Granting of One-Time Financial Assistance of P20,000 to EC Permanent Partial Disability (PPD), EC Permanent Total Disability (PTD) and Survivorship Pensioners in the Public Sector

WHEREAS, the Employees’ Compensation Program (ECP) provides workers and their families with income, medical and other related benefits in the event of disability or death from work-related illnesses or injuries;

WHEREAS, on 16 March 2020, President Rodrigo Roa Duterte issued Proclamation No. 922, series of 2020 declaring a State of Public Health Emergency throughout the Philippines due to Corona Virus Disease (COVID- 19) pandemic;

WHEREAS, on  the  same date, the Office of the Executive Secretary issued a Memorandum putting the entire island of Luzon under Community Quarantine followed by adoption of such measure in certain parts of the country as declared by the Local Government Units;

WHEREAS, on 23 March 2020, Republic Act No. (RA) 11469 also known as Bayanihan to Heal as One Act was issued to mitigate if not contain the transmission of COVID-19 and immediately mobilize assistance in the provision of basic necessities to families and individuals affected by the imposition of Community Quarantine among other urgent needs and to provide the emergency subsidies or the Social Amelioration Program (SAP) to low income households;

WHEREAS, on 21 April 2020, Administrative Order No. 30 was issued by the President which further directs all government agencies to formulate and issue rules and guidelines on the grant of any benefit as a temporary emergency measure to respond to the crises brought by the COVID-19 pandemic in order to ease the burden on individuals under community quarantine;

WHEREAS, EC pensioners are subjected to relatively more undue financial hardships because of their vulnerabilities despite the Social Amelioration Program of the government and other assistance to workers and individuals, thus, additional assistance to them is imperative;

WHEREAS, in a letter dated 28 May 2020, the ECC requested GSIS to prepare an actuarial study to look at the impact on the State Insurance Fund of providing a one-time financial assistance to Permanent Partial Disability (PPD) pensioners (as of January 2020), existing Permanent Total Disability (PTO) pensioners as well as survivorship pensioners with contemplated amounts at Pl0, 000, PlS,000 or P20,000 pesos;

WHEREAS, the actuarial study of the GSIS as endorsed to ECC in a letter dated 25June 2020, shows that the fund life of the EC SIF at GSIS is March 2068 and that the proposed payment of a one -time financial assistance of P10,000, P15,000 or P20,000 would decrease the fund life by three months to six months;

WHEREAS, the expected cash outlay for the cash assistance would range from P344.81 million to P689.62 million for distribution to about 34,481 projected EC pensioners in 2020 which includes previously suspended EC survivorship pensioners in the public sector who may resume pension in 2020;

WHEREAS,  the   study  took  into  consideration   the  estimated   impact based on a specific set of assumptions and on the EC data as of 31 December 2018, including the implementation of previously approved benefit enhancements promulgated through Executive Order Nos. 33 E.O. No. 33 (funeral benefits of P30,000), E.O. No. 54 (carers allowance of P1,000), E.O. No. 135 (temporary total disability and professional fee increases), E.O. No. 188 (across the board increase in EC pension) and Board Resolutions Nos. 12- 07-16 and 18-04-15, which provided for the payment of pensions to previously suspended EC survivorship pensioners effective August 2012 and the retroactive payment of EC death benefits from April 2006 to July 2012 respectively;

WHEREAS, under Article 183 (formerly Article 177) (e) of P.O. No. 626, as amended,  the Commission  shall have the  powers and  duties, among others, to upgrade EC benefits and grant new ones subject to the approval of the President, provided that the actuarial stability of the State Insurance Fund (SIF) shall be guaranteed and that such increases in benefits shall not require any increase in contributions from the employers, both private and public;

WHEREAS, the Commission opted for a financial assistance of P20,000 among the three options given in consideration of the actuarial study, the fact that the assistance will be provided on a one-time basis and the anticipated prolonged economic impact on EC pensioners of the present pandemic;


This Commission RESOLVES as it hereby RESOLVED to approve the grant of a one-time financial assistance amounting to Twenty thousand pesos (P20, 000.00) to all EC PPD, EC PTD and survivorship pensioners in the public sector receiving monthly pensions in or after January 2020 but not beyond December 2020;

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.

RESOLVED FINALLY, that copies of this Resolution be duly furnished to the GSIS for information and appropriate action.

DONE, this 06th day of August 2020, in Makati City, Philippines.

Department of Labor and Employment

Social Security System

Government Service Insurance System

Employees’ Sector

Philippine Health Insurance Corporation

Employees’ Compensation Commission – Secretariat

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