)ecuti"e ,fficer an'
shall be appointe' b% the Presi'ent of the Philippines. :e shall be a person with #anage#ent an'
in"est#ents e)pertise necessar% for the effecti"e perfor#ance of his 'uties an' functions un'er
this Act.
52.2. -he !S$S Presi'ent an' !eneral 4anager shall be assiste' b% one or #ore e)ecuti"e "ice6
presi'ents, senior "ice6presi'ents, "ice6presi'ents an' #anagers in a''ition to the usual
super"isor% an' ran6an'6file positions who shall be appointe' an' re#o"e' b% the Presi'ent
an' !eneral 4anager with appro"al of the 9oar', in accor'ance with the e)isting +i"il Ser"ice
rules an' regulations.
#ection 1, &o9e)s and Duties o. t+e &)esident and 'ene)al "anage)
53.1. -he Presi'ent an' !eneral 4anager of the !S$S shall a#ong others, e)ecute an'
a'#inister the policies an' resolutions appro"e' b% the 9oar' an' 'irect an' super"ise the
a'#inistration an' operations of the !S$S.
53.2. -he Presi'ent an' !eneral 4anager, sub;ect to the appro"al of the 9oar', shall appoint the
personnel of the !S$S, re#o"e, suspen', or otherwise 'iscipline the# for cause, in accor'ance
with e)isting +i"il Ser"ice rules an' regulations, an' prescribe their 'uties an' >ualifications to
the en' that onl% co#petent persons #a% be e#plo%e'.
#ection 10 Audito).
53.1. -he +hair#an of the +o##ission on Au'it shall be the e) officio au'itor of the !S$S. 1or
this purpose, he #a% appoint a representati"e who shall be the Au'itor of the !S$S, an' the
necessar% personnel to assist sai' representati"e in the perfor#ance of his 'uties.
53.2. -he +hair#an of the +o##ission on Au'it or his authoriFe' representati"e shall sub#it to
the 9oar' soon after the close of each calen'ar %ear, an au'ite' state#ent showing the financial
con'ition an' progress of the !S$S for the calen'ar %ear ;ust en'e'.
#ection 11 Legal (ounsel.
55.1. -he !o"ern#ent +orporate +ounsel shall be the legal a'"iser an' consultant of the !S$S,
an' the !S$S #a% assign to it cases for legal action or trial, issues for legal opinions, preparation
an' re"iew of contracts8agree#ents an' others, as the !S$S #a% 'eci'e or 'eter#ine fro# ti#e
to ti#e. Pro"i'e', howe"er, -hat
the present legal ser"ices group as well as 9ranch Attorne%s shall ser"e as the
!S$S in6house legal counsel.
55.2. -he !S$S #a%, sub;ect to appro"al b% the proper court, 'eputiFe an% personnel of the legal
ser"ices group an' its 9ranch Attorne%s to act as special sheriff in the enforce#ent of writs an'
processes issue' b% the court, >uasi6;u'icial agencies or a'#inistrati"e bo'ies in cases in"ol"ing
the !S$S.
#ection 12 &o9e)s o. t+e Insu)ance (ommission.- -he $nsurance +o##issioner or his
authoriFe' representati"es shall #ae an e)a#ination of the financial con'ition an' #etho's of
transacting business of the !S$S at least once e"er% three ?3@ %ears to coinci'e with the !S$S
actuarial re"iew an' "aluation. -he report of sai' e)a#ination shall be sub#itte' to the 9oar' of
-rustees, with copies furnishe' the ,ffice of the Presi'ent of the Philippines an' the two :ouses
of +ongress of the Philippines within fi"e ?5@ 'a%s after the close of the e)a#ination* Pro"i'e',
further, -hat for each e)a#ination, the !S$S shall pa% the office of the $nsurance +o##issioner
an a#ount e>ual to the actual e)penses incurre' in con'ucting the e)a#ination, inclu'ing the
salaries of the e)a#iners an' the actuar% for the actual ti#e spent.
RULE 8III &ENAL &R!8I#I!N#
#ection 13 A+o ma* .ile a ()iminal Action.- +ri#inal actions arising fro# "iolations of RA
8291 an' these $#ple#enting Rules an' Regulations, #a% be initiate' b% the aggrie"e' #e#ber,
either un'er the pro"isions of RA 8291 itself or, as appropriate, un'er the Re"ise' Penal +o'e.
#ection 18 &enalties unde) A)ticle 132 o. t+e Re/ised &enal (ode.- An% person foun' to ha"e
participate' 'irectl% or in'irectl% in the co##ission of frau', collusion, falsification, or
#isrepresentation in an% transaction with the !S$S whether for hi# or for so#e other persons,
shall suffer the penalties pro"i'e' for in Article 1&2 of the Re"ise' Penal +o'e.
#ection 19 !t+e) &enalties.- Persons who co##it cri#inal acts in connection with the
operation of RA 8291 shall be sub;ect to the following penalties.
59.1. Ghoe"er shall obtain or recei"e an% #one% or chec in"oing an% pro"ision of this Act or
an% agree#ent there un'er, without being entitle' thereto with the intent to 'efrau' an% #e#ber,
an% go"ern#ent agenc%, the !S$S, or an% thir' part%, shall be punishe' b% a fine of not less than
1i"e thousan' pesos ?P5,<<<.<<@ nor #ore than -went% thousan' pesos ?P2<,<<<.<<@ or b%
i#prison#ent of not less than si) ?5@ %ears an' one ?1@ 'a% to twel"e ?12@ %ears, or both, at the
'iscretion of the court.
59.2. Ghoe"er fails or refuses to co#pl% with the pro"isions of RA 8291 or with the rules an'
regulations a'opte' b% the !S$S shall be punishe' b% a fine of not less than 1i"e thousan' pesos
?P5,<<<.<<@ nor #ore than -went% thousan' pesos ?P2<,<<<.<<@ or b% i#prison#ent of not less
than si) ?5@ %ears an' one ?1@ 'a% to twel"e ?12@ %ears, or both, at the 'iscretion of the court.
59.3. -he :ea's of ,ffices, -reasurer, 1inance ,fficer, +ashier, 0isbursing ,fficer, 9u'get
,fficer or other official or e#plo%ee who fails to inclu'e in the annual bu'get the a#ount
correspon'ing to the go"ern#ent agenc% an' e#plo%ee contributions, or who fails or refuses or
'ela%s b% #ore than thirt% ?3<@ 'a%s fro# the ti#e such a#ount beco#es 'ue an' 'e#an'able,
or to 'e'uct the #onthl% contributions of the e#plo%ee shall, upon con"iction b% final ;u'g#ent,
suffer the penalties of i#prison#ent fro# si) ?5@ #onths an' one ?1@ 'a% to si) ?5@ %ears, an' a
fine of not less than -hree thousan' pesos ?P3,<<<.<<@ but not #ore than Si) thousan' pesos
?P5,<<<.<<@, an' in a''ition shall suffer absolute perpetual 'is>ualification fro# hol'ing public
office an' fro# practicing an% profession or calling license' b% the go"ern#ent.
59.3. An% e#plo%ee or #e#ber who recei"es or eeps fun' or propert% belonging, pa%able or
'eli"erable to the !S$S an' appropriates the sa#e, or taes or #isappropriates or uses the sa#e
to an% purpose other than that authoriFe' b% this Act, or per#its another person to tae,
#isappropriate or use sai' fun' or propert% b% e)pressl% consenting thereto, or through
aban'on#ent or negligence, or is otherwise guilt% of the #isappropriation of sai' fun' or
propert%, in whole or in part, shall suffer the penalties pro"i'e' in Article 21& of the Re"ise'
Penal +o'e, an' in a''ition shall suffer absolute perpetual 'is>ualification fro# hol'ing public
office an' fro# practicing an% profession or calling license' b% the go"ern#ent.
59.5. An% e#plo%ee, who after 'e'ucting the #onthl% contribution or loan a#ortiFation fro# a
#e#ber Ms co#pensation, fails to re#it the sa#e to the !S$S within thirt% ?3<@ 'a%s fro# the
'ate the% shoul' ha"e been re#itte' un'er Rule $$$ of the $RR shall be presu#e' to ha"e
#isappropriate' such contribution or loan a#ortiFation an' shall suffer the penalties pro"i'e' in
Article 315 of the Re"ise' Penal +o'e, an' in a''ition shall suffer absolute perpetual
'is>ualification fro# hol'ing public office an' fro# practicing an% profession or calling license'
b% the go"ern#ent.
59.5. -he hea's of the offices of the national go"ern#ent its political sub'i"isions, branches,
agencies an' instru#entalities, inclu'ing go"ern#ent6owne' or controlle' corporations an'
go"ern#ent financial institutions, an' the personnel of such offices who are in"ol"e' in the
collection of pre#iu# contributions, loan a#ortiFation an' other accounts 'ue the !S$S who
shall fail, refuse or 'ela% the pa%#ent, turno"er, re#ittance or 'eli"er% of such accounts to the
!S$S within thirt% ?3<@ 'a%s fro# the ti#e that the sa#e shall ha"e been 'ue an' 'e#an'able
shall, upon con"iction b% final ;u'g#ent, suffer the penalties of
i#prison#ent of not less than one ?1@ %ear nor #ore than fi"e ?5@ %ears an' a fine of not less than
-en thousan' pesos ?P1<,<<<.<<@ nor #ore than -went% thousan' pesos ?P2<,<<<.<<@, an' in
a''ition shall suffer absolute perpetual 'is>ualification fro# hol'ing public office an' fro#
practicing an% profession or calling license' b% the go"ern#ent.
59.&. -he officers an'8or personnel referre' to abo"e shall be liable not onl% cri#inall% but also
ci"ill% to the !S$S or to the e#plo%ee or #e#ber concerne' in the for# of 'a#ages, inclu'ing
surcharges an' interests.
59.8. 1or the charges or co#plaints referre' to abo"e, the liabilities therein set forth shall be
construe' as wai"er of the State of its i##unit% fro# suitC hence, the abo"e6#entione' officials
an'8or personnel #a% not in"oe the 'efense of non6 suabilit% of the State.
59.9. 1ailure of the 4e#bers of the !S$S 9oar', inclu'ing the +hair#an an' the 7ice6
+hair#an, to co#pl% with the pro"isions on penalties referre' to abo"e shall sub;ect the# to
i#prison#ent of not less than si) ?5@ #onths nor #ore than one ?1@ %ear or a fine of not less than
1i"e thousan' pesos ?P5,<<<.<<@ nor #ore than -en thousan' pesos ?P1<,<<<.<<@ without
pre;u'ice to an% ci"il or a'#inistrati"e liabilit% which #a% also arise therefro#.
RULE IC 'ENERAL &R!8I#I!N#
#ection 27 Dispensation o. #ocial Insu)ance $ene.its.
5<.1. -he !S$S shall pa% the retire#ent benefits to the e#plo%ee on his last 'a% of ser"ice in the
go"ern#ent* Pro"i'e', -hat all re>uire#ents are sub#itte' to the !S$S within a reasonable
perio' prior to the effecti"e 'ate of the retire#entC
5<.2. -he !S$S shall 'iscontinue the processing an' a';u'ication of retire#ent clai#s un'er
Republic Act 91< an' R.A. No. 1515 e)cept refun' of retire#ent pre#iu#s. $nstea', all agencies
concerne' shall process an' pa% the gratuities of their e#plo%ees after securing the appropriate
clearance fro# the !S$S to clear an% outstan'ing obligations to the S%ste#.
#ection 21 De/elopment and Disposition o. Ac=ui)ed Assets.
51.1. -he !S$S shall ha"e the right to 'e"elop an' 'ispose of its ac>uire' assets obtaine' in the
or'inar% course of its business. -o a'' "alue to, i#pro"e profitabilit% on, an'8or enhance the
#aretabilit% of an ac>uire' asset, the !S$S #a% further 'e"elop8reno"ate the sa#e either with
its own capital or through a ;oint "enture arrange#ent with pri"ate co#panies or in'i"i'uals.
51.2. -he !S$S #a% sell its ac>uire' assets in accor'ance with e)isting +o##ission on Au'it
?+,A@ rules an' regulations for an a#ount not lower than the current #aret "alue of the
propert%. 1or this purpose, the !S$S shall con'uct an annual appraisal of its properties or
ac>uire' assets to 'eter#ine its current #aret "alue. All notices of sale shall be publishe' in
newspapers of general circulation.
51.3. No in;unction or restraining or'er issue' b% an% court, co##ission, tribunal or office shall
bar, i#pe'e or 'ela% the sale an' 'isposition b% the !S$S of its ac>uire' assets e)cept on
>uestions of ownership an' national or public interest.
#ection 22 'o/e)nment Assistance to t+e '#I#.- -he !S$S #a% call upon an% go"ern#ent
agenc% for such assistance as #a% be necessar% in the 'ischarge of its 'uties an' functions.
#ection 2, Non-impai)ment o. $ene.its? &o9e)s? ;u)isdiction? Rig+ts? &)i/ileges? Functions
and Acti/ities. - Nothing in this $RR shall be construe' to repeal, a#en' or li#it an% pro"ision
of RA 8291 nor of an% e)isting laws, Presi'ential 0ecrees an' 2etters of $nstructions, not
otherwise specificall% inconsistent with the pro"isions of RA 8291.
#ection 20 E-clusi/eness o. $ene.its. - Ghene"er other laws pro"i'e si#ilar benefits for the
sa#e contingencies co"ere' b% RA 8291, the #e#ber who >ualifies to the benefits shall ha"e the
option to choose which benefits will be pai' to hi#. :owe"er, if the benefits pro"i'e' b% the
other law chosen are less than the benefits pro"i'e' un'er RA 8291, the !S$S shall pa% onl% the
'ifference.
#ection 21 App)op)iations.- -he a#ount necessar% to carr% out the pro"isions of RA
8291 shall be inclu'e' in the respecti"e bu'gets of the co"ere' agencies in the national
go"ern#ent obligation progra# starting += 1998.
#ection 22 #epa)abilit* (lause.- Shoul' an% pro"ision of RA 8291 or an% part thereof be
'eclare' in"ali', the correspon'ing pro"isions in this $RR shall be correspon'ingl% stricen out,
a#en'e', or >ualifie' as appropriate. -he other pro"isions, insofar as the% are separable fro# the
in"ali' ones, shall re#ain in force an' in effect.
#ection 23 Repealing (lause.- All pro"isions of e)isting i#ple#enting rules an' regulations,
circulars, an' other proce'ures correspon'ing to laws an' an% other law or parts of law
specificall% inconsistent with RA 8291 an' with these $RR are hereb% repeale' or #o'ifie'
accor'ingl%. Pro"i'e', -hat the rights un'er e)isting laws, rules
an' regulations "este' upon or ac>uire' b% an e#plo%ee who is alrea'% in the ser"ice as of the
effecti"it% of RA 8291 shall re#ain in force an' in effect. Pro"i'e, further, -hat subse>uent to
the effecti"it% of RA 8291, a new e#plo%ee or an e#plo%ee who has pre"iousl% retire' or been
separate' an' is re6e#plo%e' in the ser"ice, shall be co"ere' b% the pro"isions of these $RR.
#ection 28 E..ecti/it* o. t+e Re/ised Implementing Rules and Regulations.- -hese re"ise'
$RR shall tae effect fifteen ?15@ 'a%s after its publication in the ,fficial !aFette or in at least
two ?2@ newspapers of general circulation.
Reti)ing unde) RA 227 )e=ui)es t+e .ollo9ing:
1. -he retireeMs last 3 %ears of ser"ice prior to retire#ent #ust be continuous, e)cept in cases of
'eath, 'isabilit%, abolition, an' phase6 out of position 'ue to reorganiFation.
2. :is8her appoint#ent status #ust be per#anent in nature.
3. :e8she #ust #eet the age an' ser"ice re>uire#ents un'er the N4agic 8&N for#ula. 9ase' on
the for#ula, a retireeEs age an' %ears in ser"ice shoul' be a''e' up an' shoul' total at least 8&.
(n'er RA 55<, !S$S #e#bers as %oung as 52 %ears ol' can alrea'% a"ail of a retire#ent
pacage for as long as the% ha"e alrea'% been in go"ern#ent ser"ice for the past 35 %ears.
-he K4agic 8&L for#ula is shown below*
A g e 52 53 53 55 55 5& 58 59 5< 51 52 53 53 55
Ser"ice 35 33 33 32 31 3< 28 25 23 22 2< 18 15 15
-he #a)i#u# #onthl% pension for those abo"e 5& %ears ol' shall be 8<D of the A"erage
4onthl% Salar% ?A4S@ recei"e' 'uring the last 3 %ears i##e'iatel% prece'ing retire#ent. -he
4a)i#u# pension for those age' 5& an' below shall be &5D of the A4S.
&ac@ages in sto)e .o) *ou
RA 55< lets %ou choose a#ong the following options to let %ou en;o% a new beginning*
!ption 1: Automatic &ension 6 (n'er this option, pensioners below 5< %ears ol' #a%
choose to recei"e either an auto#atic #onthl% pension for life or an option to a"ail of a lu#p
su#. -he lu#p su#, which can be re>ueste' e"er% si) #onths, #eans the% can recei"e their one6
%ear worth of #onthl% pension in a'"ance for a perio' of fi"e %ears. ,n the si)th %ear, the% will
start recei"ing their lifeti#e #onthl% pension.
!ption 2: Initial t+)ee-*ea) lump sum - 1or those who are at least 5< %ears ol' but less
than 53 %ears on 'ate of retire#ent, the benefit is a 36%ear lu#p su#. -he subse>uent two 6%ear
lu#p6su# shall be pai' to the retiree on his 53r' birth'a%. $f the retiree is still li"ing after the 56
%ear guarantee' perio', he shall be entitle' to a #onthl% pension for life.
!ption ,: 1-Dea) Lumpsum - 1or those who are 53655 %ears ol', the% can a"ail of a
fi"e6%ear lu#p su# then after fi"e %ears, the% will recei"e a #onthl% pension for life.
&RE#IDENIAL DE(REE No. 1102
A"ENDIN'? EC&ANDIN'? IN(REA#IN' AND INE'RAIN' %E #!(IAL
#E(URID AND IN#URAN(E $ENEFI# !F '!8ERN"EN E"&L!DEE# AND
FA(ILIAIN' %E &AD"EN %ERE!F UNDER (!""!NAEAL% A( N!.
182? A# A"ENDED? AND F!R !%ER &UR&!#E#
G:.R.AS, the !o"ern#ent Ser"ice $nsurance S%ste# in pro#oting the efficienc% an' welfare
of the e#plo%ees of the !o"ern#ent of the Philippines, a'#inisters the laws that grant to its
#e#bers social securit% an' insurance benefits.
G:.R.AS, it is necessar% to preser"e at all ti#es the actuarial sol"enc% of the fun's
a'#inistere' b% the S%ste#C to guarantee to the go"ern#ent e#plo%ee all the benefits 'ue hi#C
an' to e)pan' an' increase the benefits #a'e a"ailable to hi# an' his 'epen'ents to the e)tent
per#itte' b% a"ailable resourcesC
G:.R.AS, pro"isions of e)isting laws ha"e i#pe'e' the efficient an' effecti"e 'ischarge b%
the S%ste# of its functions an' ha"e un'ul% ha#pere' the S%ste# fro# being #ore responsi"e to
the 'ra#atic changes of the ti#es an' fro# #eeting the increasing nee's an' e)pectations of the
1ilipino public ser"antC
G:.R.AS, pro"isions of e)isting laws that ha"e pre;u'ice', rather than benefite', the
go"ern#ent e#plo%eeC restricte', rather than broa'ene', his benefits, prolonge', rather than
facilitate' the pa%#ent of benefits, #ust now %iel' to his para#ount welfareC
G:.R.AS, the social securit% an' insurance benefits of go"ern#ent e#plo%ees #ust be
continuousl% re6e)a#ine' an' i#pro"e' to assure co#prehensi"e an' integrate' social securit%
an' insurance progra#s that will pro"i'e benefits responsi"e to their nee's an' those of their
'epen'ents in the e"ent of sicness, 'isabilit%, 'eath, retire#ent, an' other contingenciesC an' to
ser"e as a filing rewar' for 'e'icate' public ser"iceC
G:.R.AS, in the light of e)isting econo#ic con'itions affecting the welfare of go"ern#ent
e#plo%ees, there is nee' to e)pan' an' i#pro"e the social securit% an' insurance progra#s
a'#inistere' b% the !o"ern#ent Ser"ice $nsurance S%ste#, specificall%, a#ong others, b%
increasing pension benefits, e)pan'ing 'isabilit% benefits, intro'ucing sur"i"orship benefits,
intro'ucing sicness inco#e benefits, an' e"entuall% e)ten'ing the co#pulsor% co"erage of
these progra#s to all go"ern#ent e#plo%ees regar'less of e#plo%#ent statusC
N,G, -:.R.1,R., $, 1.R0$NAN0 .. 4AR+,S, Presi'ent of the Republic of the
Philippines, b% "irtue of the powers "este' in #e b% the +onstitution, 'o hereb% or'er an' 'ecree
the following*
#ection 1. Title. -he short title of this Act shall be the NRe"ise' !o"ern#ent Ser"ice $nsurance
Act of 19&&.N
A. DEFINII!N#
#ection 2. Definition of Terms. (nless the conte)t otherwise in'icates, the following ter#s shall
#ean*
?a@ System 6 -he !o"ern#ent Ser"ice $nsurance S%ste# create' an' establishe' b%
+o##onwealth Act No. 185C
?b@ Board 6 -he 9oar' of -rustees of the !o"ern#ent Ser"ice $nsurance S%ste#C
?c@ Employer 6 -he National !o"ern#ent, its political sub'i"isions, branches, agencies or
instru#entalities, corporations owne' an'8or controlle' b% the !o"ern#ent, the
Philippine -uberculosis Societ%, the Philippine National Re' +ross an' the Philippine
7eterans 9anC
?'@ Employee 6 an% person in the ser"ice of an e#plo%er who recei"es co#pensation for
such ser"iceC
?e@ Member 6 an% person co#pulsoril% co"ere' b% the S%ste# un'er Section 3 of this
ActC
?f@ Dependent 6 the legiti#ate, legiti#ate', legall% a'opte', acnowle'ge' natural or
illegiti#ate chil' who is un#arrie', not gainfull% e#plo%e', an' not o"er twent%6one
%ears of age or is o"er twent%6one %ears of age but ph%sicall% or #entall% incapacitate'
an' incapable of self6supportC the legiti#ate spouse 'epen'ent for support upon the
#e#ber, an' the legiti#ate parent8s wholl% 'epen'ent upon the #e#ber for supportC
?g@ Primary beneficiaries 6 the 'epen'ent spouse until he #arries an' the 'epen'ent
chil'renC
?h@ Secondary beneficiaries 6 the 'epen'ent parents an' legiti#ate 'escen'ants other than
'epen'ent chil'renC
?i@ Compensation 6 the basic pa% or salar% recei"e' b% an e#plo%ee, pursuant to his
e#plo%#ent8appoint#ent8s, e)clu'ing per 'ie#s, bonuses, o"erti#e pa%, an' allowancesC
?;@ Contribution 6 the a#ount pa%able to the S%ste# b% the #e#ber an' the e#plo%er in
accor'ance with section fi"e of this actC
?@ Average 6 #onthl% co#pensation the >uotient after 'i"i'ing the aggregate
co#pensations recei"e' b% the #e#ber for the last three %ears i##e'iatel% prece'ing his
'eath8separation8'isabilit%8retire#ent, b% the nu#ber of #onths he recei"e' sai'
co#pensation, or three thousan' pesos, which e"er is s#allerC
?l@ Revalued average 6 #onthl% co#pensation an a#ount e>ual to one hun're' se"ent%
percent of the first two hun're' pesos of the a"erage #onthl% co#pensation plus one
hun're' percent of the a"erage #onthl% co#pensation in e)cess of two hun're' pesosC
?#@ ump sum 6 the present "alue of the basic #onthl% pensions for fi"e %ears 'iscounte'
at a rate of interest to be 'eter#ine' b% the S%ste# but not less than si) percent per
annu#C
?n@ Pensioner 6 an% person who recei"es ol'6age or 'isabilit% pension whether in lu#p
su# or otherwiseC
?o@ Disability 6 an% loss or re'uction of earning capacit% 'ue to i#pair#ent of the nor#al
functions of the ph%sical an'8or #ental faculties which re'uces a #e#berMs abilit% to
engage in an% gainful occupationC
?p@ Total disability 6 accrues or arises when the loss or re'uction of earning capacit%
a#ounts to at least se"ent%6fi"e percentC or when the aggregate loss or re'uction or
earning capacit% resulting fro# #ore than one in;ur% an'8or 'isease a#ounts to at least
one hun're' percentC
?>@ Permanent total disability 6 accrues or arises when reco"er% fro# the i#pair#ent
#entione' in section 2?o@ is #e'icall% re#oteC
?r@ Temporary total disability 6 accrues or arises when the i#paire' ph%sical an'8or
#ental faculties can be rehabilitate' an'8or restore' to their nor#al functionsC
?s@ Permanent partial disability 6 accrues or arises when the loss re'uction of earning
capacit% a#ounts to less than se"ent%6fi"e percent or when the aggregate loss or
re'uction of earning capacit% resulting fro# #ore than one in;ur% an'8or 'isease6a#ounts
to less than one hun're' percent, as a result of an irreco"erable anato#ical lossC
$. (!8ERA'E !F %E #D#E"
#ection ,. Compulsory Coverage. 4e#bership in the S%ste# shall be co#pulsor% for all
per#anent e#plo%ees below 5<, %ears of age upon appoint#ent to per#anent status* Pro"i'e',
-hat upon appro"al b% the Presi'ent of the Philippines an' sub;ect to the a"ailabilit% of fun's,
co#pulsor% co"erage #a% be e)ten'e' to non6per#anent e#plo%ees of national go"ern#ent
agencies an' local go"ern#ents, either si#ultaneousl% in phases or b% groupsC Pro"i'e', 1urther,
-hat non6per#anent e#plo%ees of go"ern#ent6owne' or control corporations #a% be co"ere'
upon appro"al b% the S%ste# upon re>uest of their respecti"e !o"erning 9oar'sC Pro"i'e',
1inall%, that the co"erage of te#porar% e#plo%ees un'er R.A. No. 3958 shall re#ain in force.
#ection 0. Effect of Separation from t!e Service. A #e#ber shall continue to be a #e#ber,
notwithstan'ing his separation fro# the ser"ice an', unless the ter#s of his separation pro"i'e
otherwise, he shall be entitle' to whate"er benefits which shall ha"e accrue' or been earne' at
the ti#e of his separation in the e"ent of an% contingenc% co#pensable un'er this Act.
(. #!UR(E# !F FUND#
#ection 1. Contributions.666?a@ $t shall be #an'ator% for the e#plo%ee to pa% the #onthl%
contributions specifie' in the following sche'ule*
4onthl% +o#pensation
Percentage of 4onthl% +o#pensation
Pa%able b%
.#plo%ee .#plo%er
$. P2<< or less &.5<D 1<.5<D
$$. ,"er P2<< up to P3<<< 8.5<D 9.5<D
$$$. ,"er P3<<<
1irst P3<<< 8.5<D 9.5<D
$n .)cess of P3<<< 3D 9.5<D
?b@ -he .#plo%er shall inclu'e in its annual appropriation the necessar% a#ounts for its
share of the contributions in'icate' abo"e, plus an% e)tra pre#iu#s that #a% be re>uire'
on account of the haFar's or riss of its e#plo%eesM occupation plus the a''itional
a#ounts, if an%, re>uire' in the ne)t following paragraph an' shall re#it the sa#e to the
S%ste#* Pro"i'e', -hat, if after an e)a#ination of its financial con'ition, the S%ste#
fin's that the e#plo%er cannot affor' to pa% sai' contributions in full, then it shall pa%
onl% such rates of contributions as the S%ste# #a% consi'er within its capacit% to pa%. $n
case of such re'uction, the benefits pa%able to the #e#ber an'8or his beneficiaries shall
be a';uste' actuariall% in accor'ance with the rules an' regulations prescribe' b% the
S%ste#.
?c@ 1or the a#ounts of pensions correspon'ing to the ser"ices ren'ere' b% a #e#ber
prior to Bune Si)teen, nineteen hun're' an' fift%6one, increases in retire#ent benefits
pro"i'e' for in Republic Act nu#bers fort%6nine an' Presi'ential 0ecree nu#ber se"en
twel"e, the National !o"ern#ent shall pa% the S%ste# an' in such #anner as #a% be
agree' upon b% the National !o"ern#ent an' the S%ste#.
#ection 2. Collection and Remittance of Contributions.8PO
?a@ $t shall be co#pulsor% upon the e#plo%er to 'e'uct an' withhol' each #onth fro#
the #onthl% salar% of each e#plo%ee the contributions pa%able b% hi# an' to re#it the
sa#e an' its share to the S%ste# within the first ten 'a%s of each calen'ar #onth
following the #onth to which the contributions appl%. -he re#ittance of the contributions
#a% be #a'e in a'"ance >uarterl% or se#i6annuall% or annuall%, the contributions
pa%able b% the e#plo%ee to be a'"ance' b% his e#plo%er* Pro"i'e', -hat, upon
separation of an e#plo%ee, an% contributions so pai' in a'"ance but not 'ue shall be
cre'ite' or refun'e' to his e#plo%er. -he re#ittance b% the e#plo%er of sai'
contributions to the s%ste# shall be in preference to the pa%#ent of other obligations,
e)cept salaries an' wages of its e#plo%ees.
?b@ $n case an e#plo%er 'efaults in the pa%#ent of the obligations to the S%ste#, the
Secretar% of 1inance or the +hair#an of the +o##ission on Au'it shall tae such steps
as #a% be necessar% to ha"e sai' obligation pai' pro#ptl%. Sai' officials or their 'ul%
'esignate' representati"es are hereb% authoriFe' an' 'irecte' to withhol' fro# the
re"enues an'8or inco#es of a 'efaulting e#plo%er such a#ounts as #a% be necessar% to
pa% its obligations un'er this Act an' re#it the sa#e i##e'iatel% to the S%ste#. $n case
of insol"enc% of an e#plo%er, its obligations un'er this Act shall be pai' in preference to
all other obligations, e)cept salaries an' wages of its e#plo%ees.
#ection 3. Penalty for "on#remittance or Delayed Remittances. (nre#itte' collections shall earn
such interest as the 9oar' #a% prescribe, not e)cee'ing two percent per #onth fro# their 'ue
'ate to the 'ate of pa%#ent, pa%able b% the e#plo%er.
#ection 8. $overnment $uarantee. -he !o"ern#ent of the Republic of the Philippines are
hereb% guarantees the fulfill#ent of the obligations of the S%ste# to its #e#bers as an' when
the% fall 'ue.
D. $ENEFI#
#ection 9. Computation of Basic Mont!ly Pension.
?a@ -he basic #onthl% pension is e>ual to*
?1@ thirt%6se"en an' one6half percent of the re"alue' a"erage #onthl%
co#pensationC plus
?2@ two an' one6half percent of sai' re"alue' a"erage #onthl% co#pensation for
each %ear of ser"ice in e)cess of fifteen %ears* Pro"i'e', -hat, the basic #onthl%
pension shall not e)cee' ninet% percent of the a"erage #onthl% co#pensation.
?b@ -he basic #onthl% pension #a% be a';uste' upon the reco##en'ation of the
Presi'ent an' !eneral 4anager of the S%ste# an' appro"e' b% the Presi'ent of the
Philippines accor'ance with the rules an' regulations prescribe' b% the S%ste#.
#ection 17. Computation of Service. the co#putation of ser"ice for calculating the pension shall
be fro# the 'ate of original ser"ice with an e#plo%eeC inclu'ing*
?1@ perio's of honorable ser"ice in the Philippines un'er the authorit% of the (nite'
States !o"ern#ent if ren'ere' prior to Bul% four, nineteen hun're' an' fort%6si)C an'
?2@ perio' fro# Banuar% one, nineteen hun're' an' fort%6two, to 1ebruar% twent%6eight,
nineteen hun're' an' fort%6si) for those who were in the ser"ice on 0ece#ber eight,
nineteen hun're' an' fort%6oneC
but e)clu'ing*
?i@ perio' of #ilitar% ser"ice for which an e#plo%ee recei"es separation,
retire#ent or 'isabilit% pa%C an'
?ii@ perio's of ser"ice ren'ere' after Bune si)teen, nineteen hun're' an' fift%6one
'uring which contributions were not re>uire', unless the contributions with
interest be later on pai' to the S%ste#.
1or the purpose of this section, the ter# ser"ice shall inclu'e full ti#e ser"ice with
co#pensation* Pro"i'e', -hat part6ti#e an' other ser"ices with co#pensation #a% be inclu'e'
un'er such rules an' regulations prescribe' b% the S%ste#.
RET%REME"T BE"E&%TS
#ection 11. Conditions for 'ld#Age Pension.
?a@ ,l'6age pension shall be pai' to a #e#ber who*
?1@ has at least fifteen %ears of ser"iceC
?2@ is at least si)t% %ears of ageC an'
?3@ is separate' fro# the ser"ice.
?b@ (nless the ser"ice is e)ten'e' b% appropriate authorities, retire#ent shall be
co#pulsor% for an e#plo%ee at si)t%6fi"e %ears of age with at least fifteen %ears of
ser"ice* Pro"i'e', -hat if he has less than fifteen %ears of ser"ice, he shall be allowe' to
continue in the ser"ice to co#plete the fifteen %ears.
#ection 12. 'ld#Age Pension.
?a@ A #e#ber entitle' to ol'6age pension shall recei"e the basic #onthl% pension for life
but in no case for a perio' less than fi"e %ears* Pro"i'e', -hat, the #e#ber shall ha"e the
option to con"ert the basic #onthl% pensions for the first fi"e %ears into a lu#p su# as
'efine' in this Act* Pro"i'e', further, -hat, in case the pensioner 'ies before the
e)piration of the fi"e6%ear perio', his pri#ar% beneficiaries shall be entitle' to the
balance of the a#ount still 'ue to hi#. $n 'efault of pri#ar% beneficiaries, the a#ount
shall be pai' to his legal heirs.
?b@ A #e#ber who has ren'ere' at least three %ears but less than fifteen %ears of ser"ice
at the ti#e of separation shall, upon reaching si)t% %ears of age or upon separation after
age si)t%, recei"e a cash pa%#ent e>ui"alent to one hun're' percent of his a"erage
#onthl% co#pensation for e"er% %ear of ser"ice with an e#plo%er.
?c@ $f a pensioner recei"ing a #onthl% pension is re6e#plo%e' b% an e#plo%er, the
pa%#ent of his pension shall be suspen'e'. Ghen a pensioner who recei"es a lu#p su#
is re6e#plo%e' b% an e#plo%er prior to the e)piration of the perio' co"ere' b% such
lu#p6su#, he shall refun' to the S%ste# the a#ount correspon'ing to the une)pire'
perio'. $n either case, when his co#pensation is less than the pension, he shall recei"e the
'ifference* Pro"i'e', -hat, upon the ter#ination of his re6e#plo%#ent, the pension shall
be resu#e'.
#ection 1,. Retirement 'ption. .#plo%ees who are in the go"ern#ent ser"ice upon the
effecti"it% of this Act shall, at the ti#e of their retire#ent, ha"e the option to retire un'er this Act
or un'er +o##onwealth Act No. 185, as pre"iousl% a#en'e'.
PERMA"E"T D%SAB%%T( BE"E&%TS
#ection 10. Conditions for Permanent Disability Benefits. A #e#ber shall be entitle' to the
per#anent 'isabilit% benefits effecti"e fro# the 'ate of his 'isabilit%, pro"i'e', that*
?1@ he has pai' at least thirt%6si) #onthl% contributions within the fi"e6%ear perio'
i##e'iatel% prece'ing his 'isabilit%C or
?2@ he has pai' a total of at least one6hun're' eight% #onthl% contributions prior to his
'isabilit%C an'
?3@ his 'isabilit% is not co#pensable un'er an% other law.
#ection 11. Permanent Disability Benefits.
?a@ A #e#ber who beco#es per#anentl% 'isable' before he is >ualifie' for ol'6age
pension but entitle' to per#anent 'isabilit% benefits shall recei"e the basic #onthl%
pension for life, if the 'isabilit% is total. $f the 'isabilit% is partial, the basic #onthl%
pension shall be pa%able in accor'ance with the rule an' regulations prescribe' b% the
S%ste#.
?b@ $f at the ti#e of his 'isabilit%, he is >ualifie' for ol'6age pension, he shall be entitle'
to the basic #onthl% pension for life but in no case for a perio' less than fi"e %ears*
Pro"i'e', -hat, the #e#ber shall ha"e the option to con"ert the basic #onthl% pensions
for the first fi"e %ears into a lu#p su# as 'efine' in this Act.
?c@ -he basic #onthl% pension shall be suspen'e' when*
?1@ he is re6e#plo%e' b% an e#plo%er an' recei"es a #onthl% co#pensation at
least e>ual to his basic #onthl% pension, otherwise, he shall recei"e the
'ifferenceC or
?2@ he reco"ers fro# his 'isabilit% as 'eter#ine' b% the S%ste#, whose 'ecision
shall be final an' bin'ingC or
?3@ he fails to present hi#self for #e'ical e)a#ination when re>uire' b% the
S%ste#.
?'@ Ghen at the ti#e of his 'isabilit%, he is not entitle' to an% of the benefits un'er
paragraphs ?a@ an' ?b@ of this section, he shall recei"e a cash pa%#ent e>ui"alent to one
hun're' percent of his a"erage #onthl% co#pensation for each %ear ser"ice he pai'
contributions, but not less than fi"e hun're' pesos.
S)R*%*'RS+%P BE"E&%TS
#ection 12. Survivors!ip Benefits. Ghen a #e#ber or pensioner 'ies, the beneficiar% shall be
entitle' to sur"i"orship benefits pro"i'e' for in sections se"enteen an' eighteen hereun'er. -he
sur"i"orship pension shall consist of*
?1@ basic sur"i"orship pension which is fift% percent of the basic #onthl% pensionC an'
?2@ 'epen'entMs pension not e)cee'ing fift% percent of the basic #onthl% pension pa%able
in accor'ance with the rules an' regulations prescribe' b% the S%ste#.
#ection 13. Deat! of a Member.
?a@ (pon the 'eath of a #e#ber, the pri#ar% beneficiaries shall be entitle' to*
?1@ the basic #onthl% pension which is guarantee' for fi"e %earsC Pro"i'e', -hat,
at the option of the beneficiaries, it #a% be pai' in lu#p su# as 'efine' in this
Act* Pro"i'e', further, -hat, the #e#ber is entitle' to ol'6age pension at the ti#e
of his 'eathC or
?2@ the basic sur"i"orship pension which is guarantee' for thirt% #onths an' the
'epen'entMs pension* Pro"i'e', -hat, the 'ecease' ha' pai' at least thirt%6si)
#onthl% contributions within the fi"e6%ear perio' i##e'iatel% prece'ing his
'eath, or total of at least one hun're' eight #onthl% contribution prior to his
'eath.
?b@ At the en' of the guarantee' perio's #entione' in the prece'ing sub6section ?a@, the
sur"i"orship pension shall be pai' as follows*
?1@ when the 'epen'ent spouse is the onl% sur"i"or, he shall recei"e basic
sur"i"orship pension for life or until he re#arriesC
?2@ when onl% 'epen'ent chil'ren are the sur"i"ors, the% shall be entitle' to the
sur"i"orship pension for as long as the% are >ualifie'C
?3@ when the sur"i"ors are the 'epen'ent spouse an' the 'epen'ent chil'ren, the%
shall be entitle' to the sur"i"orship pension so long as there are 'epen'ent
chil'ren an', thereafter, the sur"i"ing spouse shall recei"e the basic sur"i"orship
pension for life or until he re#arries.
?c@ $n the absence of pri#ar% beneficiaries, the secon'ar% beneficiaries 'esignate' b% the
'ecease' an' recor'e' in the S%ste#, shall be entitle' to*
?1@ a cash pa%#ent e>ui"alent to thirt% ti#es the basic sur"i"orship pension when
the #e#ber is >ualifie' for ol'6age pensionC or
?2@ a cash pa%#ent e>ui"alent to fift% percent of the a"erage #onthl%
co#pensation for each %ear he pai' contributions, but not less than fi"e hun're'
pesosC Pro"i'e', -hat, the #e#ber pai' at least thirt%6si) #onthl% contributions
within the fi"e6%ear perio' i##e'iatel% prece'ing his 'eath or pai' a total of at
least one hun're' eight% #onthl% contributions prior to his 'eath.
?'@ Ghen the pri#ar% beneficiaries are not entitle' to the benefits #entione' in paragraph
?a@ of this section, the% shall recei"e a cash pa%#ent e>ui"alent to one hun're' percent of
the a"erage #onthl% co#pensation for each %ear the #e#ber pai' contributions, but not
less than fi"e hun're' pesos. $n the absence of pri#ar% beneficiaries, the a#ount shall
re"ert to the fun's of the S%ste#.
#ection 18. Deat! of a Pensioner. (pon the 'eath of a pensioner, the pri#ar% beneficiaries shall
recei"e the applicable pension #entione' un'er paragraph ?b@ of section se"enteen of this Act*
Pro"i'e', -hat, the 'epen'ent spouse shall not be entitle' to sai' pension if his #arriage with the
pensioner is contracte' within three %ears before the pensioner >ualifie' for the pension. Ghen
the pensioner 'ies within the perio' co"ere' b% the lu#p su#, the sur"i"orship pension shall be
pai' onl% after the e)piration of the sai' perio'. -his shall also appl% to the pensioners li"ing as
of the effecti"it% of this Act, but the sur"i"orship benefit shall be base' on the #onthl% pension
being recei"e' at the ti#e of 'eath.
&)"ERA BE"E&%T
#ection 19. &uneral benefit. A funeral benefit of one thousan' pesos shall be pai' upon the 'eath
of a #e#ber of pensioner.
S%C,"ESS BE"E&%TS
#ection 27. Sic-ness %ncome Benefit.
?a@ A #e#ber who suffers a non6wor connecte' sicness or in;ur% resulting in
te#porar% total 'isabilit%, shall be entitle' to si)t%6fi"e percent of his current 'ail%
co#pensation for each 'a% or fraction thereof of sicness or in;ur% but not e)cee'ing
si)t% 'a%s in one calen'ar %ear after e)hausting all his sic lea"e cre'its but not earlier
than the forth 'a% of his sicness or in;ur%C pro"i'e' he has pai' at least si) #onthl%
contributions in the twel"e6#onth perio' i##e'iatel% prece'ing his sicness or in;ur%*
Pro"i'e', howe"er, -hat, the #e#ber cannot en;o% the sicness inco#e benefits an' sic
lea"e pa% si#ultaneousl%C
?b@ -he sicness inco#e benefit shall not less than four pesos nor #ore than twent% pesos
a 'a%.
?c@ -he notices re>uire' of the #e#ber an' the e#plo%er, the #o'e of pa%#ent, an' the
other re>uire#ents for entitle#ent to sicness inco#e benefits shall be pro"i'e' in the
rules an' regulations prescribe' b% the S%ste#.
%&E %"S)RA"CE BE"E&%TS
#ection 21. Compulsory ife %nsurance. Sub;ect to the rules an' regulations prescribe' b% the
S%ste#, all e#plo%ees shall be co#pulsoril% co"ere' with life insurance which shall
auto#aticall% tae effect as follows*
?1@ for those e#plo%e' after this Act, their insurance shall tae effect on the 'ate of their
e#plo%#entC
?2@ for those whose insurance #ature' an' not renewe' prior to this Act, their insurance
shall be 'ee#e' renewe' on the 'a% following the effecti"it% of this ActC
?3@ for those whose insurance will #ature or will e)pire after this Act, their insurance
shall be 'ee#e' renewe' on the 'a% following or e)pir% 'ate of their pre"ious insuranceC
?3@ for those without an% life insurance as of the effecti"it% of this Act, their insurance
shall tae effect on the 'a% following sai' effecti"it%.
#ection 22. 'ptional ife %nsurance. Sub;ect to the rules an' regulations prescribe' b% the
S%ste#, a #e#ber #a% at an% ti#e appl% for optional life insurance for hi#self an'8or his
'epen'ents an' the pa%#ent of the pre#iu#s therefor #a% be #a'e b% the insure' or his
e#plo%er an'8or an% person acceptable to the S%ste#.
E. AD;UDI(AI!N !F (LAI"# AND DI#&UE#
#ection 2,. &acility of Payment. -he S%ste# shall prescribe such rules an' regulations to
facilitate pa%#ent of benefits, procee's, an' clai#s un'er this Act an' an% other laws
a'#inistere' b% the S%ste#. Pa%#ents #a'e b% the s%ste# prior to its receipt of an a'"erse
clai#, to a beneficiar% or clai#ant subse>uentl% foun' not entitle' thereto, shall free the S%ste#
fro# an% liabilit% to the person or persons legall% entitle' to such pa%#ent who shall, howe"er,
ha"e a right to institute the appropriate action in a court of law against the ineligible recipient of
the benefits, procee's, or clai#s.
#ection 20. Settlement of Disputes. -he S%ste# shall ha"e original an' e)clusi"e ;uris'iction to
settle an% 'ispute arising un'er this Act.
-he 9oar' #a% 'esignate an% #e#ber of the 9oar' of official of the S%ste# to act as hearing
officer to recei"e e"i'enceC #ae fin'ing of facts an' sub#it reco##en'ations thereon. -he
hearing officer shall sub#it his fin'ings, reco##en'ations, together with all the 'ocu#entar%
an' testi#onial e"i'ence, to the 9oar' within thirt% woring 'a%s fro# the ti#e the parties ha"e
close' their respecti"e e"i'ence an' file' their last plea'ing. -he 9oar' shall 'eci'e the case
within thirt% 'a%s therefro#. -he cases hear' 'irectl% b% the 9oar' shall be 'eci'e' within thirt%
woring 'a%s fro# the ti#e the% are sub#itte' b% the parties for 'ecision.
#ection 21. Appeals. Githin fifteen 'a%s fro# receipt of notice of 'ecision or awar', the
aggrie"e' part% #a% appeal the sa#e to the +ourt of Appeals on >uestions of law an' facts
following the proce'ures for appeals fro# the +ourt of 1irst $nstance to the +ourt of Appeals as
far as practicable an' consistent with the purposes of this Act. $f the appeal is onl% on >uestions
of law, the sa#e shall be brought 'irectl% to the Supre#e +ourt on certiorari. No appeal bon'
shall be re>uire'. -he appeal shall tae prece'ence o"er all other cases e)cept cri#inal cases
wherein the penalt% of life i#prison#ent or 'eath has been i#pose' b% the trial court. Appeal
shall not sta% the 'ecision of the 9oar' unless so or'ere' b% the 9oar', b% the +ourt of Appeals
or b% the Supre#e +ourt.
#ection 22. E.ecution of Decision. Ghen no appeal is perfecte' an' there is no or'er to sta% b%
the 9oar', b% the +ourt of Appeals or b% the Supre#e +ourt, an% 'ecision or awar' of the 9oar'
shall be enforce' an' e)ecute' in the sa#e #anner as 'ecisions of the +ourt of 1irst $nstance.
1or this purpose, the 9oar' shall ha"e the power to issue to the cit% or pro"incial sheriff or its
appointe' sheriff such writs of e)ecution as #a% be necessar% for the enforce#ent of such
'ecision or awar', an' an% person who shall fail or refuse to co#pl% with such 'ecision, awar',
writ or process after being re>uire' to 'o so, shall, upon application b% the S%ste#, be punishe'
for conte#pt.
#ection 23. 'at!s/ 0itnesses/ and Production of Records. Ghen authoriFe' b% the 9oar', an
official or e#plo%ee of the S%ste# shall ha"e the power to a'#inister oath an' affir#ation, tae
'ispositions, certif% to official acts, an' issue subpoena an' subpoena 'uces tecu# to co#pel the
atten'ance of witnesses an' the pro'uction of boos, papers, correspon'ences, an' other recor's
'ee#e' necessar% as e"i'ence in connection with an% >uestion arising un'er this Act. An% case
of contu#ac% shall be 'ealt with in accor'ance with the pro"isions of section fi"e hun're' eight%
of the Re"ise' A'#inistrati"e +o'e.
F. FUND# !F %E #D#E"
#ection 28. &unds. -he fun's a'#inistere' b% the S%ste# shall consist of ol'6age, 'isabilit%,
sur"i"orship, health insurance, state insurance, life insurance an' general insurance fun's. -he
reser"es an'8or networth of sai' fun's shall be use' to finance the benefits a'#inistere' b% the
S%ste#. 1or purposes of effecti"e a'#inistration of sai' benefits, an% a#ount in e)cess of the
re>uire' reser"es in an% fun', as 'eter#ine' b% the Actuar% of the S%ste#, #a% be sub;ect to
interfun' borrowing at an i#pute' interest to be 'eter#ine' b% the 9oar'.
#ection 29. Deposit and Disbursements. All re"enues collecte' an' all accruals thereto shall be
'eposite', a'#inistere' an' 'isburse' in accor'ance with the law. A #a)i#u# e)penses loa'ing
of twel"e percent of the %earl% re"enues fro# all sources #a% be 'isburse' for a'#inistrati"e
an' operational e)penses e)cept as #a% be otherwise appro"e' b% the Presi'ent of the
Philippines on the basis of actuarial an' #anage#ent stu'ies.
#ection ,7. %nvestment of &unds. 1un's of the S%ste# not nee'e' to #eet the current obligations
#a% be in"este' un'er such ter#s an' con'itions as #a% be 'eter#ine' b% the 9oar'.
#ection ,1. Records and Reports. -he S%ste# shall eep an' cause to eep such recor's as #a%
be necessar% for the purpose of #aing actuarial stu'ies, calculations an' "aluations of the fun's
of the S%ste# inclu'ing such 'ata nee'e' in the co#putation of rates of 'isabilit%, #ortalit%,
#orbi'it%, separation an' retire#ent a#ong the #e#bers an' an% other infor#ation useful for
the a';ust#ent of the benefits of the #e#bers. Separate an' 'istinct recor's of the operation of
each branch of social securit% an' insurance shall be #aintaine'. -he S%ste# shall also #aintain
appropriate boos of accounts to recor' its assets, liabilities, inco#e, e)penses, receipts an'
'isburse#ent of fun's an' other financial transactions an' operations.
#ection ,2. E.amination and *aluation of t!e &unds. -he S%ste# shall #ae a perio'ic actuarial
e)a#ination an' "aluation of the fun's of the S%ste# in accor'ance with accepte' actuarial
principles.
#ection ,,. E.emption from Ta./ egal Process and ien. $t is hereb% 'eclare' to be the polic%
of the State that the actuarial sol"enc% of the fun's of the S%ste# shall be preser"e' an'
#aintaine' at all ti#e an' that the contribution rates necessar% to sustain the benefits un'er this
Act shall be ept as low as possible in or'er not to bur'en the #e#bers of the S%ste# an'8or
their e#plo%ees. -a)es i#pose' on the S%ste# ten' to i#pair the actuarial sol"enc% of its fun's
an' increase the contribution rate necessar% to sustain the benefits un'er this Act. Accor'ingl%,
notwithstan'ing an% laws to the contrar%, the S%ste#, its assets, re"enues inclu'ing all ta)es,
assess#ents, fees, charges or 'uties of all in's. -hese e)e#ptions shall continue unless
e)pressl% an' specificall% re"oe' an' an% assess#ent against the S%ste# as of the appro"al of
this Act are hereb% consi'ere' pai'.
-he benefits grante' un'er this Act shall not be sub;ect, a#ong others, to attach#ent,
garnish#ent, le"% or other processes. -his, howe"er, shall not appl% to obligations of the
#e#ber to the S%ste#, or to the e#plo%er, or when the benefits grante' herein are assigne' b%
the #e#ber with the authorit% of the S%ste#.
'. AD"INI#RAI!N
#ection ,0. %mplementing Body. -he !o"ern#ent Ser"ice $nsurance S%ste# as create' an'
establishe' un'er +o##onwealth Act No. 185 shall i#ple#ent the pro"isions of this Act.
#ection ,1. Po1ers and &unctions of t!e System. -he S%ste# shall ha"e the following powers
an' functions specifie' in this Act an' the usual general corporate powers*
?a@ -o a'opt, a#en' an' rescin' such rules an' regulations as #a% be necessar% to carr%
out the pro"isions an' purposes of this ActC
?b@ -o a'opt fro# ti#e to ti#e a bu'get for the a'#inistration an' operation of the
S%ste#C
?c@ -o in"est its fun's, 'irectl% or in'irectl%, in accor'ance with this ActC
?'@ -o ac>uire, utiliFe or 'ispose of, in an% #anner recogniFe' b% law, real or personal
properties in the Philippines or elsewhere necessar% to carr% out the purposes of this ActC
?e@ -o con'uct continuing actuarial an' statistical stu'ies an' "aluations to 'eter#ine the
financial con'ition of the S%ste# an' taing into consi'eration such stu'ies an'
"aluations an' the li#itations herein pro"i'e', re6a';ust the benefits, contributions,
pre#iu# rates, interest rates or the allocation or the re6allocation of the fun's to the
contingencies co"ere'C
?f@ -o ha"e the power of successionC
?g@ -o sue an' be sue'C
?h@ -o enter into, #ae, perfor# an' carr% out contracts of e"er% in' an' 'escription
with an% person, fir# or association or corporation, 'o#estic or foreignC
?i@ -o carr% on an% other lawful business whatsoe"er in pursuance of, or in connection
with the pro"isions of this ActC
?;@ -o ha"e one or #ore offices in an' outsi'e of the Philippines, an' to con'uct its
business an' e)ercise its powers throughout an' in an% part of the Republic of the
Philippines an'8or in an% or all foreign countries, states an' territoriesC
?@ -o borrow fun's fro# an% source, pri"ate or go"ern#ent, foreign or 'o#esticC
?l@ -o in"est, own or otherwise participate in e>uit% in an% establish#ent, fir# or entit%C
to for#, organiFe in"est in, establish an' #aintain subsi'iar% or subsi'iariesC
?#@ -o e)ercise such powers an' perfor# such acts as #a% be necessar%, useful,
inci'ental or au)iliar% to carr% out the pro"isions of this Act.
#ection ,2. T!e Board of Trustees2 its Composition2 Tenure and Compensation. -he +orporate
powers an' functions of the S%ste# shall be "este' in, an' e)ercise' b% the 9oar' of -rustees
co#pose' of the Presi'ent an' !eneral 4anager of the S%ste# an' se"en other #e#bers to be
appointe' b% the Presi'ent of the Philippines, three of who# shall represent three lea'ing
organiFations or associations of go"ern#ent e#plo%ees. -he -rustees shall elect fro# a#ong
the#sel"es a chair#an an' "ice6chair#an.
-he -rustees, e)cept the Presi'ent an' !eneral 4anager of the s%ste# who shall cease as trustee
upon his separation, shall hol' for three %ears or until their successors are 'ul% appointe' an'
>ualifie'. 7acanc%, other than through the e)piration of the ter#, shall be fille' for the une)pire'
ter# onl%. -he #e#bers of the 9oar' shall be entitle' to a per 'ie# of fi"e hun're' pesos for
each boar' #eeting actuall% atten'e' b% the#, but not to e)cee' two thousan' pesos a #onth,
an' reasonable transportation an' representation allowances as shall be fi)e' b% the 9oar'.
-he 9oar' of -rustees as presentl% constitute' shall continue to hol' office until their successors
shall ha"e been appointe' an' 'ul% >ualifie'.
#ection ,3. Appointment/ 3ualifications/ and Compensation of t!e President and $eneral
Manager and of 't!er Personnel. -he Presi'ent an' !eneral 4anager of the S%ste# shall be the
+hief .)ecuti"e ,fficer of the S%ste# who shall be appointe' b% the Presi'ent of the
Philippines. :e shall be a person e)perience' in technical an' a'#inistrati"e fiel's relate' to the
purposes of this Act.
-he Presi'ent an' !eneral 4anager of the S%ste# shall be assiste' b% one or #ore e)ecuti"e
"ice6presi'ents, senior "ice6presi'ents an' "ice6presi'ents who shall be appointe' an' re#o"e'
b% the Presi'ent an' !eneral 4anager of the S%ste# with the appro"al of the 9oar'.
-he position classification an' co#pensation rates of the Presi'ent an' !eneral 4anager, an' of
the officers an' e#plo%ees of the s%ste# shall be sub;ect to appro"al of the Presi'ent of the
Philippines un'er the pro"isions of P.0. No. 985.
#ection ,8. Po1ers and Duties of t!e President and $eneral Manager. -he presi'ent an'
!eneral 4anager of the S%ste# shall a#ong others, e)ecute an' a'#inister the policies an'
resolutions appro"e' b% the 9oar' an' 'irect an' super"ise the a'#inistration an' operations of
the S%ste#. -he Presi'ent an' !eneral 4anager of the S%ste#, sub;ect to the appro"al of the
9oar', shall appoint the personnel of the S%ste#, re#o"e, suspen' or otherwise 'iscipline the#
for cause an' prescribe their 'uties an' >ualifications to the en' that onl% co#petent persons
#a% be e#plo%e'.
#ection ,9. Auditor.
?a@ -he +hair#an of the +o##ission on Au'it shall be the e)6officio au'itor of the
S%ste#. 1or this purpose, he #a% appoint a representati"e who shall be the au'itor of the
S%ste#, an' the necessar% personnel to assist sai' representati"e in the perfor#ance of
his 'uties. -he nu#ber of salaries of the au'itor an' sai' personnel shall be 'eter#ine'
b% the +hair#an of the +o##ission on Au'it, sub;ect to appropriation b% the 9oar'C in
case of 'isagree#ent, the #atter shall be sub#itte' to the presi'ent of the Philippines
whose 'ecision shall be final. Sai' salaries an' all other e)penses of #aintaining the
au'itorMs office shall be pai' b% the S%ste#.
?b@ -he +hair#an of the +o##ission on Au'it of his authoriFe' representati"e, shall
sub#it to the 9oar' soon after the close of each calen'ar %ear, an au'ite' state#ent
showing the financial con'ition an' progress of the S%ste# for the calen'ar %ear ;ust
en'e'.
#ection 07. egal Counsel. -he !o"ern#ent +orporate +ounsel shall be the legal counsel of the
S%ste#. 1or the perfor#ance of his 'uties an' the ser"ices of the 2egal Staff of the office of the
!o"ern#ent +orporate +ounsel, the 9oar' shall appropriate, an' the Presi'ent an' !eneral
4anager of the S%ste# shall re#it, such a#ount as shall be 'eter#ine' b% the !o"ern#ent
+orporate +ounsel with the appro"al of the Secretar% of Bustice.
%. 'ENERAL AND &ENAL &R!8I#I!N#
#ection 01. $overnment Assistance to t!e System. -he S%ste# #a% call upon an% e#plo%er for
such assistance as #a% be necessar% in the 'ischarge of its 'uties an' functions.
#ection 02. Penalty.
?a@ An% person foun' to ha"e participate' 'irectl% or in'irectl% in the co##ission of
frau', collusion, falsification, or #isrepresentation in an% transaction with the S%ste#
whether for hi# or for so#e other persons, shall suffer the penalties pro"i'e' for in
Article one hun're' se"ent% two of the Re"ise' Penal +o'e.
?b@ Ghoe"er shall obtain or recei"e an% #one% or chec in"oing an% pro"ision of this
Act or an% agree#ent thereun'er, without being entitle' thereto with the intent to 'efrau'
an% #e#ber, an% e#plo%er, the S%ste#, or an% thir' part%, shall be punishe' b% a fine of
not less than fi"e hun're' pesos nor #ore than fi"e thousan' pesos or b% i#prison#ent
of not less than si) #onths nor #ore than one %ear, or both, at the 'iscretion of the court.
?c@ Ghoe"er fails or refuses to co#pl% with the pro"ision of this Act or with the rules an'
regulations a'opte' b% the S%ste# shall be punishe' b% a fine of not less than fi"e
hun're' pesos nor #ore than fi"e thousan' pesos, or b% i#prison#ent of not less than si)
#onths nor #ore than one %ear, or both, at the 'iscretion of the court.
?'@ -he treasurer, finance officer, cashier, 'isbursing officer, or other e#plo%ee who fails
or refuses or 'ela%s b% #ore than three #onths, to 'e'uct the contributions of the
e#plo%ee shall be punishe' b% a fine of not less than one thousan' pesos nor #ore than
fi"e thousan' pesos, or b% i#prison#ent of not less than one %ear nor #ore than fi"e
%ears, or both, at the 'iscretion of the court an' shall, #oreo"er, be 'is>ualifie' fro#
hol'ing public office an' fro# practicing an% profession or calling license' b% the
!o"ern#ent.
?e@ An% e#plo%ee or #e#ber who recei"es or eeps fun' or propert% belonging, pa%able
or 'eli"erable to the S%ste# an' appropriates the sa#e, or taes or #isappropriates or
uses the sa#e to an% purpose other than that authoriFe' b% this Act, or per#its another
person to tae, #isappropriate or use sai' fun' or propert% b% e)pressl% consenting
thereto, or through aban'on#ent or negligence, or is otherwise guilt% of the #is6
appropriation of sai' fun' or propert%, in whole or in part, shall suffer the penalties
pro"i'e' in Article two hun're' se"enteen of the Re"ise' Penal +o'e.
?f@ An% e#plo%ee, who, after 'e'ucting the #onthl% contribution or loan a#ortiFation
fro# a #e#berMs co#pensation fails to re#it the sa#e to the S%ste# within thirt% 'a%s
fro# the 'ate the% shoul' ha"e been re#itte' un'er section 5?a@ shall be presu#e' to
ha"e #isappropriate' such contribution or loan a#ortiFation an' shall suffer the penalties
pro"i'e' in Article three hun're' fifteen of the Re"ise' Penal +o'e.
?g@ +ri#inal actions arising fro# "iolations of the pro"isions of this Act #a% be
co##ence' b% the S%ste# or b% the aggrie"e' #e#ber, either un'er this Act or, in
appropriate cases, un'er the Re"ise' Penal +o'e.
#ection 0,. %mplementing Rules and Regulations. -he i#ple#enting rules an' regulations to
carr% out the pro"isions of this Act shall be a'opte' an' pro#ulgate' b% the S%ste# not later
than ninet% 'a%s after the appro"al of this Act.
#ection 00. "on#impairment of Benefits. Powers, Buris'iction, Rights, Pri"ileges, 1unctions an'
Acti"ities. Nothing in this Act shall be construe' to repeal, a#en' or li#it an% pro"ision of
e)isting laws, Presi'ential 0ecrees an' 2etters of $nstructions, not otherwise specificall%
inconsistent with the pro"isions of this Act.
#ection 01. E.clusiveness of Benefits. Ghene"er other laws pro"i'e si#ilar benefits for the sa#e
contingencies co"ere' b% this Act, the #e#ber who >ualifies for the benefit shall ha"e the option
to choose which benefits will be pai' to hi#. :owe"er, if the benefits pro"i'e' b% the law
chosen are less than the benefits pro"i'e' un'er this Act, the S%ste# shall pa% onl% the
'ifference* Pro"i'e', howe"er, -hat, when the 'isabilit% or 'eath of an e#plo%ee or #e#ber is
wor6connecte' as 'efine' in Presi'ential 0ecree No. 525, as a#en'e', he shall be entitle' to
the benefits therefore as pro"i'e' herein, chargeable against the State $nsurance 1un'.
#ection 02. Appropriations. -here is hereb% appropriate' for the current fiscal %ear, an' annuall%
thereafter, out of an% fun' in the National -reasur% or other 'epositor% not otherwise
appropriate', such su#s as #a% be necessar% to pa% the contributions or pre#iu#s an' interests
pa%able b% each e#plo%er un'er this Act, as well as obligations which the Republic of the
Philippines assu#es or guarantees to pa% un'er this Act.
#ection 03. Saving Clause. Shoul' an% pro"ision of this Act or an% part thereof be 'eclare'
in"ali', the other pro"isions, so far as the% are separable fro# the in"ali' ones, shall re#ain in
force.
#ection 08. Repealing Clause. All laws or parts of law specificall% inconsistent herewith shall be
consi'ere' a#en'e' or repeale' accor'ingl%.
#ection 09. Effectivity. -his Act shall tae effect upon its appro"al.
0one in the +it% of 4anila, Philippines, this 31st 'a% of 4a%, in the %ear of ,ur 2or', nineteen
hun're' an' se"ent%6se"en.
RE&U$LI( A( No. 1212
AN A( FUR%ER A"ENDIN' #E(I!N AEL8E !F (!""!NAEAL% A(
NU"$ERED !NE %UNDRED EI'%D-#IC? A# A"ENDED? $D &RE#(RI$IN' A!
!%ER "!DE# !F REIRE"EN AND F!R !%ER &UR&!#E#.
#ection 1. Section twel"e of +o##onwealth Act Nu#bere' ,ne hun're' eight%6si), as
a#en'e', is hereb% further a#en'e' b% a''ing two new paragraphs after paragraph ?a@ which
rea's as follows*
N?b@ Notwithstan'ing the pro"isions of the prece'ing paragraph, a #e#ber #a% be
allowe' to retire after ren'ering a total ser"ice of thirt% %ears, regar'less of age, the
retiring e#plo%ee to recei"e a #onthl% annuit% for life, but the benefit for ser"ice
ren'ere' after Bune si)teen, nineteen hun're' an' fift%6one, shall be whate"er a#ount of
annuit% can be purchase' b% the accu#ulate' go"ern#ent an' personal contributions to
the cre'it of a #e#ber plus interest allowe' b% the s%ste# on the 'ate of retire#ent. Sai'
annuit% shall be co#pute' in accor'ance with the #ortalit% table an' the rate of interest
a'opte' b% the s%ste#. -his benefit shall be in a''ition to the benefit for ser"ice ren'ere'
prior to Bune si)teen, nineteen hun're' an' fift%6one as pro"i'e' in section ele"en ?A@ of
this Act.
N?c@ Retire#ent is liewise allowe' to a #e#ber, regar'less of age, who has ren'ere' at
least twent% %ears of ser"ice. -he benefit shall, in a''ition to the return of his personal
contributions plus interest, be onl% a gratuit% e>ui"alent to one #onth salar% for e"er%
%ear of ser"ice, base' on the highest rate recei"e', but not to e)cee' twent%6four #onths.
-his gratuit% is pa%able b% the e#plo%er or office concerne' which is hereb% authoriFe'
to pro"i'e the necessar% appropriation or pa% the sa#e fro# sa"ings in its
appropriations.N
#ection 2. ,fficials an' e#plo%ees pai' gratuit% un'er this Act shall be entitle' to the
co##utation of the unuse' "acation an' sic lea"e which the% #a% ha"e to their cre'it at the
ti#e of retire#ent.
#ection ,. Paragraphs b, c, ' an' e of section twel"e of +o##onwealth Act Nu#bere' ,ne
hun're' eight%6si), as a#en'e', are hereb% change' to paragraphs ', e, f an' g, respecti"el%.
#ection 0. -his Act shall tae effect upon its appro"al.
Appro"e'* 4a% 31, 195&
Bune 15, 1951
RE&U$LI( A( N!. 227
AN A+- -, A4.N0 +,44,NG.A2-: A+- N(49.R.0 ,N. :(N0R.0 AN0
.$!:-=6S$P .N-$-2.0 NAN A+- -, +R.A-. AN0 .S-A92$S: A !,7.RN4.N-
S.R7$+. $NS(RAN+. S=S-.4, -, PR,7$0. 1,R $-S A04$N$S-RA-$,N, AN0 -,
APPR,PR$A-. -:. N.+.SSAR= 1(N0S -:.R.1,R,N AN0 -, PR,7$0.
R.-$R.4.N- $NS(RAN+. AN0 1,R ,-:.R P(RP,S.S
S.+-$,N 1. Subsections ?a@, ?'@, an' ?f@ of section two of +o##onwealth Act Nu#bere' ,ne
hun're' an' eight%6si) are hereb% a#en'e' to rea' as follows an' subsection ?g@ is hereb%
a''e'*
NS.+. 2. 0efinitions. A Ghen use' in this Act the following ter#s shall, unless the conte)t
otherwise in'icates, ha"e the following respecti"e #eanings* c't
N?a@ M.#plo%erM shall #ean the National or a local go"ern#ent, an agenc%, boar', or corporation
controlle' or owne' b% the !o"ern#ent. N.#plo%eeN shall #ean an% 1ilipino citiFen in the
ser"ice of sai' Ne#plo%erN.
N?'@ M4e#berM shall #ean an% person insure' in the S%ste#.
N?f@ M4e#bership polic%M shall #ean a life insurance polic% for an a#ount, the #onthl% pre#iu#
of which is e>ui"alent to two, fi"e or si) per centu# of an e#plo%eeMs #onthl% salar% or
co#pensation.
N?g@ MRegular officerM or Menliste' #anM shall #ean one whose co##ission or enlist#ent is in the
regular force of the Ar#e' 1orces of the Philippines an' not in the reser"e force thereof.N
S.+-$,N 2. Section four of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% a#en'e' to rea' as follows*
NS.+. 3. Scope of application of S%ste#. A ?a@ 4e#bership in the S%ste# shall be co#pulsor%
upon all regularl% an' per#anentl% appointe' e#plo%ees, inclu'ing those whose tenure of office
is fi)e' or li#ite' b% lawC upon all teachers e)cept onl% those who are substitutesC an' upon all
regular officers an' enliste' #en of the Ar#e' 1orces of the Philippines* Pro"i'e', -hat it shall
be co#pulsor% upon regularl% an' per#anentl% appointe' e#plo%ees of a #unicipal go"ern#ent
below first class onl% if an' when sai' go"ern#ent has ;oine' the S%ste# un'er such ter#s an'
con'itions as the latter #a% prescribe.
N?b@ 4e#bership in the S%ste# shall be optional with an electi"e official of the National
!o"ern#ent or of a local go"ern#ent that is a #e#ber of the S%ste#* Pro"i'e', -hat if he
'esires to co#e within the pur"iew of this Act, he #ust notif% the S%ste# in writing to that
effect* Pro"i'e', further, -hat he co#plies with the re>uire#ents of the S%ste# an' that he is in
the !o"ern#ent ser"ice when his insurance taes effect* An' pro"i'e', finall%, -hat after his
a'#ission into the S%ste# he shall be entitle' to life insurance benefit for which he shall pa%
either one per centu# or three per centu# of his #onthl% salar%, 'epen'ing on the in' of
insurance selecte' b% hi#, an' his e#plo%er shall liewise pa% for hi# the sa#e a#ount.N
S.+-$,N 3. Section fi"e of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% a#en'e' to rea' as follows*
NS.+. 5. ?a@ Rates of contributions. A 1or the benefits 'escribe' hereun'er, each e#plo%ee who
is a #e#ber of the S%ste# an' his e#plo%er shall pa% the #onthl% rates of pre#iu#s specifie'
in the following sche'ule*
4,N-:2= PR.4$(4S
QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
Percentage of #onthl%
9enefits salar% pa%able b% A Re#ars
.#plo%ee .#plo%er
$. 2ife $nsurance 1 1 Pa%#ent of pre#iu# shall begin 3 3 on the last 'a% of the 5 < calen'ar
#onth prece'ing the #onth when oneMs insurance taes effect. .)cept as otherwise pro"i'e' in
this Act, the first rate shall appl% to a ci"ilian e#plo%ee insure' on or after the appro"al of this
Act. -he secon' rate shall appl% to a ci"ilian e#plo%ee alrea'% insure' prior to the appro"al of
this Act unless he chooses ter# insurance in which case the first rate shall appl%. -he thir' rate
shall appl% to a regular officer or an enliste' #an.
$$. Retire#ent 5 $f e#plo%eeMs #onthl% salar% is insurance P2<< or less. 5 $f e#plo%eeMs #onthl%
salar% is #ore than P2<<, but his pre#iu# for this benefit shall not e)cee' P3&.5< per #onth.
NPa%#ent of pre#iu#s for retire#ent insurance shall begin on the last 'a% of the thir' calen'ar
#onth following the #onth of this Act was appro"e' or the e#plo%ee entere' the ser"ice,
whiche"er is the later 'ate* Pro"i'e', howe"er, -hat such pre#iu#s shall not be re>uire' of
Bustices of the Supre#e +ourt, electi"e officials, an' regular officers an' enliste' #en, who are
hereb% e)clu'e' fro# sai' benefit.
N?b@ Pre#iu#s for optional insurance. A -he a#ount of pre#iu# on oneMs optional insurance
'escribe' in section ten hereof shall be as pro"i'e' in his polic%. -he pre#iu#s on this optional
insurance shall be entirel% borne b% the insure'.
N?c@ Pre#iu#s for optional retire#ent annuit%. A .ach e#plo%ee #a% at his option an' un'er
such rules an' con'itions as the S%ste# #a% prescribe 'eposit a''itional a#ounts fro# ti#e to
ti#e, the total of which shall not e)cee' ten per cent of the total salaries he has recei"e' fro# his
e#plo%er prior to his retire#ent. -hese 'eposits shall be cre'ite' with interest of three per
centu# per annu#, co#poun'e' #onthl%, an' together with sai' interest shall at the 'ate of his
retire#ent be a"ailable to purchase in a''ition to the annuit% 'escribe' in section ele"en hereof
such an annuit% as he will elect an' the S%ste# will offer. $n the e"ent of his 'eath or separation
before beco#ing eligible for retire#ent, the total a#ount so 'eposite', with interest, shall be
refun'e' to hi# or his beneficiaries as recor'e' in his application for optional retire#ent annuit%
file' with the S%ste#.
N?'@ +ollection an' re#ittance of pre#iu#s. A .ach e#plo%er concerne' shall at the en' of
each #onth 'e'uct an' withhol' fro# the #onthl% salar% of e"er% e#plo%ee in its ser"ice the
pre#iu#s pa%able b% hi# in accor'ance with the prece'ing sche'ule plus the a''itional
pre#iu#s, if an%, re>uire' in section se"en hereof. $t shall a'"ance an' re#it to the S%ste#
beginning April 1 of each %ear an' >uarterl% thereafter the #onthl% pre#iu#s for the current
>uarter, together with its correspon'ing shares as 'escribe' in the sai' sche'ule, plus e)tra
pre#iu#s an' a''itional a#ounts, if an%, as re>uire' in the following sections* Pro"i'e', -hat if
such e#plo%ee is separate' fro# the ser"ice, then an% pre#iu#s not 'ue an' pa%able shall be
refun'e' or cre'ite' to his e#plo%er. A #e#ber no longer in the ser"ice #a% pa% his pre#iu#s
'irectl% to the S%ste# or as pro"i'e' herein below.
N.)cept as otherwise specifie' herein, pa%#ent of an% pre#iu# on oneMs optional insurance
an'8or retire#ent annuit% in the S%ste# #a% be #a'e to an e#plo%er whose location is
con"enient to the #e#ber, an' such e#plo%er is hereb% authoriFe' an' re>uire' to accept such
pa%#ent, issue receipt therefor, an' re#it the sa#e i##e'iatel% to the S%ste#.N
S.+-$,N 3. Section si) of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% a#en'e' to rea' as follows*
NS.+. 5. .#plo%erMs pre#iu#s. A .ach e#plo%er shall inclu'e in its annual appropriation an'
re#it to the S%ste# the necessar% a#ounts for its correspon'ing shares of the pre#iu#s
'escribe' in subsection ?a@ of section fi"e, plus an% e)tra pre#iu#s that #a% be re>uire' on
account of the haFar's or riss of its e#plo%eesM occupations, plus the a''itional a#ounts, if an%,
re>uire' in the ne)t following section* Pro"i'e', howe"er, -hat if oneMs co#pulsor% #e#bership
polic% #atures, the e#plo%erMs pre#iu# for his life insurance shall cease until he ac>uires a new
#e#bership polic%, which, howe"er, shall be grante' onl% upon satisfactor% e"i'ence of
insurabilit%* An' pro"i'e', finall%, -hat in case of transfer of an e#plo%ee fro# one e#plo%er to
another, the for#er e#plo%er shall be relie"e' of pa%ing further pre#iu#s for hi# an' the new
e#plo%er whether or not it has ;oine' the S%ste#, shall assu#e the sa#e, appropriating therefor
the necessar% a#ount.
N-he 9oar' shall ha"e the full power an' authorit% to a'opt rules an' regulations for the
collection an' re#ittance of pre#iu#s or other a#ounts pa%able as pro"i'e' in this Act an'8or
an% in'ebte'ness to the S%ste#, an' i#pose a fine not e)cee'ing the loss or 'a#age that the
S%ste# #a% suffer on the official or officials responsible for the 'ela% or failure in collecting or
re#itting sai' pre#iu#s or in'ebte'ness without pre;u'ice to such other punish#ent as #a% be
i#pose' in accor'ance with e)isting +i"il Ser"ice rules an' regulations. Notwithstan'ing an%
law to the contrar%, the 9oar' #a% gi"e e)tra re#uneration to officials in charge of collecting
an' re#itting sai' pre#iu#s, a#ounts, or in'ebte'ness, if b% so 'oing the best interest of the
S%ste# shall be a'"ance'.N
S.+-$,N 5. Section se"en of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% a#en'e' to rea' as follows*
NS.+. &. A''itional pre#iu#s. A ?a@ 1or the a#ount of annuit% correspon'ing to the ser"ices
ren'ere' b% an e#plo%er prior to the appro"al of this Act, his e#plo%er shall pa% un'er such
rules an' regulations as the S%ste# #a% prescribe the necessar% a''itional a#ounts or
pre#iu#s.
N?b@ -he 9oar' is hereb% authoriFe' an' e#powere', in carr%ing out the pro"isions of this Act,
to supple#ent the in'i"i'ual pre#iu#s of #e#bers with #one%s recei"e' in the for# of
'onations, gifts, legacies, or be>uests, or otherwise, an' to recei"e an' 'eposit to the cre'it of the
S%ste#, an' in"est all #one%s which #a% be 'onate' b% pri"ate in'i"i'uals, organiFations, or
corporations.
N?c@ All sa"ings in appropriations for salaries an' wages that #a% be realiFe' b% each e#plo%er
'uring each fiscal %ear shall be transferre' b% sai' e#plo%er to the S%ste# which shall use the
sa#e for the pa%#ent of benefits pro"i'e' in this Act.N
S.+-$,N 5. Section eight of +o##onwealth Act Nu#bere' ,ne hun're' an' eight6si) is
hereb% a#en'e' to rea' as follows*
N$ A 2ife $nsurance 9enefit
NS.+. 8. ?a@ +o#pulsor% #e#bership insurance. A An e#plo%ee whose #e#bership in the
S%ste# is co#pulsor% shall be auto#aticall% insure' on the first 'a% of the se"enth calen'ar
#onth following the #onth he was appointe' or on the first 'a% of the si)th calen'ar #onth if
the 'ate of his appoint#ent is the first 'a% of the #onth* Pro"i'e', -hat his #e'ical e)a#ination,
if re>uire', has been appro"e' b% the S%ste#.
?b@ ,ptional #e#bership insurance. A -he life insurance of an e#plo%ee whose #e#bership in
the S%ste# is optional shall tae effect, if he is ali"e, on the first 'a% of the calen'ar #onth
following the calen'ar #onth 'uring which the first pre#iu# thereon was pai' to the S%ste#*
Pro"i'e', -hat his application for #e#bership an' his #e'ical e)a#ination, if re>uire', ha"e
been appro"e' b% the S%ste#.
?c@ A#ount an' in' of insurance. A +o#pulsor% #e#bership insurance shall be ter# insurance
of an a#ount e>ual to the e#plo%eeMs current annual salar%* Pro"i'e', howe"er, -hat this
subsection shall not appl% to an% ci"ilian e#plo%ee who prior to the appro"al of this Act is
alrea'% insure' in the S%ste# nor to a regular officer or an enliste' #an* An' pro"i'e', further,
-hat upon his re>uest a ci"ilian e#plo%ee #a% ha"e his ol' #e#bership insurance change' into
a pai'6up en'ow#ent insurance an' be reinsure' un'er a ter# insurance on sub#ission of
satisfactor% e"i'ence of insurabilit% unless such re>uest be #a'e within one %ear fro# the 'ate
of appro"al of this Act. ,ptional #e#bership insurance shall be, as he #a% select, either the
ter# insurance 'escribe' abo"e or an en'ow#ent insurance whose a#ount shall be whate"er the
si) per centu# #onthl% pre#iu# will bu%.
S.+-$,N &. Section ten of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% a#en'e' to rea' as follows*
NS.+. 1<. ,ptional insurance. A (pon application to the 9oar' an' on satisfactor% e"i'ence of
insurabilit%, each #e#ber #a% obtain, at an% ti#e, a''itional life insurance as he #a% 'esire,
sub;ect to the pro"ision of section fourteen hereof* Pro"i'e', -hat the a#ount of sai' a''itional
life insurance shall be in #ultiple of one hun're' pesos an' that its aggregate a#ount shall not
e)cee' an a#ount, to the nearest hun're' pesos, e>ual to his current annual salar%* An'
pro"i'e', further, -hat the full a#ount of the pre#iu#s on such a''itional insurance shall be
pai' b% sai' #e#ber, an' the a#ount thereof #a% be 'e'ucte' fro# his pa% or co#pensation,
when e)pressl% authoriFe' b% hi#.N
S.+-$,N 8. -he following new sections are hereb% inserte' in +o##onwealth Act Nu#bere'
,ne hun're' an' eight%6si)*
N$$. A Retire#ent $nsurance 9enefit
NS.+. 11. ?a@ A#ount of annuit%. A (pon retire#ent a #e#ber shall be auto#aticall% entitle'
to a life annuit% pa%able #onthl% for at least fi"e %ears an' thereafter as long as he li"e. -he
a#ount of the #onthl% annuit% at the age of fift%6se"en %ears shall be twent% pesos, plus, for
each %ear of ser"ice ren'ere' after the appro"al of this Act, one an' si)6tenths per centu# of the
a"erage #onthl% salar% recei"e' b% hi# 'uring the last fi"e %ears of ser"ice, plus, for each %ear
of ser"ice ren'ere' prior to the appro"al of this Act, if sai' ser"ice was at least se"en %ears, one
an' two6tenths per centu# of sai' a"erage #onthl% salar%* Pro"i'e', -hat this a#ount shall be
a';uste' actuariall% if retire#ent be at an age other than fift%6se"en %ears* Pro"i'e', further, -hat
the #a)i#u# a#ount of #onthl% annuit% at age fift%6se"en shall not in an% case e)cee' two6
thir's of sai' a"erage #onthl% salar% or fi"e hun're' pesos, whiche"er is the s#aller a#ount*
An' pro"i'e', finall%, -hat retire#ent benefit shall be pai' not earlier than one %ear after the
appro"al of this Act. $n lieu of this annuit%, he #a% prior to his retire#ent elect one of the
following e>ui"alent benefits*
N?1@ 4onthl% annuit% 'uring his lifeti#eC
N?2@ 4onthl% annuit% 'uring the ;oint6li"es of the e#plo%ee an' his wife or other 'esignate'
beneficiar%, which annuit%, howe"er, shall be re'uce' upon the 'eath of either to one6half an' be
pai' to the sur"i"orC
N?3@ 1or those who are at least si)t%6fi"e %ears of age, lu#p su# pa%#ent of present "alue of
annuit% for first fi"e %ears an' future annuit% to be pai' #onthl%C or
N?3@ Such other benefit as #a% be appro"e' b% the S%ste#.
N?b@ Sur"i"ors benefit. A (pon 'eath before he beco#es eligible for retire#ent, his beneficiaries
as recor'e' in the application of retire#ent annuit% file' with the S%ste# shall be pai' his own
pre#iu#s with interest of three per centu# per annu#, co#poun'e' #onthl%. $f on his 'eath he
is eligible for retire#ent, then the auto#atic retire#ent annuit% or the annuit% chosen b% hi#
pre"iousl% shall be pai' accor'ingl%.
N?c@ 0isabilit% benefit. A $f he beco#es per#anentl% an' totall% 'isable' an' his ser"ices are no
longer 'esirable, he shall be 'ischarge' an' pai' his own contributions with interest of three per
centu# per annu#, co#poun'e' #onthl%, if he has ser"e' less than fi"e %earsC if he has ser"e'
at least fi"e %ears but less than fifteen %ears, he shall be pai' also the correspon'ing e#plo%erMs
pre#iu#s, without interest, 'escribe' in subsection ?a@ of section fi"e hereofC an' if he has
ser"e' at least fifteen %ears he shall be retire' an' be entitle' to the benefit pro"i'e' un'er
subsection ?a@ of this section.
N?'@ (pon 'is#issal for cause or on "oluntar% separation, he shall be entitle' onl% to his own
pre#iu#s an' "oluntar% 'eposits, if an%, plus interest of three per centu# per annu#,
co#poun'e' #onthl%.
NS.+. 12. +on'itions for retire#ent. A ?a@ ,n co#pletion of thirt% %ears of total ser"ices an'
attain#ent of age fift%6se"en %ears, a #e#ber shall ha"e the option to retire. $n all cases, the last
three %ears of ser"ice before the retire#ent #ust be continuous, an' he has #a'e contributions
for at least fi"e %ears, which contributions #a%, upon his re>uest appro"e' b% the 9oar', be
'e'ucte' fro# his life annuit% un'er such ter#s an' con'itions as the 9oar' #a% prescribe. $n
the case of those who are at least fift%6se"en %ears of age a perio' of ser"ice shorter than thirt%
%ears #a% be allowe', pro"i'e' that each %ear 'ecrease in ser"ice shall be co#pensate' b% one6
half %ear increase in age o"er fift%6se"en %ears. A %ounger age of retire#ent #a% be per#itte'
pro"i'e' that each %ear 'ecrease below fift%6se"en %ears shall be co#pensate' b% one %ear
increase in ser"ice o"er thirt% %ears. $f an e#plo%ee is a laborer or one whose wor is #ostl%
#anual, the ages #entione' abo"e #a% be 'ecrease' b% not #ore than fi"e %ears at the
'iscretion of the S%ste#. $n all cases no one shall be entitle' to retire#ent benefit if his age is
below fift%6two %ears or his total ser"ice is less than fifteen %ears.
N?b@ -he e#plo%er concerne' #a% re>uest the retire#ent of an% such e#plo%ee 'escribe' in the
prece'ing subsection who, b% reason of a 'is>ualification, is unable to perfor# satisfactoril% an'
efficientl% the 'uties of his position or so#e other position of the sa#e gra'e or class as that
occupie' b% the e#plo%ee an' to which he coul' be assigne', but such re>uest shall be sub#itte'
to the +i"il Ser"ice 9oar' of Appeals onl% after the sai' e#plo%ee ha' been notifie' in writing
of the propose' retire#ent. No such e#plo%ee, howe"er, shall be so retire' unless the +i"il
Ser"ice 9oar' of Appeals has gi"en hi# a hearing an' foun' hi# after e)a#ination that he is so
'is>ualifie'. -he 'ecision of the +i"il Ser"ice 9oar' of Appeals as to whether or not the sai'
e#plo%ee shall be retire' un'er this sub6section shall be final an' conclusi"e.
N?c@ Retire#ent shall be auto#atic an' co#pulsor% at the age of si)t%6fi"e %ears, if he has
co#plete' fifteen %ears of ser"ice, an' if he has not, he shall be allowe' to continue in the
ser"ice until he shall ha"e co#plete' fifteen %ears unless he is otherwise eligible for 'isabilit%
retire#ent. -his clause shall not appl% to #e#bers of the ;u'iciar% an' constitutional officers
whose tenure of office is guarantee'. (pon specific appro"al of the Presi'ent of the Philippines,
an e#plo%ee #a% be allowe' to continue to ser"e after the age of si)t%6fi"e %ears if he possesses
special >ualifications an' his ser"ices are nee'e'. $t shall be the 'ut% of the e#plo%er concerne'
to notif% each such e#plo%ee un'er its 'irection of the 'ate of his auto#atic separation fro# the
ser"ice at least si)t% 'a%s in a'"ance thereof.
N?'@ An e#plo%ee separate' fro# the ser"ice who is recei"ing an annuit% 'escribe' un'er section
ele"en shall not be eligible again to appoint#ent to an% appointi"e position or e#plo%#ent un'er
an% Ne#plo%erN unless the appointing authorit% 'eter#ines that he is possesse' of special
>ualifications an' his #e'ical e)a#ination has been appro"e' b% the S%ste#, in which e"ent
pa%#ent of his annuit% shall be suspen'e' 'uring the perio' of his new e#plo%#ent* Pro"i'e',
howe"er, -hat nothing in this Act shall be so construe' as to affect the rights of the annuitantMs
beneficiar% if the annuitant has been recei"ing or ha' electe', an' was otherwise entitle' to, a
re'uce' annuit% un'er subsection ?a@ of section ele"en* An' pro"i'e', further, -hat upon the
ter#ination of his new appoint#ent, the pa%#ent of the annuit% which was suspen'e' shall be
resu#e'.
N?e@ $f an e#plo%ee who is not recei"ing the annuit% #entione' in the ne)t prece'ing subsection
be reinstate' in the ser"ice, he shall be gi"en full cre'it for ser"ices ren'ere' b% hi# prior to the
appro"al of this Act for the purpose of 'eter#ining the a#ount of annuit% un'er section ele"en
hereof to which he #a% be entitle'* Pro"i'e' howe"er, -hat sai' cre'it shall not be gi"en if the
e#plo%ee shall not refun' to the S%ste# an% a#ount he recei"e' therefro# with interest of three
per centu# per annu# co#poun'e' #onthl% fro# the 'ate he recei"e' the# up to the 'ate of
their pa%#ent, or an% gratuit% or benefit he recei"e' un'er an% pension or retire#ent plan of an
e#plo%er unless e)pressl% e)e#pte' b% law fro# refun'ing sai' gratuit% or pension* Pro"i'e',
further, -hat if separate' before, an' reinstate' after, the appro"al of this Act, onl% three6fourths
of sai' prior ser"ices shall be cre'ite' to the e#plo%ee after co#pl%ing with the con'ition state'
abo"e.
NS.+. 13. +o#putation of ser"ice. A -he aggregate perio' of ser"ice which for#s the basis for
retire#ent an' calculating the a#ount of annuit% 'escribe' in section ele"en hereof shall be
co#pute' fro# the 'ate of original e#plo%#ent, whether as a classifie' or unclassifie' e#plo%ee
in the ser"ice of an Me#plo%erM, inclu'ing perio's of ser"ice at 'ifferent ti#es an' un'er one or
#ore e#plo%ers, an' also perio's of ser"ice perfor#e' o"erseas un'er the authorit% of the
Republic of the Philippines an' perio's of honorable ser"ice in the Ar#e' 1orces of the
Philippines prior to the appro"al of this Act, an' perio's of honorable ser"ice in the Philippines
un'er the authorit% of the (nite' States !o"ern#ent if ren'ere' prior to Bul% fourth nineteen
hun're' an' fort%6si)* Pro"i'e', howe"er, -hat in the case of an e#plo%ee who is eligible for
an' recei"es retire#ent pa% on account of #ilitar% or na"al ser"ice or on account of 'isabilit%
incurre' therein, the perio' of ser"ice upon which such retire#ent pa% is base' shall be
e)clu'e'* Pro"i'e', also, -hat perio's of ser"ice ren'ere' after the appro"al of this Act 'uring
which pre#iu#s are not re>uire' shall be e)clu'e', unless the pre#iu#s correspon'ing to sai'
ser"ice be later on pai' to the S%ste# with interest* An' pro"i'e', further, -hat the perio'
1ebruar% twent%6eight nineteen hun're' an' fort%6fi"e an' fro# Banuar% first nineteen hun're'
an' fort%6two to an% perio' not e)cee'ing one %ear at a ti#e 'uring which an officer or
e#plo%ee ha' been thereafter out of the ser"ice to the 'ate of his reinstate#ent or reappoint#ent
before the appro"al of this Act shall be inclu'e' for those who were in the ser"ice on 0ece#ber
eight, nineteen hun're' an' fort%6one, e)cept those who were separate' prior to Bapanese
occupation, in the co#putation of total ser"ice, the annuit% #entione' herein, an' pa%#ent of
pre#iu#s therefor.N
S.+-$,N 9. Section ele"en of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section fourteen an' is a#en'e' to rea' as follows*
NS.+. 13. Special rights attache' to life insurance polic%. A An% life insurance polic% issue'
un'er the pro"isions of this Act shall not be assignable, e)cept to the S%ste#, an' shall be
entitle' to participation in the surplus, as pro"i'e' in section twent%6fi"e hereof. $t shall continue
in force, e)cept as otherwise pro"i'e' herein, whether the #e#ber is in or out of the ser"ice, so
long as he co#plies with the pro"isions an' con'itions thereof. Such polic% an' the procee's
thereof shall be e)e#pte' fro# all ta)es, an' shall not be consi'ere' a gratuit%.N
S.+-$,N 1<. Section twel"e of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section fifteen.
S.+-$,N 11. Section thirteen of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section si)teen an' is a#en'e' to rea' as follows*
NS.+. 15. A'#inistration of the S%ste#. A -he S%ste# shall be a non6stoc corporation, with
its principal place of business in 4anila, Philippines. $t shall be #anage' b% a 9oar' of -rustees
to consist of fi"e #e#bers to be appointe' b% the Presi'ent of the Philippines with the consent of
the +o##ission on Appoint#ents. -he trustees shall elect fro# a#ong the#sel"es a chair#an
an' a "ice6chair#an. .ach trustee shall hol' office for three %ears or until his successor is 'ul%
>ualifie', e)cept that of the 9oar' first appointe', one shall hol' office for one %ear, two for two
%ears, an' two for three %ears. At the e)piration of their respecti"e ter#s, a successors shall be
appointe' for the ter# of three %ears, fro# the 'ate of such e)piration. All "acancies, e)cept
through the e)piration of the ter#s, shall be fille' for the une)pire' ter# onl%. -he trustees shall
be entitle' to a per 'ie# of twent%6fi"e pesos for each 'a% of actual atten'ance in session.N
S.+-$,N 12. Section fourteen of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section se"enteen an' is a#en'e' to rea' as follows*
NS.+. 1&. !eneral powers of the 9oar'. A -he 9oar' shall ha"e the powers specifie' in this Act
an' the usual general corporate powers. A#ong others, it shall ha"e the following e)clusi"e
powers an' authorit%* ?a@ to a'opt b%6laws, rules an' regulations for the a'#inistration of the
S%ste# an' the transaction of its businessC ?b@ to a'opt fro# ti#e to ti#e a bu'get of
e)pen'itures, inclu'ing salaries of personnel, an' appropriate therefor the necessar% a#ountsC ?c@
to set up its accounting unit an' pro"i'e the necessar% personnel thereforC ?'@ to in"est its fun's
'irectl% or in'irectl%C to 'iscount pensions guarantee' un'er this Act at such rate of 'iscount it
#a% prescribeC ?e@ to establish branches of the S%ste# whene"er an' where"er it #a% be
e)pe'ient or necessar%, fi) their 'o#iciles an' in general prescribe the other co#ple#entar%
rules of organiFation which this Act i#posesC ? f @ to lease, purchase, construct or otherwise
ac>uire real propert% an'8or buil'ings an' such facilities which #a% be necessar% or e)pe'ient to
the effecti"e e)ecution of the purposes of this ActC ?g@ to prescribe the for#s of life insurance
an' annuit% contracts to be issue' an' the benefits thereof inclu'ing acci'ent benefitsC ?h@ to fi)
the pre#iu# rates, con'itions an' ter#s thereof, taing into consi'eration the in' of insurance,
age, health, an' other factors affecting the insurabilit% of the e#plo%ee or #e#ber, an' to
authoriFe the issuance thereof when so 'eter#ine'C ?i@ to construct, establish an'8or operate
hospitals an' sanatoriu#s when possible an' e)pe'ient or necessar% to the e#plo%eesM welfareC
? ;@ to enter into agree#ents or contracts with !o"ern#ent an' pri"ate hospitals or health
institutions an' with #e'ical associations or 'ul% license' ph%sicians, nurses, or other co#petent
persons who #a% be nee'e' in connection with #e'ical an' obstetrical ser"ices for #e#bers of
the S%ste# an' their 'epen'ents, pa%ing the#, an' authoriFing the# to accept, reasonable
necessar% co#pensation therefor, notwithstan'ing an% pro"ision of law to the contrar%C ?@
e)cept as otherwise pro"i'e' in this Act, to e)ten', when possible an' e)pe'ient, 'irectl% or
through other agencies, an' un'er such rules, regulations, an' con'itions it #a% prescribe,
#e'ical an' obstetrical ser"ices to other #e#bers of the S%ste# an' their 'epen'ents, an', in
general, pro#ote the health of the #e#bers of the S%ste# an' appropriate necessar% su#s
therefor fro# the surplus of the S%ste#C ?l@ ha"ing regar' to an% perio'ic au'it an' "aluation of
the retire#ent insurance fun', to #ae such i##e'iate rea';ust#ents or #o'ifications in an% of
the rates or perio's of benefits grante' un'er this Act an' prescribe rules an' con'itions therefor,
notwithstan'ing an% pro"ision of this Act to the contrar%, as appear necessar% in or'er to #ae
sai' fun' sufficient or no #ore than reasonabl% sufficient to 'ischarge its liabilities* Pro"i'e',
-hat no person #a% allege "este' rights for reason of these rea';ust#ents or #o'ificationsC ?#@
to ha"e the power of successionC ?n@ to sue an' be sue'C an' ?o@ to e)ercise such other powers as
#a% be necessar% to carr% on the business for which the S%ste# has been create'. casia
S.+-$,N 13. Section fifteen of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section eighteen an' is a#en'e' to rea' as follows*
NS.+. 18. Personnel. A -he 9oar' shall ha"e the power to appoint a general #anager, or a
general #anager an' actuar%, who shall be a person of recogniFe' e)perience an' capacit% in the
sub;ect of life an' social insurance, an' who shall be the chief e)ecuti"e officer of the S%ste#,
one or #ore assistant general #anagers, one or #ore #anagers, a #e'ical 'irector, an' an
actuar%, an' fi) their co#pensation. -he general #anager shall, sub;ect to the appro"al of the
9oar', appoint a''itional personnel whene"er an' where"er the% #a% be necessar% to the
effecti"e e)ecution of the pro"isions of this Act an' fi) their co#pensation. :e shall ha"e the
power to prescribe their 'uties, grant lea"e, prescribe certain >ualifications to the en' that onl%
co#petent persons #a% be e#plo%e', an' appoint co##ittees* Pro"i'e', howe"er, -hat sai'
a''itional personnel shall be selecte' fro# ci"il ser"ice eligibles certifie' b% the +o##issioner
of +i"il Ser"ice an' shall be sub;ect to ci"il ser"ice rules an' regulations e)cept as herein
otherwise pro"i'e'.
N-he Au'itor !eneral shall appoint a representati"e who shall be the au'itor of the corporation,
an' the necessar% personnel to assist sai' representati"e in the perfor#ance of his 'uties. -he
nu#ber an' salaries of the au'itor an' sai' personnel shall be 'eter#ine' b% the Au'itor
!eneral, sub;ect to appropriation b% the 9oar' of 0irectorsC in case of 'isagree#ent, the #atter
shoul' be sub#itte' to the Presi'ent of the Philippines whose 'ecision shall be final. Sai'
salaries an' all other e)penses of #aintaining the au'itorMs office shall be pai' b% the S%ste#.N
ac'
S.+-$,N 13. Section si)teen of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section nineteen an' is a#en'e' to rea' as follows*
NS.+. 19. Recor's an' reports. A -he 9oar' shall cause to be ept recor's as #a% be re>uire'
for the purpose of #aing actuarial "aluations of the S%ste# inclu'ing such 'ata necessar% in the
co#putation of rates of 'isabilit%, #ortalit%, an' with'rawal a#ong the #e#bers an' an% other
infor#ation that #a% be useful for the a';ust#ent of the benefits for the #e#bers of the S%ste#.
Separate an' 'istinct recor's of operation of each fun' of the S%ste# an' of 'isburse#ents for
the sa#e an' all accounts of pa%#ents #a'e out of each fun' shall, liewise, be #a'e an' ept
b% the S%ste#.
NGithin four #onths after the en' of each fiscal %ear, the 9oar' shall sub#it to the Presi'ent of
the Philippines who shall furnish a cop% thereof to the +ongress of the Philippines, a report of
operations of the prece'ing %ear un'er the pro"isions of this Act.N
S.+-$,N 15. Section se"enteen of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si)
is hereb% change' to section twent%.
S.+-$,N 15. Section eighteen of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section twent%6one.
S.+-$,N 1&. Section nineteen of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section twent%6two.
S.+-$,N 18. Section twent% of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si) is
hereb% change' to section twent%6three.
S.+-$,N 19. Section twent%6one of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si)
is hereb% change' to section twent%6four an' is a#en'e' to rea' as follows*
NS.+. 23. Accounts to be #aintaine'. A -he S%ste# shall eep separate an' 'istinct fro# one
another the following fun's*
N?a@ 2ife insurance fun'. A -his shall consist of all pre#iu#s for life insurance benefit an'8or
earnings an' sa"ings therefro#. $t shall #eet 'eath clai#s as the% #a% arise or such e>uities as
an% #e#ber #a% be entitle' to, un'er the con'itions of his polic%, an' shall #aintain the
re>uire' reser"es to the en' of guaranteeing the fulfill#ent of the life insurance contracts issue'
b% the S%ste#. Sai' reser"es shall be co#pute' %earl% in accor'ance with appro"e' "aluation
stan'ar's an' with an interest rate of not higher than four per centu# per annu#.
N?b@ Retire#ent insurance fun'. A -his shall consist of all contributions for retire#ent insurance
benefit an' of earnings an' sa"ings therefro#. $t shall #eet annuit% pa%#ents an' establish the
re>uire' reser"es to the en' of guaranteeing the fulfill#ent of the contracts issue' b% the S%ste#.
Sai' reser"es shall be 'eter#ine' %earl% on such annuit% tables, with an interest rate of not
higher than three per centu# per annu#, as shall be a'opte' b% the 9oar'. c'
N?c@ +ontingenc% reser"e fun'. A -his shall consist of such portion of the surplus of each fun'
#entione' abo"e as #a% be set asi'e each %ear b% the 9oar' pursuant to section twent%6fi"e
hereof* Pro"i'e', -hat it shall not e)cee' ten per centu# of the re>uire' reser"es of the S%ste#.
N?'@ !eneral fun'. A -his shall consist of such a#ounts as #a% be set asi'e b% the 9oar' fro#
each fun', to #eet the e)penses inci'ental to the enforce#ent of the pro"isions of this Act.
N-he !o"ern#ent of the Republic of the Philippines hereb% guarantees the fulfill#ent of the
obligations of the !o"ern#ent Ser"ice $nsurance S%ste# to the #e#bers thereof when an' as
the% shall beco#e 'ue.N
S.+-$,N 2<. Section twent%6two of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6
si) is hereb% change' to section twent%6fi"e an' is a#en'e' to rea' as follows*
NS.+. 25. 0isposable surplus. A An% 'isposable surplus that #a% result fro# the operations of
the life insurance fun' shall be apportione' a#ong the #e#bers whose policies are in force for
at least one %ear, when an' if the 9oar' 'ee#s it e)pe'ient, in accor'ance with the sche'ule
prepare' b% the Actuar% an' appro"e' b% the 9oar'. -he 'isposable surplus shall be that a#ount
left after the #ean reser"es of the policies, contingenc% reser"es, the e)penses inci'ental to the
operation of sai' fun', the e)penses incurre' in pro#oting the health of the #e#bers, an' other
liabilities of the fun' ha"e been 'eter#ine' an' set asi'e or satisfie'.N
S.+-$,N 21. Section twent%6three of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6
si) is hereb% change' to section twent%6si) an' is a#en'e' to rea' as follows*
NSec. 25. .)e#ptions fro# legal process an' liens. A No polic% of life insurance issue' un'er
this Act, or the procee's thereof, when pai' to an% #e#ber thereun'er, nor an% other benefit
grante' un'er this Act, shall be liable to attach#ent, garnish#ent, or other process, or to be
seiFe', taen, appropriate', or applie' b% an% legal or e>uitable process or operation of law to
pa% an% 'ebt or liabilit% of such #e#ber, or his beneficiar%, or an% other person who #a% ha"e a
right thereun'er, either before or after pa%#entC nor shall the procee's thereof, when not #a'e
pa%able to a na#e' beneficiar%, constitute a part of the estate of the #e#ber for pa%#ent of his
'ebt* Pro"i'e', howe"er, that this section shall not appl% when obligations or in'ebte'ness to the
e#plo%er are concerne'.N
S.+-$,N 22. Section twent%6four of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6
si) is hereb% change' to section twent%6se"en an' is a#en'e' to rea' as follows*
NS.+. 2&. Appropriations. A -here is hereb% appropriate' for the current fiscal %ear, an'
annuall% thereafter, out of an% fun' in the Philippines -reasur% or other 'epositor% not otherwise
appropriate', inclu'ing special an' corporate fun's, such su#s as #a% be necessar% to pa% the
contributions or pre#iu#s pa%able b% each e#plo%er un'er this Act.N
S.+-$,N 23. Section twent%6fi"e of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6
si) is hereb% change' to section twent%6eight an' is a#en'e' to rea' as follows*
NS.+. 28. 4iscellaneous pro"isions. A ?a@ Act Nu#bere' -wo thousan' fi"e hun're' an'
eight%6nine, as a#en'e', an' all other retire#ent or pension plans heretofore in force in an%
chartere' cit% or corporation owne' or controlle' b% the !o"ern#ent are hereb% 'eclare'
inoperati"e or abolishe', an' Act Nu#bere' 1our thousan' one hun're' an' eight%6three shall
cease to be applicable to e#plo%ees of an% local go"ern#ent that #a% be a'#itte' to the S%ste#,
an' hereafter no insurance or retire#ent plan for e#plo%ees shall be create' b% an% e#plo%er
without the prior appro"al of the S%ste#* Pro"i'e', -hat the rights of those alrea'% retire' shall
not be affecte'* Pro"i'e', further, -hat as of the 'ate of appro"al of this Act the present "alue of
the benefit as #a% be co#pute' b% the actuar% of the S%ste# or the gratuit% pa%able to an%
#e#ber who has establishe' his right before the appro"al of this Act to retire un'er either Act
Nu#bere' -wo thousan' fi"e hun're' an' eight%6nine or Act Nu#bere' 1our thousan' one
hun're' an' eight%6three or un'er an% retire#ent or pension plan #entione' abo"e shall be
cre'ite' an' pai' b% the e#plo%er concerne' to the retire#ent insurance fun' of the S%ste# in
install#ents to be 'eter#ine' b% the S%ste# an' appro"e' b% the Presi'ent an' shall be inclu'e'
in the co#putation of the a''itional pre#iu#s or a#ounts re>uire' in section se"en hereof for
the ser"ice annuit% 'escribe' in subsection ?a@ of section ele"en hereof* An' pro"i'e', finall%,
-hat such a #e#ber shall be entitle' to the retire#ent benefit 'escribe' in this Act onl% if he so
notifies the S%ste# within si) #onths fro# the appro"al of this Act, otherwise it shall be 'ee#e'
that he 'oes not 'esire to be retire' un'er this Act an' accor'ingl% the gratuit% or benefit pa%able
to hi# un'er either afore#entione' Act shall be e)clusi"el% reser"e' for hi# b% the S%ste#. $f
such #e#ber elects the retire#ent benefit of this Act, but his position is abolishe' or he 'ies or
beco#es 'isable before beco#ing eligible to sai' benefit, his legal heirs #a% be pai' the
retire#ent benefit to which he has establishe' his right prior to the appro"al of this Act an' his
contributions un'er this Act shall be refun'e' as pro"i'e' in section 11 ?'@ hereof. c'asia
N?b@ .)cept as herein otherwise pro"i'e', the !o"ern#ent Ser"ice $nsurance S%ste# inclu'ing
all its for#s or 'ocu#ents re>uire' of its #e#bers, shall be e)e#pt fro# all t%pes of ta)es,
'ocu#entar% sta#ps, 'uties an' contributions, fiscal or #unicipal, 'irect or in'irect, establishe'
or to be establishe'C an' #ore speciall%, it shall not be sub;ect to the pro"isions of Act Nu#bere'
-went%6four hun're' an' twent%6se"en, as a#en'e', an' +o##onwealth Act Nu#bere' 1our
hun're' an' si)t%6si), as a#en'e', an' no law hereafter enacte' shall appl% to sai' S%ste#
unless it is pro"i'e' therein that the sa#e is applicable to the S%ste# b% e)pressl% stating the
na#e of sai' entit%.
N?c@ An% pro"ision of law inconsistent with the pro"isions of this Act is hereb% repeale'.N
S.+-$,N 23. Section twent%6nine to rea' as follows is hereb% a''e' to +o##onwealth Act
Nu#bere' ,ne hun're' an' eight%6si)*
NS.+. 29. Penalt%. A An% person foun' to ha"e participate', 'irectl% or in'irectl%, in the
co##ission of frau', collusion, falsification, #isrepresentation of facts, or an% other in' of
ano#al% in the issuance of an% certificate or 'ocu#ent for an% purpose connecte' with this Act,
or in obtaining an% benefit or pa%#ent un'er this Act, whether for hi# or so#e other person,
shall be punishe' b% a fine not e)cee'ing one thousan' pesos or i#prison#ent not e)cee'ing one
%ear, or b% both such fine an' i#prison#ent at the 'iscretion of the court, besi'es
'is>ualification fro# hol'ing public office an' fro# practicing an% profession or calling license'
b% the !o"ern#ent.N
S.+-$,N 25. Section twent%6si) of +o##onwealth Act Nu#bere' ,ne hun're' an' eight%6si)
is hereb% change' to section thirt%. c'
S.+-$,N 25. Notwithstan'ing the pro"isions of this Act to the contrar%, an% officer or
e#plo%ee who 'ie' in the ser"ice within three %ears before sai' Act went into effect an' who
ha' ren'ere' at least thirt%6fi"e %ears of ser"ice an' who was entitle' to or who coul' ha"e
establishe' his right to the retire#ent gratuit% pro"i'e' for in Act Nu#bere' -went%6fi"e
hun're' an' eight%6nine, as a#en'e', or to an% other retire#ent benefits fro# an% pension fun'
create' b% law shall be consi'ere' retire' un'er the pro"isions of this Act if his wife, or in her
'efault, his other legal heirs shall so elect an' notif% the S%ste# to that effect. (pon #aing such
election, the wife or legal heirs of the 'ecease' officer or e#plo%ee shall be pai' the #onthl%
annuit% for fi"e consecuti"e %ears or such other benefit as pro"i'e' in sai' Act, in lieu of the
retire#ent gratuit% or retire#ent benefits to which the 'ecease' was entitle' at the ti#e of his
'eathC an' an% portion of such gratuit% or retire#ent benefits alrea'% pai' to his wife or other
legal heirs shall be refun'e' to the S%ste#* Pro"i'e', -hat contributions correspon'ing to his
last fi"e %ears of ser"ice shall be 'e'ucte' #onthl% fro# his life annuit%.
Notwithstan'ing an% pro"isions of this Act to the contrar%, an% officer or e#plo%ee whose
position was abolishe' or who was separate' fro# the ser"ice as a conse>uence of the
reorganiFation pro"i'e' for in the Republic Act Nu#bere' 1our hun're' an' twent%6two #a% be
retire' un'er the pro"isions of this Act if >ualifie'* Pro"i'e', -hat an% gratuit% or retire#ent
benefit alrea'% recei"e' b% hi# shall be refun'e' to the S%ste#* Pro"i'e', further, -hat
contributions correspon'ing to his last fi"e %ears of ser"ice shall be pai' as pro"i'e' in section
twel"e of this Act. -his pro"ision shall also appl% to an% #e#ber of the ;u'iciar% who, prior to
the appro"al of this Act, was separate' fro# the ser"ice after reaching se"ent% %ears of age an'
ren'ering at least thirt% %ears of ser"ice an' who is not entitle' to retire#ent benefit un'er an%
law.
Notwithstan'ing an% pro"isions of this Act to the contrar%, an% officer or e#plo%ee, who has not
establishe' his right to retire un'er Act Nu#bere' -went%6fi"e hun're' an' eight%6nine or un'er
Act Nu#bere' 1ort%6one hun're' an' eight%6three, both as a#en'e', but who has ren'ere' not
less than twent%6fi"e %ears of ser"ice an' has attaine' the age of fift%6se"en %ears #a% elect to
retire un'er either of sai' Acts if he shall establish such right within one %ear fro# the 'ate of the
appro"al of this Act, or un'er this Act if otherwise >ualifie'.
S.+-$,N 2&. -his Act shall tae effect upon its appro"al* Pro"i'e', -hat if the financial
con'ition of an e#plo%er 'oes not per#it pa%#ent of its contributions for retire#ent insurance
herein re>uire', such pa%#ent #a% be 'eferre' un'er such con'itions as the S%ste# #a%
prescribe.
Appro"e'* Bune 15, 1951
Publishe' in the ,fficial !aFette, 7ol. 3&, No. &, p. 338< in Bul% 1951
REPUBLIC ACT NO. 7699


AN ACT INSTITUTING LIMITED PORTABILITY SCHEME IN THE
SOCIAL SECURITY INSURANCE SYSTEMS BY TOTALIZING THE
WORKERS' CREDITABLE SERVICES OR CONTRIBUTIONS IN
EACH OF THE SYSTEMS.
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Approved: M*& 16 199?
RA 1515 pro"i'es for a gratuit% benefit for retiring #e#bers who will >ualif% un'er this
retire#ent #o'e. -he gratuit% is pa%able b% the last e#plo%er. -he e#plo%ee shall also be
entitle' to a Refun' of Retire#ent Pre#iu#s pai', personal share with interest an' go"ern#ent
share without interest.
-o >ualif% un'er the #o'e, a retiree #ust*
1. be in go"ern#ent ser"ice on or before 4a% 31, 19&&
2. has ren'ere' at least 2< %ears of ser"ice regar'less of age an' e#plo%#ent status
3. :is8her last 3 %ears of ser"ice prior to retire#ent #ust be continuous, e)cept in cases of
'eath, 'isabilit%, abolition or phase out of position 'ue to reorganiFation.
A+at is in sto)e .o) *ou
Since RA 1515 is consi'ere' as the K-ae All Retire#entL #o'e, it pro"i'es the following
benefits*

1. !ratuit% pa%able b% the last e#plo%er base' on the total cre'itable ser"ice con"erte' into
gratuit% #onths #ultiplie' b% the highest co#pensation recei"e'. -he gratuit% #onths shall be
co#pute' as follows*
=ears of Ser"ice !ratuit% 4onths
1irst 2< %ears one ?1@ #onth salar%
2< %ears to 3< %ears 1.5 #onths salar%
,"er 3< %ears two ?2@ #onths salar%
?-here is no li#it to the a#ount of gratuit% benefit.@ an'
2. Refun' of retire#ent pre#iu#s consisting of personal contributions of the e#plo%ee plus
interest, an' go"ern#ent share without interest, pa%able b% the !S$S
4a% 3<, 199&
R.P(92$+ A+- N,. 8291
AN A( A"ENDIN' &RE#IDENIAL DE(REE N!. 1102? A# A"ENDED?
EC&ANDIN' AND IN(REA#IN' %E (!8ERA'E AND $ENEFI# !F %E
'!8ERN"EN #ER8I(E IN#URAN(E #D#E"? IN#IUIN' REF!R"#
%EREIN AND F!R !%ER &UR&!#E#
S.+-$,N 1. Presi'ential 0ecree No. 1135, as a#en'e', otherwise nown as the NRe"ise'
!o"ern#ent Ser"ice $nsurance Act of 19&&N, is hereb% further a#en'e' to rea' as follows*
NS.+-$,N 1. -itle. A -he short title of this Act shall be* M-he !o"ern#ent Ser"ice $nsurance
S%ste# Act of 199&.M
NA. 0.1$N$-$,NS
NS.+-$,N 2. 0efinition of -er#s. A (nless the conte)t otherwise in'icates, the following
ter#s shall #ean*
N?a@ !S$S A -he !o"ern#ent Ser"ice $nsurance S%ste# create' b% +o##onwealth Act No.
185C
N?b@ 9oar' A -he 9oar' of -rustees of the !o"ern#ent Ser"ice $nsurance S%ste#C
N?c@ .#plo%er A -he national go"ern#ent, its political sub'i"isions, branches, agencies or
instru#entalities, inclu'ing go"ern#ent6owne' or controlle' corporations, an' financial
institutions with original charters, the constitutional co##issions an' the ;u'iciar%C
N?'@ .#plo%ee or 4e#ber A An% person, recei"ing co#pensation while in the ser"ice of an
e#plo%er as 'efine' herein, whether b% election or appoint#ent, irrespecti"e of status of
appoint#ent, inclu'ing baranga% an' sanggunian officialsC
N?e@ Acti"e 4e#ber A A #e#ber who is not separate' fro# the ser"iceC
N?f@ 0epen'ents A 0epen'ents shall be the following* ?a@ the legiti#ate spouse 'epen'ent for
support upon the #e#ber or pensionerC ?b@ the legiti#ate, legiti#ate', legall% a'opte' chil',
inclu'ing the illegiti#ate chil', who is un#arrie', not gainfull% e#plo%e', not o"er the age of
#a;orit%, or is o"er the age of #a;orit% but incapacitate' an' incapable of self6support 'ue to a
#ental or ph%sical 'efect ac>uire' prior to age of #a;orit%C an' ?c@ the parents 'epen'ent upon
the #e#ber for supportC
N?g@ Pri#ar% beneficiaries A -he legal 'epen'ent spouse until he8she
re#arries an' the 'epen'ent chil'renC
N?h@ Secon'ar% beneficiaries A -he 'epen'ent parents an', sub;ect to the restrictions on
'epen'ent chil'ren, the legiti#ate 'escen'antsC
N?i@ +o#pensation A -he basic pa% or salar% recei"e' b% an e#plo%ee, pursuant to his
election8appoint#ent, e)clu'ing per 'ie#s, bonuses, o"erti#e pa%, honoraria, allowances an'
an% other e#olu#ents recei"e' in a''ition to the basic pa% which are not integrate' into the
basic pa% un'er e)isting lawsC
N?;@ +ontribution A -he a#ount pa%able to the !S$S b% the #e#ber an' the e#plo%er in
accor'ance with Section 5 of this ActC
N?@ +urrent 0ail% +o#pensation A -he actual 'ail% co#pensation or the actual #onthl%
co#pensation 'i"i'e' b% the nu#ber of woring 'a%s in the #onth of contingenc% but not to
e)cee' twent%6two ?22@ 'a%sC
N?l@ A"erage 4onthl% +o#pensation ?A4+@ A -he >uotient arri"e' at after 'i"i'ing the
aggregate co#pensation recei"e' b% the #e#ber 'uring his last thirt%6si) ?35@ #onths of ser"ice
prece'ing his separation8retire#ent8'isabilit%8'eath b% thirt%6si) ?35@, or b% the nu#ber of
#onths he recei"e' such co#pensation if he has less than thirt%6si) ?35@ #onths of ser"ice*
Pro"i'e', -hat the a"erage #onthl% co#pensation shall in no case e)cee' the a#ount an' rate as
#a% be respecti"el% set b% the 9oar' un'er the rules an' regulations i#ple#enting this Act as
'eter#ine' b% the actuar% of the !S$S* Pro"i'e', further, -hat initiall% the a"erage #onthl%
co#pensation shall not e)cee' -en thousan' pesos ?P1<,<<<.<<@, an' pre#iu# shall be nine
percent ?9D@ an' twel"e percent ?12D@ for e#plo%ee an' e#plo%er co"ering the A4+ li#it an'
belowC an' two percent ?2D@ an' twel"e percent ?12D@ for e#plo%ee an' e#plo%er co"ering the
co#pensation abo"e the A4+ li#itC
N?#@ Re"alue' a"erage #onthl% co#pensation A An a#ount e>ual to one hun're' se"ent%
percent ?1&<D@ of the first ,ne thousan' pesos ?P1,<<<@ of the a"erage #onthl% co#pensation
plus one hun're' percent ?1<<D@ of the a"erage #onthl% co#pensation in e)cess of ,ne
thousan' pesos ?P1,<<<@C
N?n@ 2u#p su# A -he basic #onthl% pension #ultiplie' b% si)t% ?5<@C
N?o@ Pensioner A An% person recei"ing ol'6age or per#anent total 'isabilit% pension or an%
person who has recei"e' the lu#p su# e)clu'ing one recei"ing sur"i"orship pension benefits as
'efine' in Section 2< of this ActC
N?p@ !ainful ,ccupation A An% pro'ucti"e acti"it% that pro"i'e' the #e#ber with inco#e at
least e>ual to the #ini#u# co#pensation of go"ern#ent e#plo%eesC
N?>@ 0isabilit% A An% loss or i#pair#ent of the nor#al functions of the ph%sical an'8or #ental
facult% of a #e#ber which re'uces or eli#inates his8her capacit% to continue with his8her current
gainful occupation or engage in an% other gainful occupationC
N?r@ -otal 0isabilit% A +o#plete incapacit% to continue with his present e#plo%#ent or engage
in an% gainful occupation 'ue to the loss or i#pair#ent of the nor#al functions of the ph%sical
an'8or #ental faculties of the #e#berC
N?s@ Per#anent -otal 0isabilit% A Accrues or arises when reco"er% fro# the i#pair#ent
#entione' in Section 2?R@ is #e'icall% re#oteC
N?t@ -e#porar% -otal 0isabilit% A Accrues or arises when the i#paire' ph%sical an'8or #ental
faculties can be rehabilitate' an'8or restore' to their nor#al functionsC
N?u@ Per#anent Partial 0isabilit% A Accrues or arises upon the irre"ocable loss or i#pair#ent of
certain portion8s of the ph%sical faculties, 'espite which the #e#ber is able to pursue a gainful
occupation.
N9. 4.49.RS:$P $N -:. !S$S
NS.+-$,N 3. +o#pulsor% 4e#bership. A 4e#bership in the !S$S shall be co#pulsor% for all
e#plo%ees recei"ing co#pensation who ha"e not reache' the co#pulsor% retire#ent age,
irrespecti"e of e#plo%#ent status, e)cept #e#bers of the Ar#e' 1orces of the Philippines an'
the Philippine National Police, sub;ect to the con'ition that the% #ust settle first their financial
obligation with the !S$S, an' contractuals who ha"e no e#plo%er an' e#plo%ee relationship
with the agencies the% ser"e.
N.)cept for the #e#bers of the ;u'iciar% an' constitutional co##issions who shall ha"e life
insurance onl%, all #e#bers of the !S$S shall ha"e life insurance, retire#ent, an' all other social
securit% protection such as 'isabilit%, sur"i"orship, separation, an' une#plo%#ent benefits.
NS.+-$,N 3. .ffect of Separation fro# the Ser"ice. A A #e#ber separate' fro# the ser"ice
shall continue to be a #e#ber, an' shall be entitle' to whate"er benefits he has >ualifie' to in
the e"ent of an% contingenc% co#pensable un'er this Act.
N+. S,(R+.S ,1 1(N0S
NS.+-$,N 5. +ontributions. A ?a@ $t shall be #an'ator% for the #e#ber an' the e#plo%er to
pa% the #onthl% contributions specifie' in the following sche'ule*
N4onthl% +o#pensation Percentage of 4onthl%
+o#pensation Pa%able b%
4e#ber .#plo%er
$. 4a)i#u# A"erage
4onthl% +o#pensation
?A4+@ 2i#it an' 9elow 9.<D 12.<D
$$. ,"er the 4a)i#u# A4+ 2i#it
$$$.
A (p to the 4a)i#u# A4+ 2i#it 9.<D 12.<D
A $n .)cess of the A4+ 2i#it 2.<D 12.<D
N4e#bers of the ;u'iciar% an' constitutional co##issioners shall pa% three percent ?3D@ of their
#onthl% co#pensation as personal share, an' their e#plo%ers a correspon'ing three percent
?3D@ share for their life insurance co"erage.
N?b@ -he e#plo%er shall inclu'e in its annual appropriation the necessar% a#ounts for its share of
the contributions in'icate' abo"e, plus an% a''itional pre#iu#s that #a% be re>uire' on account
of the haFar's or riss of its e#plo%eesM occupation.
N?c@ $t shall be #an'ator% an' co#pulsor% for all e#plo%ers to inclu'e the pa%#ent of
contributions in their annual appropriations. Penal sanctions shall be i#pose' upon e#plo%ers
who fail to inclu'e the pa%#ent of contributions in their annual appropriations or otherwise fail
to re#it the accurate8e)act a#ount of contributions on ti#e, or 'ela% the re#ittance of pre#iu#
contributions to the !S$S. -he hea's of offices an' agencies shall be a'#inistrati"el% liable for
non6re#ittance or 'ela%e' re#ittance of pre#iu# contributions to the !S$S.
NS.+-$,N 5. +ollection an' Re#ittance of +ontributions. A ?a@ -he e#plo%er shall report to
the !S$S the na#es of all its e#plo%ees, their correspon'ing e#plo%#ent status, positions,
salaries an' such other pertinent infor#ation, inclu'ing subse>uent changes therein, if an%, as
#a% be re>uire' b% the !S$SC the e#plo%er shall 'e'uct each #onth fro# the #onthl% salar% or
co#pensation of each e#plo%ee the contribution pa%able b% hi# in accor'ance with the sche'ule
prescribe' in the rules an' regulations i#ple#enting this Act.
N?b@ .ach e#plo%er shall re#it 'irectl% to the !S$S the e#plo%eesM an' e#plo%ersM contributions
within the first ten ?1<@ 'a%s of the calen'ar #onth following the #onth to which the
contributions appl%. -he re#ittance b% the e#plo%er of the contributions to the !S$S shall tae
priorit% o"er an' abo"e the pa%#ent of an% an' all obligations, e)cept salaries an' wages of its
e#plo%ees.
NS.+-$,N &. $nterests on 0ela%e' Re#ittances. A Agencies which 'ela% the re#ittance of an%
an' all #onies 'ue the !S$S shall be charge' interests as #a% be prescribe' b% the 9oar' but not
less than two percent ?2D@ si#ple interest per #onth. Such interest shall be pai' b% the
e#plo%ers concerne'.
NS.+-$,N 8. !o"ern#ent !uarantee. A -he go"ern#ent of the Republic of the Philippines
hereb% guarantees the fulfill#ent of the obligations of the !S$S to its #e#bers as an' when the%
fall 'ue.
N0. 9.N.1$-S
NS.+-$,N 9. +o#putation of the 9asic 4onthl% Pension. A ?a@ the basic #onthl% pension is
e>ual to*
N1@ thirt%6se"en an' one6half percent ?3&.5D@ of the re"alue' a"erage #onthl% co#pensationC
plus
N2@ two an' one6half percent ?2.5D@ of sai' re"alue' a"erage #onthl% co#pensation for each
%ear of ser"ice in e)cess of fifteen ?15@ %ears* Pro"i'e', -hat the basic #onthl% pension shall not
e)cee' ninet% percent ?9<D@ of the a"erage #onthl% co#pensation.
N?b@ -he basic #onthl% pension #a% be a';uste' upon the reco##en'ation of the Presi'ent an'
!eneral 4anager of the !S$S an' appro"e' b% the Presi'ent of the Philippines in accor'ance
with the rules an' regulations prescribe' b% the !S$S* Pro"i'e', howe"er, -hat the basic
#onthl% pension shall not be less than ,ne thousan' an' three hun're' pesos ?P1,3<<.<<@*
Pro"i'e', further, -hat the basic #onthl% pension for those who ha"e ren'ere' at least twent%
?2<@ %ears of ser"ice after the effecti"it% of this Act shall not be less than -wo thousan' four
hun're' pesos ?P2,3<<.<<@ a #onth.
NS.+-$,N 1<. +o#putation of Ser"ice. A ?a@ -he co#putation of ser"ice for the purpose of
'eter#ining the a#ount of benefits pa%able un'er this Act shall be fro# the 'ate of original
appoint#ent8election, inclu'ing perio's of ser"ice at 'ifferent ti#es un'er one or #ore
e#plo%ers, those perfor#e' o"erseas un'er the authorit% of the Republic of the Philippines, an'
those that #a% be prescribe' b% the !S$S in coor'ination with the +i"il Ser"ice +o##ission.
N?b@ All ser"ice cre'ite' for retire#ent, resignation or separation for which correspon'ing
benefits ha"e been awar'e' un'er this Act or other laws shall be e)clu'e' in the co#putation of
ser"ice in case of reinstate#ent in the ser"ice of an e#plo%er an' subse>uent retire#ent or
separation which is co#pensable un'er this Act.
N1or the purpose of this section the ter# ser"ice shall inclu'e full ti#e ser"ice with
co#pensation* Pro"i'e', -hat part ti#e an' other ser"ices with co#pensation #a% be inclu'e'
un'er such rules an' regulations as #a% be prescribe' b% the !S$S.
NS.PARA-$,N 9.N.1$-S
NS.+-$,N 11. Separation 9enefits. A -he separation benefit shall consist of* ?a@ a cash
pa%#ent e>ui"alent to one hun're' percent ?1<<D@ of his a"erage #onthl% co#pensation for
each %ear of ser"ice he pai' contributions, but not less than -wel"e thousan' pesos ?P12,<<<@
pa%able upon reaching si)t% ?5<@ %ears of age or upon separation, whiche"er co#es later*
Pro"i'e', -hat the #e#ber resigns or separates fro# the ser"ice after he has ren'ere' at least
three ?3@ %ears of ser"ice but less than fifteen ?15@ %earsC or
N?b@ A cash pa%#ent e>ui"alent to eighteen ?18@ ti#es his basic #onthl% pension pa%able at the
ti#e of resignation or separation, plus an ol'6age pension benefit e>ual to the basic #onthl%
pension pa%able #onthl% for life upon reaching the age of si)t% ?5<@* Pro"i'e', -hat the #e#ber
resigns or separates fro# the ser"ice after he has ren'ere' at least fifteen ?15@ %ears of ser"ice
an' is below si)t% ?5<@ %ears of age at the ti#e of resignation or separation.
NS.+-$,N 12. (ne#plo%#ent or $n"oluntar% Separation 9enefits. A (ne#plo%#ent benefits
in the for# of #onthl% cash pa%#ents e>ui"alent to fift% percent ?5<D@ of the a"erage #onthl%
co#pensation shall be pai' to a per#anent e#plo%ee who is in"oluntaril% separate' fro# the
ser"ice 'ue to the abolition of his office or position usuall% resulting fro# reorganiFation*
Pro"i'e', -hat he has been pa%ing integrate' contributions for at least one ?1@ %ear prior to
separation. (ne#plo%#ent benefits shall be pai' in accor'ance with the following sche'ule*
N+ontributions 4a'e 9enefit 0uration
1 %ear but less than 3 %ears 2 #onths
3 or #ore %ears but less than 5 %ears 3 #onths
5 or #ore %ears but less than 9 %ears 3 #onths
9 or #ore %ears but less than 11 %ears 5 #onths
11 or #ore %ears but less than 15 %ears 5 #onths
N-he first pa%#ent shall be e>ui"alent to two ?2@ #onthl% benefits. A se"en6'a% ?&@ waiting
perio' shall be i#pose' on succee'ing #onthl% pa%#ents.
NAll accu#ulate' une#plo%#ent benefits pai' to the e#plo%ee 'uring his entire #e#bership
with the !S$S shall be 'e'ucte' fro# "oluntar% separation benefits.
N-he !S$S shall prescribe the 'etaile' gui'elines in the operationaliFation of this section in the
rules an' regulations i#ple#enting this Act.
NR.-$R.4.N- 9.N.1$-S
NS.+-$,N 13. Retire#ent 9enefits. A ?a@ Retire#ent benefit shall be*
N?1@ the lu#p su# pa%#ent as 'efine' in this Act pa%able at the ti#e of retire#ent plus an ol'6
age pension benefit e>ual to the basic #onthl% pension pa%able #onthl% for life, starting upon
e)piration of the fi"e6%ear ?5@ guarantee' perio' co"ere' b% the lu#p su#C or
N?2@ cash pa%#ent e>ui"alent to eighteen ?18@ #onths of his basic #onthl% pension plus #onthl%
pension for life pa%able i##e'iatel% with no fi"e6%ear ?5@ guarantee.
N?b@ (nless the ser"ice is e)ten'e' b% appropriate authorities, retire#ent shall be co#pulsor% for
an e#plo%ee at si)t%6fi"e ?55@ %ears of age with at least fifteen ?15@ %ears of ser"ice* Pro"i'e',
-hat if he has less than fifteen ?15@ %ears of ser"ice, he #a% be allowe' to continue in the ser"ice
in accor'ance with e)isting ci"il ser"ice rules an' regulations.
NS.+-$,N 136A. +on'itions for .ntitle#ent. A A #e#ber who retires fro# the ser"ice shall be
entitle' to the retire#ent benefits in paragraph ?a@ of Section 13 hereof* Pro"i'e', -hat*
?1@ he has ren'ere' at least fifteen ?15@ %ears of ser"iceC
?2@ he is at least si)t% ?5<@ %ears of age at the ti#e of retire#entC an'
?3@ he is not recei"ing a #onthl% pension benefit fro# per#anent total 'isabilit%.
NS.+-$,N 13. Perio'ic Pension A';ust#ent. A -he #onthl% pension of all pensioners
inclu'ing all those recei"ing sur"i"orship pension benefits shall be perio'icall% a';uste' as #a%
be reco##en'e' b% the !S$SM actuar% an' appro"e' b% the 9oar' in accor'ance with the rules
an' regulations prescribe' b% the !S$S.
NP.R4AN.N- 0$SA9$2$-= 9.N.1$-S
NS.+-$,N 15. !eneral +on'itions for .ntitle#ent. A A #e#ber who suffers per#anent
'isabilit% for reasons not 'ue to his gra"e #iscon'uct, notorious negligence, habitual
into)ication, or willful intention to ill hi#self or another, shall be entitle' to the benefits
pro"i'e' for un'er Sections 15 an' 1& i##e'iatel% following, sub;ect to the correspon'ing
con'itions therefor.
NS.+-$,N 15. Per#anent -otal 0isabilit% 9enefits. A ?a@ $f the per#anent 'isabilit% is total, he
shall recei"e a #onthl% inco#e benefit for life e>ual to the basic #onthl% pension effecti"e fro#
the 'ate of 'isabilit%* Pro"i'e', -hat*
?1@ he is in the ser"ice at the ti#e of 'isabilit%C or
?2@ if separate' fro# the ser"ice, he has pai' at least thirt%6si) ?35@ #onthl% contributions
within the fi"e ?5@ %ear perio' i##e'iatel% prece'ing his 'isabilit%, or has pai' a total
of at least one hun're' eight% ?18<@ #onthl% contributions, prior to his 'isabilit%*
Pro"i'e', further, -hat if at the ti#e of 'isabilit%, he was in the ser"ice an' has pai' a
total of at least one hun're' eight% ?18<@ #onthl% contributions, in a''ition to the
#onthl% inco#e benefit, he shall recei"e a cash pa%#ent e>ui"alent to eighteen ?18@
ti#es his basic #onthl% pension* Pro"i'e', finall%, -hat a #e#ber cannot en;o% the
#onthl% inco#e benefit for per#anent 'isabilit% an' the ol'6age retire#ent
si#ultaneousl%.
N?b@ $f a #e#ber who suffers per#anent total 'isabilit% 'oes not satisf% con'itions ?1@ an' ?2@ in
paragraph ?a@ of this section but has ren'ere' at least three ?3@ %ears ser"ice at the ti#e of his
'isabilit%, he shall be a'"ance' the cash pa%#ent e>ui"alent to one hun're' percent ?1<<D@ of
his a"erage #onthl% co#pensation for each %ear of ser"ice he pai' contributions, but not less
than -wel"e -housan' pesos ?P12,<<<@ which shoul' ha"e been his separation benefit.
N?c@ (nless the #e#ber has reache' the #ini#u# retire#ent age, 'isabilit% benefit shall be
suspen'e' when*
N?1@ he is ree#plo%e' or
N?2@ he reco"ers fro# 'isabilit% as 'eter#ine' b% the !S$S, whose 'ecision shall be final
an' bin'ingC or
N?3@ he fails to present hi#self for #e'ical e)a#ination when re>uire' b% the !S$S.
N?'@ -he following 'isabilities shall be 'ee#e' total an' per#anent*
N?1@ co#plete loss of sight of both e%esC
N?2@ loss of two ?2@ li#bs at or abo"e the anle or wristC
N?3@ per#anent co#plete paral%sis of two?2@ li#bsC
N?3@ brain in;ur% resulting in incurable i#becilit% or insanit%C an'
N?5@ such other cases as #a% be 'eter#ine' b% the !S$S.
NS.+-$,N 1&. Per#anent Partial 0isabilit% 9enefits. A ?a@ $f the 'isabilit% is partial, he shall
recei"e a cash pa%#ent in accor'ance with a sche'ule of 'isabilities to be prescribe' b% the
!S$S* Pro"i'e', -hat he satisfies either con'itions ?1@ or ?2@ of Section 15?a@C
N?b@ -he following 'isabilities shall be 'ee#e' per#anent an' partial*
N?1@ co#plete an' per#anent loss of the use of*
?i@ an% finger
?ii@ an% toe
?iii@ one ar#
?i"@ one han'
?"@ one foot
?"i@ one leg
?"ii@ one or both ears
?"iii@ hearing of one or both ears
?i)@ sight of one e%e
N?2@ such other cases as #a% be 'eter#ine' b% the !S$S.
N-.4P,RAR= 0$SA9$2$-= 9.N.1$-S
NS.+-$,N 18. -e#porar% -otal 0isabilit% 9enefit. A ?a@ A #e#ber who suffers te#porar%
total 'isabilit% for reasons not 'ue to an% of the con'itions enu#erate' in Section 15 hereof shall
be entitle' to se"ent%6fi"e percent ?&5D@ of his current 'ail% co#pensation for each 'a% or
fraction thereof of te#porar% 'isabilit% benefit not e)cee'ing one hun're' twent% ?12<@ 'a%s in
one calen'ar %ear after e)hausting all his sic lea"e cre'its an' collecti"e bargaining agree#ent
sic lea"e benefits, if an%, but not earlier than the fourth 'a% of his te#porar% total 'isabilit%*
Pro"i'e', -hat*
N?1@ he is in the ser"ice at the ti#e of his 'isabilit%C or
N?2@ if separate', he has ren'ere' at least three ?3@ %ears of ser"ice an' has pai' at least si) ?5@
#onthl% contributions in the twel"e6#onth perio' i##e'iatel% prece'ing his 'isabilit%.
Pro"i'e', howe"er, -hat a #e#ber cannot en;o% the te#porar% total 'isabilit% benefit an' sic
lea"e pa% si#ultaneousl%* Pro"i'e', further, -hat if the 'isabilit% re>uires #ore e)tensi"e
treat#ent that lasts be%on' one hun're' twent% ?12<@ 'a%s, the pa%#ent of the te#porar% total
'isabilit% benefit #a% be e)ten'e' b% the !S$S but not to e)cee' a total of two hun're' fort%
?23<@ 'a%s.
N?b@ -he te#porar% total 'isabilit% benefit shall in no case be less than Se"ent% pesos ?P&<.<<@ a
'a%.
N?c@ -he notices re>uire' of the #e#ber an' the e#plo%er, the #o'e of pa%#ent, an' the other
re>uire#ents for entitle#ent to te#porar% total 'isabilit% benefits shall be pro"i'e' in the rules
an' regulations to be prescribe' b% the !S$S.
NS.+-$,N 19. Non6sche'ule' 0isabilit%. A 1or in;uries or illnesses resulting in a 'isabilit% not
liste' in the sche'ule of partial8total 'isabilit%, as pro"i'e' herein, the !S$S shall 'eter#ine the
nature of the 'isabilit% an' the correspon'ing benefits therefor.
NS(R7$7,RS:$P 9.N.1$-S
NS.+-$,N 2<. Sur"i"orship 9enefits. A Ghen a #e#ber or pensioner 'ies, the beneficiaries
shall be entitle' to sur"i"orship benefits pro"i'e' in Sections 21 an' 22 hereun'er sub;ect to the
con'itions therein pro"i'e' for. -he sur"i"orship pension shall consist of*
?1@ the basic sur"i"orship pension which is fift% percent ?5<D@ of the basic #onthl% pensionC an'
?2@ the 'epen'ent chil'renMs pension not e)cee'ing fift% percent ?5<D@ of the basic #onthl%
pension.
?3@
NS.+-$,N 21. 0eath of a 4e#ber. A ?a@ (pon the 'eath of a #e#ber, the pri#ar%
beneficiaries shall be entitle' to*
?1@ sur"i"orship pension* Pro"i'e', -hat the 'ecease'*
?i@ was in the ser"ice at the ti#e of his 'eathC or
?ii@ if separate' fro# the ser"ice, has at least three ?3@ %ears of ser"ice at the ti#e of his
'eath an' has pai' thirt%6si) ?35@ #onthl% contributions within the fi"e6%ear perio' i##e'iatel%
prece'ing his 'eathC or has pai' a total of at least one hun're' eight% ?18<@ #onthl%
contributions prior to his 'eathC or
?2@ the sur"i"orship pension plus a cash pa%#ent e>ui"alent to one hun're' percent ?1<<D@ of
his a"erage #onthl% co#pensation for e"er% %ear of ser"ice* Pro"i'e', -hat the 'ecease' was in
the ser"ice at the ti#e of his 'eath with at least three ?3@ %ears of ser"iceC or
?3@ a cash pa%#ent e>ui"alent to one hun're' percent ?1<<D@ of his a"erage #onthl%
co#pensation for each %ear of ser"ice he pai' contributions, but not less than -wel"e thousan'
pesos ?P12,<<<.<<@* Pro"i'e', -hat the 'ecease' has ren'ere' at least three ?3@ %ears of ser"ice
prior to his 'eath but 'oes not >ualif% for the benefits un'er the ite# ?1@ or ?2@ of this paragraph.
?b@ -he sur"i"orship pension shall be pai' as follows*
?1@ when the 'epen'ent spouse is the onl% sur"i"or, he8she shall recei"e the basic
sur"i"orship pension for life or until he8she re#arriesC
?2@ when onl% 'epen'ent chil'ren are the sur"i"ors, the% shall be entitle' to the
basic sur"i"orship pension for as long as the% are >ualifie', plus the 'epen'ent chil'renMs
pension e>ui"alent to ten percent ?1<D@ of the basic #onthl% pension for e"er%
'epen'ent chil' not e)cee'ing fi"e ?5@, counte' fro# the %oungest an' without
substitutionC
?3@ when the sur"i"ors are the 'epen'ent spouse an' the 'epen'ent chil'ren, the
'epen'ent spouse shall recei"e the basic sur"i"orship pension for life or until he8she
re#arries, an' the 'epen'ent chil'ren shall recei"e the 'epen'ent chil'renMs pension
#entione' in the i##e'iatel% prece'ing paragraph ?2@ hereof.
?c@ $n the absence of pri#ar% beneficiaries, the secon'ar% beneficiaries shall be entitle'
to*
?1@ the cash pa%#ent e>ui"alent to one hun're' percent ?1<<D@ of his a"erage
#onthl% co#pensation for each %ear of ser"ice he pai' contributions, but not less than
-wel"e thousan' pesos ?P12,<<<@* Pro"i'e', -hat the #e#ber is in the ser"ice at the ti#e
of his 'eath an' has at least three ?3@ %ears of ser"iceC or
?2@ in the absence of secon'ar% beneficiaries, the benefits un'er this paragraph
shall be pai' to his legal heirs.
?'@ 1or purposes of the sur"i"orship benefits, legiti#ate chil'ren shall inclu'e legall%
a'opte' an' legiti#ate chil'ren.
NS.+-$,N 22. 0eath of a Pensioner. A (pon the 'eath of an ol'6age pensioner or a #e#ber
recei"ing the #onthl% inco#e benefit for per#anent 'isabilit%, the >ualifie' beneficiaries shall
be entitle' to the sur"i"orship pension 'efine' in Section 2< of this Act, sub;ect to the pro"isions
of paragraph ?b@ of Section 21 hereof. Ghen the pensioner 'ies within the perio' co"ere' b% the
lu#p su#, the sur"i"orship pension shall be pai' onl% after the e)piration of the sai' perio'.
N1(N.RA2 9.N.1$-S
NS.+-$,N 23. 1uneral 9enefit. A -he a#ount of funeral benefit shall be 'eter#ine' an'
specifie' b% the !S$S in the rules an' regulations but shall not be less than -wel"e thousan'
pesos ?P12,<<<.<<@* Pro"i'e', -hat it shall be increase' to at least .ighteen thousan' pesos
?P18,<<<.<<@ after fi"e ?5@ %ears an' shall be pai' upon the 'eath of*
?a@ an acti"e #e#ber as 'efine' un'er Section 2?e@ of this ActC or
?b@ a #e#ber who has been separate' fro# the ser"ice, but who #a% be entitle' to future benefit
pursuant to Section 3 of this ActC or
?c@ a pensioner, as 'efine' in Section 2?o@ of this ActC or
?'@ a retiree who at the ti#e of his retire#ent was of pensionable age un'er this Act but who
opte' to retire un'er Republic Act No. 1515.
N2$1. $NS(RAN+. 9.N.1$-S
NS.+-$,N 23. +o#pulsor% 2ife $nsurance. A All e#plo%ees e)cept for 4e#bers of the Ar#e'
1orces of the Philippines ?A1P@ an' the Philippine National Police ?PNP@ shall, un'er such ter#s
an' con'itions as #a% be pro#ulgate' b% the !S$S, be co#pulsoril% co"ere' with life insurance,
which shall auto#aticall% tae effect as follows*
?1@ for those e#plo%e' after the effecti"it% of this Act, their insurance shall tae effect on the
'ate of their e#plo%#entC
?2@ for those whose insurance will #ature after the effecti"it% of this Act, their insurance shall be
'ee#e' renewe' on the 'a% following the #aturit% or e)pir% 'ate of their insuranceC
?3@ for those without an% life insurance as of the effecti"it% of this Act, their insurance shall tae
effect following sai' effecti"it%.
NS.+-$,N 25. 0i"i'en's. A An annual 'i"i'en' #a% be grante' to all #e#bers of the !S$S
whose life insurance is in force for at least one ?1@ %ear in accor'ance with a 'i"i'en' allocation
for#ula to be 'eter#ine' b% the !S$S.
NS.+-$,N 25. ,ptional $nsurance. A Sub;ect to the rules an' regulations prescribe' b% the
!S$S, a #e#ber #a% appl% for insurance an'8or pre6nee' co"erage e#bracing life, health,
hospitaliFation, e'ucation, #e#orial plans, an' such other plans as #a% be 'esigne' b% the
!S$S, for hi#self an'8or his 'epen'ents. An% e#plo%er #a% liewise appl% for group insurance
co"erage for its e#plo%ees. -he pa%#ent of the pre#iu#s8install#ents for optional insurance
an' pre6nee' pro'ucts #a% be #a'e b% the insure' or his e#plo%er an'8or an% person acceptable
to the !S$S.
NS.+-$,N 2&. Reinsurance. A -he !S$S #a% reinsure an% of its interests or part thereof with
an% pri"ate co#pan% or reinsurer whether 'o#estic or foreign* Pro"i'e', -hat the !S$S shall
sub#it an annual report on its reinsurance operations to the $nsurance +o##ission.
N.. A0B(0$+A-$,N ,1 +2A$4S AN0 0$SP(-.S
NS.+-$,N 28. Prescription. A +lai#s for benefits un'er this Act e)cept for life an' retire#ent
shall prescribe after four ?3@ %ears fro# the 'ate of contingenc%.
NS.+-$,N 29. 1acilit% of Pa%#ent. A -he !S$S shall prescribe rules an' regulations to
facilitate pa%#ent of benefit, procee's, an' clai#s un'er this Act an' an% other laws
a'#inistere' b% the !S$S. Pa%#ents #a'e b% the !S$S prior to its receipt of an a'"erse clai#, to
a beneficiar% or clai#ant subse>uentl% foun' not entitle' thereto, shall not bar the legal an'
eligible recipient to his right to 'e#an' the pa%#ent of benefits, procee's, an' clai#s fro# the
!S$S, who shall, howe"er, ha"e a right to institute the appropriate action in a court of law
against the ineligible recipient.
NS.+-$,N 3<. Settle#ent of 0isputes. A -he !S$S shall ha"e original an' e)clusi"e
;uris'iction to settle an% 'ispute arising un'er this Act an' an% other laws a'#inistere' b% the
!S$S.
-he 9oar' #a% 'esignate an% #e#ber of the 9oar', or official of the !S$S who is a law%er, to
act as hearing officer to recei"e e"i'ence, #ae fin'ings of fact an' sub#it reco##en'ations
thereon. -he hearing officer shall sub#it his fin'ings an' reco##en'ations, together with all the
'ocu#entar% an' testi#onial e"i'ence to the 9oar' within thirt% ?3<@ woring 'a%s fro# the
ti#e the parties ha"e close' their respecti"e e"i'ence an' file' their last plea'ing. -he 9oar'
shall 'eci'e the case within thirt% ?3<@ 'a%s fro# the receipt of the hearing officerMs fin'ings an'
reco##en'ations. -he cases hear' 'irectl% b% the 9oar' shall be 'eci'e' within thirt% ?3<@
woring 'a%s fro# the ti#e the% are sub#itte' b% the parties for 'ecision.
NS.+-$,N 31. Appeals. A Appeals fro# an% 'ecision or awar' of the 9oar' shall be go"erne'
b% Rules 33 an' 35 of the 199& Rules of +i"il Proce'ure a'opte' b% the Supre#e +ourt on April
8, 199& which will tae effect on Bul% 1, 199&* Pro"i'e', -hat pen'ing cases an' those file' prior
to Bul% 1, 199& shall be go"erne' b% the applicable rules of proce'ure* Pro"i'e', further, -hat
the appeal shall tae prece'ence o"er all other cases e)cept cri#inal cases when the penalt% of
life i#prison#ent or 'eath or reclusion perpetua is i#posable.
-he appeal shall not sta% the e)ecution of the or'er or awar' unless or'ere' b% the 9oar', b% the
+ourt of Appeals or b% the Supre#e +ourt an' the appeal shall be without pre;u'ice to the
special ci"il action of certiorari when proper.
NS.+-$,N 32. .)ecution of 0ecision. A Ghen no appeal is perfecte' an' there is no or'er to
sta% b% the 9oar', b% the +ourt of Appeals or b% the Supre#e +ourt, an% 'ecision or awar' of
the 9oar' shall be enforce' an' e)ecute' in the sa#e #anner as 'ecisions of the Regional -rial
+ourt. 1or this purpose, the 9oar' shall ha"e the power to issue to the cit% or pro"incial sheriff
or its appointe' sheriff such writs of e)ecution as #a% be necessar% for the enforce#ent of such
'ecision or awar', an' an% person who shall fail or refuse to co#pl% with such 'ecision, awar',
writ or process after being re>uire' to 'o so, shall, upon application b% the !S$S, be punishe' for
conte#pt.
NS.+-$,N 33. ,aths, Gitnesses, an' Pro'uction of Recor's. A Ghen authoriFe' b% the 9oar',
an official or e#plo%ee of the !S$S shall ha"e the power to a'#inister oath an' affir#ation, tae
'epositions, certif% to official acts, an' issue subpoena a' testifican'u# an' subpoena 'uces
tecu# to co#pel the atten'ance of witnesses an' the pro'uction of boos, papers,
correspon'ences, an' other recor's 'ee#e' necessar% as e"i'ence in connection with an%
>uestion arising un'er this Act. An% case of contu#ac% shall be 'ealt with in accor'ance with
the pro"isions of Section 58< of the Re"ise' A'#inistrati"e +o'e.
N1. 1(N0S ,1 -:. !S$S
NS.+-$,N 33. 1un's. A All contributions pa%able un'er Section 5 of this Act together with the
earnings an' accruals thereon shall constitute the !S$S Social $nsurance 1un'. -he sai' 1un'
shall be use' to finance the benefits a'#inistere' b% the !S$S un'er this Act. $n a''ition, the
!S$S shall a'#inister the optional insurance fun' for the insurance co"erage 'escribe' in
Section 25 hereof, the e#plo%eesM +o#pensation $nsurance 1un' create' un'er P.0. 525, as
a#en'e', the !eneral $nsurance 1un' create' un'er Act No. 555, as a#en'e', an' such other
special fun's e)isting or that #a% be create' for special groups or persons ren'ering ser"ices to
the go"ern#ent. -he !S$S shall #aintain the re>uire' reser"es to guarantee the fulfill#ent of its
obligations un'er this Act.
N-he fun's of the !S$S shall not be use' for purposes other than what are pro"i'e' for un'er this
Act. 4oreo"er, no portion of the fun's of the !S$S or inco#e thereof shall accrue to the !eneral
1un' of the national go"ern#ent an' its political sub'i"isions, instru#entalities an' other
agencies inclu'ing go"ern#ent6owne' an' controlle' corporations e)cept as #a% be allowe'
un'er this Act.
NS.+-$,N 35. 0eposits an' 0isburse#ents. A All re"enues collecte' an' all accruals thereto
shall be 'eposite', a'#inistere' an' 'isburse' in accor'ance with the law. A #a)i#u# e)pense
loa'ing of twel"e percent ?12D@ of the %earl% re"enues fro# all sources #a% be 'isburse' for
a'#inistrati"e an' operational e)penses e)cept as #a% be otherwise appro"e' b% the Presi'ent
of the Philippines on the basis of actuarial an' #anage#ent stu'ies.
NS.+-$,N 35. $n"est#ent of 1un's. A -he fun's of the !S$S which are not nee'e' to #eet the
current obligations #a% be in"este' un'er such ter#s an' con'itions an' rules an' regulations as
#a% be prescribe' b% the 9oar'* Pro"i'e', -hat in"est#ents shall satisf% the re>uire#ents of
li>ui'it%, safet%8securit% an' %iel' in or'er to ensure the actuarial sol"enc% of the fun's of the
!S$S* Pro"i'e', further, -hat the !S$S shall sub#it an annual report on all in"est#ents #a'e to
both :ouses of +ongress of the Philippines, to wit*
?a@ in interest6bearing bon's or securities or other e"i'ence of in'ebte'ness of the !o"ern#ent of
the PhilippinesC
?b@ $n interest6bearing 'eposits or securities in an% 'o#estic ban 'oing business in the
Philippines* Pro"i'e', -hat in the case of such 'eposits, these shall not e)cee' at an% ti#e the
uni#paire' capital an' surplus or total pri"ate 'eposits of the 'epositor% ban, whiche"er is
s#aller* Pro"i'e', further, -hat sai' ban has prior 'esignation as a 'epositor% for the purpose
b% the 4onetar% 9oar' of the +entral 4onetar% Authorit%C
?c@ in 'irect housing loans to #e#bers an' group housing pro;ects secure' b% first #ortgage,
gi"ing priorit% to the low inco#e groups an' in short6an'6#e'iu#6ter# loans to #e#bers such
as salar%, polic%, e'ucational, e#ergenc%, stoc purchase plan an' other si#ilar loans* Pro"i'e',
-hat no less than fort% percent ?3<D@ of the in"estable fun' of the !S$S Social $nsurance 1un'
shall be in"este' for these purposesC
?'@ in bon's, securities, pro#issor% notes or other e"i'ence of in'ebte'ness of e'ucational or
#e'ical institutions to finance the construction, i#pro"e#ent an' #aintenance of schools an'
hospitalsC
?e@ in real estate propert% inclu'ing shares of stocs in"ol"ing real estate propert% an'
in"est#ents secure' b% first #ortgages on real estate or other collaterals acceptable to the !S$S*
Pro"i'e', -hat such in"est#ents shall, in the 'eter#ination of the 9oar', re'oun' to the benefit
of the !S$S, its #e#bers, as well as the general publicC
?f@ $n 'ebt instru#ents an' other securities tra'e' in the secon'ar% #aretsC
?g@ $n loans to, or in bon's, 'ebentures, pro#issor% notes or other e"i'ence of in'ebte'ness of
an% sol"ent corporation create' or e)isting un'er the laws of the PhilippinesC
?h@ $n co##on an' preferre' stocs of an% sol"ent corporation or financial institution create' or
e)isting un'er the laws of the Philippines liste' in the stoc e)change with pro"en trac recor'
or profitabilit% o"er the last three ?3@ %ears an' pa%#ent of 'i"i'en's at least once o"er the sa#e
perio'C
?i@ $n 'o#estic #utual fun's inclu'ing in"est#ents relate' to the operations of #utual fun'sC an'
?;@ $n foreign #utual fun's an' in foreign currenc% 'eposits or foreign currenc%6'eno#inate'
'ebts, non6speculati"e e>uities an' other financial instru#ents or other assets issue' in
accor'ance with e)isting laws of the countries where such financial instru#ents are issue'*
Pro"i'e', -hat these instru#ents or assets are liste' in bourses of the respecti"e countries where
these instru#ents or assets are issue'* Pro"i'e', further, -hat the issuing co#pan% has pro"en
trac recor' of profitabilit% o"er the last three ?3@ %ears an' pa%#ent of 'i"i'en's at least once
o"er the sa#e perio'.
NS.+-$,N 3&. Recor's an' Reports. A -he !S$S shall eep an' cause to eep such recor's as
#a% be necessar% for the purpose of #aing actuarial stu'ies, calculations an' "aluations of the
fun's of the !S$S inclu'ing such 'ata nee'e' in the co#putation of rates of 'isabilit%, #ortalit%,
#orbi'it%, separation an' retire#ent a#ong the #e#bers an' an% other infor#ation useful for
the a';ust#ent of the benefits of the #e#bers. -he !S$S shall #aintain appropriate boos of
accounts to recor' its assets, liabilities, inco#e, e)penses, receipts an' 'isburse#ents of fun's
an' other financial transactions an' operations.
NS.+-$,N 38. .)a#ination an' 7aluation of the 1un's. A -he !S$S shall #ae a perio'ic
actuarial e)a#ination an' "aluation of its fun's in accor'ance with accepte' actuarial principles.
NS.+-$,N 39. .)e#ption fro# -a), 2egal Process an' 2ien. A $t is hereb% 'eclare' to be the
polic% of the State that the actuarial sol"enc% of the fun's of the !S$S shall be preser"e' an'
#aintaine' at all ti#es an' that contribution rates necessar% to sustain the benefits un'er this Act
shall be ept as low as possible in or'er not to bur'en the #e#bers of the !S$S an' their
e#plo%ers. -a)es i#pose' on the !S$S ten' to i#pair the actuarial sol"enc% of its fun's an'
increase the contribution rate necessar% to sustain the benefits of this Act. Accor'ingl%,
notwithstan'ing an% laws to the contrar%, the !S$S, its assets, re"enues inclu'ing all accruals
thereto, an' benefits pai', shall be e)e#pt fro# all ta)es, assess#ents, fees, charges or 'uties of
all in's. -hese e)e#ptions shall continue unless e)pressl% an' specificall% re"oe' an' an%
assess#ent against the !S$S as of the appro"al of this Act are hereb% consi'ere' pai'.
+onse>uentl%, all laws, or'inances, regulations, issuances, opinions or ;urispru'ence contrar% to
or in 'erogation of this pro"ision are hereb% 'ee#e' repeale', superse'e' an' ren'ere'
ineffecti"e an' without legal force an' effect.
N4oreo"er, these e)e#ptions shall not be affecte' b% subse>uent laws to the contrar% unless this
section is e)pressl%, specificall% an' categoricall% re"oe' or repeale' b% law an' a pro"ision is
enacte' to substitute or replace the e)e#ption referre' to herein as an essential factor to #aintain
or protect the sol"enc% of the fun', notwithstan'ing an' in'epen'entl% of the guarant% of the
national go"ern#ent to secure such sol"enc% or liabilit%.
N-he fun's an'8or the properties referre' to herein as well as the benefits, su#s or #onies
correspon'ing to the benefits un'er this Act shall be e)e#pt fro# attach#ent, garnish#ent,
e)ecution, le"% or other processes issue' b% the courts, >uasi6;u'icial agencies or a'#inistrati"e
bo'ies inclu'ing +o##ission on Au'it ?+,A@ 'isallowances an' fro# all financial obligations
of the #e#bers, inclu'ing his pecuniar% accountabilit% arising fro# or cause' or occasione' b%
his e)ercise or perfor#ance of his official functions or 'uties, or incurre' relati"e to or in
connection with his position or wor e)cept when his #onetar% liabilit%, contractual or
otherwise, is in fa"or of the !S$S.
N!. A04$N$S-RA-$,N
NS.+-$,N 3<. $#ple#enting 9o'%. A -he !o"ern#ent Ser"ice $nsurance S%ste# as create'
un'er +o##onwealth Act No. 185 shall i#ple#ent the pro"isions of this Act.
NS.+-$,N 31. Powers an' 1unctions of the !S$S. A -he !S$S shall e)ercise the following
powers an' functions*
?a@ to for#ulate, a'opt, a#en' an'8or rescin' such rules an' regulations as #a% be necessar% to
carr% out the pro"isions an' purposes of this Act, as well as the effecti"e e)ercise of the powers
an' functions, an' the 'ischarge of 'uties an' responsibilities of the !S$S, its officers an'
e#plo%eesC
?b@ to a'opt or appro"e the annual an' supple#ental bu'get of receipts an' e)pen'itures
inclu'ing salaries an' allowances of the !S$S personnelC to authoriFe such capital an' operating
e)pen'itures an' 'isburse#ents of the !S$S as #a% be necessar% an' proper for the effecti"e
#anage#ent an' operation of the !S$SC
?c@ to in"est the fun's of the !S$S, 'irectl% or in'irectl%, in accor'ance with the pro"isions of
this ActC
?'@ to ac>uire, utiliFe or 'ispose of, in an% #anner recogniFe' b% law, real or personal propert% in
the Philippines or elsewhere necessar% to carr% out the purposes of this ActC
?e@ to con'uct continuing actuarial an' statistical stu'ies an' "aluations to 'eter#ine the
financial con'ition of the !S$S an' taing into consi'eration such stu'ies an' "aluations an' the
li#itations herein pro"i'e', re6a';ust the benefits, contributions, pre#iu# rates, interest rates or
the allocation or re6allocation of the fun's to the contingencies co"ere'C
?f@ to ha"e the power of successionC
?g@ to sue an' be sue'C
?h@ to enter into, #ae, perfor# an' carr% out contracts of e"er% in' an' 'escription with an%
person, fir# or association or corporation, 'o#estic or foreignC
?i@ to carr% on an% other lawful business whatsoe"er in pursuance of, or in connection with the
pro"isions of this ActC
?;@ to ha"e one or #ore offices in an' outsi'e of the Philippines, an' to con'uct its business an'
e)ercise its powers throughout an' in an% part of the Republic of the Philippines an'8or in an% or
all foreign countries, states an' territories* Pro"i'e', -hat the !S$S shall #aintain a branch
office in e"er% pro"ince where there e)ists a #ini#u# of fifteen thousan' ?15,<<<@ #e#bershipC
?@ to borrow fun's fro# an% source, pri"ate or go"ern#ent, foreign or 'o#estic, onl% as an
inci'ent in the securitiFation of housing #ortgages of the !S$S an' on account of its recei"ables
fro# an% go"ern#ent or pri"ate entit%C
?l@ to in"est, own or otherwise participate in e>uit% in an% establish#ent, fir# or entit%C
?#@ to appro"e appoint#ents in the !S$S e)cept appoint#ents to positions which are polic%
'eter#ining, pri#aril% confi'ential or highl% technical in nature accor'ing to the +i"il Ser"ice
rules an' regulations* Pro"i'e', -hat all positions in the !S$S shall be go"erne' b% a
co#pensation an' position classification s%ste# an' >ualifications stan'ar's appro"e' b% the
!S$S 9oar' of -rustees base' on a co#prehensi"e ;ob anal%sis an' au'it of actual 'uties an'
responsibilities* Pro"i'e', further, -hat the co#pensation plan shall be co#parable with the
pre"ailing co#pensation plans in the pri"ate sector an' shall be sub;ect to the perio'ic re"iew b%
the 9oar' no #ore than once e"er% four ?3@ %ears without pre;u'ice to %earl% #erit re"iews or
increases base' on pro'ucti"it% an' profitabilit%C
?n@ to 'esign an' a'opt an .arl% Retire#ent $ncenti"e Plan ?.R$P@ an'8or financial assistance for
the purpose of retire#ent for its own personnelC
?o@ to fi) an' perio'icall% re"iew an' a';ust the rates of interest an' other ter#s an' con'itions
for loans an' cre'its e)ten'e' to #e#bers or other persons, whether natural or ;uri'icalC
?p@ to enter into agree#ent with the Social Securit% S%ste# or an% other entit%, enterprise,
corporation or partnership for the benefit of #e#bers transferring fro# one s%ste# to another
sub;ect to the pro"ision of Republic Act No. &599, otherwise nown as the Portabilit% 2awC
?>@ to be able to float proper instru#ent to li>uef% long6ter# #aturit% b% pooling fun's for short6
ter# secon'ar% #aretC
?r@ to sub#it annuall%, not later than Bune 3<, a public report to the Presi'ent of the Philippines
an' the +ongress of the Philippines regar'ing its acti"ities in the a'#inistration an' enforce#ent
of this Act 'uring the prece'ing %ear inclu'ing infor#ation an' reco##en'ations on broa'
policies for the 'e"elop#ent an' perfection of the progra#s of the !S$SC
?s@ to #aintain a pro"i'ent fun', which consists of contributions #a'e b% both the !S$S an' its
officials an' e#plo%ees an' their earnings, for the pa%#ent of benefits to such officials an'
e#plo%ees or their heirs un'er such ter#s an' con'itions as it #a% prescribeC
?t@ to appro"e an' a'opt gui'elines affecting in"est#ents, insurance co"erage of go"ern#ent
properties, settle#ent of clai#s, 'isposition of ac>uire' assets, pri"atiFation or e)pansion of
subsi'iaries, 'e"elop#ent of housing pro;ects, increase' benefit an' loan pacages to #e#bers,
an' the enforce#ent of the pro"isions of this ActC
?u@ an% pro"ision of law to the contrar% notwithstan'ing, to authoriFe the pa%#ent of e)tra
re#uneration to the officials an' e#plo%ees 'irectl% in"ol"e' in the collection an'8or re#ittance
of contributions, loan repa%#ents, an' other #onies 'ue to the !S$S at such rates an' un'er such
con'itions as it #a% a'opt. Pro"i'e', -hat the best interest of the !S$S shall be obser"e'
thereb%C
?"@ to 'eter#ine, fi) an' i#pose interest upon unpai' pre#iu#s 'ue fro# e#plo%ers an'
e#plo%eesC
?w@ to ensure the collection or reco"er% of all in'ebte'ness, liabilities an'8or accountabilities,
inclu'ing unpai' pre#iu#s or contributions in fa"or of the !S$S arising fro# an% cause or
source whatsoe"er, 'ue fro# all obligors, whether public or pri"ate. -he 9oar' shall 'e#an'
pa%#ent or settle#ent of the obligations referre' to herein within thirt% ?3<@ 'a%s fro# the 'ate
the obligation beco#es 'ue, an' in the e"ent of failure or refusal of the obligor or 'ebtor to
co#pl% with the 'e#an', to initiate or institute the necessar% or proper actions or suits, cri#inal,
ci"il or a'#inistrati"e or otherwise, before the courts, tribunals, co##issions, boar's, or bo'ies
of proper ;uris'iction within thirt% ?3<@ 'a%s recone' fro# the e)pir% 'ate of the perio' fi)e' in
the 'e#an' within which to pa% or settle the accountC
?)@ to 'esign an' i#ple#ent progra#s that will pro#ote an' #obiliFe sa"ings an' pro"i'e
a''itional resources for social securit% e)pansion an' at the sa#e ti#e affor' in'i"i'ual
#e#bers appropriate returns on their sa"ings8in"est#ents. -he progra#s shall be so 'esigne' as
to spur socio6econo#ic tae6off an' #aintain continue' growthC an'
?%@ to e)ercise such powers an' perfor# such other acts as #a% be necessar%, useful, inci'ental
or au)iliar% to carr% out the pro"isions of this Act, or to attain the purposes an' ob;ecti"es of this
Act.
NS.+-$,N 32. -he 9oar' of -rusteesC $ts +o#positionC -enure an' +o#pensation. A -he
corporate powers an' functions of the !S$S shall be "este' in an' e)ercise' b% the 9oar' of
-rustees co#pose' of the Presi'ent an' !eneral 4anager of the !S$S an' eight ?8@ other
#e#bers to be appointe' b% the Presi'ent of the Philippines, one ?1@ of who# shall be either the
Presi'ent of the Philippine Public School -eachers Association ?PPS-A@ or the Presi'ent of the
Philippine Association of School Superinten'ents ?PASS@, another two ?2@ shall represent the
lea'ing organiFations or associations of go"ern#ent e#plo%ees8retirees, another four ?3@ fro#
the baning, finance, in"est#ent, an' insurance sectors, an' one ?1@ recogniFe' #e#ber of the
legal profession who at the ti#e of appoint#ent is also a #e#ber of the !S$S. -he -rustees shall
elect fro# a#ong the#sel"es a +hair#an while the Presi'ent an' !eneral 4anager of the !S$S
shall auto#aticall% be the "ice6chair#an.
-he -rustees, e)cept the Presi'ent an' !eneral 4anager who shall cease as trustee upon his
separation, shall hol' office for si) ?5@ %ears without reappoint#ent, or until their successors are
'ul% appointe' an' >ualifie'. 7acanc%, other than through the e)piration of the ter#, shall be
fille' for the une)pire' ter# onl%. -he #e#bers of the 9oar' shall be entitle' to a per 'ie# of
-wo thousan' fi"e hun're' pesos ?P2,5<<@ for each boar' #eeting actuall% atten'e' b% the#,
but not to e)cee' -en thousan' pesos ?P1<,<<<@ a #onth an' reasonable transportation an'
representation allowances as #a% be fi)e' b% the 9oar'.
NS.+-$,N 33. Powers an' 1unctions of the 9oar' of -rustees. A -he 9oar' of -rustees shall
ha"e the following powers an' functions*
N?a@ to for#ulate the policies, gui'elines an' progra#s to effecti"el% carr% out the purposes of
this ActC
N?b@ to pro#ulgate such rules an' regulations as #a% be necessar% or proper for the effecti"e
e)ercise of the powers an' functions as well as the 'ischarge of the 'uties an' responsibilities of
the !S$S, its officers an' e#plo%eesC
N?c@ upon the reco##en'ation of the Presi'ent an' !eneral 4anager, to appro"e the annual an'
supple#ental bu'get of receipts an' e)pen'itures of the !S$S, an' to authoriFe such operating
an' capital e)pen'itures an' 'isburse#ents of the !S$S as #a% be necessar% or proper for the
effecti"e #anage#ent, operation an' a'#inistration of the !S$SC
N?'@ upon the reco##en'ation of the Presi'ent an' !eneral 4anager, to appro"e the !S$SM
organiFational an' a'#inistrati"e structures an' staffing pattern, an' to establish, fi), re"iew,
re"ise an' a';ust the appropriate co#pensation pacage for the officers an' e#plo%ees of the
!S$S with reasonable allowances, incenti"es, bonuses, pri"ileges an' other benefits as #a% be
necessar% or proper for the effecti"e #anage#ent, operation an' a'#inistration of the !S$S,
which shall be e)e#pt fro# Republic Act No. 5&58, otherwise nown as the Salar%
Stan'ar'iFation 2aw an' Republic Act No. &33<, otherwise nown as the Attrition 2awC
N?e@ to fi) an' perio'icall% re"iew an' a';ust the rates of interest an' other ter#s an' con'itions
for loans an' cre'its e)ten'e' to its #e#bers or other persons, whether natural or ;uri'icalC
N?f@ the pro"ision of an% law to the contrar% notwithstan'ing, to co#pro#ise or release, in whole
or in part, an% clai# or settle liabilit% to the !S$S, regar'less of the a#ount in"ol"e', un'er such
ter#s an' con'itions as it #a% i#pose for the best interest of the !S$SC
N?g@ to appro"e an' a'opt gui'elines affecting in"est#ents, insurance co"erage of go"ern#ent
properties, settle#ent of clai#s, 'isposition of ac>uire' assets, 'e"elop#ent of housing pro;ects,
increase' benefit an' loan pacages to #e#bers, an' the enforce#ent of the pro"isions of this
ActC
N?h@ to 'eter#ine, fi) an' i#pose interest upon unpai' or unre#itte' pre#iu#s an'8or
contributionsC an'
N?i@ to 'o an' perfor# an% an' all acts necessar%, proper or inci'ental to the attain#ent of the
purposes an' ob;ecti"es of this Act.
NS.+-$,N 33. Appoint#ent, Rualifications, an' +o#pensation of the Presi'ent an' !eneral
4anager an' of ,ther Personnel. A -he Presi'ent an' !eneral 4anager of the !S$S shall be its
+hief .)ecuti"e ,fficer an' shall be appointe' b% the Presi'ent of the Philippines. :e shall be a
person with #anage#ent an' in"est#ents e)pertise necessar% for the effecti"e perfor#ance of
his 'uties an' functions un'er this Act.
N-he !S$S Presi'ent an' !eneral 4anager shall be assiste' b% one or #ore e)ecuti"e "ice6
presi'ents, senior "ice6presi'ents, "ice6presi'ents an' #anagers in a''ition to the usual
super"isor% an' ran an' file positions who shall be appointe' an' re#o"e' b% the Presi'ent an'
!eneral 4anager with the appro"al of the 9oar', in accor'ance with the e)isting +i"il Ser"ice
rules an' regulations.
NS.+-$,N 35. Powers an' 0uties of the Presi'ent an' !eneral 4anager. A -he Presi'ent an'
!eneral 4anager of the !S$S shall a#ong others, e)ecute an' a'#inister the policies an'
resolutions appro"e' b% the boar' an' 'irect an' super"ise the a'#inistration an' operations of
the !S$S. -he Presi'ent an' !eneral 4anager, sub;ect to the appro"al of the 9oar', shall
appoint the personnel of the !S$S, re#o"e, suspen' or otherwise 'iscipline the# for cause, in
accor'ance with e)isting +i"il Ser"ice rules an' regulations, an' prescribe their 'uties an'
>ualifications to the en' that onl% co#petent persons #a% be e#plo%e'.
NS.+-$,N 35. Au'itor. A ?a@ -he +hair#an of the +o##ission on Au'it shall be the e) officio
au'itor of the !S$S. 1or this purpose, he #a% appoint a representati"e who shall be the Au'itor
of the !S$S, an' the necessar% personnel to assist sai' representati"e in the perfor#ance of his
'uties.
N?b@ -he +hair#an of the +o##ission on Au'it or his authoriFe' representati"e, shall sub#it to
the 9oar' soon after the close of each calen'ar %ear, an au'ite' state#ent showing the financial
con'ition an' progress of the !S$S for the calen'ar %ear ;ust en'e'.
NS.+-$,N 3&. 2egal +ounsel. A -he !o"ern#ent +orporate +ounsel shall be the legal a'"iser
an' consultant of the !S$S, but the !S$S #a% assign to the ,ffice of the !o"ern#ent +orporate
+ounsel ?,!++@ cases for legal action or trial, issues for legal opinions, preparation an' re"iew
of contracts8agree#ents an' others, as the !S$S #a% 'eci'e or 'eter#ine fro# ti#e to ti#e*
Pro"i'e', howe"er, -hat the present legal ser"ices group in the !S$S shall ser"e as its in6house
legal counsel.
N-he !S$S #a%, sub;ect to appro"al b% the proper court, 'eputiFe an% personnel of the legal
ser"ice group to act as special sheriff in the enforce#ent of writs an' processes issue' b% the
court, >uasi6;u'icial agencies or a'#inistrati"e bo'ies in cases in"ol"ing the !S$S.
NS.+-$,N 38. Powers of the $nsurance +o##ission. A -he $nsurance +o##issioner or his
authoriFe' representati"es shall #ae an e)a#ination of the financial con'ition an' #etho's of
transacting business of the !S$S at least once e"er% three ?3@ %ears an' the report of sai'
e)a#ination shall be sub#itte' to the 9oar' of -rustees an' copies thereof be furnishe' the
,ffice of the Presi'ent of the Philippines an' the two :ouses of the +ongress of the Philippines
within fi"e ?5@ 'a%s after the close of e)a#ination* Pro"i'e', howe"er, -hat for each
e)a#ination the !S$S shall pa% the office of the $nsurance +o##issioner an a#ount e>ual to the
actual e)penses incurre' b% the sai' office in the con'uct of the e)a#ination, inclu'ing the
salaries of the e)a#iners an' of the actuar% of such e)a#ination for the actual ti#e spent.
N:. !.N.RA2 PR,7$S$,NS
NS.+-$,N 39. 0ispensation of Social $nsurance 9enefits. A ?a@ -he !S$S shall pa% the
retire#ent benefits to the e#plo%ee on his last 'a% of ser"ice in the go"ern#ent* Pro"i'e', -hat
all re>uire#ents are sub#itte' to the !S$S within a reasonable perio' prior to the effecti"e 'ate
of the retire#entC
N?b@ -he !S$S shall 'iscontinue the processing an' a';u'ication of retire#ent clai#s un'er R.A.
No. 1515 e)cept refun' of retire#ent pre#iu# an' R.A. No. 91<. $nstea', all agencies concerne'
shall process an' pa% the gratuities of their e#plo%ees. -he 9oar' shall a'opt the proper rules
an' proce'ures for the i#ple#entation of this pro"ision.
NS.+-$,N 5<. 0e"elop#ent an' 'isposition of Ac>uire' Assets. A -he !S$S shall ha"e the
right to 'e"elop an' 'ispose of its ac>uire' assets obtaine' in the or'inar% course of its business.
-o a'' "alue to, i#pro"e profitabilit% on, an'8or enhance the #aretabilit% of an ac>uire' asset,
the !S$S #a% further 'e"elop8reno"ate the sa#e either with its own capital or through a ;oint
"enture arrange#ent with pri"ate co#panies or in'i"i'uals.
N-he !S$S #a% sell its ac>uire' assets in accor'ance with e)isting +o##ission on Au'it ?+,A@
rules an' regulations for an a#ount not lower than the current #aret "alue of the propert%. 1or
this purpose, the !S$S shall con'uct an annual appraisal of its propert% or ac>uire' assets to
'eter#ine its current #aret "alue. All notices of sale shall be publishe' in newspapers of
general circulation.
NNo in;unction or restraining or'er issue' b% an% court, co##ission, tribunal or office shall bar,
i#pe'e or 'ela% the sale an' 'isposition b% the !S$S of its ac>uire' assets e)cept on >uestions of
ownership an' national or public interest.
NS.+-$,N 51. !o"ern#ent Assistance to the !S$S. A -he !S$S #a% call upon an% e#plo%er
for such assistance as #a% be necessar% in the 'ischarge of its 'uties an' functions.
N2. P.NA2 PR,7$S$,NS
NS.+-$,N 52. Penalt%. A ?a@ An% person foun' to ha"e participate' 'irectl% or in'irectl% in the
co##ission of frau', collusion, falsification, or #isrepresentation in an% transaction with the
!S$S whether for hi# or for so#e other persons, shall suffer the penalties pro"i'e' for in Article
1&2 of the Re"ise' Penal +o'e.
N?b@ Ghoe"er shall obtain or recei"e an% #one% or chec in"oing an% pro"ision of this Act or
an% agree#ent thereun'er, without being entitle' thereto with the intent to 'efrau' an% #e#ber,
an% e#plo%er, the !S$S, or an% thir' part%, shall be punishe' b% a fine of not less than 1i"e
thousan' pesos ?P5,<<<.<<@ nor #ore than -went% thousan' pesos ?P2<,<<<.<<@ or b%
i#prison#ent of not less than si) ?5@ %ears an' one ?1@ 'a% to twel"e ?12@ %ears, or both, at the
'iscretion of the court.
N?c@ Ghoe"er fails or refuses to co#pl% with the pro"isions of this Act or with the rules an'
regulations a'opte' b% the !S$S shall be punishe' b% a fine of not less than 1i"e thousan' pesos
?P5,<<<.<<@ nor #ore than -went% thousan' pesos ?P2<,<<<.<<@, or b% i#prison#ent of not less
than si) ?5@ %ears an' one ?1@ 'a% to twel"e ?12@ %ears, or both, at the 'iscretion of the court.
N?'@ -he treasurer, finance officer, cashier, 'isbursing officer, bu'get officer or other official or
e#plo%ee who fails to inclu'e in the annual bu'get the a#ount correspon'ing to the e#plo%er
an' e#plo%ee contributions, or who fails or refuses or 'ela%s b% #ore than thirt% ?3<@ 'a%s fro#
the ti#e such a#ount beco#es 'ue an' 'e#an'able, or to 'e'uct the #onthl% contributions of
the e#plo%ee shall, upon con"iction b% final ;u'g#ent, suffer the penalties of i#prison#ent
fro# si) ?5@ #onths an' one ?1@ 'a% to si) ?5@ %ears, an' a fine of not less than -hree thousan'
pesos ?P3,<<<.<<@ but not #ore than Si) thousan' pesos ?P5,<<<.<<@, an' in a''ition shall suffer
absolute perpetual 'is>ualification fro# hol'ing public office an' fro# practicing an% profession
or calling license' b% the go"ern#ent.
N?e@ An% e#plo%ee or #e#ber who recei"es or eeps fun' or propert% belonging, pa%able or
'eli"erable to the !S$S an' appropriates the sa#e, or taes or #isappropriates or uses the sa#e
to an% purpose other than that authoriFe' b% this Act, or per#its another person to tae,
#isappropriate or use sai' fun' or propert% b% e)pressl% consenting thereto, or through
aban'on#ent or negligence, or is otherwise guilt% of the #isappropriation of sai' fun' or
propert%, in whole or in part, shall suffer the penalties pro"i'e' in Article 21& of the Re"ise'
Penal +o'e, an' in a''ition shall suffer absolute perpetual 'is>ualification fro# hol'ing public
office an' fro# practicing an% profession or calling license' b% the go"ern#ent.
N?f@ An% e#plo%ee, who after 'e'ucting the #onthl% contribution or loan a#ortiFation fro# a
#e#berMs co#pensation, fails to re#it the sa#e to the !S$S within thirt% ?3<@ 'a%s fro# the 'ate
the% shoul' ha"e been re#itte' un'er Section 5?a@ shall be presu#e' to ha"e #isappropriate'
such contribution or loan a#ortiFation an' shall suffer the penalties pro"i'e' in Article 315 of
the Re"ise' Penal +o'e, an' in a''ition shall suffer absolute perpetual 'is>ualification fro#
hol'ing public office an' fro# practicing an% profession or calling license' b% the go"ern#ent.
N?g@ -he hea's of the offices of the national go"ern#ent, its political sub'i"isions, branches,
agencies an' instru#entalities, inclu'ing go"ern#ent6owne' or controlle' corporations an'
go"ern#ent financial institutions, an' the personnel of such offices who are in"ol"e' in the
collection of pre#iu# contributions, loan a#ortiFation an' other accounts 'ue the !S$S who
shall fail, refuse or 'ela% the pa%#ent, turno"er, re#ittance or 'eli"er% of such accounts to the
!S$S within thirt% ?3<@ 'a%s fro# the ti#e that the sa#e shall ha"e been 'ue an' 'e#an'able
shall, upon con"iction b% final ;u'g#ent, suffer the penalties of i#prison#ent of not less than
one ?1@ %ear nor #ore than fi"e ?5@ %ears an' a fine of not less than -en thousan' pesos
?P1<,<<<.<<@ nor #ore than -went% thousan' pesos ?P2<,<<<.<<@, an' in a''ition shall suffer
absolute perpetual 'is>ualification fro# hol'ing public office an' fro# practicing an% profession
or calling license' b% the go"ern#ent.
N?h@ -he officers an'8or personnel referre' to in paragraph ?g@ of this section shall be liable not
onl% cri#inall% but also ci"ill% to the !S$S or to the e#plo%ee or #e#ber concerne' in the for#
of 'a#ages, inclu'ing surcharges an' interests.
N?i@ 1or the charges or co#plaints referre' to in paragraph ?g@ of this Section, the liabilities
therein set forth shall be construe' as wai"er of the State of its i##unit% fro# suit, hence, the
abo"e6#entione' officials an'8or personnel #a% not in"oe the 'efense of non6suabilit% of the
State.
N?;@ 1ailure of the 4e#bers of the !S$S 9oar', inclu'ing the chair#an an' the "ice6chair#an, to
co#pl% with the pro"isions of paragraph ?w@ of Section 31 hereof, shall sub;ect the# to
i#prison#ent of not less than si) ?5@ #onths nor #ore than one ?1@ %ear or a fine of not less than
1i"e thousan' pesos ?P5,<<<.<<@ nor #ore than -en thousan' pesos ?P1<,<<<.<<@ without
pre;u'ice to an% ci"il or a'#inistrati"e liabilit% which #a% also arise therefro#.
N+ri#inal actions arising fro# "iolations of the pro"isions of this Act #a% be co##ence' b% the
!S$S or b% the aggrie"e' #e#ber, either un'er this Act or, in appropriate cases, un'er the
Re"ise' Penal +o'e.
NS.+-$,N 53. $#ple#enting Rules an' Regulations. A -he i#ple#enting rules an' regulations
to carr% out the pro"isions of this Act shall be a'opte' an' pro#ulgate' b% the !S$S not later
than ninet% ?9<@ 'a%s after the appro"al of this Act.
NS.+-$,N 53. Non6i#pair#ent of 9enefits, Powers, Buris'iction, Rights, Pri"ileges, 1unctions
an' Acti"ities. A Nothing in this Act shall be construe' to repeal, a#en' or li#it an% pro"ision
of e)isting laws. Presi'ential 0ecrees an' 2etters of $nstructions, not otherwise specificall%
inconsistent with the pro"isions of this Act.
NS.+-$,N 55. .)clusi"eness of 9enefits. A Ghene"er other laws pro"i'e si#ilar benefits for
the sa#e contingencies co"ere' b% this Act, the #e#ber who >ualifies to the benefits shall ha"e
the option to choose which benefits will be pai' to hi#. :owe"er, if the benefits pro"i'e' b% the
law chosen are less than the benefits pro"i'e' un'er this Act, the !S$S shall pa% onl% the
'ifference.
NS.+-$,N 55. Appropriations. A -he a#ount necessar% to carr% out the pro"isions of this Act
shall be inclu'e' in the respecti"e bu'gets of the agencies in the national go"ern#ent obligation
progra# of the %ear following its enact#ent into law an' thereafter.N
S.+-$,N 2. Separabilit% +lause. A Shoul' an% pro"ision of this Act or an% part thereof be
'eclare' in"ali', the other pro"isions, so far as the% are separable fro# the in"ali' ones, shall
re#ain in force an' effect.
S.+-$,N 3. Repealing +lause. A All laws an' an% other law or parts of law specificall%
inconsistent herewith are hereb% repeale' or #o'ifie' accor'ingl%* Pro"i'e', -hat the rights
un'er e)isting laws, rules an' regulations "este' upon or ac>uire' b% an e#plo%ee who is
alrea'% in the ser"ice as of the effecti"it% of this Act shall re#ain in force an' effect* Pro"i'e',
further, -hat subse>uent to the effecti"it% of this Act, a new e#plo%ee or an e#plo%ee who has
pre"iousl% retire' or separate' an' is ree#plo%e' in the ser"ice shall be co"ere' b% the
pro"isions of this Act.
S.+-$,N 3. .ffecti"it%. A -his Act shall tae effect fifteen ?15@ 'a%s after its publication in the
,fficial !aFette or in at least two ?2@ newspapers of general circulation.
Appro"e'* 4a% 3<, 199&
Publishe' in 4ala%a, -he Philippine Star, Philippine 0ail% $n>uirer, an' the 4anila 9ulletin on
Bune 9, 199&. Bul% 28, 199&.
Publishe' in the ,fficial !aFette, 7ol. 93 No. 29 page 335< on Bul% 21, 199&.