SSS law Flashcards
Who are compulsory members of the SSS?
- , Employees not over 60 years old and their employers, including domestic helpers [Sec. 9(1), RA 11199].
- Self-employed persons as may be determined by the Commission, including but not limited to:
a. All self-employed professionals
b. Partners and single proprietors of businesses
c. Actors and actresses, directors, scriptwriters and news correspondents
who do not fall within the definition of the term “employee” under Sec. 8
(d) of this Act;
d. Professional athletes, coaches, trainers and jockeys e. Individual farmers and fishermen [Sec. 9-A, RA11199] - All sea-based and land-based Overseas Filipino Workers (OFWs) not over 60 years of age [Sec. 9-B, RA 11199]
Who are voluntary members?
- Spouses who devote full time to managing household and family affairs, unless they
are also engaged in another vocation or employment (in which case, coverage will be
mandatory). [Sec. 9(b), RA 11199]
’ 2. Employees previously under compulsory coverage) already separated from
employment or those self-employed (under compulsory coverage) with no realized
income for a given month, who chose to continue with contributions to maintain the
right to full benefit. [Sec. 11, RA 11199]
- Self-employed members realizing no income in any given month, who choose to
continue paying contributions under the same rules and regulations applicable to a
separated employee member. [Sec. 11-A, RA 11199]
Who are excluded?
- Services where there is no employer-employee relationship in accordance with
existing labor laws, rules, regulations and jurisprudence; - Service performed in the employ of the Philippine Government or
instrumentality or agency thereof; - Service performed in the employ of a foreign government or international
organization, or their wholly-owned instrumentalities; and
Note: Foreign governments and international organizations may enter into
an agreement with the PH government to include their employees in
the Philippines in the SSS. - Services performed by temporary and other employees which may be excluded by regulation of the Social Security Commission. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors. [Sec. 8(j), RA 11199]
Who are dependents under the SSS?
- The legal spouse entitled by law to receive support from the member;
- The legitimate, legitimated, or legally adopted, and illegitimate child who:
a. Is unmarried,
b. Not gainfully employed, and
c. Has not reached 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. - The parent who is receiving regular support from the member [Sec.
8(e), RA 11199].
Who are primary beneficiaries under the SSS law?
- Dependent spouse - until remarriage
- Dependent children [legitimate, legitimated, legally adopted and illegitimate] - Illegitimate children are entitled only to 50% of the share of legitimate children. Where there are no legitimate children, the
illegitimate children get 100%.
Who are Secondary Beneficiaries under the SSS law?
Receives only when the primary beneficiaries are absent 2. Dependent
parents Others 1. Receives only when primary and secondary beneficiaries are absent 2. Any other person designated by member as his/her secondary
beneficiary. [Sec. 8 (k), RA 11199]
What are the benefits under the SSS law?
a. Monthly Pension
b. Dependents’ Pension
c. Retirement benefits
d. Permanent disability benefits
e. Death Benefits [Sec. 13, RA 11199]
f. Funeral benefits
g. Loan
h. Sickness benefits
i. Unemployment Insurance or Involuntary Separation Benefits [Sec. 14-B,
RA 11199]
j. Maternity Leave benefits [Sec. 14-A, RA 11199], repealed RA 11210 (105-Day Expanded Maternity Leave Law)
What is the computation for monthly pensim under the SSS law?
- P300 + [20% x (average monthly credit)] + [2% x (average monthly credit) ‘
x (# of cash credit years of service in excess of 10 years)] - 40% x [average monthly credit]
- P1000, provided that the monthly pension shall in no case be paid for an
aggregate amount of less than 60 months [Sec. 12 (a)] - Notwithstanding the above mentioned, minimum pension is:
a. P1,200 - members with at least 10 years credit service b. P 2,400 - members with at least 20 years
What is a dependents pension!
- Paid on account of members’
a. Death
b. Permanent total disability, or
c. Retirement 2. Paid to each child conceived on or prior to contingency, but not exceeding 5, beginning with the youngest and preferring the legitimate 3. Amount is either P250 or 10% of the monthly pension as computed above, whichever is higher.
Bonifacio Dycaico became a member of the SSS on January 24, 1980. In his self-employed data record, he named Elena P. Dycaico and their 8 children as beneficiaries. At that time, Bonifacio and Elena were living together but were not married. Bonifacio retired on June 1989. He then began receiving his monthly pension since then until he passed away on June 19, 1997. A few months before he died, or on January 6, 1997, only then he married the petitioner. Upon Bonifacio’s death, the petitioner filed with the SSS an application for survivor’s pension. Her application was denied on the ground that under Section 12-B(d) of RA 8282, she could not be considered a primary beneficiary of Bonifacio as of the date of his retirement.
In the November 2005 decision, the proviso “as of the date of his retirement” was struck down for violating the due process and equal protection clauses of the Constitution. SC ruled that the proviso violates the equal protection clause of the Constitution because it impermissibly discriminates against those dependent spouses whose respective marriages to the SSS members were contracted after the latter’s retirement. Accordingly, the SC ruled that the SSS cannot deny the claim of petitioner Elena P. Dycaico for survivors pension on the basis of this invalid proviso.
SSS filed its Motion for Reconsideration, stating the the possibility of some unscrupulous members who might contract spurious marriage after the contingency (retirement) to enable their spouse[s] to claim the benefits under RA 8282. SSS also argued that, like the beneficiary in a life insurance policy, the beneficiary must have an insurable interest upon the occurrence of the contingency. In the case of the petitioner, she was only the common-law spouse of Bonifacio when he retired, which was the contingent event, according to the SSS, and, therefore, no insurable interest existed.
On the other hand, the SSC contends that the proviso does not violate the equal protection clause of the Constitution because it is applied uniformly and equally to all dependent spouses of SSS members who contracted their respective marriages after the latter’s retirement. Furthermore, the SSC adds that RA 8282 respects the sanctity of marriage as an institution and, consequently, provides that only the legitimate spouse is classified and is entitled to support. The petitioner could not have qualified as a primary beneficiary notwithstanding her designation as such by Bonifacio because she was not his legal spouse at that time.
Is Elena Dycaico considered a beneficiary?
The burden is on the SSS to prove that marriages contracted after retirement were so entered for an illicit purpose or solely for the purpose of receiving the benefits under RA 8282. The outright disqualification of surviving spouses whose respective marriages to the SSS members were valid, although contracted after the latter’s retirement, from entitlement to the survivorship pension by reason of the proviso “as of the date of his retirement” in Section 12-B(d) is repugnant not only to the due process and equal protection clauses of the Constitution, but also to its social justice policy.
SSS and SSC pointed out the fact that Bonifacio designated the petitioner as one of his beneficiaries, together with their children, they were not married at that time, hence the designation is void. However, it should be pointed out that the petitioner’s entitlement to the survivor’s pension does not arise from such designation. Rather, her entitlement to survivorship pension is based on the fact that, at the time of Bonifacio’s death, she was his dependent spouse. In other words, regardless of the said invalid designation, the petitioner was the dependent spouse of Bonifacio by reason of their valid marriage to each other.
At the time when the contingency occurred, in this case, Bonifacio’s death, the petitioner was his primary beneficiary following Section 8(k) of RA 8282.
Relying on Davac, the SSS and SSC disagree with the Court’s characterization of the retirement benefits and survivorship pension as property interest falling within the ambit of the due process clause of the Constitution. The SSS and SSC have clearly misread Davac. A careful perusal thereof reveals that the Court therein merely declared that death benefits do not form part of the conjugal partnership of the covered member. It did not, in any way, make any pronouncement that death benefits are not considered property interest.
Retirement and death benefits, including the survivor’s pension, in RA 8282 are property interest protected by the due process clause of the Constitution. As the dependent spouse of Bonifacio entitled by law to receive support from him, the petitioner has indubitably acquired a property interest in the survivor’s pension. As such, compassion for the petitioner in this case is not a dole out but a right.
Rodolfo Signey Jr. a member of the SSS, died on May 21, 2001. In his member’s records, he had designated petitioner Yolanda Signey as primary beneficiary and his four children with her as secondary beneficiaries. Petitioner filed a claim for death benefits with the public respondent SSS. She revealed in her SSS claim that the deceased had a common-law wife, Gina Servano, with whom he had two minor children.
Petitioner’s declaration was confirmed when Gina herself filed a claim for the same death benefits which she also declared that both she and petitioner were common-law wives of the deceased and that Editha Espinosa was the legal wife. In addition, in October 2001, Editha also filed an application for death benefits with the SSS stating that she was the legal wife of the deceased.
SSS denied the death benefit claim of the petitioner and found that the marriage between the deceased and the petitioner is null and void because of a prior subsisting marriage contracted between the deceased and Editha as confirmed by the local civil registry of Cebu. However, it recognized Ginalyn and Rodelyn, the minor children of the deceased with Gina, as the primary beneficiaries under the SSS Law.
Thereafter, petitioner filed a petition with the SSC in which she attached a waiver of rights executed by Editha whereby the latter waived any/all claims from Social Security System (SSS), among others due to the deceased RodolfoSigney Sr. SSC affirmed the decision of the SSS. The SSC gave more weight to the SSS field investigation and the confirmed certification of marriage showing that the deceased was married to Editha, than to the aforestated declarations of Editha in her waiver of rights.
Issue:
Whether or not petitioner has a superior legal right over the SSS benefits as against the illegitimate minor children of the deceased?
As to the issue of who has the better right over the SSS death benefits, Section 8(e) and (k) of R. A. No. 8282 is very clear. Hence, we need only apply the law.
Section 8(e) and (k) of R.A. No. 8282 provides:
SEC. 8. Terms Defined.—For the purposes of this Act, the following terms shall, unless the context indicates otherwise, have the following meanings:
x x x
(e) Dependents — The dependent 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
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.
Petitioner Bernardina P. Bartolome initiated a entitlement for death benefits under PD 626 with the Social Security System (SSS) at San Fernando City, La Union, over the death of her son John Colocol (John), who she gave up for adoption, and alleged that she was the sole remaining beneficiary. Previously, Defendant Scanmar Maritime Services, Inc., employed John as electrician on board the vessel Maersk Danville. He was covered by the government’s Employees’ Compensation Program (ECP). Unfortunately, he met an accident on board the vessel, which caused his death.
When petitioner filed her claim, SSS denied it stating that she was no longer the parent of John as Cornelio Colocol legally adopted him. On appeal, the Employees’ Compensation Commission (ECC) affirmed the SSS ruling.
ISSUE:
Whether or not the term “dependent” qualifies the parents as to either biological or adoptive.
Petitioner was entitled to receive the claim for death benefits. “Based on Cornelio’s death certificate, it appears that John’s adoptive father died on October 26, 1987, or only less than three (3) years since the decree of adoption on February 4, 1985, which attained finality. As such, it was error for the ECC to have ruled that it was not duly proven that the adoptive parent, Cornelio, has already passed away.
As the law does not define “dependent parents”, it should be understood to have a general and inclusive scope. Thus, “the term ‘parents’ in the phrase ‘dependent parents’ in the afore-quoted Article 167 (j) of the Labor Code is used and ought to be taken in its general sense and cannot be unduly limited to ‘legitimate parents’ as what the ECC did. The phrase ‘dependent parents’ should, therefore, include all parents, whether legitimate or illegitimate and whether by nature or by adoption. When the law does not distinguish, one should not distinguish. Plainly, ‘dependent parents’ are parents, whether legitimate or illegitimate, biological or by adoption, who are in need of support or assistance.
“Moreover, the same Article 167 (j), as couched, clearly shows that Congress did not intend to limit the phrase ‘dependent parents’ to solely legitimate parents. Had the lawmakers contemplated ‘dependent parents’ to mean legitimate parents, then it would have simply said descendants and not ‘legitimate descendants.’ The manner by which the provision in question was crafted undeniably show that the phrase ‘dependent parents’ was intended to cover all parents – legitimate, illegitimate or parents by nature or adoption.”
The law is clear that “the biological parents retain their rights of succession to the estate of their child who was the subject of adoption. While the benefits arising from the death of an SSS covered employee do not form part of the estate of the adopted child, the pertinent provision on legal or intestate succession at least reveals the policy on the rights of the biological parents and those by adoption vis-à-vis the right to receive benefits from the adopted.”
As a result, it was held that “Cornelio’s death at the time of John’s minority resulted in the restoration of petitioner’s parental authority over the adopted child.”
“Moreover, John, in his SSS application, named petitioner as one of his beneficiaries for his benefits under RA 8282, otherwise known as the ‘Social Security Law.’ While RA 8282 does not cover compensation for work-related deaths or injury and expressly allows the designation of beneficiaries who are not related by blood to the member unlike in PD 626, John’s deliberate act of indicating petitioner as his beneficiary at least evinces that he, in a way, considered petitioner as his dependent. Consequently, the confluence of circumstances – from Cornelio’s death during John’s minority, the restoration of petitioner’s parental authority, the documents showing singularity of address, and John’s clear intention to designate petitioner as a beneficiary – effectively made petitioner, to Our mind, entitled to death benefit claims as a secondary beneficiary under PD 626 as a dependent parent.”
In sum, “the Decision of the ECC dated March 17, 2010 is bereft of legal basis. Cornelio’s adoption of John, without more, does not deprive petitioner of the right to receive the benefits stemming from John’s death as a dependent parent given Cornelio’s untimely demise during John’s minority. Since the parent by adoption already died, then the death benefits under the Employees’ Compensation Program shall accrue solely to herein petitioner, John’s sole remaining beneficiary.”
Requisites for Eligibility
for SSS retirement benefits
120 monthly contributions
Age
a. Has reached the age of 60 years and is already separated from employment or has ceased to be self-employed; or
b. Has reached the age of 65 years
Period of entitlement - From retirement until death
The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than 65 years old.
What are the death benefits under the SSS law?
Eligibility
36 monthly contributions prior to the semester of death
Benefit
Monthly pension to primary beneficiaries, or
If no primary beneficiaries, lump sum equivalent to 36 times the monthly pension to secondary beneficiaries
Who are eligible for Sickness benefits?
Eligibility
Inability to work due to sickness or injury,
Confined for more than 3 days either in a hospital or elsewhere with SSS approval
At least 3 months of contribution paid in the 12 month period immediately before the semester of sickness or injury
All company sick leaves with pay for the current year have been used up;
Maximum of 120 days per 1 calendar year (i.e. max permissible for the same sickness and confinement is 240 days for 2 consecutive years)
Employer has been notified, or, if a separated, voluntary or self-employed member, the SSS has been directly notified within 5 days from confinement.
