RA 7699 PORTABILITY LAW

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May 01, 1994

R.A.
7699
PORTABILITY
LAW
R.A.
7699

An act instituting
LIMITED PORTABILITY SC
in the
EME
SOCIAL SECURITY
INSURANCE SYSTEMS
by totalizing the worker’s
credible services or
contributions in each of the
systems.
Introduction

The Portability Law bridges the GSIS


and SSS, two major pension funds in the
Philippines. This integration helps retirees
who have split careers between
government and private sector jobs by
enabling them to qualify for pension
benefits by combining their service
years if they are not eligible for one.
Introductio Purpose of the
n Law:

To address the problem faced by


workers who switch between the
public and private sectors, ensuring
they get appropriate social security
benefits from both the Social
Security System (SSS) and the
Government Service Insurance System
(GSIS).
Introductio Key
n Goal:

Totalization contributionsfrom
systems,
of worker to
both
benefits
allowing for old-s disabilit
maximizean
age, y,
survivorship regardless of d
employment transitions.
Key
Policy Core
Objectiv Principle:
e
The State promotes worker welfare by
recognizing and rewarding workers'
long-term contributions to the economy.
Key What R A
Policy 7699
Objectiv Achieves:
e
It creates a portability scheme that
allows workers to transfer benefits
between GSIS and SSS, combining
contributions for eligibility purposes.
KEY
CONCEPTS

Totalizatio
n
Combining creditable
services or contributions
from both SSS and GSIS to
determine eligibility for
benefits.
KEY
CONCEPTS

Portabilit
y
The ability to transfer funds
and benefits from one
system to another when
workers move between
public and private sectors.
KEY
CONCEPTS
Proportion
al
Benefits
Benefits from each system
are paid out in proportion to
the amount of contributions
remitted to that system.
KEY
PROVISIONS
1 Combining
Contributions
2 Overlapping
Memberships
3 Proportional
Benefits
Combining
Contributio
ns
Workers who move from
one sector to another or
who have simultaneous
memberships in both
systems can combine
their contributions to
qualify for benefits.
Overlappin
g
Membershi
ps
If workers contribute to
both systems at the same
time, the overlapping
periods are counted only
once when totalizing.
Proportion
al
Benefits
Benefits are based on
the proportion of
contributions made to
each system.
For example, if a worker
contributed 70% to SSS and
30% to GSIS, their benefits
will be distributed
accordingly.
Who is
eligible?
Eligibility for benefits under the
Portability Law requires:
1. Not qualifying for a pension from
either GSIS or SSS due to
insufficient service
contributions; time or
2. aving tha 120 months of SSS
less
contributions n than 180
or creditable service at months
les the of
GSIS stime of
retirement.
Protection of
Existing
Benefits
Preservation
of Current
Benefits:
Workers are protected from
losing any existing benefits
they are entitled to under
other laws, agreements, or
policies. RA 7699 ensures that
no reductions in benefits
Implementation
Responsible
Agencies:
DOLE for private
sector workers.

CSC for public sector


workers.

Both agencies will work with


SSS and GSIS to draft and
implement the law’s rules.
Implementation
Timeline for
Rules:
Implementing rules must
be drafted within 90
days from the law's
effectivity.
Implementation
Worker
Favorability:
Any conflict in
interpretation of the law
or its rules will be
resolved in favor of the
workers.
REPEALIN EFFECTIVIT
G Y
CLAUSE The law becomes
All inconsistent laws, effective 15 days after
decrees, or rules are publication in the
repealed or Official Gazette or in
modified to ensure two national
alignment with RA newspapers of
7699. general circulation.
C O N C LU S I O N
1 RA 7699 is a milestone in ensuring
that workers who transition between
sectors or contribute to both SSS and
GSIS are not deprived of their
rightful benefits.

2 This flexible approach helps


workers
combine their contributions and
improves access to social security
benefits for old age, disability,
survivorship, and other
circumstances.
GROUP
4

ANY
QUESTION
S?
LABOR
LAW

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