C. Limited Portability Scheme (RA 7699)

Portability

Portability refers to the transfer of funds for the account and benefit of a worker who transfers from one system to the other. (Sec. 2(b), R.A. No. 7699)

Limited Portability Rule

A covered worker who transfers employment from one sector to another or is employed on both sectors, shall have creditable services or contributions on 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 either or both Systems in case the covered member does not qualify for such benefits in either or both Systems without totalization. (Sec. 3, R.A. No. 7699)

All contributions paid by such member personally, and those that were paid by his Ers to both Systems shall be considered in the processing of benefits, which he can claim from either or both Systems. (Sec. 4, R.A. No. 7699)

NOTE: This is advantageous to the SSS and GSIS members for purposes of death, disability or retirement benefits. In the event the Ees transfer from the private sector to the public sector, or vice- versa, their creditable services or contributions in both Systems may be counted through totalization when needed to qualify for a covered benefit; they do not automatically become services or contributions under the other System.

Creditable Services

I. For the public sector, the following shall be considered creditable services:

• All previous services rendered by an official/Ee pursuant to an appointment whether permanent, provisional or temporary;
• All previous services rendered by an official/Ee pursuant to a duly approved appointment to a position in the Civil Service with compensation or salary;
• The period during which an official/Ee was on authorized sick leave of absence without exceeding one year;
• The period during which an official or Ee was out of the service as a result of illegal termination of his service as finally decided by the proper authorities; and
• All previous services with compensation or salary rendered by elective officials. (Sec. 1(f), Rule III, IRR, R.A. No. 7699)

II. For private sector, the periods of contribution shall refer to the periods during which a person renders services for an Er with compensation or salary and during which contributions were paid to SSS. (Sec. 1(g), Rule III, IRR R.A. No. 7699)

NOTE: A self-employed person shall be considered an Ee and Er at the same time. (Sec. 1(g), Rule III, IRR, R. A. No. 7699)

The benefits covered under the law are the following:

• Old-age benefit;
• Disability benefit;
• Survivorship benefit;
• Sickness benefit;
• Medicare benefit, provided that the member shall claim said benefit from the System where he was last a member; and
• Such other benefits common to both System that may be availed of through totalization. (Sec. 1(j), Rule III, IRR, R.A. No. 7699)

The System or Systems responsible for the payment of money benefits due to a covered worker shall release the same within 15 working days from receipt of the claim, subject to the submission of the required documents and availability of the complete Ee/Er records in the System. (Sec. 2, Rule IV, IRR, R.A. No. 7699)

Q: Luisito has been working with Lima Land for 20 years. Wanting to work in the public sector, Luisito applied for and was offered a job at Livecor. Before accepting the offer, he wanted to consult you whether the payments that he and Lima Land had made to the Social Security System (SSS) can be transferred or credited to the Government Service Insurance System (GSIS). What would you advise? (2014 BAR)

A: Luisito's SSS record remains relevant under RA 7699, otherwise known as the Limited Portability Law. His SSS and GSIS service or contributions may be totalized for a covered benefit if he does not qualify for that benefit in either or both Systems without totalization; his SSS years do not automatically become GSIS service. (Secs. 3–4, R.A. No. 7699) The contributions 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.