C. Limited Portability Law (R.A. No. 7699)

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1. LIMITED PORTABILITY

Portability. Portability – shall refer to the transfer of funds for the account and benefit of a worker who transfers from one system to the other. (Section 2[b], R.A. 7679, Portability Law)

Sector.  Sector – shall refer to employment either in the public or private sector. (Section 2[c], Ibid.)

System. System – shall refer to either the SSS as created under Republic Act No. 1161, as amended or the GSIS as created under Presidential Decree No. 1146, as amended. (Section 2[d], Ibid.)

a. Totalization

Totalization. Totalization – shall refer to the process of adding up the periods of creditable services or contributions under each of the Systems, for purposes of eligibility and computation of benefits. (Section 2[e], Ibid.)

A covered worker who transfers employment from one sector to another or is employed in both sectors shall have his credible services or contributions in both Systems credited to his service or contribution record in each of the Systems and shall be totalized for purposes of old-age, disability, survivorship and other benefits in case the covered member does not qualify for such benefits in either or both Systems without totalization: Provided, however, That overlapping periods of membership shall be credited only once for purposes of totalization. (Section 3, Ibid.)

All creditable services or periods of contributions made continuously or in the aggregate of a worker under either of the Sectors shall be added up and considered for purposes of eligibility and computation of benefits. (Section 1, Rule V, Implementing Rules and Regulations of R.A. 7679)

2. BENEFITS

Benefits – shall refer to the following:
1)  Old‐age benefit;
2) Disability benefit;
3) Survivorship benefit;
4) Sickness benefit;
5) Medicare benefit, provided that the member shall claim said benefit from the System where he was last a member, and
6) Such other benefits common to both System that may be availed of through totalization. (Section 1[j], Rule III, Ibid.)

Contributions. All contributions paid by such member personally, and those that were paid by his employers to both Systems shall be considered in the processing of benefits which he can claim from either or both Systems: Provided, however, That the amount of benefits to be paid by one System shall be in proportion to the number of contributions actually remitted to that System. (Section 4, R.A. 7679)

All services rendered or contributions paid by a member personally and those that were paid by the employers to either System shall be considered in the computation of benefits, which may be claimed from either or both Systems. However, the amount of benefits to be paid by one System shall be in proportion to the services rendered/periods of contributions made to that System. (Section 1, Rule V, Implementing Rules and Regulations of R.A. 7679)

When totalization applies.

Totalization shall apply in the following instances:
1) If a worker is not qualified for any benefits from both Systems;
2) If a worker in the public sector is not qualified for any benefits in the GSIS; or
3) If a worker in the private sector is not qualified for any benefits from the SSS. (Section 3, Rule V, Ibid.)

Applies in all cases. For the purpose of computation of benefits, totalization shall apply in all cases so that the contributions made by the worker‐member in both Systems shall provide maximum benefits which otherwise will not be available. In no case shall the contribution be lost or forfeited. (Paragraph 2, Section 1, Rule V, Implementing Rules and Regulations of R.A. 7679)

Effects if worker does not qualify. If after totalization the worker‐member still does not qualify for any benefit listed above (e.g. old-age benefit, disability benefit, etc.) the member will then get whatever benefits correspond to his/her contributions in either or both Systems. (Section 4, Rule V, Implementing Rules and Regulations of R.A. 7679)

Effects if worker qualifies. If a worker qualifies for benefits in both Systems, totalization shall not apply. (Section 5, Rule V, Implementing Rules and Regulations of R.A. 7679)

One-time crediting. Overlapping periods of creditable services or contributions in both Systems shall be credited only once for purposes of totalization. (Section 7, Rule V, Implementing Rules and Regulations of R.A. 7679)

Disclaimer: All information herein is for educational and general information only intended for those preparing for the bar exam. These should not be taken as professional legal advice or opinion. Please consult a competent lawyer to address your specific concerns. Any statements or opinions of the author are solely his own and do not reflect that of any organization he may be connected.

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