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PRESIDENTIAL DECREE NO. 177
PRESIDENTIAL DECREE NO. 177
- FURTHER AMENDING CERTAIN Section OF REPUBLIC ACT NUMBERED ELEVEN
HUNDRED AND SIXTY-ONE, OTHERWISE KNOWN AS "THE SOCIAL SECURITY LAW" AS
AMENDED
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WHEREAS, on
the 19th day of October, 1972, Presidential Decree No. 24, amended
certain Sections of Republic Act No. 1161, as amended, otherwise known
as "The Social Security Law;"
WHEREAS, in order to bring about a more effective implementation of the
law and make the SSS even more responsive to the needs of its members,
it is necessary to further amend 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 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, as amended, do hereby
order and decree that the Social Security Law be amended to bring about
a more effective implementation of the law and make the Social Security
System more responsive to the needs of its members as follows:cralaw:red
Section 1. Section 8(k) of the Social Security Law,
as amended, is hereby further amended to read as follows:cralaw:red
"(k) Beneficiaries. — Those designated as such by the
covered employee from among the following:cralaw:red
The legitimate spouse, the legitimate, legitimated, acknowledged
natural children, natural children by legal fiction, AND OTHER
ILLEGITIMATE CHILDREN, and their legitimate descendants, AND the
legitimate parents.
In the absence of any of the foregoing, any other persons designated by
him."
Section 2. Section 9 of the same Act is hereby
further amended by designating the present provision as paragraph (a)
and adding thereto paragraph (b) to read as follows:cralaw:red
"Sec. 9. Compulsory Coverage. — (A) Coverage in the
SSS shall be compulsory upon all employees not over sixty years of age
and their employers: Provided, That any benefit already earned by
employees under private benefit plans existing at the time of the
approval of this Act shall not be discontinued, reduced or otherwise
impaired: Provided, further, That private plans which are existing and
in force at the time of compulsory coverage shall be integrated with
the plan of the SSS in such a way where the employer's contribution to
his private plan is more than that required of him in this Act he shall
pay to the SSS only the contribution required of him and he shall
continue his contribution to such private plan less his contribution to
the SSS so that the employer's total contribution to his private
benefit plan and to the Social Security System shall be the same as his
contribution to his private plan before the compulsory coverage:
Provided, further, That any changes, adjustments, modifications,
eliminations or improvements in the benefits to be available under the
remaining private plan, which may be necessary to adopt by reason of
the reduced contribution thereto as a result of the integration, shall
be subject to agreements between the employers and employees concerned:
Provided, further, That the private benefit plan which the employer
shall continue for his employees shall remain under the employer's
management and control unless there is an existing agreement to the
contrary: Provided, finally, That nothing in this Act shall be
construed as a limitation on the right of employers and employees to
agree on and adopt benefits which are over and above those provided
under this Act.
"(B) FILIPINOS RECRUITED IN THE PHILIPPINES BY
FOREIGN-BASED EMPLOYERS FOR EMPLOYMENT ABROAD MAY BE COVERED BY THE SSS
ON A VOLUNTARY BASIS UNDER SUCH RULES AND REGULATIONS AS THE COMMISSION
MAY PRESCRIBE."
Section 3. Section 12 (a) and (c) are hereby further
amended 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 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 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
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 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 on 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: PROVIDED, FINALLY, THAT THE FOREGOING SCHEDULE SHALL TAKE EFFECT
ON JANUARY 1, 1974.
"(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; 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."
Section 4. Section 13 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 AND PAID AS OF THE LAST DAY OF THE SECOND
QUARTER PRECEDING THE QUARTER OF DEATH: Provided, That any of the
following conditions is satisfied at the time of death: chanroblesvirtualawlibrary
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, finally, 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 than five
hundred pesos: Provided, however, That the covered employee who dies in
the month of coverage shall be entitled to the minimum benefit."
Section 5. Section 14(b) of the same Act is further
amended to read as follows:cralaw:red
"(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 SUCH ALLOWANCE
SHALL BEGIN ONLY AFTER ALL CURRENT SICK LEAVES OF ABSENCE WITH FULL
PAY, IF ANY, TO THE CREDIT OF THE EMPLOYEE SHALL HAVE BEEN EXHAUSTED."
Section 6. Section 22(e) of the same Act is further
amended to read as follows:cralaw:red
(e) For purposes 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 the 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: PROVIDED, HOWEVER,
THAT THE ADMINISTRATOR, MAY IN MERITORIOUS CASES, ALLOW EMPLOYERS WHO
HAVE SUBMITTED A PAYMENT PLAN, ON OR BEFORE APRIL 19, 1973, TO PAY
THEIR CONTRIBUTIONS DUE AND PAYABLE UP TO DECEMBER 31, 1973 WITHOUT
INCURRING THE PRESCRIBED THREE PER CENT PENALTY." chanroblesvirtualawlibrary
Section 7. Section 26(g) of the same Act is further
amended to read as follows:cralaw:red
"(g) As part of its investment operations the SSS
shall act as insurer of all or part of its interests 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 Social Security Commission. 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.
"The SSS may insure any of its interests or parts 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 transactions
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 SSC
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.
"The general law on insurance promulgated thereunder shall have
suppletory-application insofar as it is not in conflict with the SS Law
and its rules and regulations."
Section 8. Section 28(a) and (e) are hereby further
amended 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 SUFFER THE
PENALTIES PROVIDED FOR IN ARTICLE ONE HUNDRED SEVENTY-TWO OF THE
REVISED PENAL CODE." chanroblesvirtualawlibrary
(e) Whoever fails or refuses to comply with the
provisions of this Act or with the rules and regulations promulgated by
the Commission, shall be punished by a fine of not less than five
hundred pesos nor more than five thousand pesos, or imprisonment for
not less than six months nor more than one year, or both, at the
discretion of the court: PROVIDED, THAT, WHERE THE VIOLATION CONSISTS
IN FAILURE OR REFUSAL TO REGISTER EMPLOYEES, OR TO DEDUCT CONTRIBUTIONS
FROM EMPLOYEE'S COMPENSATION AND REMIT THE SAME TO THE SSS, THE PENALTY
SHALL BE A FINE OF NOT LESS THAN FIVE HUNDRED PESOS NOR MORE THAN FIVE
THOUSAND PESOS AND IMPRISONMENT FOR NOT LESS THAN SIX MONTHS NOR MORE
THAN ONE YEAR."
Section 9. This Decree shall form part of the law of
the land and shall take effect immediately. chanroblesvirtualawlibrary
Done in the City of Manila,
this 23rd day of April, in the year of Our Lord, nineteen hundred and
seventy-three.
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