APPROVING AN ACROSS THE BOARD INCREASE IN MONTHLY PENSION OF EC PERMANENT DISABILITY PENSIONERS AND QUALIFIED BENEFICIARIES IN THE PRIVATE SECTOR
(Pending upon approval of the President of the Republic of the Philippines)
WHEREAS, Art. 183 (formerly 177), paragraph (e) of P.D. No. 626, as amended, partly reads:
“Art 183 (formerly 177) (e) … the Commission may upgrade benefits and add new ones subject to the approval of the President; and Provided, Further, That the actuarial stability of the State Insurance Fund (SIF) shall be guaranteed; Provided, Finally, that such increases in benefits shall not require any increase in contribution…”
WHEREAS, a Memorandum from the Office of the Executive Secretary, dated February 22, 2017, approved a one thousand peso (Php 1,000.00) increase in the monthly pension of qualified SSS retirees, survivors, and permanent disability pensioners effective January 1, 2017;
WHEREAS, Letter of Instruction (LOI) No. 1286, dated January 30, 1983, mandates that every time the SSS increases its monthly income benefit, there shall be an automatic and simultaneous increase in the monthly income benefit under P.D. No. 626, as amended, to maintain the fifteen percent (15%) differential between the SSS pension and the EC pension;
WHEREAS, the EC Secretariat requested the SSS to conduct an actuarial study to determine the viability of the State Insurance Fund to finance an increase in monthly pension of EC permanent disability pensioners and qualified beneficiaries in the private sector by Php 1,150 in consonance with LOI No. 1286;
WHEREAS, the result of the actuarial study by the SSS concluded that the State Insurance Fund (SIF) for the private sector remains viable and will last beyond 2080 even after the implementation of an across the board increase in EC pension at an amount of Php1,150 per month without requiring additional EC contribution from the employers and notwithstanding the other simultaneous increases in EC benefits;
WHEREAS, after due deliberation, the members of the Commission agreed to increase the amount of monthly pension of existing and future EC permanent disability pensioners and qualified beneficiaries in the private sector effective January 1, 2017 to coincide with the across the increase in SS pension;
NOW THEREFORE, ON MOTION DULY MADE AND SECONDED
This Commission RESOLVES, as it hereby RESOLVED, to provide an across the board increase in the amount of monthly pension of existing and future EC permanent disability pensioners and qualified beneficiaries in the private sector.
RESOLVED FURTHER, that the across the board increase in the amount of EC monthly pension shall have a retroactive application effective January 1, 2017 and that all previous rules and regulations which are inconsistent with this Resolution are hereby repealed or modified accordingly;
RESOLVED FINALLY, that a copy of this Resolution shall be transmitted to the Office of the President of the Republic of the Philippines for approval and that upon approval of the Office of the President, the corresponding Executive Order shall be published in a newspaper of general circulation for effectivity purposes.
DONE, this 25th day of October 2017, in Quezon City, Philippines .
(SGD.) CIRIACO A. LAGUNZAD
Department of Labor and Employment
(SGD.) RIZALDY T. CAPULONG
Social Security System
(SGD.) DIONISIO C. EBDANE, JR.
Government Service Insurance System
(SGD.) CARLITO P. ROBLE
(SGD.) STELLA ZIPAGAN-BANAWIS
Employees’ Compensation Commission – Secretariat