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AGRARIAN REFORM AND OTHER SOCIAL LEGISLATION

SOCIAL SECURITY ACT OF 1997
Effective on May 24, 1997
It is the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt social security system
suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful
protection to members and their families against the hazards of disability, sickness, maternity, old-age, death and other
contingencies resulting in loss of income or financial burden. (Sec. 2, RA 8282)
Vision:
1. Viable protection through generations.
2. Universal protection provided to all residents of the Philippines, citizens and non-citizens alike, regardless of creed, gender,
age, geographic location and economic status, especially the disadvantaged.
3. Equitable - fair and uniform coverage to all; benefits shall be meaningful and able to sustain a decent standard of living.
4. World-class service - prompt, accurate and courteous service shall be provided.

Jurisdiction and Rules of Social Security Commission
"SECTION 5. Settlement of Disputes. (a) Any dispute arising under this Act with respect to coverage, benefits, contributions and
penalties thereon or any other matter related thereto, shall be cognizable by the Commission, and any case filed with respect thereto
shall be heard by the Commission, or any of its members, or by hearing officers duly authorized by the Commission and decided within
the mandatory period of twenty (20) days after the submission of the evidence. The filing, determination and settlement of disputes
shall be governed by the rules and regulations promulgated by the Commission.

"(b) Appeal to Courts. Any decision of the Commission, in the absence of an appeal therefrom as herein provided, shall become final
and executory fifteen (15) days after the date of notification, and judicial review thereof shall be permitted only after any party
claiming to be aggrieved thereby has exhausted his remedies before the Commission. The Commission shall be deemed to be a party
to any judicial action involving any such decision and may be represented by an attorney employed by the Commission, or when
requested by the Commission, by the Solicitor General or any public prosecutor.

"(c) Court Review. The decision of the Commission upon any disputed matter may be reviewed both upon the law and the facts by
the Court of Appeals. For the purpose of such review the procedure concerning appeals from the Regional Trial Court shall be followed
as far as practicable and consistent with the purposes of this Act. Appeal from a decision of the Commission must be taken within
fifteen (15) days from notification of such decision. If the decision of the Commission involves only questions of law, the same shall be
reviewed by the Supreme Court. No appeal bond shall be required. The case shall be heard in a summary manner, and shall take
precedence over all cases, except that in the Supreme Court, criminal cases wherein life imprisonment or death has been imposed by
the trial court shall take precedence. No appeal shall act as a supersedeas or a stay of the order of the Commission unless the
Commission itself, or the Court of Appeals or the Supreme Court, shall so order.

"(d) Execution of Decisions. The Commission may, motu proprio or on motion of any interested party, issue a writ of execution to
enforce any of its decisions or awards, after it has become final and executory, in the same manner as the decision of the Regional
Trial Court by directing the city or provincial sheriff or the sheriff whom it may appoint to enforce such final decision or execute such
writ; and any person who shall fail or refuse to comply with such decision, award or writ, after being required to do so shall, upon
application by the Commission, pursuant to Rule 71 of the Rules of Court, be punished for contempt.

SSC vs Atlantic Gulf
Which body has jurisdiction to entertain a controversy arising from the non-implementation of a dacion en pago agreed upon by the
parties as a means of settlement of private respondents' liabilities?

From the allegations of respondents' complaint, it readily appears that there is no longer any dispute with respect to respondents'
accountability to the SSS. Respondents had, in fact, admitted their delinquency and offered to settle them by way of dacion en pago
subsequently approved by the SSS.

The controversy lies in the non-implementation of the approved and agreed dacion en pago on the part of the SSS. As such,
respondents filed a suit to obtain its enforcement which is, doubtless, a suit for specific performance and one incapable of pecuniary
estimation beyond the competence of the Commission.

SSS vs Bailon
Clemente G. Bailon (Bailon) and Alice P. Diaz (Alice) contracted marriage in Barcelona, Sorsogon. More than 15 years later, Bailon filed
before the then Court of First Instance (CFI) of Sorsogon a petition to declare Alice presumptively dead. By Order, the CFI granted the
petition.

Close to 13 years after his wife Alice was declared presumptively dead, Bailon contracted marriage with Teresita Jarque (respondent) in
Casiguran, Sorsogon. Bailon, who was a member of the Social Security System (SSS) since 1960 and a retiree pensioner thereof, died.
Respondent thereupon filed a claim for funeral benefits, and was granted P12,000 by the SSS.

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Cecilia Bailon-Yap (Cecilia), who claimed to be a daughter of Bailon and one Elisa Jayona (Elisa) contested before the SSS the release
to respondent of the death and funeral benefits. She claimed that Bailon contracted three marriages in his lifetime, the first with Alice,
the second with her mother Elisa, and the third with respondent, all of whom are still alive; she, together with her siblings, paid for
Bailon's medical and funeral expenses; and all the documents submitted by respondent to the SSS in support of her claims are spurious

SSS cancelled the pension. Respondent protested asserting that her marriage with Bailon was not declared before any court of justice
as bigamous or unlawful, hence, it remained valid and subsisting for all legal intents and purposes as in fact Bailon designated her as
his beneficiary. When raised to SSC, it held that Teresita Jarque-Bailon is not the legitimate spouse and primary beneficiary of SSS
member Clemente Bailon.

SC:
That the SSC is empowered to settle any dispute with respect to SSS coverage, benefits and contributions, there is no doubt. In so
exercising such power, however, it cannot review, much less reverse, decisions rendered by courts of law as it did in the case at bar
when it declared that the December 10, 1970 CFI Order was obtained through fraud and subsequently disregarded the same, making
its own findings with respect to the validity of Bailon and Alice's marriage on the one hand and the invalidity of Bailon and respondent's
marriage on the other.

In interfering with and passing upon the CFI Order, the SSC virtually acted as an appellate court. The law does not give the SSC
unfettered discretion to trifle with orders of regular courts in the exercise of its authority to determine the beneficiaries of the SSS.

In the case at bar, as no step was taken to nullify, in accordance with law, Bailon's and respondent's marriage prior to the former's
death in 1998, respondent is rightfully the dependent spouse-beneficiary of Bailon.


RP vs Asiapro Cooperative
Respondent Asiapro, as a cooperative, is composed of owners-members. Its primary objectives are to provide savings and credit
facilities and to develop other livelihood services for its owners-members.

In the discharge of the aforesaid primary objectives, respondent cooperative entered into several Service Contracts with Stanfilco a
division of DOLE Philippines, Inc. and a company based in Bukidnon. The owners-members do not receive compensation or wages from
the respondent cooperative. Instead, they receive a share in the service surplus which the respondent cooperative earns from different
areas of trade it engages in, such as the income derived from the said Service Contracts with Stanfilco. The owners-members get their
income from the service surplus generated by the quality and amount of services they rendered, which is determined by the Board of
Directors of the respondent cooperative.

In order to enjoy the benefits under the Social Security Law of 1997, the owners-members of the respondent cooperative, who were
assigned to Stanfilco requested the services of the latter to register them with petitioner SSS as self-employed and to remit their
contributions as such

SSS sent a letter to Asiapro that based on the Service Contracts it executed with Stanfilco, respondent cooperative is actually a
manpower contractor supplying employees to Stanfilco and for that reason, it is an employer of its owners-members working with
Stanfilco. Thus, respondent cooperative should register itself with petitioner SSS as an employer and make the corresponding report
and remittance of premium contributions in accordance with the Social Security Law


Who should determine employer-employee relationship?
Since the existence of an employer-employee relationship between the respondent cooperative and its owners-members was put in
issue and considering that the compulsory coverage of the SSS Law is predicated on the existence of such relationship, it behooves the
petitioner SSC to determine if there is really an employer-employee relationship that exists between the respondent cooperative and its
owners-members.

The question on the existence of an employer-employee relationship is not within the exclusive jurisdiction of the National Labor
Relations Commission (NLRC). Article 217 of the Labor Code enumerating the jurisdiction of the Labor Arbiters and the NLRC provides
that:
ART. 217. JURISDICTION OF LABOR ARBITERS AND THE COMMISSION. (a) . . . .
xxx xxx xxx
6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other claims, arising
from employer-employee relations, including those of persons in domestic or household service, involving an amount exceeding five
thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement.

Although the aforesaid provision speaks merely of claims for Social Security, it would necessarily include issues on the coverage
thereof, because claims are undeniably rooted in the coverage by the system. Hence, the question on the existence of an employer-
employee relationship for the purpose of determining the coverage of the Social Security System is explicitly excluded from the
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jurisdiction of the NLRC and falls within the jurisdiction of the SSC which is primarily charged with the duty of settling disputes arising
under the Social Security Law of 1997.

In determining the existence of an employer-employee relationship, the following elements are considered: (1) the selection and
engagement of the workers; (2) the payment of wages by whatever means; (3) the power of dismissal; and (4) the power to control
the worker's conduct, with the latter assuming primacy in the overall consideration. The most important element is the employer's
control of the employee's conduct, not only as to the result of the work to be done, but also as to the means and methods to
accomplish.

All elements are present in this case.
First. It is expressly provided in the Service Contracts that it is the respondent cooperative which has the exclusive discretion in the
selection and engagement of the owners-members as well as its team leaders who will be assigned at Stanfilco.
Second. The weekly stipends or the so-called shares in the service surplus given by the respondent cooperative to its owners-members
were in reality wages, as the same were equivalent to an amount not lower than that prescribed by existing labor laws, rules and
regulations, including the wage order applicable to the area and industry; or the same shall not be lower than the prevailing rates of
wages. It cannot be doubted then that those stipends or shares in the service surplus are indeed wages, because these are given to
the owners-members as compensation in rendering services to respondent cooperative's client, Stanfilco
Third. It is also stated in the above-mentioned Service Contracts that it is the respondent cooperative which has the power to
investigate, discipline and remove the owners-members and its team leaders who were rendering services at Stanfilco.
Fourth. It is the respondent cooperative which has the sole control over the manner and means of performing the services under the
Service Contracts with Stanfilco as well as the means and methods of work. Also, the respondent cooperative is solely and entirely
responsible for its owners-members, team leaders and other representatives at Stanfilco.

Employer Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry,
undertaking or activity of any kind and uses the services of another person who is under his orders as regards the employment, except
the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the
Government: Provided, That a self-employed person shall be both employee and employer at the same time. (Section 8[c])

SSC vs Alba
Whether an administrator could be considered an employer? Yes.
Far Alba was no ordinary administrator. He was no less than the son of the hacienda's owner and as such he was an owner-in-waiting
prior to his father's death.

Lamboso testified that he was selected and his services were engaged by Far Alba himself. Corollarily, Far Alba held the prerogative of
terminating Lamboso's employment. Lamboso also testified in a direct manner that he had been paid his wages by Far Alba. This
testimony was seconded by Lamboso's co-worker.

Not to be forgotten is the definition of an employer under Article 167 (f) of the Labor Code which deals with employees' compensation
and state insurance fund. It defines a person as "any individual, partnership, firm, association, trust, corporation or legal representative
thereof". Plainly, Far Alba, as the hacienda administrator, acts as the legal representative of the employer and is thus an employer
within the meaning of the law liable to pay the SS contributions.


Employee - Any person who performs services for an employer in which either or both mental and physical efforts are used and who
receives compensation for such services, where there is an employer-employee relationship: Provided, That a self-employed person
shall be both employee and employer at the same time. (Section 8 [d])

SSS vs CA
Whether or not an agricultural laborer who was hired on "pakyaw" basis can be considered an employee entitled to compulsory
coverage and corresponding benefits under the Social Security Law.

SC:
There was no shred of evidence to show that Tana was only a seasonal worker. All witnesses, including Ayalde, testified that Tana and
his family resided in the plantation. The only logical explanation for this set up was that Tana was working for most part of the year
exclusively for Ayalde. A closer scrutiny of the records revealed that while Ayalde may not have directly imposed on Tana the manner
and methods to follow in performing his tasks, she did exercise control through her overseer. Under the circumstances, the relationship
between Ayalde and Tana has more of the attributes of employer-employee than that of an independent contractor hired to perform a
specific project.

Lazaro vs SSC
Is a sales supervisor of a company engaged in the sale of home appliances an employee of such company?
SSC, as upheld by the Court of Appeals, found that Laudato was a sales supervisor and not a mere agent. As such, Laudato oversaw
and supervised the sales agents of the company, and thus was subject to the control of management as to how she implements its
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policies and its end results. SC disinclined to reverse this finding, in the absence of countervailing evidence from Lazaro and also in
light of the fact that Laudato's calling cards from Royal Star indicate that she is indeed a sales supervisor.


Coverage of Employers
1. An employer, or any person who uses the services of another person in business, trade, industry or any undertaking.
a. A social, civil, professional, charitable and other non-profit organization which hire the services of employees are
considered employers.
2. A foreign government, international organization or its wholly-owned instrumentality such as embassy in the Philippines, may
enter into an administrative agreement with the SSS for the coverage of its Filipino employees.

Compulsory Coverage
1. A private employee who is not over 60 years old
2. A household-helper earning at least P1,000 a month is covered starting Sept. 1, 1993.
A household-helper is any person who renders domestic or household services exclusively to a household employer
such driver, gardener, cook, governess, and other similar occupations.
3. A Filipino seafarer upon the signing of the standard contract or employment between the seafarer and the manning agency
which, together with the foreign ship owner, act as employers.
4. An employee of a foreign government, international organization or their wholly-owned instrumentality based in the
Philippines, which entered into an administrative agreement with the SSS for the coverage of its Filipino workers.

Voluntary Coverage
Coverage of Separated Members
A member who is separated from employment or ceased to be self-employed/OFW/non-working spouse and would like to continue
paying his/her contributions.

Coverage of Overseas Filipino Workers (OFWs)
A Filipino recruited in the Philippines by a foreign-based employer for employment abroad; having a source of income in the foreign
country; and permanent resident in a foreign country.

Coverage of non-working Spouse of SSS Members
A person legally married to a currently employed and actively paying SSS member who devotes full time in the management of
household and family affairs may be covered on a voluntary basis provided there is approval of the working spouse. The person should
never have been a member of the SSS. The contributions will be based on 50% of the working spouses last posted monthly salary
credit but in no case shall it be lower than P1,000.

Coverage of Self-Employed Persons
A self-employed person, regardless of trade, business or occupation, with an income of at least P1,000 a month and not over 60 years
old, should register with the SSS. Included but not limited to are the following self-employed persons: self-employed professionals;
business partners, single proprietors and board directors; actors, actresses, directors, scriptwriters and news correspondents who do
not fall with the term employee; professional athletes, coaches, trainers and jockeys; farmers and fisherfolks; and workers in the
informal sector such cigarette vendors, watch-your-car-boys, hospitality girls, among others.


Effectivity of Coverage
Compulsory coverage
1. For an employee on the first day of employment
2. For an employer on the first day the employer hires employee/s.
a. Employer is given 30 days from date of employment to report the employee for coverage to SSS.
3. For self-employed upon payment of first valid contribution, in case of initial coverage.
Voluntary coverage
1. For OFW upon first payment of contribution, in case of initial coverage.
2. For non-working spouse upon first payment of contribution.
3. For separated member on the month the person resumed payment of contribution.

Dependents and beneficiaries
Dependents the dependents shall be the following:
(1) The legal spouse entitled by law to receive support from the member; (2) The legitimate, legitimated or legally adopted, and
illegitimate child who is unmarried, not gainfully employed and has not reached twenty-one years (21) of age, or if over twenty-one
(21) years of age, he is congenitally or while still a minor has been permanently incapacitated and incapable of self-support, physically
or mentally; and (3) The parent who is receiving regular support from the member.

The legal beneficiaries of a member are:
Legally married dependent spouse until he or she remarries;
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Dependent legitimate, legitimated or legally adopted and illegitimate children.
These two are primary beneficiaries.
If single, benefits will go to dependent parents who are considered secondary beneficiaries.
In absence of both primary and secondary, any other person designated by member.
Dependents
1. The legal spouse entitled by law to receive support from the member;
2. The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not gainfully employed, and has not
reached twenty-one (21) years of age, or if over twenty-one (21) years of age, he is congenitally or while still a minor has
been permanently incapacitated and incapable of self-support, physically or mentally; and
3. The parent who is receiving regular support from the member

Signey vs SSS
Who is entitled to the social security benefits of a Social Security System (SSS) member who was survived not only by his legal wife,
but also by two common-law wives with whom he had six children?

In the case at bar, the existence of a prior subsisting marriage between the deceased and Editha is supported by substantial evidence.
Petitioner, who has fully availed of her right to be heard, only relied on the waiver of Editha and failed to present any evidence to
invalidate or otherwise controvert the confirmed marriage certificate registered under LCR Registry No. 2083 on 21 November 1967.
She did not even try to allege and prove any infirmity in the marriage between the deceased and Editha.

SSC found (affirmed by CA and SC) based on the SSS field investigation report that even if Editha was the legal wife, she was not
qualified to the death benefits since she herself admitted that she was not dependent on her deceased husband for support inasmuch
as she was cohabiting with a certain Aquilino Castillo.

Resolving the determinative question of who between petitioner and the illegitimate children of the deceased are the primary
beneficiaries lawfully entitled to the social security benefits accruing by virtue of the latter's death, CA held that based on Section 8 (e)
of R.A. No. 8282, a surviving spouse claiming death benefits as a dependent must be the legal spouse. Petitioner's presentation of a
marriage certificate attesting to her marriage to the deceased was futile, according to the appellate court, as said marriage is null and
void in view of the previous marriage of the deceased to Editha as certified by the Local Civil Registrar of Cebu City.

The appellate court also held that the law is clear that for a child to be qualified as dependent, he must be unmarried, not gainfully
employed and must not be 21 years of age, or if over 21 years of age, he is congenitally or while still a minor has been permanently
incapacitated and incapable of self-support, physically or mentally. And in this case, only the illegitimate children of the deceased with
Gina namely, Ginalyn and Rodelyn, are the qualified beneficiaries as they were still minors at the time of the death of their father.
Considering petitioner is disqualified to be a beneficiary and the absence of any legitimate children of the deceased, it follows that the
dependent illegitimate minor children of the deceased should be entitled to the death benefits as primary beneficiaries.

Whoever claims entitlement to the benefits provided by law should establish his or her right thereto by substantial evidence. Since
petitioner is disqualified to be a beneficiary and because the deceased has no legitimate child, it follows that the dependent illegitimate
minor children of the deceased shall be entitled to the death benefits as primary beneficiaries. The SSS Law is clear that for a minor
child to qualify as a "dependent, the only requirements are that he/she must be below 21 years of age, not married nor gainfully
employed.

In this case, the minor illegitimate children Ginalyn and Rodelyn were born on 13 April 1996 and 20 April 2000, respectively. Had the
legitimate child of the deceased and Editha survived and qualified as a dependent under the SSS Law, Ginalyn and Rodelyn would have
been entitled to a share equivalent to only 50% of the share of the said legitimate child. Since the legitimate child of the deceased
predeceased him, Ginalyn and Rodelyn, as the only qualified primary beneficiaries of the deceased, are entitled to 100% of the
benefits.

SSS vs De Los Santos
The obvious conclusion then is that a wife who is already separated de facto from her husband cannot be said to be "dependent for
support" upon the husband, absent any showing to the contrary. Conversely, if it is proved that the husband and wife were still living
together at the time of his death, it would be safe to presume that she was dependent on the husband for support, unless it is shown
that she is capable of providing for herself.

Respondent herself admits that she left the conjugal abode on two (2) separate occasions, to live with two different men. The first was
in 1965, less than one year after their marriage, when she contracted a second marriage to Domingo Talens. The second time she left
Antonio was in 1983 when she went to the US, obtained a divorce, and later married an American citizen.

In fine, these uncontroverted facts remove her from qualifying as a primary beneficiary of her deceased husband.


Employment services excluded
1. Purely casual employment and not for the purpose of occupation or business of the employer
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2. Services performed or in connection with an alien vessel by an employee if he/she is employed when such vessel is outside
the Philippines
3. Services performed in the employ of the Philippine government
4. Service performed in the employ of a foreign government or international organization, or their wholly-owned instrumentality
unless there is an agreement with the Philippine Government for the inclusion of such employees in the SSS
5. Such other temporary services performed by temporary employees which may be excluded by regulation. Employees of bona
fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors.

Duties of employee-members
Among others:
Secure SS number
Ensure they are reported for coverage by their employers
Pay their monthly share.
Require presentation of SS number of prospective employee
Report all employees for SS coverage within 30 days from date of employment
Deduct from the employees the monthly SS contributions based on schedule of contributions; pat their share of contributions
including Employees Compensation and remit these contributions to SSS or accredited banks within first 10 calendar days
following the month when said contributions are due and applicable
Submit a summary of all contributions
Issue official receipts and maintain official records of employment and deductions
Remit to SSS all salary, educational, stocks investment or privatization loan amortization of their employees and submit a form
Submit a summary of all employees loan amortization
Advance SS and EC sickness benefits once approved by SSS
Advance SS maternity benefits due
File for reimbursement for all legally advanced sickness and maternity benefits

Benefits under Social Security Program
Covered employees are entitled to a package of benefits under social security and EC in the event of death, disability,
sickness, maternity, and old-age
Self-employed and voluntary members also get same benefits except those benefits under the EC program

Disability Benefit
Disability any restriction or lack (lack from impairment) of ability to perform an activity in the manner or within the range
considered normal for a human being.
Impairment any loss or abnormality of psychological, physiological, or anatomical structure or function.

Who is qualified? A member who suffers partial or total permanent disability with at least one monthly contribution paid to the SSS
prior to the semester of contingency.

"SECTION 13-A. Permanent Disability Benefits. (a) Upon the permanent total disability of a member who has paid at least
thirty-six (36) monthly contributions prior to the semester of disability, he shall be entitled to the monthly pension: Provided, That if he
has not paid the required thirty-six (36) monthly contributions, he shall be entitled to a lump sum benefit equivalent to the monthly
pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever is higher. A
member who (1) has received a lump sum benefit and (2) is re-employed or has resumed self-employment not earlier than one (1)
year from the date of his disability shall again be subject to compulsory coverage and shall be considered a new member.

"(b) The monthly pension and dependents' pension shall be suspended upon the reemployment or resumption of self-employment or
the recovery of the disabled member from his permanent total disability or his failure to present himself for examination at least once a
year upon notice by the SSS.

"(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled to
receive the monthly pension: Provided, That if he has no primary beneficiaries
and he dies within sixty (60) months from the start of his monthly pension, his
secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the
total monthly pensions corresponding to the balance of the five-year guaranteed
period excluding the dependents' pension.

"(d) The following disabilities shall be deemed permanent total:
1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility or insanity; and
5. Such cases as determined and approved by the SSS.

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"(e)If the disability is permanent partial, and such disability occurs before thirty-six (36) monthly contributions have been paid prior to
the semester of disability, the benefit shall be such percentage of the lump sum benefit described in the preceding paragraph with due
regard to the degree of disability as the Commission may determine.

"(f)If the disability is permanent partial and such disability occurs after thirty-six (36) monthly contributions have been paid prior to the
semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer than the period
designated in the following schedule: ----

(g)The percentage degree of disability, which is equivalent to the ratio that the designated number of months of compensability bears
to seventy-five (75), rounded to the next higher integer, shall not be additive for distinct, separate and unrelated permanent partial
disabilities, but shall be additive for deteriorating and related permanent partial disabilities, to a maximum of one hundred percent
(100%), in which case the member shall be deemed as permanently totally disabled.

"(h)In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it is payable for less than twelve
months.

"(i)For the purpose of adjudicating retirement, death and permanent total disability pension benefits, contributions shall be deemed
paid for the months during which the member received partial disability pension: Provided, That such contributions shall be based on
his last contribution prior to his disability.

"(j)Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his retirement or death.

ORTEGA VS SSC
Claims under the Labor Code for compensation and under the Social Security Law for benefits are not the same as to their nature and
purpose.
On the one hand, the pertinent provisions of the Labor Code govern compensability of work-related disabilities or when there is loss of
income due to work-connected or work-aggravated injury or illness.
On the other hand, the benefits under the Social Security Law are intended to provide insurance or protection against the hazards or
risks of disability, sickness, old age or death, inter alia, irrespective of whether they arose from or in the course of the employment.
And unlike under the Social Security Law, a disability is total and permanent under the Labor Code if as a result of the injury or
sickness the employee is unable to perform any gainful occupation for a continuous period exceeding 120 days regardless of whether
he loses the use of any of his body parts.

Types of Disability Benefits:
Monthly pension cash benefit paid to a disabled member who has paid at least 36 monthly contributions to the SSS prior to the
semester of disability. In addition to monthly pension, supplemental allowance of P500 is paid to the total or partial disability pensioner.

Lump sum amount granted to those who have not paid the required 36 monthly contributions.

Is monthly pension for life?
The member who suffers from permanent total disability shall receive monthly pension for life. However, the said monthly pension shall
be suspended: (1) if he recovers from his permanent total disability; (2) if he resumes employment; (3) if he fails to report for annual
physical exam upon notice by SSS. Domiciliary service (if member is unable to report to SSS for exam) can be requested.

The member who suffers from permanent partial disability shall receive his monthly pension for the duration of a certain number of
months assessed based on the degree of his disability.

Prescriptive period in filing a disability claim: 10 years from the date of occurrence of disability.

Retirement Benefit - It is a cash benefit either in monthly pension or lump sum paid to a member who can no longer work due to
old age.

Who may qualify?
1. A member who is 60 years old, separated from employment or ceased to be self-employed, and has paid at least 120 monthly
contributions prior to the semester of retirement.
2. A member who is 65 years old whether employed or not and has paid at least 120 monthly contributions prior to the semester
of retirement.

DYCAICO VS. SSS
Bonifacio S. Dycaico, member of the SSS, In his self-employed data record, he named the petitioner, Elena P. Dycaico, and their eight
children as his beneficiaries. At that time, Bonifacio and Elena lived together as husband and wife without the benefit of marriage.

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In June 1989, Bonifacio was considered retired and began receiving his monthly pension from the SSS. He continued to receive the
monthly pension until he passed away on June 19, 1997. A few months prior to his death, however, Bonifacio married the petitioner on
January 6, 1997.

Shortly after Bonifacio's death, the petitioner filed with the SSS an application for survivor's pension. Her application, however, was
denied on the ground that under Section 12-B(d) of Republic Act (Rep. Act) No. 8282 or the Social Security Law 2 she could not be
considered a primary beneficiary of Bonifacio as of the date of his retirement.

Sec. 12-B. Retirement Benefits.
xxx xxx xxx
(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to receive the
monthly pension. . . .

SSC opined that under Section 12-B(d) of Rep. Act No. 8282, the primary beneficiaries who are entitled to survivor's pension are those
who qualify as such as of the date of retirement of the deceased member. Hence, the petitioner, who was not then the legitimate
spouse of Bonifacio as of the date of his retirement, could not be considered his primary beneficiary.

SC:
The proviso "as of the date of his retirement" in Section 12-B(d) of Rep. Act No. 8282, which qualifies the term "primary beneficiaries,"
is unconstitutional for it violates the due process and equal protection clauses of the Constitution.
Due process:
The proviso "as of the date of his retirement" in Section 12-B(d) of Rep. Act No. 8282 runs afoul of the due process clause as it
outrightly deprives the surviving spouses whose respective marriages to the retired SSS members were contracted after the latter's
retirement of their survivor's benefits. There is outright confiscation of benefits due such surviving spouses without giving them an
opportunity to be heard.

Equal protection:
Results in the classification of dependent spouses as primary beneficiaries into two groups:
1. Those dependent spouses whose respective marriages to SSS members were contracted prior to the latter's retirement; and
2. Those dependent spouses whose respective marriages to SSS members were contracted after the latter's retirement.


For Underground Mineworkers:
1. Has reached the age of 55 years old and is an underground mineworker for at least 5 years (either continuous or
accumulated) prior to the semester of retirement but whose actual date of retirement is not earlier than March 13, 1998;
separated from employment or in the case of self-employed, has ceased self-employment, and has paid at least 120
monthly contributions prior to the semester of retirement.
2. has reached the age of 60 years old whether employed or not and has paid at least 120 monthly contributions prior to the
semester of retirement.

Types of retirement benefits:
1. Monthly pension
2. Lump sum amount

Aside from retirement benefit, retiree is entitled to a 13
th
month pension payable every December. All retiree pensioners prior to
effectivity of RA 7875 on March 4, 1995 are automatically considered members of PhilHealth and he and his legal dependents are
entitled to its hospitalization benefits.

Death Benefit
It is a cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member.

Types of death benefit:
1. Monthly pension
2. Lump sum amount

Beneficiaries:
Primary: (1) Legitimate dependent spouse until the person remarries; (2) dependent legitimate, legitimated or legally adopted and
illegitimate children who are not yet 21 years old.
Secondary: In the absence of primary, dependent parents. In their absence, any other person designated by member in record.

SSC vs Favila
The wife claimant has the burden to prove that the statutory

9 | P a g e R o o m 4 0 2

Monthly pension depends on members paid contributions, including the credited years of service (CYS) and the number of
dependent minor children but not to exceed five.
In addition to death benefit, beneficiaries are entitled to 13
th
month pension payable every December and funeral benefit expenses
which is paid to whoever shouldered the funeral expenses of the deceased member. Funeral grant is P20,000 (effective Sept. 1, 2000).

If deceased member is survived by legitimate, legitimated or legally adopted and illegitimate children, how is monthly
pension to be divided?
If survived by less than five, the illegitimate minor children will be entitled to 50% of the share of the legitimate, legitimated or legally
adopted and 100% of the dependents pension (equivalent to 10% of the members monthly pension or P250 whichever is higher).
Only five minor children, beginning from the youngest, are entitled to dependents pension. When there are more than 5, the
legitimate, legitimated or legally adopted shall be preferred.

For how long will the dependent child receive the pension?
When the child reaches 21 years old, gets married, gets employed or dies. However, the dependents pension is granted for life to
children who are over 21 years old, provided they are incapacitated and incapable of self-support due to physical or mental disability
which is congenital and acquired during minority.

Right to Institute
Sec. 22 - The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time
the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the case may be.

LO vs CA
Private respondents application was denied because the SSS records showed that he became a member only in 1983, and
contributions in his favor were remitted only from October 1983 to September 1984. As private respondent knew that SSS contributions
were deducted from his salary since compulsory SSS coverage took effect in 1957, he filed a petition with the Social Security
Commission against Jose Lo and his son Rafael Lo, who took over the management of the company. The Commission upheld private
respondent's claim and ordered petitioner and Jose Lo to remit to the SSS the unpaid contribution in favor of private respondent,
including penalties and charges.

Petitioner filed a petition for review with the Court of Appeals, which affirmed the decision of the Commission. When the appellate
court denied his motion for reconsideration, petitioner filed this petition for review by certiorari. He contended that the lower court
erred in ruling that the claim had not yet prescribed. Petitioner claimed that Payment of SS premium, as stated in the Decision, is an
obligation created by law hence, without need of demand, it becomes due on the date when such payment should be made. Hence,
under Article 1150 [of the Civil Code], the right of action to recover unremitted SS premium accrues on the date it is payable and may
be brought beginning such date.

SC:
Supreme Court dismissed the petition, and affirmed the decision of the Court of Appeals. Section 22 (b), par. 2, of Republic Act No.
1161, or the SSS Law, expressly provides that the right to institute the necessary action against the employer may be commenced
within twenty years from the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit
accrues, as the case may be. The provision is clear that the period of prescription commences to run only upon the discovery of the
violation, which took place in 1985. When the complaint was filed on August 14, 1985, less than one year had passed since private
respondent discovered the delinquency. Therefore, the claim was timely instituted.

Penal Clause
Who are liable and what are the penalties.
Who can file?
(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned
either under this Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action may be filed by the SSS
in the city or municipality where the SSS office is located, if the violation was committed within its territorial jurisdiction or in Metro
Manila, at the option of the SSS.

"(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled thereto
with intent to defraud any member, employer or the SSS, shall be fined not less than Five thousand pesos (P5,000.00) nor more than
Twenty thousand pesos (P20,000.00) and imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years.

"(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the
Commission, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos
(P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the
discretion of the court: Provided, That where the violation consists in failure or refusal to register employees or himself, in case of the
covered self-employed or to deduct contributions from the employees compensation and remit the same to the SSS, the penalty shall
be a fine of not less Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisonment for not
less than six (6) years and one (1) day nor more than twelve (12) years.

10 | P a g e R o o m 4 0 2

"(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employees compensation, fails to
remit the said deduction to the SSS within thirty (30) days from the date they became due, shall be presumed to have misappropriated
such contributions or loan amortizations and shall suffer the penalties provided in Article Three hundred fifteen of the Revised Penal
Code.

Tan et al vs Ballena
In answer to criminal complaint for violation of SS law, petitioners interposed the defenses of lack of criminal intent and good faith as
their failure to remit was brought about by alleged economic difficulties, and they have already agreed to settle their obligations with
the SSS through a memorandum of agreement to pay in installments.

SC:
As held by the Court of Appeals, the claims of good faith and absence of criminal intent for the petitioners' acknowledged non-
remittance of the respondents' contributions deserve scant consideration. The violations charged in this case pertain to the SSS Law,
which is a special law. As such, it belongs to a class of offenses known as mala prohibita.


Garcia v SSC
SSC found Garcia, the sole surviving director of Impact Corporation, petitioner herein, liable for unremitted SSS contributions.
Issue is whether or not petitioner, as the only surviving director of Impact Corporation, can be made solely liable for the corporate
obligations of Impact Corporation pertaining to unremitted SSS premium contributions and penalties therefore.

Petitioner challenges the finding of the Court of Appeals that under Section 28 (f) of the Social Security Law, a mere director or officer
of an employer corporation, and not necessarily a "managing" director or officer, can be held liable for the unpaid SSS premium
contributions.

Section 28 (f) of the Social Security Law provides the following:
(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its
managing head, directors or partners shall be liable to the penalties provided in this Act for the offense.

SC:
This Court though finds no need to resort to statutory construction. Section 28 (f) of the Social Security Law imposes penalty on:
(1) the managing head;
(2) directors; or
(3) partners, for offenses committed by a juridical person
The said provision does not qualify that the director or partner should likewise be a "managing director" or "managing partner. The
law is clear and unambiguous

Although a corporation once formed is conferred a juridical personality separate and distinct from the persons comprising it, it is but a
legal fiction introduced for purposes of convenience and to subserve the ends of justice. The concept cannot be extended to a point
beyond its reasons and policy, and when invoked in support of an end subversive of this policy, will be disregarded by the courts.

GSIS ACT of 1987

Introduction
1987 Constitution has given constitutional recognition to the obligation of the state to retirees by providing that the state shall from
time to time review to upgrade the pensions and other benefits due to retirees of both government and private sector (Art. XVI, Sec. 8)
Another feature of 1987 Constitution is to the effect that pensions or gratuities are not considered as additional, double or indirect
compensation (Art. IX, B, The Civil Service Commission, Sec. 8, par. 2).
As a consequence, a retiree who is reappointed to a government position shall receive the compensation for the position without
violating the constitutional prohibition imposed on elective or appointive public officers or employees against receiving additional,
double or indirect compensation (id., par. 1).

Objectives and scope:
Revised the 20-year old charter of GSIS (PD 1146)
Aims to expand and increase the coverage and benefits of GSIS;
Introduce institutional reforms for GSIS to have more flexibility and thus perform its mission of providing social security
protection more effectively.
Effectivity
June 24, 1997, 15 days after it was published on June 9, 1997. It was approved on May 30, 1997
Repeal of retirement laws
PD 1146
RA 660
RA 1616

11 | P a g e R o o m 4 0 2

Who are covered?
Compulsory for all employees:
Appointive or elective
Whether temporary, casual, permanent or contractual w/ e-e relationship
(so those under job orders are not covered)
Who are receiving basic pay or salary but not per diems, honoraria or allowances; and
Who have not reached the compulsory retirement age of 65 yrs.

When coverage takes effect?
Upon the employees assumption to duty pursuant to a valid appointment or election and oath of office.

Are elective officials still covered after their term of office expires?
Compulsory coverage shall cease upon expiration of term.
They have the option to continue with life insurance so long as they will pay both the employee and employer shares.
On social security coverage, said official shall continue to be a member and shall be entitled to benefits that provide for
contingencies (death, disability or separation) subject to satisfaction of eligibility conditions.

Who are not covered?
Employees who have separate retirement schemes under special laws and are therefore covered by their respective
retirement laws, such as the members of the Judiciary, Constitutional Commissions, and other similarly situated government
officials;
Uniformed members of AFP & PNP including BJMP;
Those who are not receiving basic pay or salary
Contractuals who have no employer and employee relationship with the agencies they serve

When does a contractual have e-e relationship with his employer?
Person was selected and engaged by the employer
Employer pays the salary
Employer has the power of dismissal
Employer has the power to control the means and the result of the work to be done

Compensation
Is the basic pay or salary received by an employee pursuant to this election/appointment.
Does not include per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to
basic pay (RA 8291, Sec. 1)
Contributions
Member Employer
First P10,000 9% 12%
In excess of P10,000 2% 12%

Who is responsible for remittance of contributions? employer
Date of remittance? First ten days of calendar month following the month to which contributions apply.

Effect of non-remittance?
All loan privileges of member shall be suspended
Determination of eligibility to and computation of benefits will be made subject to deduction of contribution arrearages and
service loans accounts plus surcharges from proceeds of claim
Penalties on delayed remittances?
Aside from penal provisions, interest of not less than 2% per month.

Penal Provisions?
Official or employee who fails to include in annual budget the amount corresponding to e-e contributions or who fails by more
than 30 days to remit the amount from the time such amount becomes due
Employee, who after deducting, fails to remit to GSIS within 30 days from date they should be remitted
Heads of offices of national government, etc. who shall fail, refuse or delay the payment, turn-over, remittance or delivery of
such amounts to GSIS
Membership in GSIS
Enjoyment of life insurance, retirement and other social security protection such as disability, survivorship, separation and
unemployment benefits
Members of judiciary and constitutional commissions are covered by GSIS with life insurance only; retirement laws are
governed by special laws

Is part time service included in the computation of total service rendered?
12 | P a g e R o o m 4 0 2

As a rule, all full-time service with compensation from date of original appointment or election shall be computed for purpose
of determining retirement benefits.
service shall mean full-time service w/ compensation. Part time service w/ compensation shall be converted to full time
equivalent.
Part-time shall be converted using a 40-hour per week and 52-week per year as basis.

Valdez vs GSIS
Petitioner would want SC to reverse CA ruling rejecting his assertion that his services rendered in the MECO, MMSU, PHIVIDEC and as
OIC Vice-Governor of Ilocos Norte should be credited in the computation of his retirement benefits .

SC:
Aside from having been rendered part-time in said agencies, the said positions were without compensation as defined in Section 2 (i)
of R.A. No. 8291.

BENEFITS
Contingencies compensable?
Retirement
Separation
Unemployment
Disability
Survivorship
Death (Life Insurance and Funeral)

New benefits?
Unemployment benefit
Separation benefit
Improvement of existing benefits?
Increase in Average Monthly Compensation (AMC) Limit: from AMC limit of P3,000 to P10,000
Increase in the Revalued Average Monthly Compensation (RAMC): from P140 to P700
Full enjoyment of 5-year lump sum benefit (no more discounted per PD 1146 where retiree receives only 52.17 months while
it is full 60 months at present)
Liberalization of eligibility requirements
Allocation of at least 40% of the Social Insurance Fund (SIF) to member Loans

Retirement Benefits
Conditions:
rendered at least 15 yrs. of service
at least 60 year old at time of retirement
not receiving monthly pension from permanent total disability
Options:
lump sum payment of basic monthly pension multiplied by 60 plus basic monthly pension for life upon expiration of 5 years
period
cash payment of 18 times the basic monthly pension plus basic monthly pension for life payable immediately upon retirement
but without 5-year guaranteed period.
Retirement If rendered at least 15 years service but is less than 60 years at time of separation or resignation, member will be
entitled to cash payment equivalent to 18 times his basic monthly pension payable at the time of separation or resignation and
upon reaching the age of 60 years, he will be entitled to basic monthly pension payable monthly for life.

This is denominated as separation benefit but in reality a combination of separation and retirement benefits. Entitlement to
retirement is premised on service of at least 15 years. Member who is 60 years old upon retirement but with less than 15 years of
service is not entitled to retirement. What he gets is a separation benefit consisting of cash benefit equivalent to 100% of his
average monthly compensation for each year of service he paid contributions but not less than P12,000 provided he has at least 3
years but less than 15 years of service.

Member who has at least 15 years of service may retire at 60 or may continue in the service until 65 (compulsory retirement age)

If he has less than 15 years, he may be allowed to continue in the service in accordance with existing civil service rules and
regulations. Extension of service is no longer mandatory in contrast to PD 1146.

Notice by employer
It shall be the duty of the Employer to notify its Employee at least Ninety (90) days in advance of the date of his/her
compulsory retirement.

Separation Benefits
13 | P a g e R o o m 4 0 2

A cash payment of 18 times the Basic Monthly Pension at time of separation and a life pension to start at the age of 60 will be
given to those who separate from the service with at least 15 years service and are below 60 years of age.
Under PD 1146, separated member will have to wait until he is 60 years of age to receive any separation benefit.

Who are eligible?
Types:
1. rendered at least 3years but less than 15 years - (cash payment equivalent to 100% of Average Monthly Compensation for
every year of service payable upon reaching 60 or upon separation whichever comes later if not receiving monthly pension
from permanent total disability)
2. rendered at least 15 years & who is below 60 at time of resignation/separation - cash payment equivalent to 15 times the
basic Monthly Pension payable upon separation plus monthly pension starting 60)

IRR, Rule II, Sec. 2.5:
Member separated for cause
automatically forfeit
Unless terms of resignation or separation provide otherwise
Member separated not for cause
shall continue to be member & entitled subject to qualification & other prescription

Unemployment
The benefit is paid when a permanent employee is involuntarily separated from the service as a result of the abolition of his office or
position usually resulting from reorganization.

Who is eligible?
Permanent employee who has paid 12 monthly contributions.
Duration of benefit depends on length of service ranges from 2 mos. to a maximum of 6 mos.
Equivalent of benefit 50% of the average monthly compensation
Options Those who have more than 15 years service may either avail of retirement or separation benefits as the case
may be.

Disability
Any loss or impairment of the normal functions of the physical or mental faculties of a member, which reduces or eliminates his
capacity to continue with his current gainful occupation or engage in any other gainful occupation (IRR, Sec. 1.18)

Evaluation of disability as a contingency is vested solely in GSIS ( IRR, Sec. 9.3.1)
General condition for entitlement is that the disability was not due to misconduct , notorious negligence, habitual
intoxication or willful intention to kill himself or another (IRR, Sec. 9.3.2)

Permanent Total Disability
A member who becomes permanently and totally disabled when he/she is in the service and has paid at least 180 monthly
contributions (monthly income benefit for life equivalent to basic monthly pension plus cash payment equivalent to 18 times
his basic monthly pension effective on date of disability)
A member who becomes permanently and totally disabled are eligible when (a) he is in the service at time of disability or (b)
separated from the service and has paid at least 36 monthly contributions within the last 5 years immediately preceding the
disability or has paid a total of at least 180 monthly contributions (monthly income benefit for life equivalent to the basic
monthly pension)
A member who becomes permanently and totally disabled when he is separated from service with at least 3 years of service
but has not paid 36 monthly contributions within the last 5 years is still eligible (cash payment equivalent to 100% of the
AMC) for every year of service but not less than P12,000)

Disabilities considered permanent total?
Complete loss of sight in both eyes
Loss of two limbs at or above ankle or wrist
Permanent complete paralysis of 2 limbs
Brain injury resulting in incurable imbecility or insanity
Other cases as may be determined by GSIS

Permanent Partial Disability
A member who becomes permanently and partially disabled when
o when he is in the service at time of disability; or
o separated from service and has paid 36 monthly contributions within the last 5 years immediately preceding the
disability or has paid a total of at least 180monthly contributions.


14 | P a g e R o o m 4 0 2


Temporary Total Disability
Accrues or arises when there is complete but temporary incapacity to continue with a member's present employment or engage in any
gainful occupation due to the loss or impairment of the normal function of the physical and/or mental faculties of the member. In
effect, this loss or impairment can be reversed to the point where the member can continue with his previous employment or engage in
another gainful occupation

Gainful employment - Any productive activity that provides the member with income at least equal to the minimum compensation of
government employees (IRR, Sec. 1.17)

A member who suffers temporary total disability for reasons not due to grave misconduct, notorious negligence, habitual intoxication or
willful intention to kill himself or another may be entitled if:
o he is in service at time of disability and has exhausted sick leave credits; or
o if separated, has rendered at least 3 years of service and has paid at least 6 monthly contributions in the twelve month
period immediately preceding his disability.



Disability
A written notice of sickness or injury shall be given by a member or anybody in his/her behalf within five (5) working days
from the date of the occurrence of the contingency.
An application for disability benefits must be filed with the GSIS within Four (4) years from the date of the occurrence of the
contingency, fully supported by required papers and documents.

Disability - forfeiture of disability benefits if member refuses or deliberately fails to:
a) have himself/herself medically treated by a physician when required by the GSIS; or
b) take the prescribed medication; or
c) have himself/herself confined in a hospital without justifiable reason, when such confinement is required by the GSIS; or
d) avail himself/herself of such rehabilitation facilities as may be duly recommended by the GSIS and made available for him/her;
or
e) observe such precautionary and/or preventive measures as prescribed by a physician or expressly required of him/her to
prevent the aggravation or continuance of his/her disability.
f) report on his/her re-employment.

Survivorship
Those granted to surviving and qualified beneficiaries of the deceased member or pensioner to cushion them against the adverse
economic, psychological and emotional loss resulting from the death of a wage earner or pensioner.
Who are eligible?
If at time of death, a member was in the service and has rendered at least 3 years of service (primary beneficiaries to receive
survivorship pension plus cash payment; secondary beneficiaries or legal heirs entitled to cash payment)
If at time of death, a member was in the service with less than 3 years service or was separated from the service with at
least 3 years of service and has paid 36 monthly contributions within the 5-year period immediately preceding his death or has
paid a total of at least 180 monthly contributions prior to death (primary beneficiaries to receive survivorship pension plus
cash payment; secondary beneficiaries or legal heirs entitled to cash payment)

Primary Beneficiaries - The legitimate spouse, until he/she remarries, and the dependent children.
Secondary Beneficiaries
a) the dependent parents; and
b) the legitimate descendants

Who are dependents?
a) the legitimate spouse dependent for support;
b) any legitimate, legitimated and/or legally adopted child, including any illegitimate child, who is unmarried, not gainfully
employed, who has not attained the age of majority, or being at the age of majority but incapacitated and incapable of self-
support due to a mental or physical defect acquired prior to age of majority; and
c) the parents dependent upon the member for support.

GSIS vs Montesclaros
SB member Nicolas Montesclaros married Milagros Orbiso. Nicolas was a 72-year old widower when he married Milagros who was then
43 years old. Nicolas died. Milagros then filed with the GSIS a claim for survivorship pension under PD 1146. The GSIS denied the claim
because under Section 18 of PD 1146, the surviving spouse has no right to survivorship pension if the surviving spouse contracted the
marriage with the pensioner within three years before the pensioner qualified for the pension.
15 | P a g e R o o m 4 0 2

Section 18 of Presidential Decree No. 1146 void for being violative of the constitutional guarantees of due process and equal protection
of the law. The proviso is unduly oppressive in outrightly denying a dependent spouse's claim for survivorship pension if the dependent
spouse contracted marriage to the pensioner within the three-year prohibited period. There is outright confiscation of benefits due the
surviving spouse without giving the surviving spouse an opportunity to be heard. The proviso also violated the equal protection clause
because it discriminates the dependent spouse who contracts marriage to the pensioner within three years before the pensioner
qualified for the pension.
Funeral
Shall be paid upon the death of:
a. an active member; or
b. a member who has been separated from the service, but who is entitled to future separation or retirement benefit; or
c. a member who is a pensioner (excluding survivorship pensioners); or
d. a retiree who at the time of his/her retirement is at least 60 years old but opts to retire under RA 1616; or
e. a member who retired under RA 1616 prior to the effectivity of RA 8282 with at 20 years service regardless of age.

Amount is initially P12,000 but shall be increased to at least P18,000 after five years.
The funeral benefit shall be paid to one of the following in the order in which they appear herein below:
a) the surviving spouse;
b) the legitimate child who spent for the funeral services; or
c) any other person who can show incontrovertible proofs of having borne the funeral expenses.

Compulsory Life Insurance
All employees, including the members of the Judiciary and the Constitutional Commissioners, but excluding the uniformed members of
the Armed Forces of the Philippines (AFP), the Philippine National Police and the Bureau of Fire Protection (BFP) and Bureau of Jail
Management and Penology.

Life Insurance Benefits
Maturity Benefit. Upon maturity of the life insurance, the face amount less any indebtedness against the policy, shall be paid to
the member;
Death Benefit. When a member dies prior to the maturity of his/her insurance and during its continuance, the GSIS shall pay to
the designated Beneficiaries or to his/her legal heirs, as the case may be, the face amount less any indebtedness thereon.
Accidental Death Benefit When the death of the member is accidental in accordance with Section 10.9.2 of IRR, the GSIS shall
pay the designated beneficiaries or the legal heirs, as the case may be, an additional amount equivalent to the face amount of his/her
compulsory insurance;
Waiver of Premiums. When a member is separated due to total and permanent disability, the contributions that may become due
and payable during the period of disability shall be deemed waived and considered paid.
Cash Surrender Value (CSV). After his/her insurance shall have been in force for one (1) year, a member separated from the
service prior to the maturity of the insurance may be paid the cash value less any indebtedness thereon unless the terms of his/her
separation provide otherwise;
Insurance Loans. Upon application, a member who has been insured for at least one (1) year may be granted an insurance loan in
an amount not exceeding Fifty Percent (50%) of the cash value of his/her insurance at the time of application.
Dividends. An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least one (1) year,
based on records submitted by the employer. A Dividend Allocation Formula shall be determined and circularized by the GSIS for this
purpose.

Adjudication of Claims
GSIS has original & exclusive jurisdiction to settle any dispute arising under RA 8291 w/ respect to:
o coverage
o entitlement to benefits
o collection & payment of contributions
o any other matter related to the any or all of the foregoing which is necessary for their determination
Which body of GSIS vested with Quasi-Judicial Functions? Board of Trustees
Prescriptive Period ?
4 years from date of contingency except life & retirement which do not prescribe.

Tax Exemption
RUBIA V. GSIS
exemption of GSIS from execution does not cover refund of amortization payment

CITY OF DAVAO V. RTC
On real property taxes, GSIS tax- exempt status in previous law was withdrawn under RA 7160 but restored under Sec. 39 RA 8291


16 | P a g e R o o m 4 0 2

Legal Fees
A.M. No. 08-2-01-0, February 11, 2010
Facts:
GSIS seeks exemption from the payment of legal fees imposed on government-owned or controlled corporations under Section 22,
Rule 141 (Legal Fees) of the Rules of Court. GSIS anchors its petition on Section 39 of its charter, RA 8291.

Issue:
May the legislature exempt GSIS from legal fees imposed by the Court on government-owned and controlled corporations and local
government units?

SC:
Since the payment of legal fees is a vital component of the rules promulgated by this Court concerning pleading, practice and
procedure, it cannot be validly annulled, changed or modified by Congress. As one of the safeguards of this Court's institutional
independence, the power to promulgate rules of pleading, practice and procedure is now the Court's exclusive domain. That power is
no longer shared by this Court with Congress, much less with the Executive.

Congress could not have carved out an exemption for the GSIS from the payment of legal fees without transgressing another equally
important institutional safeguard of the Court's independence fiscal autonomy. Any exemption from the payment of legal fees
granted by Congress to government-owned or controlled corporations and local government units will necessarily reduce the JDF and
the SAJF. Undoubtedly, such situation is constitutionally infirm for it impairs the Court's guaranteed fiscal autonomy and erodes its
independence.

What is the effect of re-employment?
A member who is re-employed is considered a new entrant if he was paid separation or retirement benefits corresponding to his
previous services.


Portability of benefits
( Portability law RA 7699)
A member of GSIS who does not qualify for old age and other benefits by reason of non-fulfillment of the required period of
service may be able to qualify for such benefits by making use of the period during which he rendered services to a private
employer and for which contributions were paid to SSS. This is allowed under RA 7699 (approved May 1, 1994)
The Act instituted a limited portability scheme in the GSIS and SSS by totalizing the workers creditable services or
contributions in each of the Systems.

Portability refers to transfer of funds for the benefit and account of a worker who transfers from one system to the other (RA 7699,
Sec. 2 [b]).

Totalization refers to the process of adding up the periods of creditable services or contributions in each of the Systems for
purposes of eligibility and computation of benefits, For purposes of totalization, overlapping periods of membership shall be considered
once only (Sec. 3)

Overlapping period refers to the period during which a worker contributes simultaneously to GSIS and SSS.