Circular 2013-003. Aged 65 and over members

hmmmm.  my discussion on this topic disappeared.  i got zapped by the Internet

DISCLAIMER :  I AM NOT A LAWYER NOR AN SSS  or  GSIS PROCESSOR.  DISCUSSIONS HEREWITH ARE FOR INFO ONLY.  THIS CIRCULAR IS SUSPENDED.

The Manila Standard  posted this last Saturday, the editorial post is called Machete attack

Click here for the Manila Standard editorial on this Circular

Here is Section 9 of the SSS Law

"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers: Provided, That in the case of domestic helpers, their monthly income shall not be less than One thousand pesos (P1,000.00) a month: Provided, further, That any benefit already earned by the employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employer's contribution to his private plan is more than that required of him in this Act, he shall pay to the SSS only the contribution required of him and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer's total contribution to his benefit plan and to the SSS shall be the same as his contribution to his private benefit plan before the compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or improvements in the benefits to be available under the remaining private plan, which may be necessary to adopt by reason of the reduced contributions thereto as a result of the integration, shall be subject to agreements between the employers and employees concerned: Provided, further, That the private benefit plan which the employer shall continue for his employees shall remain under the employer's management and control unless there is an existing agreement to the contrary: Provided, finally, That nothing in this Act shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act.

"(b) Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage, may be covered by the SSS on a voluntary basis.

"(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis.

"SEC. 9-A. Compulsory coverage of the Self-employed. - Coverage in the SSS shall be compulsory upon such self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe, including but not limited to the following:

1. All self-employed professionals;

2. Partners and single proprietors of businesses;

3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term "employee"; in Sec. 8 (d) of this Act;

4. Professional athletes, coaches, trainers and jockeys; and

5. Individual farmers and fishermen.

"Unless otherwise specified herein, all provisions of this Act applicable to covered employees shall also be applicable to the covered self-employed persons.

Notice that coverage is mandatory/compulsory prior to age 60, meaning that the employee has to be covered.  60 and above, however, it seems that a person can still be covered at the option of the member....


Here is Section 11 of the SSS Law  (RA 8282)

"SEC. 11. Effect of Separation from Employment. - When an employee under compulsory coverage is separated from employment, his employer's contribution on his account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separation, but said DRemployee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act. He may, however, continue to pay the total contributions to maintain his right to full benefit.

(red underlining is mine)
The reason why members were being told to continue is because of the provisions of the SS Law
under Section 11 above and Section 12-B on retirement benefits below -
Note that the Law says that the member may continue to pay the total contributions to maintain his full right to full benefit.  This sentence does not specify any age or any condition.

"SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred  twenty (120) monthly contributions prior to the semester of retirement and who (1) has reached the age of sixty (60) years and is already separated from employment or has ceased to be self-employed or (2) has reached the age of sixty-five (65) years, shall be entitled for as long as he lives to the monthly pension: Provided, That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the SSS.

"(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided, That he is separated from employment and is not continuing payment of contributions to the SSS on his own.

(red underlining is mine)


There is no mention of a MANDATORY RETIREMENT AGE. 
The  basis for this remark?  Consider this, A member who does not have at least 120 contributions and who has reached the age of 65 and is still employed..... then what?  isnt the employer obliged to pay SSS? No? why not?  the law only says he does not have to be compulsorily covered, not that he cannot be covered.  What i do not know for sure is whether the decision to be covered is done the employee although i rather think it should be his choice....

 so if this is true for the employee, it should be true for the self employed/voluntary member, correct?


*********************
If you do a  TRUTH TABLE for (a),
it goes like like this

( with 120 contributions is TRUE)  *and*  (age =60 is TRUE)  * (no employment = TRUE) =====>
                     (then) WILL GET PENSION

T * T * T ==> T                    T * T * F ==> F
T * F * T ==> F

(with 120 contributions is TRUE ) *and*  (age =65 is TRUE) =====>
                    (then)  WILL GET PENSION regardless of employment status



stands to reason that if  there are not enough contributions, and the person is STILL working, then he will continue to pay

******** to be continued ************

i suspect Circular 2013-003 will be suspended/withdrawn soon