APPROVING THE INCREASE IN THE EC FUNERAL BENEFIT FOR THE PUBLIC SECTOR FROM PHP 20,000 TO PHP 30,000
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, Executive Order No. 135 dated 23 April 2013 provided for the increase in EC funeral benefit for the public sector from Php 3,000 to Php 10,000 thus equalizing the funeral benefit for both the public and private sectors;
WHEREAS, the EC Funeral benefit for the public sector was further increased from Php 10,000 to Php 20,000 by virtue of E.O. No. 167 dated 26 May 2014;
WHEREAS, this Commission is committed to continually enhance EC benefits in consideration of changes in consumer prices and income;
WHEREAS, a request for actuarial study was made to GSIS in 2015 to look into the viability of increasing the EC funeral benefits for the public sector from Php20,000 to Php30,000, citing the increase in funeral-related expenses;
WHEREAS, the GSIS in a letter dated 14 July 2016 informed that a study was made to determine the impact on the EC State Insurance Fund (SIF) at the GSIS, of the implementation of the proposed increase in the funeral benefit;
WHEREAS, the results of the said study shows the capability of the SIF at the GSIS to provide an increase in the amount of EC funeral benefits from Php 20,000 to Php 30,000 without requiring any increase in EC contribution;
WHEREAS, the same study shows that increasing the EC funeral benefit will decrease the fund life of the SIF by one (1) year from the current fund life of 2062 and will correspond to an increase in reserve requirements of about Php 486 million;
WHEREAS, a fund life until 2061 is sound and healthy for the EC SIF at the GSIS which can likewise support the Php 486 million additional reserve requirement necessary for the increase in EC funeral benefit.
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 public sector from twenty thousand pesos (Php20,000.00) to thirty thousand pesos (Php30,000.00);
RESOLVES FURTHER, that such increase in the amount of EC funeral benefits for employees in the public sector shall not entail an increase of EC contribution;
RESOLVES FINALLY, that a copy of this Resolution shall be transmitted to the Office of the President of the Republic of the Philippines for approval of the proposed increase in EC benefit and 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 copy furnished to the GSIS with effectivity date at fifteen days from publication.
DONE, this 28th day of July 2016, in Makati City, Philippines.
As represented by Assistant Secretary Gloria A. Tango
CIRIACO A. LAGUNZAD
Chairperson-Alternate
Department of Labor and Employment
As represented by Dr. Elisa Baroque,
Medical Specialist IV, SSS-MOD
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