Policy on the Increase in Amount of Employment Compensation Benefits for Employees in the Public Sector

September 27, 2012

ECC BOARD RESOLUTION NO. 12-09-21

POLICY ON THE INCREASE IN THE AMOUNT OF EMPLOYMENT COMPENSATION BENEFITS FOR EMPLOYEES IN THE PUBLIC SECTOR

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, this Commission is concerned with the present disparity in the amount of EC benefits provided under the prevailing regulations between the employees in the public sector and the covered workers in the private sector, with the SSS providing higher benefits as shown below: DACTSH

Type of EC	Amount of Benefits (SSS)	Amount of Benefits (GSIS)
Benefits
Temporary Total	Php200.00 per day	Php90.00 per day (as provided
Disability (TTD)	(as provided under Board	under Board Resolution No.
benefits	Resolution No. 96-10-0429,	3682, July 21, 1987)
	October 10, 1996)
Funeral benefits	Php10,000.00 (as provided	Php3,000.00 (as provided under
	under Board Resolution No.	Rule XIV, Sec. 1 of the Amended
	92-07-0032, dated July 8, 1992)	Rules on Employees' Compensation)
Professional Fee	First visit: Php100 (for general	First visit: Php60.00 (for both
	practitioner) Php150.00 (for	general practitioner and specialist)
	specialist)	Succeeding visits: Php50.00 (for
	Succeeding visits: Php80 (for	both general practitioner and
	general practitioner); 100.00	specialist)
	(for specialist)	(as provided under Annex "C"
	(as provided under Annex "C"	of the Amended Rules on
	of the Amended Rules on	Employees' Compensation)
	Employees' Compensation)

WHEREAS, this Commission believes that the amount of the abovementioned EC benefits between the employees in the public sector and the covered workers in the private sector should be equal;

WHEREAS, the law requires that actuarial studies and calculations must be undertaken prior to upgrading of benefits to determine the stability of the State insurance Fund (SIF);

WHEREAS, on December 21, 2009, this Commission issued Board Resolution No. 09-12-228 ("Requesting the Actuarial Departments of Both Systems [GSIS/SSS] to Conduct Actuarial Studies to Determine the Possibility of Upgrading the Amount of Temporary Total Disability [TTD] benefits under P.D. 626, as amended");

WHEREAS, in compliance with the instruction of the Commission, on March 30, 2012, the Secretariat wrote a letter to GSIS President and General Manager (PGM) Robert G. Vergara requesting for a conduct of actuarial study on the possibility of increasing the amount of EC benefits for the public sector;

WHEREAS, during the Commission Meeting on May 23, 2012, the GSIS presented the results of its Actuarial Study on the possibility of increasing the amount of EC benefits in the public sector;

WHEREAS, the results of the said Study shows the capability of the GSIS managed State Insurance Fund (SIF) to provide an increase in the amount of EC benefits for employees in the public sector;

NOW THEREFORE, ON MOTION DULY MADE AND SECONDED,

This Commission RESOLVES AS IT HEREBY RESOLVED, to provide an increase the amount of EC benefits in the public sector as follows:

Type of EC Benefits		Amount of Benefits (SSS)
Temporary Total Disability	Php200.00 per day
(TTD) benefits
Funeral benefits	Php10,000.00
Professional Fee	First visit —
		Php100 (for general practitioner)
		Php150.00 (for specialist)
	Succeeding visits —
		Php80 (for general practitioner)
		Php100.00 (for specialist)

RESOLVES FURTHER, that such increase in the amount of EC benefits for employees in the public sector shall not entail an increase of EC contribution;

RESOLVES FURTHER, that copies of this Resolution be transmitted to the Office of the President of the Republic of the Philippines for approval and to the SSS for information and GSIS for compliance upon approval of the Office of the President;

RESOLVES FINALLY that this Resolution shall be published in a newspaper of general circulation as soon as possible upon the approval of the Office of the President and shall take effect fifteen (15) days after its publication. TDcAIH

APPROVED, in Makati City 27th day of September 2012.

(SGD.) LOURDES M. TRASMONTEChairperson-DesignateDepartment of Labor and Employment

(SGD.) LETICIA B. ONG, M.D.Member-DesignateSocial Security System

(Absent)DIONISIO E. EBDANE, JR.Member-DesignateGovernment Service Insurance System

(SGD.) VLADIMIR R. TUPAZMemberEmployees' Sector

(SGD.) MIGUEL B. VARELAMemberEmployers' Sector

(Absent)ALEXANDER A. PADILLAMember-DesignatePhilippine Health Insurance Corporation

(SGD.) DAVID E. CABANAG, JR.Member-DesignateCivil Service Commission

(SGD.) STELLA ZIPAGAN-BANAWISMemberEmployees' Compensation Commission — Secretariat