APPROVING THE INCREASE IN THE EC FUNERAL BENEFIT FROM PHP 20,000 TO PHP 30,000 FOR THE PRIVATE SECTOR
WHEREAS, Article 177 (e) of P.D. No. 626, as amended partly reads:
“Art. 177 (e) ... the Commission may upgrade benefits and add new ones subject to approval of the President; and Provided, Further, That the actuarial stability of the State Insurance Fund shall be guaranteed; Provided, Finally, that such increases in benefits shall not require any increases in contribution ... “
WHEREAS, ECC Board Resolution No. 13-07-14 dated 02 July 2013 increased the EC funeral benefits for the private sector from ten thousand pesos (Php10,000.00) to twenty thousand pesos (Php 20,000.00);
WHEREAS, for the past five years (2010-2014), there were 2,967 EC funeral claims approved for the private sector with total payments amounting to Php 22.94 million or an average of only 593 EC funeral benefit claims per year;
WHEREAS, this Commission is committed to enhance EC benefits in consideration of increasing market costs;
WHEREAS, a request for actuarial study was made to SSS to increase the EC funeral benefits for the private sector from Php 20,000 to Php 30,000;
WHEREAS, the SSS in a letter dated 03 March 2016 informed that a sensitivity analysis was made to determine the impact of the implementation of the proposed increase in the funeral benefit of Php 30,000.00;
WHEREAS, the results of the said study shows the capability of the State Insurance Fund (SIF) to provide an increase in the amount of EC funeral benefits without requiring any increase in EC contribution and that the EC fund life remains to last beyond the valuation period at 2078 even after implementing the increase in EC funeral benefit from Php 20,000 to Php 30,000;
NOW, THEREFORE, ON MOTION DULY MADE AND SECONDED;
This Commission RESOLVES as it hereby RESOLVED, to approve the increase of EC funeral benefits in the private sector from twenty thousand pesos (Php 20,000.00) to thirty thousand pesos (Php 30,000.00);
RESOLVES FURTHER, that such increase in the amount of EC funeral benefits for employees in the private sector shall not entail an increase of EC contribution and that copies of this Resolution shall be transmitted to the Office of the President of the Republic of the Philippines for approval, and to the SSS for compliance upon approval of the Office of the President;
RESOLVES FINALLY, that upon the approval of the Office of the President, this Resolution and the corresponding Executive Order shall be published in a newspaper of general circulation and shall take effect fifteen (15) days after its publication and a copy furnished to the U.P. Law Center.
DONE, this 31st day of May 2016, in Makati City, Philippines.
(SGD.) CIRIACO A. LAGUNZAD
Chairperson-Alternate
Department of Labor and Employment
(SGD.) BRENDA P. VIOLA
Member-Designate
Social Security System
(SGD.) DIONISIO C. EBDANE, JR.
Member-Designate
Government Service Insurance System
(SGD.) CARLITO P. ROBLE
Member
Employees’ Sector
(ABSENT) MIGUEL B. VARELA
Member
Employers’ Sector
(SGD.) ALEXANDER A. PADILLA
Member-Designate
Philippine Health Insurance Corporation
(ABSENT) ROBERT S. MARTINEZ
Member-Designate
Civil Service Commission
(SGD.) STELLA ZIPAGAN-BANAWIS
Member
Employees’ Compensation Commission – Secretariat