REPUBLIC ACT NO.
7699 interpretation of the law and the implementing rules and
An act instituting Limited Portability Scheme in the Social
Security Insurance Systems by totalizing the workers
creditable services or contributions in each of the
systems.
SECTION 1. It is hereby declared the policy of the State to
promote the welfare of our workers by recognizing their efforts
in productive endeavors and to further improve their
conditions by providing benefits for their long years of
contribution to the national economy. Towards this end, the
State shall institute a scheme for totalization and portability of
social security benefits with the view of establishing within a
reasonable period a unitary social security system.
SEC. 2. DEFINITION OF TERMS. As used in this Act, unless
the context indicates otherwise, the following terms shall mean:
a) Contributions refer to the contributions paid by the
employee or worker to either the GSIS or the SSS on
account of the workers membership;
b) Portability refer to the transfer of funds for the account
and benefit of a worker who transfers from one system to
the other;
c) Sector refer to employment either in the public or
private sector;
d) System refer to either the SSS as created under RA
1161, as amended or the GSIS as created under PD 1146,
as amended; and
e) Totalization refer to the process of adding up the
periods of creditable services or contributions under each
of the Systems, for purposes of eligibility and computation
of benefits.
SEC. 3. Provisions of any general or special law or rules and
regulations to the contrary notwithstanding, a covered worker
who transfers employment from one sector to another or is
employed in both sectors shall have: his credible services or
contributions in both Systems
- credited to his service or contribution record in
each of the Systems and
- shall be totalized for purposes of old-age, disability,
survivorship and other benefits in case the covered
member does not qualify for such benefits in either or
both Systems without totalization:
Provided, however, That overlapping periods of
membership shall be credited only once for purposes of
totalization.
SEC. 4. All contributions paid by such member personally, and
those that were paid by his employers to both Systems shall be
considered in the processing of benefits which he can claim
from either or both Systems:
- Provided, however, That the amount of benefits to be
paid by one System shall be in proportion to the
number of contributions actually remitted to that
System.
SEC. 5. Nothing in this Act shall be construed to diminish or
reduce the benefits being enjoyed by a covered worker arising
from existing laws, issuances, and company policies or
practices or agreements between the employer and the
employees.
SEC. 6. The DOLE for the private sector and the Civil Service
Commission for the government sector, together with the SSS
and the GSIS shall, within 90 days from the effectivity of this Act,
promulgate the rules and regulations necessary to implement
the provisions hereof: Provided, That any conflict in the
regulations shall be resolved in favor of the workers.
Sec. 7. All laws, decrees, orders, rules and regulations, or parts
thereof, which are inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.
Sec. 8. This Act shall take effect 15 days after its complete
publication in the Official Gazette or in at least 2 national
newspapers of general circulation, whichever comes earlier.
Approved: May 1, 1994
BAR QUESTIONS:
1. How are the "portability" provisions of Republic Act
No. 7699 beneficial or advantageous to SSS and GSIS
members in terms of their creditable employment
services in the private sector or the government, as the
case may be, for purposes of death, disability or
retirement? Please explain your answer briefly. (3%)
SUGGESTED ANSWER: Portability provisions of R.A. No. 7699
shall benefit a covered worker who transfers employment from
one sector to another or is employed in both sectors, whose
creditable services or contributions in both systems credited to
his service or contribution record in each of the system and shall
be totalized for purposes of old-age, disability, survivorship and
other benefits. (Sec. 3, R.A. No. 7699) The "portability"
provisions of R.A. No. 7699 allow the transfer of funds for the
account and benefit of the worker who transfers from one
system to another. This is advantageous to the SSS and GSIS
members for purposes of death, disability or retirement benefits.
In the event the employees transfer from the private sector to
the public sector, or vice-versa, their creditable employment
services and contributions are carried over and transferred as
well. (2005 BAR)
2. Under the Limited Portability law, funds from the GSIS
and the SSS maybe transferred for the benefit of a
worker who transfers from one system to the other.
For this purpose, overlapping periods of membership
shall be
(A) credited only once
(B) credited in full
(C) proportionately reduced
(D) equally divided for the purpose of totalization.
(2011 BAR)
SUGGESTED ANSWER: A, Credited only once.
SECTION 3. Provisions of any general or special law or rules
and regulations to the contrary notwithstanding, a covered
worker who transfers employment from one sector to another or
is employed in both sectors shall have his credible services or
contributions in both Systems credited to his service or
contribution record in each of the Systems and shall be totalized
for purposes of old-age, disability, survivorship and other
benefits in case the covered member does not qualify for such
benefits in either or both Systems without totalization: Provided,
however, That overlapping periods of membership shall be
credited only once for purposes of totalization.
3. Luisito has been working with Lima Land for 20 years.
Wanting to work in the public sector, Luisito applied
with and was offered a job at Livecor. Before accepting
the offer, he wanted to consult you whether the
payments that he and Lima Land had made to the
 Social Security System (SSS) can be transferred or
credited to the Government Service Insurance System
(GSIS). What would you advice? (2014 Bar Question)

SUGGESTED ANSWER: Yes. Under RA 7699, otherwise

known as the Portability Law, one may combine his years of
service in the private sector represented by his contributions to
the Social Security System (SSS) with his government service
and contributions to the GSIS. The contributions shall be
totalized for purposes of old-age, disability, survivorship and
other benefits in case the covered member does not qualify for
such benefits in either or both Systems without totalization.

4. Jerome Marcelo was hired as a 4th Engineer by

Masipag Shipping Services. Inc. for and in behalf of
Captains Maritime Co.. Ltd.. to work aboard the M/V
White Cloud for a period of one year. Marcelo reported
for duty abroad the vessel on July 13. 1987. On January
16. 1988 at about 3:00 p.m. while the vessel was docked
alongside Pier 39. San Francisco. U.S.A.. Marcelo
aiTived and boarded the ship from shore visibly drunk.
He went to the mess hall and took a fire axe and
challenged those eating therein.

He was pacified by his shipmates who led him to his

cabin. However, later he went out of his cabin and
proceeded to the mess hall. He became violent. He
smashed and threw a cup at the head of an oiler Renato
Pobre. Pobre touched his head and noticed blood. This
infuriated Pobre which led to a fight between the two.
After the shipmates broke the fight, Marcelo was taken
to the hospital where he passed away on January 17,
1988. Pobre was arrested by the American authorities
and jailed in San Francisco. On October 26, 1988, the
wife of Marcelo filed a complaint against Masipag and
Captains with POEA for payment of death benefits,
burial expenses, unpaid salaries on board and overtime
pay with damages. Are Masipag and Captains liable for
the death benefits of seaman Marcelo?

SUGGESTED ANSWER: Masipag and Captains are not liable

for the death benefits of seamen Marcelo because his death was
brought about by his willful intention to injure or kill another.