MANILA, Philippines - President Aquino has approved the increase in funeral and disability benefits for both public and private sectors for as long as government financing institutions can finance them.
Aquino issued Executive Order 167, which he signed last May 26, directing the Employees’ Compensation Commission (ECC) to implement the new law since the current rates “for both private and public sectors are no longer sufficient to cover funeral costs.”
Aquino increased the funeral benefits for both sectors from P10,000 to P20,000 effective immediately.
This came after the ECC adopted Resolutions 13-07-14 and 13-11-37 in July and November 2013 approving the increase in benefits.
Under the new law, there shall be a “10 percent across-the-board increase in EC pension for all EC permanent partial disability, permanent total disability and survivorship pension in the private sector.”
“ECC, Social Security System and Government Service Insurance System are hereby directed to appropriate and release the amounts necessary to cover the increase in benefits from the reserves of the relevant SIFs (state insurance funds) that the SSS, GSIS administer, respectively, under the Employees Compensation Program,” the law said.
“ECC shall issue such rules and regulations as may be necessary to implement this EO, including the retroactive application of the increase in benefits for the private sector to September 2013,” it added.
As per the ECC’s mandate under Article 177 (e) of Presidential Decree 626, it has the power to, among others, upgrade benefits and grant new ones for permanent disability or death, subject to the approval of the President.
Results of actuarial studies of SSS and GSIS show that the SIFs administered by them “can finance the increase in benefits without affecting the stability of the SIFs and without additional contributions.”