3rd Quarter (2014), Volume 14, Issue No. 3

SSS Newsletter
OFFICIAL PUBLICATION OF THE SOCIAL SECURITY SYSTEM
VOL. XIV NO. 3
BSP Governor Tetangco
keynotes SSS Balikat ng
Bayan Awards Program
BANGKO SENTRAL ng Pilipinas
(BSP) Governor Amando M. Tetangco, Jr.
(right) was
the guest of
honor and
keynote
speaker
during the
2014 SSS
Balikat
ng Bayan
Aw a r d s
Ceremony,
held on September 25, 2014 at the SSS
Ramon Magsaysay Hall.
During the program, Governor Tetangco,
with SSS President and CEO Emilio de
Quiros Jr. and SS Commission Chairman
Juan Santos, handed out the Balikat ng
Bayan plaques to the awardees consisting
of two top employers, four best collection
partners, three best paying partners, and
three best media partners.
The event also saw the launch of the SSS
voluntary provident fund called “Personal
Equity and Savings Option (P.E.S.O.) Fund”.
In his keynote speech, Gov. Tetangco lauded
the P.E.S.O. Fund, citing that it “provides
a viable option for members with excess
earnings to contribute more to this tax-free
fund to receive higher benefits in the future.”
(Continued on Page 3)
What's Inside...
Balikat ng Bayan Awards..................p. 2
SS doubles net income....................p. 3
Contact Center for OFWs.................p. 4
Phils.-Germany sign SSA.................p. 4
Nine new Coop partners...................p. 5
Photo News .....................................p. 6
Legal Forum ....................................p. 7
QUEZON CITY
SEPTEMBER 2014
SSS unveils P.E.S.O.
Fund for members
THE SOCIAL SECURITY SYSTEM (SSS) has opened a voluntary
provident fund program that offers its members an additional way of saving for
their retirement. The new savings scheme, called the SSS Personal Equity and
Savings Option (SSS P.E.S.O.) Fund, is an alternative and tax-free investment
instrument that would help members accumulate adequate income in retirement
and earn a reasonable rate of return.
On September 25, 2014 at the SSS
Ramon Magsaysay Hall, SSS President
and Chief Executive Officer Emilio S. de
Quiros, Jr. and Social Security Commission
Chairman Juan Santos formally launched
the SSS P.E.S.O. Fund, highlighting
its guaranteed earnings based on rates
higher than those of commercial banks.
Contributions to the Fund can be used to
supplement the benefits available under the
regular SSS program.
The SSS P.E.S.O. Fund is open to all
members below 55 years old, who have
at least six consecutive SSS contributions
within the last 12 months prior to enrollment,
and have not yet filed final claims with SSS.
Qualified members can participate in
the Fund with a minimum contribution of
P1,000 to a maximum of P100,000 per year.
“One’s membership will start upon our
receipt of first contribution. Succeeding SSS
P.E.S.O. Fund contributions can be made
anytime, as long as there is a corresponding
SSS contribution in the same month,” de
Quiros said.
Self-employed, voluntary and OFW
members should be paying the maximum
monthly SSS contribution to qualify. They
will also need to pay the maximum SSS
contribution for the month they are to save
in the P.E.S.O. Fund.
Savings in the P.E.S.O. Fund
are invested in sovereign guaranteed
investments, where 65 percent of the total
fund is allocated for retirement, and 35
percent is for medical and general purposes.
P.E.S.O. accounts will be charged an annual
one-percent administration fee. The portion
for retirement is guaranteed to earn income
based on interest rates of five-year Treasury
yields, while earnings of the fund allotted for
medical and general purposes will be based
on 364-day Treasury bill rates.
Aside from the guaranteed earnings, SSS
P.E.S.O. Fund members may also receive
(Continued on Page 3)
2
Four-month collections
in Mindanao top P3.2-B
The SSS collected P3.2 billion in
members’ contributions in Mindanao from
January to April this year, up by 13 percent
from P2.9 billion over the same period in
2013, with nearly 80 percent of collections
coming from the employed sector.
Contributions from Mindanao-based
regular and household employers rose
by 13 percent to P2.5 billion. About P1.6
billion of these were from large account
employers that have at least 100 workers.
Meanwhile, contributions from smaller
“branch account” employers reached P959
million during the four-month period.
Collections from the 1.2 million
self-employed and voluntary members
in Mindanao amounted to P698 million,
reflecting an increase of 13 percent from
the P618 million collected within the first
four months of 2013.
Central Luzon
contributions at P2.4-B
SSS members in Central Luzon
contributed a total of P2.4 billion of July
2014, up by 14 percent from the same
period last year. The increase was due to
employment growth in industries located
in Clark and Subic, and cities of Angeles,
San Fernando, Olongapo, Dagupan and
Cabanatuan.
A 14-percent increase in its collections
from self-employed and voluntary
members in the region was noted following
the series of SSS AlkanSSSya coverage
drives for informal sector workers and
job order and contractual employees of
local government units.The AlkanSSSya
program has so far attracted 17,601
individuals from 188 informal sector
groups in Central Luzon.
The SSS has over two million
members in Central Luzon, including
about 1.3 million registered employees,
5,036 household employees, 452,003
self-employed, and 208,911 voluntary
members.
SSS NEWSLETTER
SEPTEMBER 2014
SSS lauds top companies in
Balikat ng Bayan Awards
T W E LV E
C O M PA N I E S
were honored as
national winners
of the 2014 SSS
“Balikat ng
Bayan” Awards
for their significant
contribution to the
attainment of SSS’
goals and mission.
The “Balikat
ng Bayan” plaques Top Employers. (center, holding plaques) PYP Agro Industries, represented
w e r e p r e s e n t e d by its President Patricio F. Pineda Jr., and Cebu Mitsumi, represented by
Rodolfo Consares. Also in photo are (from L-R) SS Commissioner Daniel
to the winners by Edralin, SSS PCEO Emilio de Quiros, Jr, BSP Governor Amando Tetangco,
Bangko Sentral ng Jr, and SSS Chief Legal Counsel Voltaire Agas.
Pilipinas (BSP)
Governor Amando Tetangco, Jr, who was engaged in ice and cold storage and water
the guest of honor and speaker, together refilling stations, with 70 employees. The two
with Social Security Commission Chairman are winners in the large and small/medium
Juan B. Santos and SSS President and CEO accounts categories, respectively, and were
Emilio S. de Quiros, Jr. during awarding honored for their strict compliance with the
ceremonies held at the Ramon Magsaysay SSS law, which requires for the compulsory
Hall of the SSS main office on September 25. coverage of employees, remittance of SSS
The 2014 “Balikat ng Bayan” awardees contributions and loan payments, and
consisted of two top employers, four best accurate and timely submission of collection
collection partners, three best paying reports, among others.
For SSS’s collection partners for
partners and three best media partners.
This year’s SSS Top Employer distinction members’ contributions and loan payments,
went to Cebu Mitsumi Inc., an electronic the honorees were Bank of the Philippines
parts manufacturing company with over Islands as Best Commercial Bank, RCBC
13,000 employees, and to PYP Agro Savings Bank as Best Thrift Bank, and One
Industries Inc., a Tarlac-based company Network Bank Inc. as Best Rural Bank. Best
(Continued on next page)
Best Collection Partners. (Starting 3rd from left): Ventaja International President Vincent
Grey; BPI Vice President for Corporate Banking Ma. Teresa Anna Lim; RCBC Savings Bank First Vice
President for Retail Banking Leonor Belen; RCBC President Rommel Latinazo; and One Network Bank
President Alex Buenaventura.
SEPTEMBER 2014
SSS NEWSLETTER
SSS doubles net income in
first six months of 2014
THE SSS doubled its total income in the
first half of 2014, posting P32.59 billion,
up from P15.73 billion in the same period
in 2013.
SSS President and CEO Emilio S. de
Quiros, Jr. said the 107-percent growth
resulted from the P16.37 billion increase in
unrealized gains from the mark-to-market
value of available-for-sale financial assets.
Consolidated financial statements for
the six-month period showed that SSS
revenues totaled P75.37 billion, composed
mainly of contributions at P58.77 billion and
investment/other income at P16.60 billion.
“Total revenues continued to grow
mostly from contributions that showed
a 15.6-percent increase on 2013 figures.
Actual expenditures grew as well at 13.2
percent to P53.21 billion from P47.01
billion,” de Quiros explained.
About 93 percent of total expenditures
were spent on benefit payments, totalling
P49.52 billion, about 14 percent higher than
the P43.46 billion benefit payouts in 2013.
Growth in benefit disbursements were
due to streamlined processing of various
claims, and the advance payment of six
months worth of pensions of members
affected by Typhoon Yolanda.
Meanwhile, operating expenses posted
a slight rise of 3.8 percent during the sixmonth period as service improvements and
coverage efforts continued, particularly with
SSS lauds top companies... (from Page 2)
Collecting Partner for OFW remittances
went to Ventaja International Corporation.
the establishment of 16 new SSS offices and
intensified campaign for new programs. De
Quiros noted that only 48.8 percent of the
allowed charter limit was utilized for SSS
operating expenses.
“The SSS remains to be in a healthy
financial condition given a net revenue of
P22.17 billion. Latest projections indicate
that SSS will continue to generate a
positive net revenue up until 2018, where
contributions collection and investment
income will continue to outpace benefit
payments and operating expenses,” de
Quiros added.
He stressed that SSS financial position
remains solid, with total assets of P422.70
billion, P38.07 billion or 9.9 percent higher
than its assets of P384.63 billion in 2013.
“This was due to our investments, which
comprised 91.2 percent of total assets. Total
investments went up by P33.79 billion or
to P385.43 billion as of end-June 2014,”
he said.
“The reforms and policy changes that the
SSS have undertaken so far led to consistent
delivery of improved financials,” he noted.
In June 2014, the SSS increased the
monthly pension of existing SSS pensioners
by five percent following the recent hike in
contribution rate and monthly salary credit.
The SSS fund’s actuarial life is currently
projected to last till 2042, extending the
previous fund life to three more years.
Three banks were named as SSS Best
Paying Partners for servicing pension
accounts thru their branch network. The
winners were Metropolitan Bank and Trust
Company as Best Commercial Bank, BPI
Family Savings Bank as Best Thrift Bank,
and One Network Bank as Best Rural Bank.
Also recognized were media
organizations that helped elevate the public
awareness about the importance of social
security coverage.
Best Media Partners of SSS. (From left):
Manila Bulletin, represented by its VP-Public Relations Carmencita Suva and Publisher Atty. Hermogenes Pobre; "Good Morning, Kuya" Program Host
Rep. Lorenzo Tañada III; and GMA DZBB News
Manager Norilyn Temblor and Events/Creative
Department Manager Cyril Coñonero.
3
SSS unveils P.E.S.O.... (from Page 1)
excess earnings, which will be credited
automatically to their accounts, depending
on the Fund’s year-end performance.
P.E.S.O. Fund savings can be
withdrawn upon the member’s effective
date of retirement or total disability with the
SSS, paid either in monthly pensions over a
minimum period of 12 months and P1,000
payment per month, paid in lumpsum, or a
combination of both.
“In case they need to withdraw funds
early, they may only touch the portion
of their equity allocated for medical and
general purposes, and it will be subject
to penalties and service fees if withdrawn
earlier than five years,” de Quiros said,
adding that if a member dies before the
maturity of his P.E.S.O. savings or expiration
of the pension period, beneficiaries will
receive the savings in the form of death
benefit, paid in lumpsum.
BSP Governor... (from Page 1)
“...If banking is about taking care of our
financing needs, pension is about taking care
of us when we are no longer working. As has
been said, ‘Banking is saving … pension is
the reward for saving’,” he noted.
Finally, Gov. Tetangco cited the common
goal of SSS and BSP in spreading financial
education to empower and improve the lives
of Filipinos. He hoped SSS “will not pass on
this chance to nurture financial literature and
more financially-stable Filipinos.”
“In the process, we will help maintain
the stability of our financial system and
promote sustained economic growth that is
truly inclusive,” he said.
Manila Bulletin was selected as the
SSS’ Best Media Partner (print category)
for the third straight year. UNTV’s “Good
Morning Kuya” emerged as the winner in the
television category, while “Imbestigador” of
GMA Super Radyo DYSS-Cebu won in the
radio category.
The SSS for the first time presented
special citations to Balikat ng Bayan Hall
of Famers, Metropolitan Bank and Trust
Company, and iRemit, Inc. Radio program
“Usapang de Campanilla” of DZMM was
also cited for its consistently putting forward
the objectives and messages of the SSS.
4
SSS NEWSLETTER
SSS Contact Center for OFWs launched
OVERSEAS FILIPINO Workers
(OFWs) will have easier means to access
the programs and services of SSS with
the launching of the newly created OFW
Contact Services Unit (OFW-CSU),
starting October this year.
SSS Senior Vice President and
International Operations Division Head
Judy Frances A. See said the new unit will
handle direct contact points for OFWs to
allow for a more differentiated servicing
and faster resolution of their SSS concerns.
For its initial operations, the OFWCSU will provide dedicated e-mail support
and local call services from 6:00 am to
10:00 pm on weekdays.
In addition, a special assistance desk
will be available at the SSS main office
in Diliman, Quezon City for walk-in
transactions of OFWs, such as registration
and issuance of SS numbers, enrollment
in Flexi-fund Program, and verification
of SSS records. It will also provide OFW
members assistance in filing their loans,
benefit claims and other SSS applications.
“ We u n d e r s t a n d t h e u n i q u e
circumstances of our Kababayan abroad,
and so we continue to find ways to make the
SSS more accessible to them. The creation
of a specialized contact unit for OFWs will
enable us to identify their distinct needs
and address them accordingly. It will also
help us manage the level of transactions
with other member service facilities more
effectively,” See explained.
OFWs can reach the OFW-CSU by
e-mail at [email protected] or
through their hotlines, (02) 364-7796 and
(02) 364-7798.
“We will open international toll-free
numbers so OFWs across the globe can
call us without having charges on their end.
Other services that will be rolled out soon
include online contact points that utilize
VoIP and instant messaging platforms,”
See said.
“This is still part of our campaign
to reach out to Filipino workers here
and abroad and ensure their continuing
coverage under the SSS. We want not only
to increase SSS membership of OFWs
but also to ensure active membership.
Considering the voluntary nature of their
coverage, we can only achieve both by
giving them consistently good experience
with our services,” See added.
The SSS reported a total of 983,262
OFW members as of June 2014. Based
on the 2013 POEA Compendium of OFW
Statistics, more than 1.8-million OFWs
were deployed in 2013, of which 464,888
were new hires.
Social security for night workers via e-AlkanSSSya
Customer Care Assistants (CCA) are among the newest groups of workers to gain
coverage under the e-AlkanSSSya Program of the Social Security System (SSS). In a
historic ceremony held at the Rogues Sports Bar at Makati Avenue, Makati City last July 28,
2014, SSS representatives, led by Makati-Gil Puyat Branch Head Ma. Rita Aguja, signed a
memorandum of agreement (MOA) with Ms. Marilyn Campbell, a talent manager representing
CCAs working in various nightspots in the P. Burgos area of Makati City.
Photo below at left shows Ms. Campbell (center) flanked by AlkanSSSya Program
Director Amalia Tolentino (left) and Ms. Aguja (right) holding the signed MOA. Photo at right
shows a pole dancer providing some entertainment during the MOA-signing ceremony,
which was witnessed by some 70 CCAs.
SEPTEMBER 2014
Philippines, Germany
ink bilateral social
security agreement
GERMANY IS now one of the
countries that guarantee the payment of
social security benefits to migrant Filipino
workers. This came after SSS President
and CEO Emilio S. de Quiros, Jr. and
other SSS officials, in collaboration with
the Department of Foreign Affairs and
other government agencies, traveled
to Berlin to sign the social security
agreement (SSA) on September 19.
The Federal Government of Germany
and the Philippines agreed to ensure
equal protection for Filipino and German
nationals working in each other’s country.
The bilateral SSA between the two
countries will still undergo ratification
by President Benigno Aquino III and
concurrence of the Senate. It aims
to benefit about 55,821 Filipinos in
Germany, of whom 45,647 are permanent
and 10,174 are temporary residents.
Among the highlights of the
Philippines-Germany agreement are
the “totalization” and export of social
security benefits.With totalization,
Filipino workers who have divided their
career time between the Philippines and
Germany will be able to combine the
contributions they made in both countries
to meet eligibility requirements for social
security benefit or pension in either or
both countries.
A covered Filipino worker in
Germany, including his dependents
and his survivors, shall be eligible
for social security benefits under the
same conditions as German nationals
in Germany. In addition, a worker will
continue to receive his benefits wherever
he decides to reside in the Philippines,
Germany, or another country.
The Philippines entered into similar
bilateral SSAs with Austria, Canada
France, United Kingdom, Belgium,
Switzerland, and Spain, all of which
are currently in force. Recently signed
bilateral agreements with Portugal and
Denmark are now with the Philippine
Senate for ratification.
SEPTEMBER 2014
Legal Forum (from Page 7)
except to pay any debt of the member to
the SSS. xxx
xxx.”
When is a person presumed dead?
In November 1987, the New People’s
Army (NPA) attacked the municipal hall and
police station of a southern Visayas province.
The Chief of Police and a municipal aide,
Paciano, (the SSS member) were captured
and abducted by the NPA. Since then, no
news about them was heard. After a few
years, in relation to a death benefits claim,
Paciano’s wife submitted to SSS a copy of
the police report and the order of the court
declaring her husband presumed dead
without prejudice to his re-appearance.
The SSS deemed Paciano’s disappearance
to fall beyond ordinary circumstances in
view of the force and violence employed by
the NPA. Thus, his absence for four years
from the date of his abduction in November
1987 was held sufficient to uphold the
presumption of his death, even without
judicial declaration. The police report was
sufficient to prove the fact of Paciano’s
death and prompt SSS to process the funeral
and death claims of his surviving wife, with
Paciano’s death presumed to occur on the
same date of his disappearance.
SSS NEWSLETTER
5
SSS accredits nine cooperatives;
targets P14-M collections thru coops
THE SSS EXPECTS to collect an
additional P14.4 million in contributions
annually after accrediting nine new
cooperatives as partners in collecting
contribution and loan payments, and in
providing other social security services.
SSS President and CEO Emilio S.
de Quiros, Jr. said, “Collectively these
nine cooperatives have a total of 90,377
members, and they have committed to enroll
7,050 new members to the SSS annually.”
Recently accredited were Sta Cruz
Savings and Development Cooperative
(SACDECO) and Sacred Heart Savings
Cooperative (SHSC) in Ilocos Sur, Pintuyan
National Vocational School Multi-Purpose
Cooperative (PNVSMPC) in Southern Leyte,
Pinoy Lingap Damayan Credit Cooperative
(PDLCC) in Catanduanes, Tubungan
Employees Development Cooperative
(TEDCO) in Iloilo, Alicia Neighborhood
Multi-Purpose Cooperative (ALNEMPCO)
in Zamboanga-Sibugay, Gata Daku MultiPurpose Cooperative (GDMPC) in Misamis
Oriental, Guadalupe Community MultiPurpose Cooperative (GCPMC) in Cebu,
and Alalay sa Kaunlaran Inc Multi-Purpose
Cooperative (ASKI MPC) in Nueva Ecija.
Among the nine, Southern Leyte’s
PNVSMPC and PDLCC in Catanduanes
will act as SSS’ collecting agents for
contributions, loan payments, and payments
for miscellaneous transactions such as fees
for replacement of UMID cards. Aside from
collection, SACDECO, SHSC, TEDCO,
ALNEMPCO, GDMPC, GCPMC, and
ASKI MPC will assist in receiving and
screening applications for registration,
salary loans, and funeral claims.
The SSS, through its account officers,
will tightly monitor the performance of
accredited cooperatives to ensure that
contributions and other payments of coop
members are properly remitted. Stringent
requirements were also set in accrediting
cooperatives, micro-finance institutions
(MFI) and other organized groups as
collecting agents.
Since December 2012, the SSS has
already accredited a total of 21 cooperatives,
associations and MFIs to act as partners in
collection and non-collection services.
SSS, labor and industry groups
continue consultations and dialogue
ON AUGUST 13, the SSS conducted its first-ever roundtable
discussion (RTD) with representatives of various companies in a
bid to improve SSS coverage and compliance in the construction
industry. Leading the RTD (photo at right)were Social Security
Commissioner Ibarra Malonzo and SSS Vice President for Public
Affairs Marissu Bugante. Later on, the SSS also held its quarterly
dialogue with the labor sector, with Commissioner Daniel Edralin
and Vice President for Management Services May Catherine
Ciriaco (photo below).
MEETING
WITH
INDUSTRY
REPS.
QUARTERLY
DIALO G U E
W IT H LA B OR
LEADERS.
PHOTO
NEWS
Opening of new SSS branches
sss CaBanatUan. On August 1,
the SSS inaugurated its second branch in
Nueva Ecija, strategically located inside
the N.E. Pacific Shopping Center in
Cabanatuan City (left), which provided an
expansive area for SSS, rent-free.
Photo at far left shows the office
blessing by Rev. Fr. Perfecto Alto, Jr.
joined by SSS Cabanatuan Branch Head
Primitivo Verania Jr.; Special Assistant to
the PCEO, Ma. Lourdes Mendoza; and
SSS President and CEO (PCEO) Emilio
de Quiros Jr.
sss san Jose, nUeVa eCiJa. Also
on August 1, the SSS inaugurated its San
Jose, Nueva Ecija branch, located at the
NE Plaza Leticia mall (top).
SSS San Jose Branch Head Emma
Laureta (far left) presented a certificate
of appreciation to the management of
N.E. Group of Companies, represented
by Atty. Jackie Garcia (left photo, second
from left) for their donation of rent-free
space in the NE malls for the San Jose
and Cabanatuan branches.
sss taGUiG at sm aUra. The SSS Taguig Branch
moved from its former site at the FTI Complex to a new
office at the SM Aura Tower inside Fort Bonifacio Global
City. Cutting the ribbon during the inauguration last August
20 were (top photo, from left): Taguig City Vice Mayor
Ricardo Cruz Jr.; SSS PCEO Emilio de Quiros Jr.; and
SM Supermalls President Annie Garcia.
The new SSS Taguig branch was completely furnished
with modular units (bottom photo) and electronic queueing
system by SM, which also provided the space rent-free
for the next two years.
sss eastWood, QUeZon City. July 25 saw the official
inauguration of SSS Eastwood City (photo at near left), the
newest branch based in Quezon City that will serve the
members in the booming Libis area.
Photo at far left shows SSS PCEO Emilio de Quiros Jr.,
Social Security Commissioner Diana Pardo-Aguilar, and Quezon City Congressman Jorge Banal cutting the
ribbon to formally open SSS Eastwood.
Legal
f orum
The SSS receives numerous queries on legal issues about membership,
benefit eligibility, employer liability, and others. In this new section,
we feature some interesting questions from our members and the
corresponding replies from the SSS Legal Department. Please note
that these are legal opinions on specific cases and are based on
existing laws and jurisprudence, as well as SSS rules and regulations.
Can a second wife claim her deceased
spouse’s SSS death benefit?
The member (we shall call him “Raul”)
married Corazon (not real name) in March
1980. In 1990, the couple separated and Raul
filed for annulment of their marriage. In
1997, the court declared the marriage “null
and void ab initio”. In 1992, Raul entered
into a common-law relationship with Donna
(not real name) and they had a daughter,
Joy, in 1995. After the court’s decision was
handed down, Raul married Donna in 1999.
In 2001, Raul died. The issues here are as
follows: 1) Is Raul’s marriage to Donna
valid, considering that they were already
living together during the pendency of the
annulment; 2) Is Donna qualified for SSS
death benefits as Raul’s legal wife; and 3)
is Joy an illegitimate child?
The SSS found the second marriage of
Raul to be valid as it was not contracted
during the subsistence of his first marriage.
Raul married Donna in 1999 AFTER the
judicial annulment of his first marriage in
1997. Their cohabiting prior to marriage
is not a legal ground to invalidate their
subsequent marriage. Thus, Donna is
deemed as the legal wife of Raul and is his
Primary Beneficiary under the SS Law.
As to Joy’s status, she is considered an
illegitimate child as she was conceived and
born BEFORE her parents’ marriage. Even
though her parents subsequently married,
this does not make Joy’s status “legitimated”
as, per the Family Code: “…only children
conceived and born outside of wedlock of
parents who, at the time of the conception
of the former, were not disqualified by any
impediment to marry each other, may be
legitimated.” (Article 177)
But in connection with the SS Law,
Joy is considered a Primary Beneficiary
entitled to share in the Death benefit until
she turns 21 years old. As she was still a
minor when her father died, she is entitled to
50-percent share of the dependent legitimate,
legitimated or legally adopted children of
Raul and Corazon, if any; if none, Joy gets
100 percent.
Does the marriage of a dependent
incapacitated child of an SSS member
disqualify him from Dependent’s
Pension?
The member, Norberto, (all names here
are fictional) died in 1991 and the SSS death
benefit claim was settled in favor of his wife,
Rebecca. In 1993, the death claim was readjudicated to include Norberto’s severely
disabled son, Jaime, who was 35 years old
at the time and dependent on his parents for
support. In 2000, the death claim was again
re-adjudicated to be paid under a special
pension system to Nora (another child of
Norberto and Rebecca), who was guardian
of the ailing Rebecca and the disabled
“
... even if Jaime was
already over 21 years old
at the time of his father’s
death, he is still considered
a Primary Beneficiary as he
was physically handicapped
and incapable of selfsupport. However, when
Jaime got married in 1992,
he was legally considered
to be emancipated and it is
now his wife who is obliged
to support him.
”
Jaime – both deemed incapacitated. During
a field investigation conducted in 2002, it
was found that Rebecca was still under the
care and custody of Nora. However, Jaime
was discovered to be under the guardianship
of his wife, Cathy. It was Nora herself who
disclosed to SSS that Jaime had gotten
married to Cathy under civil rites in 1992,
and SSS was able to obtain a copy of the
marriage certificate. The issue on hand is
whether Jaime is still considered a dependent
incapacitated child of Norberto and eligible
for Dependent’s Pension.
The SSS took into account not just the
SS Law, but also the Family Code. Under
Section 8 of the SS Law, even if Jaime was
already over 21 years old at the time of
his father’s death, he is still considered a
Primary Beneficiary as he was physically
handicapped and incapable of self-support.
However, when Jaime got married in 1992,
he was legally considered to be emancipated
and it is now his wife who is obliged to
support him. This is in accordance with
the Family Code, which has the following
provisions:
“ A R T. 2 8 8 . P a re n t a l a u t h o r i t y
terminates permanently:
1) Upon the death of the parents;
2) Upon the death of the child; and
3) Upon emancipation of the child.”
“ART. 234. Emancipation takes place by
attainment of majority. Unless otherwise
provided, majority commences at the
age of eighteen years (as amended by
RA 6809)”
“ART 68. The husband and wife are
obliged to live together, observe mutual
love, respect and fidelity, and render
mutual help and support.”
“ART. 105. xxx
xxx
xxx , the
following are obliged to support each
other xxx:
(1) The spouses;
xxx xxx xxx .”
Based on the foregoing, SSS ruled
that Jaime, once he got married in 1992,
became emancipated and the obligation
for his support shifted from his parents to
his wife. Consequently, all Dependent’s
Pension payments received by Jaime, from
the date of his marriage in 1992 up to the
time it was stopped, are considered “undue
payments” and must be deducted from
future death benefits to be received by his
mother, Rebecca. This is pursuant to Section
16 of the Social Security Act (RA 1161) as
amended by the SS Law (RA 8282), which
provides:
“xxx
all benefit payments made
by SSS shall be likewise exempt from
all kinds of taxes, fees or charges and
shall not be liable to attachments,
garnishments, levy or seizure by or
under any legal or equitable process
whatsoever, either before or after receipt
by the person or persons entitled thereto,
(Continued on Page 5)
8
SSS NEWSLETTER
Editorial
Dedicated service to OFWs –
as well as to other members
Latest figures from SSS show a total of 983,262 overseas Filipino
workers (OFW)-members as of June 2014. However, based on the
2013 POEA Compendium of OFW Statistics, more than 1.8 million
OFWs were deployed in 2013 alone, of which 464,888 were new
hires. Obviously, the SSS still has a lot of catching up to do if it were
to cover even half of the estimated three million OFWs currently
stationed abroad.
Instead of pushing for the mandatory SSS coverage and
contributions by OFWs (which could result to their bitter resistance
instead of compliance), the SSS would rather encourage their
membership and active contributions thru intensive information
and coverage drives that extol the benefits of saving for future
contingencies NOW while they are strong, actively employed, and
earning relatively higher incomes.
The SSS also knows the importance of providing exceptional
service that is responsive to the unique employment situation and
circumstances that OFWs find themselves in while abroad. This is
the reason behind the continuing enhancement of the SSS website
through which OFWs (as well as locally-based members) can view
and access their records any time or any day. Likewise, the SSS,
through the Philippine government, continues to forge bilateral
social security agreements with OFW host-countries, as a way to
ensure that both countries’ migrant workers are provided mutual
social security protection.
The recent creation of the OFW Contact Services Unit (OFWCSU) is another move towards better service for OFWs. The new unit
will handle direct contact points to SSS for OFWs, thereby providing
more differentiated and dedicated servicing and faster resolution of
their SSS concerns. The OFW-CSU will provide dedicated e-mail
support, local call services, as well as a special assistance desk at the
SSS main office for walk-in transactions of OFWs. In the pipeline
are international toll-free numbers and calls using VoIP, as well as
instant messaging platforms.
This does not mean that ordinary or local-based SSS members are
not important to SSS or that they are being overlooked. Exceptional
service to ALL SSS members is something that SSS always strives
for – although that in itself is an unending and ever-increasing
challenge . However, SSS also understands the unique circumstances
of OFWs abroad, and so continues to find ways to make its services
more accessible to them; but never to the detriment or exclusion of
other members who likewise deserve and demand them.
SEPTEMBER 2014
From the Mailbox 
Mr. O. Langit would like to know why his pension is deducted
P500 for tax every December.
SSS: Pensions from SSS are not taxed. What Mr. Langit is
receiving is a Disability pension, which includes P500 as
monthly Supplemental Allowance. However, this Allowance is
not included in the 13th Month Pension, which is released every
December and is composed of only the basic monthly pension.
Mr. S. Saldana would like to know why he was denied the
May 1998, September 1999, September 2000, September 2006
and August 2007 pension increases, and was only granted the
five-percent increase that took effect last June 2014.
SSS: In order to be entitled to pension increases, a member must
already be a pensioner prior to the dates when said increases
were granted. A check with records shows that Mr. Saldana was
granted his Retirement pension only in February 2010, which
means that he is not qualified to receive retroactively any of the
increases mandated prior to the date of his retirement. Thus, he is
only qualified to receive the five-percent increase as of June 2014.
Mrs. M. Habala was abandoned by her husband who
remarried another woman. She wants to know if she can be
the legitimate beneficiary of his retirement benefit claim, as
she is the legal wife and her only child is over 21 years of age
and already married.
SSS: The Retirement benefit is granted to a member who has
earned entitlement thereto, and his/her beneficiaries do not
have a share in it. Also, the addition or deletion of beneficiaries
is exclusively the choice or prerogative of the SSS member.
However, in the event that the member dies, all benefit claims will
undergo careful evaluation. A member’s primary beneficiaries,
according to the SS Law, are:
1) dependent, legal spouse (not re-married/co-habited, no
children with other partners)
2) dependent children (below 21 years old, unmarried,
unemployed, or incapacitated if older than 21)
Mrs. M. Bautista asks about a deduction of P7,030 in the SSS
Death benefit granted to her after her husband’s death.
SSS: The amount of P7,030 is the March and April retirement
pensions that were credited to Mr. Bautista’s bank account after
his death in February 2014. If still unwithdrawn, this amount
should be returned to SSS by Mr. Bautista’s depository bank.
Once returned to SSS, Mrs. Bautista can then file a request for
the replacement of said amount in her own bank account as this
is still part of the Death benefit.
SSS Newsletter
MARISSU G. BUGANTE • Executive Editor
JUSTINA B. HUGO • Editor-in-Chief
JOSEPHINE ANNE E. MINES • Managing Editor
grace b. burgos • Art Director
JOSEPHINE ANNE E. MINES, MARIE GRACE ANTIGA • Writers
JENNIFER L. JAVIER, DanILO soriano • Photographers
JHOANNA H. GARCIA • In-charge of Circulation
SSS Newsletter is published quarterly by the Corporate Communications Department
(CCD) of the Social Security System for its members and the general public. Please send
comments or suggestions to the CCD, 7th Floor, SSS Building, East Avenue, Quezon City.