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

"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

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

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:

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. TRASMONTE
Chairperson-Designate
Department of Labor and Employment

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

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

(SGD.) VLADIMIR R. TUPAZ
Member
Employees' Sector

(SGD.) MIGUEL B. VARELA
Member
Employers' Sector

(Absent)
ALEXANDER A. PADILLA
Member-Designate
Philippine Health Insurance Corporation

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

(SGD.) STELLA ZIPAGAN-BANAWIS
Member
Employees' Compensation Commission Secretariat