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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 24
PRESIDENTIAL DECREE NO. 24 -
AMENDING CERTAIN Sections OF REPUBLIC ACT NUMBERED ELEVEN HUNDRED AND
SIXTY-ONE, AS AMENDED, OTHERWISE KNOWN AS "THE SOCIAL SECURITY ACT OF
1954"
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chanroblesvirtualawlibrary
WHEREAS, there were pending before Congress
prior to the promulgation of Proclamation No. 1081 dated September 21,
1972, certain priority measures vital to the national development
program of the Government and which are considered by the President as
urgent measures;chanroblesvirtualawlibrary
WHEREAS, one of these priority measures is a bill proposing amendments
to the Social Security Act by increasing the benefit rates granted
under said law, increasing the loanable amount for housing loans, and
removing some technical flaws for a more effective and efficient
operation of the Social Security System (SSS); and
WHEREAS, the measure is necessary to effect reforms in SSS operations
and to revitalize its structure as an important agency in the promotion
of the social and economic development programs of the
Government; chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by
virtue of the powers vested in me by the constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and
pursuant to Proclamation No. 1081 dated September 21, 1972, and General
Order No. 1 dated September 22, 1972, do hereby amend certain sections
of provisions of the Social Security Act of 1954, as amended, to wit;chanroblesvirtualawlibrary
Section 1. Section one of Republic Act Numbered
Eleven hundred and sixty-one, as amended, is further amended to read as
follows:cralaw:red
"Sec. 1. Short title. — This Act shall be known as
the "Social Security Law"
Section 2. Section two of the same Act is further
amended to read as follows:cralaw:red
"Sec. 2. Declaration of policy. — It is the policy of
the Republic of the Philippines to establish, develop, promote and
perfect a sound and viable tax-exempt social security service suitable
to the needs of the people throughout the Philippines, which shall
provide to covered employees and their families protection against the
hazards of disability, sickness, old age, and death, with a view to
promoting their well-being in the spirit of social justice."
Section 3. Section three of the same Act is further
amended amending paragraphs (a) and (b) to read as follows:cralaw:red
"Sec. 3. Social Security System. — (a) To carry out
the purposes of this Act, the Social Security System with principal
place of business in Manila or Quezon City, Philippines, is hereby
created. The SSS shall be directed and controlled by a Social Security
Commission composed of the Secretary of Labor, the SSS Administrator
and six appointive members, two of whom shall represent the labor
group, two, the management group and two, the general public, to be
appointed by the President with the consent of the Commission on
Appointments. The Chairman of the Commission shall be designated by the
President of the Philippines from among the members of the Commission.
The term of the appointive members shall be three years Provided That
terms of the first six appointive members shall be one, two and three
years for every two members, respectively. All vacancies, except
through the expiration of the term, shall be filled for the unexpired
term only. The appointive members of the Commission shall receive fifty
pesos per diem for each meeting actually attended by them: Provided,
That no compensation shall be paid for more that eight meetings a month.
"(b) The general conduct of the operations and
management functions of the SSS shall be vested in an Administrator who
shall serve as the chief executive officer immediately responsible for
carrying out the program of the Social Security System hereby created
and the policies of the Commission. The Administrator shall be a person
who has had previous experience in technical and administrative fields
related to the purposes of this Act. He shall be appointed by the
President of the Philippines with the consent of the Commission on
Appointments and shall receive a salary to be fixed by the Commission
with the approval of the President, payable from the funds of the SSS."
Section 4. Section five of the same Act is further
amended by adding thereto paragraph (d) to read as follows:cralaw:red
"(d) Execution of Decisions. — Any decision or award
of the Commission after the same has become final and executory shall
be enforced and executed in the same manner as decisions of Courts of
First Instance, and the Commission shall have the power to issue to the
city or provincial sheriff or the sheriff whom it may appoint such
writs of execution as may be necessary for the enforcement of such
decision or award 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, be punished by the proper
court for contempt." chanroblesvirtualawlibrary
Section 5. Section eight of the same Act is further
amended by amending paragraphs (f), (g), (i) and (m) to read as follows;chanroblesvirtualawlibrary
"(f) Compensation. — All actual remuneration for
employment, including the cash value of any remuneration paid in any
medium other than cash except that part of the remuneration in excess
on one thousand pesos received during the month.
"(g) Monthly Salary Credit. — The compensation base
for contributions and benefits as indicated in the schedule in Section
eighteen of this Act.
"(i) Contribution. — The amounts paid to the SSS by
the employee and by his employer in accordance with Section Eighteen of
this Act.
"(m) Average monthly salary credit. — The results
obtained by dividing the sum of the monthly salary credits in the
sixty-month period ending on the last day of the second quarter
preceding the quarter of retirement due to old age or total disability
by sixty, or the result obtained by dividing the sum of the monthly
salary credits from the month of coverage to the last day of the second
quarter preceding the quarter of death, or permanent disability or
retirement by the number of calendar months in the same period,
whichever is greater; except where the month of death or permanent
disability fall within eighteen months from the month of coverage, in
which case, the average monthly salary credit is the result obtained by
dividing the sum of all monthly salary credits from the month of
coverage to the month immediately preceding the month of death or
permanent disability by the total number of calendar months in the same
period."
Section 6. Section twelve of the same Act is further
amended by amending paragraphs (a), (c) and (d) to read as follows:cralaw:red
"Sec. 12. Retirement benefits. — (a) A covered
employee who (1) has paid at least one hundred twenty monthly
contributions to the SSS, has reached the age of sixty years and is
separated from employment or, if still employed, is receiving less that
two hundred fifty pesos monthly compensation, or (2) has paid at least
one hundred twenty monthly contributions and has reached the age of
sixty-five years, or (3) has paid at least thirty-six monthly
contributions and has become permanently totally disabled, shall be
entitled for as long as he lives but in no case for less than five
years to a monthly pension amount to be computed as follows:cralaw:red
"Forty-five per cent of the first three hundred pesos of the average
monthly salary credit or fraction thereof; plus
"Nine per cent of the excess over three hundred pesos; plus
"One tenth of one per cent of the average monthly salary credit for
each monthly contribution in excess of one hundred twenty and paid as
of the last day of the second quarter preceding the quarter of
retirement: Provided, That a member of the SSS covered prior to June
18, 1962 and who was fifty years of age or over the date of his
coverage shall be entitled to the benefits hereunder if he has paid a
number of monthly contributions equivalent to the number of calendar
months of coverage at age sixty, but in no case less than twenty-four:
Provided, further, That the monthly pension shall in no case be less
than forty-five pesos.
xxx
xxx
xxx
"(c) The monthly pension shall be suspended —chanroblesvirtualawlibrary
1. Upon the re-employment of a retired employee who
is less than sixty-five years old if he receives from his employment a
monthly compensation of two hundred fifty pesos or more, in which case,
he shall again be subject to section eighteen hereof, and his employer
to section nineteen; or
2. Upon the recovery of an employee retired due to
permanent total disability, or his failure to present himself for
examination at least once a year upon notice by the SSS.
"(d) The monthly pension of a surviving pensioner
retired before December 1, 1972 shall be increased by fifty per cent
and the amount shall be his new monthly pension beginning with said
date."
Section 7. Section thirteen of the same Act is
further amended to read as follows:cralaw:red
"Sec. 13. Death and permanent disability benefits. —
(a) Upon the covered employee's death, his beneficiaries shall be
entitled to the basic lump sum amount, plus five-twelfths of one per
cent of the basic lump sum amount for each monthly contribution in
excess of one hundred twenty monthly contributions: Provided, That any
of the following conditions is satisfied at the time of death:cralaw:red
1. He shall have paid eighteen monthly contributions
within the thirty-six calendar month period ending on the last day of
the second quarter preceding the quarter of death.
2. His payment ratio is not less than eighty per
cent; Provided, further, That if none of the foregoing conditions are
satisfied, his death benefit shall be the above amount multiplied by
one and one-fourth times his payment ratio: Provided, further, That the
death benefit shall not be less than the total contributions paid by
him and his employer in his behalf to the SSS nor less that five
hundred pesos: Provided, however, That the covered employee who dies in
month of coverage shall be entitled to the minimum benefit.
(b) Upon the covered employee's permanent total
disability, if such disability occurs before he has paid thirty-six
monthly contributions to the SSS, he shall be entitled to the basic
lump sum amount: Provided, That any of the following conditions is
satisfied at the time of permanent total disability:cralaw:red
1. He shall have paid eighteen monthly contributions
within the thirty-six calendar month period ending on the last day of
the second quarter preceding the quarter of permanent total
disability. chanroblesvirtualawlibrary
2. His payment ratio is not less that eighty per
cent: Provided, further, That if none of the foregoing conditions are
satisfied, his permanent total disability benefit shall be the above
amount multiplied by one and one-fourth times his payment ratio:
Provided, finally, That the permanent total disability benefit shall
not be less than the total contributions paid by him and his employer
in his behalf to the SSS nor less than five hundred pesos: Provided,
however, That a covered employee who becomes permanently totally
disabled in the month of coverage shall be entitled to the minimum
benefit.
"(c) If the disability is partial but permanent, the
amount of benefit shall be such percentage of the sum of the benefit
described in the preceding paragraph and five-twelfths of one per cent
of the basic lump sum amount for each monthly contribution in excess of
one hundred twenty monthly contributions, with due regard to the degree
of disability as the Commission may determine: Provided, That the
percentage degree of disability shall not be additive for distinct,
separate and unrelated permanent partial disabilities, but shall be
additive for rating and related disabilities, but shall be additive for
deteriorating and related permanent partial disabilities to a maximum
of one hundred per cent, in which case the employee shall be deemed as
permanently totally disabled."
Section 8. Section fourteen of same Act is further
amended by amending paragraphs (a) and (b), designating paragraph (b)
as (c) and adding thereto paragraphs (b), (d), (e), and (f) to read as
follows:cralaw:red
"Sec. 14. Sickness benefit. — (a) Under such rules
and regulations as the commission may prescribe, any covered employee
under this Act who has paid at least twelve monthly contributions and
who, on account of sickness or bodily injury, is confined for more than
five days in a hospital, or elsewhere with the Commission's approval
shall for each day of such confinement or fraction thereof be paid by
his employer or by the SSS if such person is unemployed an allowance
equivalent to seventy per cent of the average daily salary credit
subject to the following conditions:cralaw:red
(1) In no case shall the total amount of such daily
allowance, if any, be less than two pesos and fifty centavos nor exceed
twelve pesos nor paid for a period longer than one hundred twenty days
in one calendar year; nor shall any unused portion of the one hundred
twenty days sickness benefit granted under this section be carried
forward and added to the total period allowable in the subsequent year;chanroblesvirtualawlibrary
(2) No employee shall be paid any sickness benefit
for more than two hundred forty days on account of the same
confinement; and
(3) The employee shall notify his employer of the
fact of his sickness or injury within five calendar days after the
start of his confinement unless such confinement is in a hospital or
the employee became sick or was injured while working or within the
premises of the employer in which case notification to the employer is
not necessary; Provided, That if the member is unemployed he shall
directly notify the SSS of his confinement within five calendar days
after the start thereof unless such confinement is in a hospital in
which case notification is also not necessary: Provided, further, That
in cases where notification is necessary, the confinement shall be
deemed to have started not earlier that the fifth day immediately
preceding the date of notification.
"(b) The Payment of such allowances shall be promptly
made by the employer every regular pay day or on the fifteenth and last
day of each month in the case of direct payment by the SSS for as long
as such allowances are due and payable: Provided, That payment by the
employer for current sick leaves of absence, if any, shall be
reimbursed by the SSS up to an amount not exceeding the sickness
benefit upon application for reimbursement by the employer.
"(c) One hundred per cent of the daily benefits
provided in the preceding paragraphs shall be reimbursed by the SSS to
said employer upon receipt of satisfactory proof of such payment and
legality thereof: Provided, That the employer has notified the SSS of
the confinement within five calendar days after receipt of the
notification from the employee: Provided, further, That if the
notification to the SSS is made by the employer beyond five calendar
days after receipt of the notification from the employee, said employer
shall be reimbursed only for each day of confinement starting from the
tenth calendar day immediately preceding the date of notification to
the SSS: Provided, finally, That the SSS shall reimburse the employer
or pay the unemployed member only for confinement within the one year
period immediately preceding the date the claim for benefit or
reimbursement is received by the SSS, except confinement in a hospital
in which case the claim for benefit or reimbursement must be filed
within one year from the last day of confinement. chanroblesvirtualawlibrary
"(d) Where the employee has given the required
notification but the employer fails to notify the SSS of the
confinement or to file the claim for reimbursement within the period
prescribed in this section resulting in the reduction or denial of the
claim such employer shall have no right to recover the daily allowances
he advanced to the employee as required in this section.
"(e) The claim of reimbursement shall be adjudicated
by SSS within a period of two months from receipt thereof: Provided,
That should no payment be received by the employer within one month
after the period prescribed herein for adjudication the reimbursement
shall thereafter earn simple interest of one per cent per month until
paid.
"(f) The provisions regarding the notification
required of the covered employee and the employer as well as the period
within which the claim for benefit or reimbursement may be filed shall
apply to all claims filed with the SSS beginning January 1, 1973."
Section 8-A. Section fifteen of the same Act is
further amended to read as follows:cralaw:red
"Sec. 15. Non-transferability of benefits. — The SSS
shall pay the benefits provided for in this Act to such persons as may
be entitled thereto in accordance with the provisions of this Act:
Provided, That the beneficiary who is a national of a foreign country
which does not extend benefits to a Filipino beneficiary residing in
the Philippines, or which is not recognized by the Philippines, shall
not be entitled to receive any benefits under this Act: Provided,
further, That notwithstanding the foregoing, where the best interests
of the SSS will be served, the Commission may direct payments without
regard to nationality of country of residence: Provided, further, That
if the recipient is a minor or a person incapable of administering his
own affairs, the Commission shall appoint a representative under such
terms and conditions as the Commission may deem proper: Provided,
further, That such appointment shall not be necessary in case the
recipient is under the custody of, or living with, the parents or
spouse, in which case the benefits shall be paid to such parents or
spouse, as representative payee of the recipient. Such benefits are not
transferable and no power of attorney or other document executed by
those entitled thereto, in favor of any agent, attorney, or any other
individual for the collection thereof in their behalf shall be
recognized except when they are physically and legally unable to
collect personally such benefits: Provided, finally, That in case of
death benefits, if no beneficiary has been designated said benefits
shall be paid to the legal heirs in accordance with the law of
succession.
Section 9. Section sixteen of the same Act is amended
to read as follows:cralaw:red
"Sec. 16. Exemption from tax, legal process and lien.
— All laws to the contrary notwithstanding, the SSS and all its assets,
all contributions collected and all accruals thereto and income
therefrom as well as all benefit payments and all papers or documents
which may be required in connection with the operation or execution of
this Act shall be exempt from any tax, assessment, fee, charge, or
customs or import duty; and all benefit payments made by the SSS shall
likewise be exempt from all kinds of taxes, fees or charges, and shall
not be liable to attachment, garnishment, levy or seizure by or under
any legal or equitable process whatsoever, either before or after
receipt by the person or persons entitled thereto, except to pay any
debt of the covered employee to the SSS."
Section 10. Section eighteen of the same Act is
further amended by designating the present provision as paragraph (a)
and adding thereto paragraphs (b) and (c) to read as follows:cralaw:red
"Sec. 18. Employee's contribution. — (a) Beginning as
of the last day of the calendar month when an employee's compulsory
coverage takes effect and every month thereafter during his employment,
the employer shall deduct and withhold from such employee's monthly
salary, wage, compensation or earnings the employee's contribution in
an amount corresponding to his salary, wage, compensation or earnings
during the month in accordance with the following schedule effective on
January 1, 1973:cralaw:red
Salary Monthly
Employee's
Employer's Total Bracket
Rate of Salary
Credit Contribution
Contribution Contribution Number
Compensation
1 - 49.99
25 1.20 0.30
1.50 I
50 -
99.99 75 3.00
1.50 4.50 II
100 - 149.99 125
4.40 3.10
7.50 III
150 - 199.99 175
6.20 4.30 10.50 IV
200 - 249.99 225
7.90 5.60 13.50 V
250 - 349.99 300
10.50 7.50 18.00
VI
350 - 499.99 425
14.90 10.60 25.50
VII
500 - 599.99 600
21.00 15.00 36.00
VII
700 - 899.99 800
28.00 20.00 48.00
IX
900 - Over
1000 35.00 25.00
60.00 X
"(b) Increments in employer's and employee's
contributions equal to one-sixth of their respective contributions in
the schedule in paragraph (a) of this section rounded to the nearest
ten centavos, shall be added on January 1, 1979.
"(c) Every employer shall issue a receipt for all
contributions deducted from the employee's compensation or shall
indicate such deductions on the employee's pay envelopes."
Section 11. Section nineteen of the same Act is
further amended by designating the present provision as paragraph (a)
and adding thereto paragraph (b) to read as follows;chanroblesvirtualawlibrary
"Sec. 19. Employee's contribution. — (a) Beginning as
of the last day of the month when an employee's compulsory coverage
takes effect and every month thereafter during his employment, his
employer, shall pay, with respect to such covered employee, the
employer's contribution in accordance with the schedule indicated in
Section eighteen of this Act. Notwithstanding any contract to the
contrary, an employer shall not deduct, directly or indirectly from the
compensation of his employees covered by the SSS or otherwise recover
from them the employer's contributions with respect to such employees.
"(b) The remittance of such contributions by the
employer shall be supported by a quarterly collection list to be
submitted to the SSS at the end of each calendar quarter indicating the
names and SSS numbers of the employees, their actual compensation and
the total contributions paid for their account during the quarter."
Section 12. Section twenty-two of the same Act is
further amended by amending paragraph (a) and adding thereto paragraphs
(d) and (e) to read as follows:cralaw:red
"Sec. 22. Remittance of contributions. — (a) The
contributions imposed in the preceding sections shall be remitted to
the SSS within the first seven days of each calendar month following
the month for which they are applicable or within such time as the
Commission may prescribe. Every employer required to deduct and to
remit such contributions shall be liable for the payment, and if any
contribution is not paid to the SSS, as herein prescribed, he shall pay
besides the contribution a penalty thereon of three per cent per month
from the date the contribution falls due until paid. If deemed
expedient and advisable by the Commission, the collection and
remittance of contributions shall be made quarterly or semi-annually in
advance, the contributions payable by the employees to be advanced by
their respective employers: Provided, That upon separation of an
employee, any contributions so paid in advance but not due shall be
credited or refunded to his employer. chanroblesvirtualawlibrary
"(d) The last complete record of monthly
contributions paid by the employer as of the date of filing of the
action for collection shall be presumed to be the monthly contributions
for the account of the employees listen therein payable by and due from
the employer to the SSS for each of the unpaid month, unless
contradicted and overcome by other evidence: Provided, That the SSS
shall not be barred from determining and collecting the true and
correct contributions due the SSS even after full payment pursuant to
this paragraph, nor shall the employer be relieved of his liability
under section twenty-eight of this Act.
"(e) For purpose of this section, any employer who is
delinquent or has not remitted all the monthly contributions due and
payable may within six (6) months from approval of this amendatory act
remit said contributions to the SSS and submit the corresponding
collection lists therefor without incurring the prescribed three per
cent penalty. In case the employer fails to remit to the SSS the said
contributions within six months grace period, the penalty of three per
cent shall be imposed from the time the contributions first became due
as provided in paragraph (A) of this section."
Section 13. Section twenty-four of the same Act is
further amended by amending paragraph (a) and (b) and adding thereto
paragraphs (c), (d) and (e) to read as follows:cralaw:red
"Sec. 24. Employment records and reports. — (a) Each
employer shall immediately report to the SSS the names, ages, civil
status, occupations, salaries and dependents of all his employees who
are in his employ and who are or may later be subject to compulsory
coverage. Provided, That if an employee subject to compulsory coverage,
should die or become sick or disabled or reach age sixty without the
SSS having previously received any report or written communication
about him from his employer or a contribution paid in his name by his
employer, the said employer shall pay to the SSS damages equivalent to
the benefits to which said employee would have been entitled had his
name been reported on time by the employer to the SSS, except that in
case of pension benefits, the employer shall only be liable for the
total five-year guaranteed pension: Provided, further, That if the
contingency occurs within thirty days from the date of employment, the
employer shall be relieved of his liability for damages. chanroblesvirtualawlibrary
"(b) Should the employer misrepresent the true date
of employment of his employees or remit to the SSS contributions which
are less than those required in this act, resulting in a reduction of
benefits, the employer shall pay to the SSS damages to the extent of
such reduction.
"(c) The records and reports duly accomplished and
submitted to the SSS by the employee or the employer, as the case may
be, shall be kept confidential by the SSS except in compliance with a
subpoena duces tecum issued by the Courts, shall not be divulged
without the consent of the administrator or any official of the SSS
duly authorized by him, shall be presumed correct as to the data and
other matters stated therein, unless the necessary corrections to such
records and reports have been properly made by the parties concerned
before the right to the benefit being claimed accrues, and shall be
made the basis for the adjudication of the claim. Such adjudication
shall be final.
"(d) Every employer shall keep true and accurate work
records for such period and containing such information as the
Commission may prescribe, in addition to an "annual register of new and
separated employees" which shall be secured from the SSS wherein the
employer shall enter on the first day of employment or on the effective
date of separation the names of the persons employed or separated from
employment, their SSS numbers, and such other data that the Commission
may require and said annual register shall be submitted to the SSS in
the month of January of each year. Such records shall be open for
inspection by the SSS or its authorized representatives quarterly or as
often as the SSS may require.
The SSS may also require each employer to submit, with respect to the
persons in his employ, reports needed for the effective administration
of this Act.
"(e) Effective July 1, 1973, each employer shall
require as a condition to employment, the presentation of a
registration number secured by the prospective employee from the SSS in
accordance with such procedure as the SSS may adopt: Provided, That in
case of employees who have earlier been assigned registration numbers
by virtue of a previous employment, such numbers originally assigned to
them should be used for purposes of this section: Provided, further,
That the issuance of such registration numbers by the SSS shall not
exempt the employer from complying with the provisions of paragraph (A)
of this section."
Section 13-A. Section twenty-five of the same Act is
further amended to read as follows:cralaw:red
"Sec. 25. Deposit and disbursements. — All moneys
paid to or collected by the SSS every year under this Act, and all
accruals thereto shall be deposited, administered and disbursed in the
same manner and under the same conditions and requirements as provided
by law for other public special funds: Provided, That of the total
yearly collection of contributions and gross income from investments,
not more that twelve per cent during the fiscal year 1966-67, said
percentage limit to be decreased by one-half per cent each succeeding
fiscal year, but not less than seven per cent, shall be disbursed for
salaries and wages, purchases of office equipment and materials,
operational expenses and the establishment of regional offices of the
SSS: Provided, further, That if the expenses of the SSS in any year are
less than the maximum amount permissible, the difference shall not be
availed of as additional expenses of the SSS in the following years:
Provided, finally, That the implementation of the decentralization of
operations shall be given priority and the SSS shall submit to Congress
an annual progress report on the development of this program." chanroblesvirtualawlibrary
Section 14. Section twenty-six of the same Act is
further amended by amending all paragraphs and adding thereto paragraph
(g) to read as follows:cralaw:red
"Sec. 26. Investment of reserve funds. — All
revenues of the SSS as are not needed to meet the current
administrative and operational expenses incidental to the carrying out
of this Act shall be accumulated in a fund to be known as the "Reserve
Fund" which shall be used exclusively for the payment of the benefits
under this Act, and no amount thereof shall be withdrawn or used for
any other purpose. Such portions of the reserve fund as are not needed
to meet the current benefit obligations thereof shall be invested to
earn an average annual income of at least seven per cent: Five per cent
shall be invested in bank deposits to be known as the "contingency
reserve fund" to meet and cover contingent and extraordinary
disbursements for death, sickness and disability claims under this Act,
and the remaining balance shall be credited to a fund to be known as
the "investment reserve fund" to be invested by the Commission in any
or all of the following ways only: chanroblesvirtualawlibrary
"(a) In interest-bearing bonds or securities of the
Government of the Philippines, or bonds or securities for the payment
of the interest and principal to which the faith and credit of the
Republic of the Philippines is pledged.
"(b) In interest-bearing deposits or securities in
any domestic bank doing business in the Philippines: Provided, That
such deposits shall not exceed at any time the unimpaired capital and
surplus or total private deposits of the depository bank, whichever is
smaller: Provided, further, That said bank shall first have been
designated as a depository for this purpose by the Monetary Board of
the Central Bank of the Philippines: Provided, finally, That such
investment in deposits or securities shall be equitably distributed to
all designated depository banks.
"(c) In loans or interest-bearing advances to the
National Government for the construction of permanent toll bridges,
toll roads or government office buildings in accordance with actuarial
considerations and the conditions prescribed by the law in such cases:
Provided, That the tolls shall be collected by the SSS for a reasonable
fee.
"(d) In direct housing loans to covered employees
giving priority to the low-income groups, up to a maximum of ninety per
cent of the appraised value of the properties to be mortgaged by the
borrowers under such rules and regulations as the Commission may adopt,
and in building projects referred to in Section four (j) of this Act
for the maintenance of hospitals and institutions for the sick, aged
and infirmed members and their families.
"(e) In investments which will provide credit
facilities for small short-term loans to covered employees: Provided,
That, not more than ten per cent of the investment reserve fund at any
time shall be invested for this purpose.
"(f) In other income earning projects and investments
secured by first mortgages on real estate collaterals which, in the
determination of the Commission, shall redound to the benefit of the
SSS, its members, as well as the public welfare; Provided, That any
such investments shall be with due diligence and prudence to earn the
highest possible interest consistent with safety.
"(g) As part of its investment operations the SSS
shall act as insurer of all or part of its interest on properties
mortgaged to the SSS or on the lives of mortgagors whose properties are
mortgaged to the SSS in accordance with such rules and regulations
prescribed by the Commission: Provided, That the Commission shall fix
its own rates of premiums based on studies recommended by the Insurance
Commissioner: Provided, further, That the SSS may insure any of its
interest or part hereof with any private company or reinsurer:
Provided, finally, That the general law on insurance and the rules and
regulations promulgated thereunder shall have suppletory application
insofar as it is not in conflict with the Social Security Law and its
rules and regulations."
Section 15. Section twenty-eight of the same Act is
further amended by amending paragraphs (a) and (b) and adding thereto
paragraphs (h) and (j) to read as follows:cralaw:red
"Sec. 28. Penal Clause. — (a) Whoever, for the
purpose of causing any payment to be made under this Act, or under an
agreement thereunder, where none is authorized to be paid, shall make
or cause to be made false statement or representation as to any
compensation paid or received, or whoever makes or causes to be made
any false statement of a material fact in any claim for any benefit
payable under this Act, or application for loan with the SSS, or
whoever makes or causes to be made any false statement, representation,
affidavit, or document, in connection with such claim, shall be fined
not less than five hundred pesos nor more than five thousand pesos or
imprisoned for not less than six months nor more than one year, or
both, at the discretion of the court.
"(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 covered employee, employer
or the SSS, shall be fined not less than five hundred pesos nor more
than five thousand pesos and imprisoned for not less than six months
nor more than one year."
"(h) Any employer who, after deducting the monthly
contributions or loan amortizations from his employee's compensation,
fail to remit the said deductions to the SSS within thirty days from
the date they become 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.
"(i) Criminal action arising from 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."
Section 16. This Decree is hereby made part of the
law of the land and shall take effect immediately.
Done in the City of Manila,
this 19th day of October, in the year of Our Lord, nineteen hundred and
seventy-two.
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