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This page features the full text of
Republic Act No. 7699
AN
ACT INSTITUTING LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY
INSURANCE
SYSTEMS BY TOTALIZING THE WORKERS' CREDITABLE SERVICES OR CONTRIBUTIONS
IN EACH OF THE SYSTEMS.
REPUBLIC
ACT NO. 7699AN
ACT INSTITUTING LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY
INSURANCE
SYSTEMS BY TOTALIZING THE WORKERS' CREDITABLE SERVICES OR CONTRIBUTIONS
IN EACH OF THE SYSTEMS.
SECTION
1. It is hereby declared the
policy of the State to promote the welfare of our workers by
recognizing
their efforts in productive endeavors and to further improve their
conditions
by providing benefits for their long years of contribution to the
national
economy. Towards this end,
the State shall institute a scheme for totalization and portability of
social security benefits with the view of establishing within a
reasonable
period a unitary social security system. chanrobles virtuallaw libraryred
chanrobles virtuallaw libraryred
Sec.
2. Definition of Terms. — As
used in this Act, unless the context indicates otherwise, the following
terms shall mean:
(a) "Contributions"
shall refer to the contributions paid by the employee or worker to
either
the Government Service Insurance System (GSIS) or the Social Security
System
(SSS) on account of the worker's membership;chanrobles virtuallaw libraryred(b) "Portability"
shall refer to the transfer of funds for the account and benefit of a
worker
who transfers from one system to the other;
(c) "Sector"
shall refer to employment either in the public or private sector;
(d) "System"
shall refer to either the SSS as created under Republic Act No. 1161,
as
amended or the GSIS as created under Presidential Decree No. 1146, as
amended;
and
(e) "Totalization"
shall refer to the process of adding up the periods of creditable
services
or contributions under each of the Systems, for purposes of eligibility
and computation of benefits. chanrobles virtuallaw libraryred
Sec.
3. Provisions of any general
or special law or rules and regulations to the contrary
notwithstanding,
a covered worker who transfers employment from one sector to another or
is employed in both sectors shall have his credible services or
contributions
in both Systems credited to his service or contribution record in each
of the Systems and shall be totalized for purposes of old-age,
disability,
survivorship and other benefits in case the covered member does not
qualify
for such benefits in either or both Systems without totalization: Provided,
however, That overlapping periods of membership shall be credited
only
once for purposes of totalization.
chanrobles virtuallaw libraryred
Sec.
4. All contributions paid by
such member personally, and those that were paid by his employers to
both
Systems shall be considered in the processing of benefits which he can
claim from either or both Systems: Provided, however, That the
amount
of benefits to be paid by one System shall be in proportion to the
number
of contributions actually remitted to that System.chanrobles virtual law library
Sec.
5. Nothing in this Act shall
be construed to diminish or reduce the benefits being enjoyed by a
covered
worker arising from existing laws, issuances, and company policies or
practices
or agreements between the employer and the employees.cralaw:red
Sec.
6. The Department of Labor and
Employment for the private sector and the Civil Service Commission for
the government sector, together with the SSS and the GSIS shall, within
ninety (90) days from the effectivity of this Act, promulgate the rules
and regulations necessary to implement the provisions hereof: Provided,
That any conflict in the interpretation of the law and the implementing
rules and regulations shall be resolved in favor of the workers.chanrobles virtuallaw libraryred
Sec.
7. All laws, decrees, orders,
rules and regulations, or parts thereof, which are inconsistent with
the
provisions of this Act are hereby repealed or modified accordingly.
Sec.
8. This Act shall take effect
fifteen (15) days after its complete publication in the Official
Gazette
or in at least two (2) national newspapers of general circulation,
whichever
comes earlier.
Approved:
May
1, 1994
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