A
collection of Philippine laws, statutes and codes
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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 735
PRESIDENTIAL DECREE NO. 735
- FURTHER AMENDING CERTAIN SectionS OF REPUBLIC ACT NUMBERED ELEVEN
HUNDRED SIXTY-ONE, AS AMENDED, OTHERWISE KNOWN AS THE "SOCIAL SECURITY
LAW"
|
chanroblesvirtualawlibrary
WHEREAS, on
the 22nd day of December, 1973, Presidential Decree No. 347 amended
certain sections of Republic Act No. 1161, as amended, otherwise known
as the "Social Security Law";chanroblesvirtualawlibrary
WHEREAS, Article 178(d) of Presidential Decree No. 442, otherwise known
as the "Labor Code of the Philippines," provides for the integration of
the benefits under Title II of Book IV of the Code with other benefits
administered by the SSS and GSIS;chanroblesvirtualawlibrary
WHEREAS, increases in social security benefits should now be provided
to meet the additional needs of SSS members arising from the price
increase of prime commodities and other effects of the combined
inflation and recession; and
WHEREAS, in order to bring about a more effective implementation of
social security legislation and enable the SSS to be even more
responsive to the needs of its members, it is found necessary to
further amend certain sections of the Social Security Law;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Section three of Republic Act No. 1161,
as amended, otherwise known as the Social Security Law, is further
amended 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 under the general supervision of 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 of the Philippines. The Chairman of
the Commission shall be designated by the President from among its
members. The term of the appointive members shall be three years:
Provided, That the 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 one hundred pesos per diem for each meeting actually
attended by them: Provided, That no compensation shall be paid for more
than eight meetings a month.
b) The general conduct of the operations and
management functions of the SSS shall be vested in the Administrator
who shall serve as the chief executive officer immediately responsible
for carrying out the program of the SSS 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 and shall receive a salary to be fixed by the Commission
with the approval of the President, payable from the funds of the SSS.
c) The Commission, upon the recommendation of the
Administrator, shall appoint an actuary and such other personnel as may
be deemed necessary; fix their compensation; prescribe their duties and
establish such methods and procedures as may insure the efficient,
honest and economical administration of the provisions and purposes of
this Act: Provided, however, That the personnel of the SSS shall be
selected only from civil service eligibles certified by the
Commissioner of Civil Service and subject to civil service rules and
regulations." chanroblesvirtualawlibrary
Section 2. Paragraphs (b) and (j) of Section four of
the same Act are amended to read as follows:cralaw:red
"Sec. 4. Powers and duties of the Commissions. —chanroblesvirtualawlibrary
(a) .
(b) To submit annually not later than March 31 a
public report to the President of the Philippines covering its
activities in the administration and enforcement of this Act during the
preceding year, including information and recommendation on broad
policies for the development and perfection of the program of the SSS.
xxx
xxx
xxx
(j) To acquire, receive, or hold, by way of
purchase, expropriation or otherwise, public or private property for
the purpose of undertaking housing projects preferably for the benefit
of low-salaried employees and for the maintenance of hospitals and
institutions for the sick, aged and infirm employees and immediate
members of their families."
Section 3. Paragraph (a) of Section five of the same
Act is further amended to read as follows:cralaw:red
"Sec. 5. (a) Settlement of Disputes. — Any dispute
arising under this Act with respect to coverage, benefits,
contributions and penalties thereon or any other matter related
thereto, shall be cognizable by the Commission, and any case filed with
respect thereto shall be heard by the Commission, or any of its
members, or by hearing officers duly authorized by the Commission, and
decided within twenty days after the submission of the evidence. The
filing, determination and settlement of disputes shall be governed by
the rules and regulations promulgated by the Commission." chanroblesvirtualawlibrary
Section 4. Section six of the same Act is further
amended to read as follows:cralaw:red
"Sec. 6. Auditor and Counsel. — (a) The Commissioner
on Audit shall be the ex-officio Auditor of the SSS. He or his
representative shall check and audit all the accounts, funds and
properties of the SSS in the same manner and as frequently as the
accounts, funds and properties of the government are checked and
audited under existing laws; and he shall have, as far as practicable,
the same powers and duties as he has with respect to the checking and
auditing of public accounts, funds and properties in general.
(b) The Secretary of Justice shall be the ex-officio
counsel of the SSS. He or his representative shall act as legal adviser
and counsel thereof."
Section 5. Paragraphs (e), (j), (k), (l), (m), (n),
and (o) of Section eight of the same Act are amended to read as
follows:cralaw:red
"Sec. 8. Terms defined. — For the purposes of this
Act the following terms shall, unless the context indicates otherwise,
have the following meanings: chanroblesvirtualawlibrary
xxx
xxx
xxx
(e) Dependent. — The legitimate, legitimated or
legally adopted child who is unmarried, not gainfully employed, and not
cover twenty-one years of age provided that he is congenitally
incapacitated and incapable of self-support physically or mentally; the
legitimate spouse dependent for support upon the employee; and the
legitimate parents wholly dependent upon the covered employee for
regular support.
(j) Employment. — Any service performed by an
employee for his employer, except —chanroblesvirtualawlibrary
1) Agricultural labor when performed by a share or
leasehold tenant or worker who is not paid any regular daily wage or
base pay and who does not work for an uninterrupted period of at least
six months in a year;chanroblesvirtualawlibrary
2) Domestic service in a private home;chanroblesvirtualawlibrary
3) Employment purely casual and not for the purpose
of occupation or business of the employer;chanroblesvirtualawlibrary
4) Service performed by an individual in the employ
of his son, daughter, or spouse, and service performed by a child under
the age of twenty-one years in the employ of his parents;chanroblesvirtualawlibrary
5) Service performed on or in connection with an
alien vessel by an employee if he is employed when such vessel is
outside the Philippines;chanroblesvirtualawlibrary
6) Service performed in the employ of the Philippine
Government or instrumentality or agency thereof; chanroblesvirtualawlibrary
7) Service performed in the employ of a foreign
government or international organization, or their wholly-owned
instrumentality; Provided, however, That his exemption notwithstanding,
any foreign government, international organization, or their
wholly-owned instrumentality, employing workers in the Philippines or
employing Filipinos outside of the Philippines may enter into an
agreement with the Philippine Government for the inclusion of such
employees in the SSS except those already covered by their respective
civil service retirement systems; Provided, further, That the terms of
such agreement shall conform with the provisions of this Act on
coverage and amount of payment of contributions and benefits; Provided,
finally, That the provisions of this Act shall be supplementary to any
such agreement;chanroblesvirtualawlibrary
8) Such other services performed by temporary
employees which may be excluded by regulation of the Commission.
Employees of bona fide independent contractors shall not be
deemed employees of the employer engaging the services of said
contractors.
(k) Beneficiaries. — The dependent spouse until he
remarries and dependent children, who shall be the primary
beneficiaries. In their absence, the dependent parents and, subject to
the restrictions imposed on dependent children, the legitimate
descendants and illegitimate children who shall be the secondary
beneficiaries. In the absence of any of the foregoing, any other person
designated by the covered employee as secondary beneficiary.
(l) Contingency. — The retirement, death, permanent
disability, injury or sickness of the covered employee. chanroblesvirtualawlibrary
(m) Average monthly credit. — The result obtained by
dividing the sum of the monthly salary credits in the six-month period
immediately preceding the semester of contingency by the number of
months of coverage in the same period, or the result obtained by
dividing the sum of all the monthly salary credits paid prior to the
semester of contingency by the number of calendar months of coverage in
the same period, whichever is greater: except where the month of
contingency falls within eighteen months from the month of coverage, in
which case it is the result obtained by dividing the sum of all monthly
salary credits paid prior to the month of contingency by the total
number of calendar months of coverage in the same period: Provided,
That the injury or sickness which caused the disability for shall be
deemed as the permanent disability for the purpose of computing the
average monthly salary credit.
(n) Average daily salary credit. — The result
obtained by dividing the sum of the six highest monthly salary credits
in the twelve-month period immediately preceding the semester of
sickness by one hundred eighty.
(o) Semester. — A period of two consecutive quarters
ending in the quarter of contingency."
Section 6. Paragraph (b) of Section nine of the same
Act is further amended to read as follows:cralaw:red
"Sec. 9. Compulsory coverage. —chanroblesvirtualawlibrary
xxx
xxx
xxx
(b) Filipinos recruited in the Philippines by
foreign-based employers for employment abroad may be covered by the SSS
on a voluntary basis.
Section 7. Section eleven of the same Act is further
amended to read as follows:cralaw:red
"Sec. 11. Effect of separation from employment. —
When an employee under compulsory coverage is separated from
employment, his employer's contribution on his account and his
obligation to pay contributions arising from that employment shall
cease at the end of the month of separation, but said employee shall be
credited with all contributions paid on his behalf and entitled to
benefits according to the provisions of this Act. He may, however,
continue to pay the total contributions to maintain his right to full
benefit.
Section 8. Section twelve of the same Act is further
amended to read as follows:cralaw:red
"Sec. 12. Basic monthly pension. — 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 than
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 the basic monthly pension shall 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
Twenty-five per cent of the next three hundred pesos of the average
monthly salary credit or fraction thereof; plus
Nine per cent of each succeeding one hundred pesos average monthly
salary credit or fraction thereof; 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 prior to
the semester of retirement: Provided, That the basic monthly pension
shall in no case be less than forty-five pesos nor paid for less than
five years."
"Sec. 12-A. Dependents' pension. — The
dependent's pension shall be equivalent to ten per cent to the basic
monthly pension for each dependent child not exceeding five, beginning
with the youngest and without substitution."
"Sec. 12-B. Retirement benefits. — (a) A covered
employee who has paid at least one hundred twenty monthly contributions
prior to the semester of retirement, and who (1) has reached the age of
sixty years and is not receiving two hundred fifty pesos or more
monthly compensation, or (2) has reached the age of sixty-five years,
shall be entitled for as long as he lives to one hundred fifteen per
cent of the basic monthly pension: Provided, That his dependents born
before his retirement of a marriage subsisting when he was fifty-seven
years old shall be entitled to the dependents' pension: Provided,
further, That the foregoing benefits shall take effect on July 1, 1975:
Provided, finally, That the monthly pension of a surviving pensioner
retired due to old age before July 1, 1975 shall be increased by
fifteen percent and the amount shall be his new monthly pension
beginning with said date. chanroblesvirtualawlibrary
(b) A covered member who is sixty years old at
retirement and who does not qualify for pension benefits under
paragraph (a) above, shall be entitled to a lump sum benefit equal to
the total contributions paid by him and on his behalf, provided that he
is separated from employment and is not continuing payment of
contributions to the SSS on his own.
(c) The monthly pension and dependents' pension
shall be suspended:cralaw:red
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.
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.
Section 9. Section 13 of the same Act is further
amended to read as follows:cralaw:red
"Sec. 13. Death benefits. — Effectively July 1,
1975, upon the covered employee's death, (a) his primary beneficiaries
shall be entitled to the basic monthly pension, and his dependents to
the dependent's pension: Provided, That he has paid at least thirty-six
monthly contributions prior to the semester of death: Provided,
further, That if the foregoing condition is not satisfied, or if he has
no primary beneficiaries, his secondary beneficiaries shall be entitled
to a lump sum benefit equivalent to thirty times the basic monthly
pension: Provided, however, That the death benefit shall not be less
than the total contributions paid by him and his employer on his behalf
nor less than five hundred pesos: Provided, finally, That the covered
employee who dies in the month of coverage shall be entitled to the
minimum benefit. chanroblesvirtualawlibrary
Section 10. Section thirteen-A of the same Act is
further amended to read as follows:cralaw:red
"Sec. 13-A. Permanent disability benefits. — (a)
Upon the covered employee's permanent total disability, if such
disability occurs after he has paid at least thirty-six monthly
contributions prior to the semester of disability, he shall be entitled
to the basic monthly pension and, upon his death, his dependents shall
be entitled to the dependents' pension: Provided, That if such
disability occurs before he has paid thirty-six monthly contributions
prior to the semester of disability, he shall be entitled to a lump sum
benefit equivalent to thirty five times the basic monthly pension:
Provided, further, That the benefit shall not less than the total
contributions paid by him and his employer on his behalf 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.
(b) The monthly pension shall be suspended upon his
re-employment if he receives a monthly compensation of two hundred
fifty pesos or more, or his recovery from the permanent total
disability, or his failure to present himself for examination at least
once a year upon notice by the SSS.
(c) The following disabilities shall be deemed
permanent total:cralaw:red
1. Complete loss of sight of both eyes;chanroblesvirtualawlibrary
2. Loss of two limbs at or above the ankle or
wrists;chanroblesvirtualawlibrary
3. Permanent complete paralysis of two limbs;chanroblesvirtualawlibrary
4. Brain injury resulting in incurable imbecility or
insanity; and
5. Such cases as determined and approved by the SSS.
(d) If the disability is permanent partial, and such
disability occurs before thirty-six monthly contributions have been
paid preceding the semester of disability, the benefit shall be such
percentage of the lump sum benefit described in the preceding paragraph
with due regard to the decree of disability as the Commission may
determine. chanroblesvirtualawlibrary
(e) If the disability is permanent partial, and such
disability occurs after thirty-six contributions have been paid
preceding the semester of disability, the benefit shall be the basic
monthly pension for permanent total disability payable not longer than
the period designated in the following schedule:cralaw:red
COMPLETE AND PERMANENT NUMBER OF
LOSS OF THE USE OF MONTHS
One thumb 8
One index finger 6
One middle finger 5
One ring finger 4
One little finger 2
One big toe 5
Any toe 2
One hand 31
One arm 40
One foot 25
One leg 37
One ear 8
Both ears 16
Hearing of one ear 8
Hearing of both ears 40
Sight of one eye 20
(f) The percentage degree of disability, which is
equivalent to the ratio that the designated number of months of
compensability bears to sixty, shall not be additive for distinct,
separate and unrelated permanent partial disabilities, but shall be
additive for deteriorating and related permanent partial disabilities,
to a maximum of one hundred per cent, in which case the employee shall
be deemed as permanently totally disabled."
Section 11. A new section is added to the same Act
designated as Section thirteen-B to read as follows:cralaw:red
"Sec. 13-B. Funeral benefit. — A funeral grant of
seven hundred fifty pesos shall be paid to help defray the cost of
funeral expenses upon the death of a covered member, permanently
totally disabled employee or retiree."
Section 12. Section fourteen of the same Act is
further amended by amending the first part of paragraph (a), item (1)
of paragraph (a), paragraph (b) and paragraph (d), to read as follows:cralaw:red
"Sec. 14. Sickness benefit. — (a) Beginning July 1,
1975, any covered employee under this Act who has paid at least three
monthly contributions in the twelve month period immediately preceding
the semester of sickness and is confined for more than three days in a
hospital or elsewhere with the Commission's approval, shall for each
day of compensable confinement or fraction thereof be paid by his
employer, or by the SSS if such person is unemployed, an allowance
equivalent to eighty five per cent of his average daily salary credit,
subject to the following conditions:cralaw:red
(1) In no case shall the total amount of such daily
allowance be less than two pesos and fifty centavos nor exceed sixteen
pesos nor paid longer than one hundred twenty days in one calendar
year; nor shall any unused portion of the one hundred twenty days of
sickness benefit granted under this section be carried forward and
added to the total number of compensable days allowable in the
subsequent year;chanroblesvirtualawlibrary
(b) The compensable confinement shall begin on the
first day of sickness, and the payment of such allowances shall be
promptly made by the employer every regular payday or on the fifteenth
and last day of each month, and similarly in the case of direct payment
by the SSS, for as long as such allowances are due and payable:
Provided, That such allowance shall begin only after all sick leaves of
absence with full pay to the credit of the employee shall have been
exhausted. 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 of the benefit or
denial of the claim, such employer shall have no right to recover the
corresponding daily allowance he advanced to the employee as required
in this section."
Section 13. 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 benefit under this Act: Provided,
further, That notwithstanding the foregoing, where the best interest of
the SSS will be served, the Commission may direct payments without
regard to nationality or 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 it 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 of the employee 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
person for the collection thereof on their behalf shall be recognized,
except when they are physically unable to collect personally such
benefits: Provided, further, That in case of death benefits, if no
beneficiary qualifies under this Act, said benefits shall be paid to
the legal heirs in accordance with the law of succession: Provided,
finally, That notwithstanding any law to the contrary, the payment of
benefits under this Act shall bar the recovery of similar benefits
under Title II of Book IV of the Labor Code of the Philippines, as
amended, during the period of such payment for the same contingency,
and conversely." chanroblesvirtualawlibrary
Section 14. Section sixteen of the same Act is
further 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 and properties, all contributions collected and all accruals
thereto and income or investment earnings therefrom as well as all
supplies, equipment, 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. No tax measure hereafter enacted shall apply to the SSS, unless it
expressly revokes the declared policy of the state in Section 2 hereof
granting tax-exemption to the SSS. Any tax assessment against, and
still unpaid by the SSS shall be null and void."
Section 15. Section twenty-three of the same Act is
further amended to read as follows:cralaw:red
"Sec. 23. Method of collection and payment. — The
SSS shall require a complete and proper collection and payment of
contributions and proper identification of the employer and the
employee. Payment may be made in cash, checks, stamp, coupons, tickets,
or other reasonable devices that the Commission may adopt."
Section 16. Section twenty-four of the same Act is
further amended by amending paragraphs (a), (b) and (c), and adding
paragraph (f), 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
statutes, occupations, salaries and dependents of all his employees who
are subject to compulsory coverage: Provided, That if an employee
subject to compulsory coverage should die or become sick or disabled or
reach the age of 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 be liable for the actuarial lump sum equivalent of both
the basic and dependents' monthly pensions: 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.
(b) Should the employer misrepresent the true date
of employment of his employees, fail to remit contributions 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, but said employer shall be
relieved of his civil liability for the corresponding unremitted
contributions and penalties thereon.
(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. If as a result of
such adjudication the SSS in good faith pays a monthly pension to a
beneficiary who is inferior in right to another beneficiary or with
whom another beneficiary is entitled to share, such payments shall
discharge the SSS from liability, unless and until such other
beneficiary notifies the SSS of his claim prior to the payments.
(f) Notwithstanding any law to the contrary,
microfilm copies of original SSS records and reports, duly certified by
the official custodian thereof, shall have the same evidentiary value
as the originals and be admissible as evidence in all legal
proceedings."
Section 17. Section twenty-five of the same Act is
further amended to read as follows:cralaw:red
"Sec. 25. Deposit and disbursements. — All money
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 than twelve per cent shall be disbursed for salaries and
wages, purchases of office equipment and materials, operational
expenses and the maintenance of regional offices of the SSS; Provided,
further, That if the expenses in any year are less than the maximum
amount permissible, the difference shall be availed of as additional
expenses in the following years.
Section 18. Section twenty-six of the same Act is
further amended by amending paragraphs (d) and (g) to read as follows:cralaw:red
"Sec. 26. Investment or reserve funds. —chanroblesvirtualawlibrary
(d) In direct housing loans to covered employees and
housing projects 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 and maintenance of hospitals and
institutions for the sick, aged and infirmed members and their
families, referred to in section four (j) of this Act.
(g) As part of its investment operations, the SSS
shall act as insurer of all or part of its interests on SSS properties,
properties mortgaged to the SSS, or lives of mortgagors whose
properties are mortgaged to the SSS. For this purpose, the SSS shall
establish a separate account to be known as the "Mortgagors' Insurance
Account." All amounts received by the SSS in connection with the
aforesaid insurance operations shall be placed in the Mortgagors'
Insurance Account. The assets and liabilities of the Mortgagors'
Insurance Account shall at all times be clearly identifiable and
distinguishable from the assets and liabilities in all other accounts
of the SSS. Notwithstanding any provision of law to the contrary, the
assets held in the Mortgagors' Insurance Account shall not be
chargeable with the liabilities arising out of any other business the
SSS may conduct but shall be held and applied exclusively for the
benefit of the owners or beneficiaries of the insurance contracts
issued by the SSS under this paragraph.
(h) The SSS may insure any of its interests or part
thereof with any private company or reinsurer. The Insurance Commission
or its authorized representatives shall make an examination into the
financial condition and methods of transacting business of the SSS at
least once in two years but such examination shall be limited to the
insurance operation of the SSS as authorized under this section and
shall not embrace the other operations of the SSS; and the report of
said examination shall be submitted to the Commission and a copy
thereof shall be furnished the Office of the President of the
Philippines within a reasonable time after the close of the
examination: Provided, That, for each examination the SSS shall pay to
the Insurance Commission an amount equal to the actual expenses of the
Insurance Commission in the conduct of the examination, including the
salaries of the examiners and of the actuary of the Insurance
Commission who have been assigned to make such examination for the
actual time spent in said examination: Provided, further, That the
general law on insurance promulgated thereunder shall have suppletory
application insofar as it is not in conflict with the SSS Law and rules
and regulations." chanroblesvirtualawlibrary
Section 19. Section twenty-eight of the same Act is
further amended by amending paragraph (i) to read as follows:cralaw:red
"Sec. 28. Penal clause —chanroblesvirtualawlibrary
(i) Criminal action arising from a violation of the
provisions of this Act may be commenced by the SSS or the employee
concerned either under this Act or in appropriate cases under the
Revised Penal Code: Provided, That such criminal action shall be filed
by the SSS in the city or municipality where the SSS Regional Office is
located if the violation was committed in its territorial jurisdiction
or, at the option of the SSS, in Greater Manila."
Section 20. Section thirty-one of the same Act is
further amended to read as follows:cralaw:red
"Sec. 31. Saving clause. — The Assembly hereby
reserves the right to amend, alter, or repeal any provision of this
Act, and no person shall be or shall be deemed to be vested with any
property or other right by virtue of the enactment or operation of this
Act.
Section 21. Section thirty-two of the same Act is
hereby deleted.
Section 22. The word "System" and the term "Social
Security System" as used in Republic Act No. 1161, as amended, for
purposes of uniformity, are hereby replaced by "SSS", except in
provisions wherein the use of such word or term, as the case may be,
are considered necessary.
Section 23. This Decree shall take effect
immediately.
Done in the City of Manila,
this 27th day of June, in the year of Our Lord, nineteen hundred and
seventy-five.
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Since 19.07.98
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