Tell it to Sun.Star: Implement the ‘Portability Law’

IT is encouraging for pensioners to read in newspapers that the Duterte administration is seeking to increase the pension benefits of old-age pensioners. However, there is an existing law, Republic Act No. 7699, otherwise known as “The Portability Law,” that can benefit many pensioners but it is not because the Government Service Insurance System (GSIS) is NOT implementing the other laws related to it.

RA 7699 was enacted on April 27, 1994 and signed by President Fidel V. Ramos on May 1, 1994, to enable retirees who lack the required number of years of service either in the government or in the private sector, to qualify for pension, by adding the retiree's years of service from the other sector to complete the number of years service.

The government requires 15 years in order to qualify for pension from GSIS, with age 65 as retirement age, while the private sector requires 10 years of service to qualify for pension from the SSS, with age 60 as retirement age.

The portability of years of service from one system to another aptly describes the name “Portability Law.”

However, not all retirees under the “Portability Law” are receiving the same benefits as other retirees under other retirement laws. This amounts to discrimination.

As a retiree under the “Portability Law,” I am witness to this discriminatory practice. Pensioners under it are NOT receiving the annual "cash gift" and are NOT entitled to increase in pension, because the GSIS adopted Resolution No. 177 dated 12 December 2007 and Board Resolution No. 187 dated 18 November 2009, which provides "...pensioners under R.A. 7699 who are receiving their pro-rata pensions are not entitled to pension increase and cash gift."

In addition to filing new bills in Congress aiming to increase pensions, Congress itself can take action to correct the situation by exercising its right to exercise "oversight functions" and investigating whether the laws that it passed are being implemented properly.

The “Portability Law” does NOT give any discretion to the Board of the GSIS to select who will receive “cash gifts” as well as pension increases. In fact the “Portability Law” sought to equalize the opportunities for all retirees to receive the same benefits as given to other retirees.

But GSIS Board Resolution Nos. 177 and 187 was already repealed, amended or revoked by Republic Act No. 9994, otherwise known as the “Expanded Senior Citizens Act of 2010,” which provides in its Section 4, enumerating the Privileges of Senior Citizens, specifically subsection "(h) to the extent practicable and feasible, the continuance of the same benefits and privileges given by the GSIS, SSS and PAG-IBIG, as the case may be, as are enjoyed by those in actual service."

The phrase "as are enjoyed by those in actual service" refers to the right to increase and cash gifts which should be given too to pensioners even of those who retired under the “Portability Law.”

Furthermore, Subsection (i) of Section 4 of RA 9994 provides: "retirement benefits of retirees from both the government and the private sector shall be regularly reviewed to ensure their continuing responsiveness and sustainability, and to the extent practicable and feasible, shall be upgraded to be at par with the current scale enjoyed by those in actual service."

This provision entitle pensioners the right to increase even without necessity of legislation because this provision authorizes the SSS and the GSIS to review and upgrade pensions.

If the Duterte pension managers want to correct this discriminatory act by GSIS, they should implement the “Portability Law” to the fullest, by granting "cash gifts" and increase to pension of the retirees for the reasons cited above. They can do these without need of further legislation. Just implement the “Portability Law” together with the “Expanded Senior Citizens Act of 2010.”--By Atty. Mafeo R. Vibal (Author of book “How Bills Become Philippine Laws”)

(Atty. Mafeo R. Vibal worked at the House of Representatives as Committee Secretary, Committee on Health from 1989 to 1999. Lacking the 15 years needed to qualify for GSIS pension, he retired under The Portability Law. After retiring under Civil Service Law, he was retained as co-terminus Consultant to Committee Chairmen until 2013. Based on his congressional experience, he wrote the book on legislation entitled: How Bills Become Philippine Laws, published by Anvil Publishing, Inc. and distributed by National Book Store. He is still active as legislative consultant.)

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