BLOGALOG: Behind Our Backs

Philippines – South Korea social security agreement forged

The Philippines and South Korea recently signed a bilateral agreement providing for social security protection to their respective citizens in either country. The signing ceremonies were held last December 15, 2005 at the Ceremonial Hall of Malacañang Palace, with Philippine Foreign Affairs Secretary Alberto G. Romulo and Minister Ban Ki-Moon of the Korean Ministry of Foreign Affairs and Trade (MOFAT) inking the agreement.

The bilateral social security agreement was finalized after two rounds of negotiations. The first round was held in Manila on July 12-13, 2005 with SSS EVP and Chief Actuary Horacio T. Templo heading the Philippine delegation, and MOFAT Director Jang Myung-soo leading the five-man Korean delegation. Others in the Philippine panel were SSS SVP Amador Monteiro, VP Judy Frances See, Atty. Roberto Bautista, and representatives from PhilHealth, GSIS, POEA, and DFA.

The next round was then held in Seoul, South Korea on November 3-4, with SSS EVP Horacio T. Templo again heading the Philippine delegation, and accompanied by SVP Felicidad Gutierrez of GSIS, Atty. Roberto B. Bautista of SSS, and officials from the Philippine Embassy in Korea. This time, the head of the Korean delegation was MOFAT Director Jin Kyu Jeong.

After many detailed discussions, the bilateral social security agreement was finalized and its signing was then timed with the Philippine visit of South Korean President Roh Moo-hyun last December 2005.

Under the agreement, entitlement to social security benefits pertains to retirement, disability, and death/survivorship benefits. As for coverage, Filipinos working under contract in Korea under the Korean Industrial Training System and the Employment Permit System shall continue to be covered under the Philippine SSS, but those not under contract in the two systems shall be covered by the Korean National Pension System (NPS). There shall also be equality of treatment, such that a Filipino covered by the NPS, including his beneficiaries, shall be eligible for social security benefits under the same conditions as a Korean national in Korea. Moreover, a person shall continue to receive his benefits wherever he decides to reside, whether in the Philippines, Korea, or any other country.

In order to determine eligibility for benefits, the contributions and creditable periods of members in both countries shall be totalized, but excluding overlaps. As such, payment of benefits shall be pro-rated, wherein each country shall pay a fraction of the benefit due from their respective system in proportion to the member’s actual contributions or creditable periods. There shall also be mutual administrative assistance wherein covered members or beneficiaries may file their claim with the designated liaison agencies of either the Philippines or Korea, which shall extend the necessary assistance in processing claims. As part of the administrative agreement, both sides shall exchange pertinent statistics, require the medical examination of claimants, and formulate the necessary liaison forms.

The agreement shall enter into force on the first day of the third month following the month in which the contracting parties receive written notification from the other that they have complied with all legal requirements under their respective legislation. For the Philippines, this means that the bilateral agreement must have been ratified by the President and concurred by the Senate.

30 January 2006