0/0 ! - International Labour Organization

1 !!!!"#$%&'()!*)+!, !123456!173894:;!'5<!Approved:!5/1/1997! ! republic of the philippines Congress of the philippines Metro Manila Tenth Congress Second Regular Session Begun and held in Metro Manila, on Monday the twenty-second day of July, nineteen hundred and ninety six. [ republic ACT NO. 8282] !AN!ACT!FURTHER!STRENGTHENING!THE!SOCIAL !SECURITY!SYSTEM!THEREBY!AMENDING!FOR!TH IS!PURPOSE! republic !ACT!NO.!1161,!AS!AME NDED,!OTHERWISE!KNOWN!AS!THE!SOCIAL!SECU RITY!LAW!!!Be!it!enacted!by!the!Senate!a nd!House!of!Representatives!of!the!Phili ppines!in!Congress!assembled:!!SECTION!1 .! republic !Act!No.!1161,!otherwise!known !as!the!"Social!Security!Law,"!is!hereby !further!amended!to!read!as!follows:!!"S EC.!1.!Short!Title.!"!This!Act!shall!be! known!as!the! Social!Security!Act!of!1997 .!!"SEC.!2.!Declaration!of!Policy.!"!It!

2 Is!the!policy!of!the!State!to!establish, !develop,!promote!and!perfect!a!sound!an d!viable!tax"exempt!social!security!syst em!suitable!to!the!needs!of!the!people!t hroughout!the!Philippines!which!shall!pr omote!social!justice!and!provide!meaning ful!protection!to!members!and!their!bene ficiaries!against!the!hazards!of!disabil ity,!sickness,!maternity,!old!age,!death ,!and!other!contingencies!resulting!in!l oss!of!income!or!financial!burden.!Towar ds!this!end,!the!State!shall!endeavor!to !extend!social!security!protection!to!wo rkers!and!their!beneficiaries.!!"SEC.!3. !Social!Security!System.!"!(a)!To!carry! out!the!purposes!of!this!Act,!the!Social !Security!System,!hereinafter!referred!t o!as!"SSS",!a!corporate!body,!with!princ ipal!place!of!business!in!Metro!Manila,! Philippines,!is!hereby!created.!The!SSS! shall!be!directed!

3 And!controlled!by!a!Social!Security!Comm ission,!hereinafter!referred!to!as!"Comm ission",!composed!of!the!Secretary!of!La bor!and!Employment!or!his!duly!designate d!undersecretary,!the!SSS!president!and! seven!(7)!appointive!members,!three!(3)! of!whom!shall!represent!the!workers'!gro up,!at!least!one!(1)!of!whom!shall!be!a! woman;!three!(3),!the!employers'!group,! at!least!one!(1)!of!whom!shall!be!a!woma n;!and!one!(1),!the!general!public!whose !representative!shall!have!adequate!know ledge!and!experience!regarding!social!se curity,!to!be!appointed!by!the!President !of!the!Philippines.!The!six!(6)!members !representing!workers!and!employers!shal l!be!chosen!from!among!the!nominees!of!w orkers'!and!employers'!organizations,!re spectively.!The!Chairman!of!the!Commissi on!shall!be!designated!by!the!President! of!the!Philippines!

4 From!among!its!members.!The!term!of!the! appointive!members!shall!be!three!(3)!ye ars:!Provided,!That!the!terms!of!the!fir st!six!(6)!appointive!members!shall!be!o ne!(1),!two!(2)!and!three!(3)!years!for! every!two!(2)!members,!respectively:!Pro vided,!further,!That!they!shall!continue !to!hold!office!until!their!successors!s hall!have!been!appointed!and!duly!qualif ied.!All!vacancies,!prior!to!the!expirat ion!of!the!term,!shall!be!filled!for!the !unexpired!term!only.!The!appointive!mem bers!of!the!Commission!shall!receive!at! least!Two!thousand!five!hundred!pesos!(P 2, )!per!diem!for!each!meeting!actually!att ended!by!them,!but!not!to!exceed!Ten!tho usand!pesos!(P10, )!a!month:!Provided,!That!members!of!the !Commission!who!hear!and!evaluate!cases! pending!before!the!Commission!shall!also !receive!a!per!diem!of!at!least!Two!thou sand!

5 Five!hundred!pesos!(P2, ),!but!not!to!exceed!Fifteen!thousand!pe sos!(P15, )!a!month:!Provided,!further,!That!said! members!of!the!Commission!shall!also!rec eive!reasonable!transportation!and!repre sentation!allowances!as!may!be!fixed!by! the!Commission,!but!not!to!exceed!Ten!th ousand!pesos!(P10, )!a!month.!!"!(b)!The!general!conduct!of !the!operations!and!management!functions !of!the!SSS!shall!be!vested!in!the!SSS!P resident!who!shall!serve!as!the!chief!ex ecutive!officer!immediately!responsible! for!carrying!out!the!program!of!the!SSS! and!the!policies!of!the!Commission.!The! SSS!President!shall!be!a!person!who!has! had!previous!experience!in!technical!and !administrative!fields!related!to!the!pu rposes!of!this!Act.!He!shall!be!appointe d!by!the!President!of!the!Philippines!an d!shall!receive!a!salary!to!be!fixed!by! the!Commission!

6 With!the!approval!of!the!President!of!th e!Philippines,!payable!from!the!funds!of !the!SSS.!!"!(c)!The!Commission,!upon!th e!recommendation!of!the!SSS!President,!s hall!appoint!an!actuary!and!such!other!p ersonnel!as!may!be!deemed!necessary;!fix !their!reasonable!compensation,!allowanc es!and!other!benefits;!prescribe!their!d uties!and!establish!such!methods!and!pro cedures!as!may!be!necessary!to!insure!th e!efficient,!honest!and!economical!admin istration!of!the!provisions!and!purposes !of!this!Act:!Provided,!however,!That!th e!personnel!of!the!SSS!below!the!rank!of !Vice"President!shall!be!appointed!by!th e!SSS!President:!Provided,!further,!That !the!personnel!appointed!by!the!SSS!Pres ident,!except!those!below!the!rank!of!as sistant!manager,!shall!be!subject!to!the !confirmation!by!the!Commission:!Provide d,!further,!That!the!

7 Personnel!of!the!SSS!shall!be!selected!o nly!from!civil!service!eligibles!and!be! subject!to!civil!service!rules!and!regul ations:!Provided,!finally,!That!the!SSS! shall!be!exempt!from!the!provisions!of!R epublic!Act!No.!6758!and! republic !Act!No .!7430.!!"SEC.!4.!Powers!and!Duties!of!t he!Commission!and!SSS.!"!(a)!The!Commiss ion.!"!For!the!attainment!of!its!main!ob jectives!as!set!forth!in!Section!2!hereo f,!the!Commission!shall!have!the!followi ng!powers!and!duties:!!!!!!!!!!!!!!"(1)! To!adopt,!amend!and!rescind,!subject!to! the!approval!of!the!President!of!the!Phi lippines,!such!rules!and!regulations!as! may!be!necessary!to!carry!out!the!provis ions!and!purposes!of!this!Act;!!!!!!!!!! !!!!"(2)!To!establish!a!provident!fund!f or!the!members!which!will!consist!of!vol untary!contributions!of!employers!and/or !employees,!self"employed!

8 And!voluntary!members!and!their!earnings ,!for!the!payment!of!benefits!to!such!me mbers!or!their!beneficiaries,!subject!to !such!rules!and!regulations!as!it!may!pr omulgate!and!approved!by!the!President!o f!the!Philippines;!!!!!!!!!!!!!!"(3)!To! maintain!a!Provident!Fund!which!consists !of!contributions!made!by!both!the!SSS!a nd!its!officials!and!employees!and!their !earnings,!for!the!payment!of!benefits!t o!such!officials!and!employees!or!their! heirs!under!such!terms!and!conditions!as !it!may!prescribe;!!!!!!!!!!!!!!"(4)!To! approve!restructuring!proposals!for!the! payment!of!due!but!unremitted!contributi ons!and!unpaid!loan!amortizations!under! such!terms!and!conditions!as!it!may!pres cribe;!!!!!!!!!!!!!!"(5)!To!authorize!co operatives!registered!with!the!cooperati ve!development!authority!or!associations !registered!with!the!

9 Appropriate!government!agency!to!act!as! collecting!agents!of!the!SSS!with!respec t!to!their!members:!Provided,!That!the!S SS!shall!accredit!the!cooperative!or!ass ociation:!Provided,!further,!That!the!pe rsons!authorized!to!collect!are!bonded;! !!!!!!!!!!!!!"(6)!To!compromise!or!relea se,!in!whole!or!in!part,!any!interest,!p enalty!or!any!civil!liability!to!SSS!in! connection!with!the!investments!authoriz ed!under!Section!26,!hereof,!under!such! terms!and!conditions!as!it!may!prescribe !and!approved!by!the!President!of!the!Ph ilippines;!and!!!!!!!!!!!!!!"(7)!To!appr ove,!confirm,!pass!upon!or!review!any!an d!all!actions!of!the!SSS!in!the!proper!a nd!necessary!exercise!of!its!powers!and! duties!hereinafter!enumerated.!!!!!!!!!! !!!!"(b)!The!Social!Security!System.!"!S ubject!to!the!provision!of!Section!four! (4),!paragraph!seven!

10 (7)!hereof,!the!SSS!shall!have!the!follo wing!powers!and!duties:!!!!!!!!!!!!!!"(1 )!To!submit!annually!not!later!than!Apri l!30,!a!public!report!to!the!President!o f!the!Philippines!and!to!the!Congress!of !the!Philippines!covering!its!activities !in!the!administration!and!enforcement!o f!this!Act!during!the!preceding!year!inc luding!information!and!recommendations!o n!broad!policies!for!the!development!and !perfection!of!the!program!of!the!SSS.!! !!!!!!!!!!!!"(2)!To!require!the!actuary! to!submit!a!valuation!report!on!the!SSS! benefit!program!every!four!(4)!years,!or !more!frequently!as!may!be!necessary,!to !undertake!the!necessary!actuarial!studi es!and!calculations!concerning!increases !in!benefits!taking!into!account!inflati on!and!the!financial!stability!of!the!SS S,!and!to!provide!for!feasible!increases !in!benefits!every!