Original provision of the law subject to proposed substantial amendment

SECTION 20. Government Contribution. — As the contribution of the Government to

the operation of the SSS, Congress shall annually appropriate out of any funds in the
National Treasury not otherwise appropriated, the necessary sum or sums to meet the
estimated expenses of the SSS for each ensuing year. In addition to this contribution,
Congress shall appropriate from time to time such sum or sums as may be needed to
assure the maintenance of an adequate working balance of the funds of the SSS as
disclosed by suitable periodic actuarial studies be made of the operations of the SSS.

Proposed substantial amendments

This shall further extend Section 20 and hereby enumerated as Section 20-A which
would state:
Section 20-A. Local Government Involvement. — The Local Government Units shall
encourage the coverage of this Act towards its constituent by using incentive schemes
plausible to their situation. Furthermore, LGUs shall appropriate out of any local funds
so as to encourage its constituents and support the policy of the state to alleviate the
lives of the citizens.
Legal Bases for amendments

Pursuant to the declaration of policy of RA 8282, provided under section 2:

“It is the policy of the State to establish, develop, promote and perfect a sound
and viable tax-exempt social security system suitable to the needs of the people
throughout the Philippines which shall promote social justice and provide
meaningful protection to members and their beneficiaries against the hazards of
disability, sickness, maternity, old age, death, and other contingencies resulting
in loss of income or financial burden. Towards this end, the State shall
endeavor to extend social security protection to workers and their
beneficiaries.”
Pursuant to the provisions of the 1987 Philippine Constitution on the promotion of the
state policy on the alleviation of the standards of living for the Filipino people and its
laborers:
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SECTION 9. The State shall promote a just and dynamic social order that will
ensure the prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.
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SECTION 18. The State affirms labor as a primary social economic force. It
shall protect the rights of workers and promote their welfare.
Pursuant to Section 17 (c) of RA 7160 otherwise known as the Local Government Code
pertaining to the delivery of basic services and facilities, the LGUs has the duty to:

SECTION 17. Basic Services and Facilities. — (a) Local government units shall
endeavor to be self-reliant and shall continue exercising the powers and
discharging the duties and functions currently vested upon them. They shall also
discharge the functions and responsibilities of national agencies and offices
devolved to them pursuant to this Code. Local government units shall likewise
exercise such other powers and discharge such other functions and
responsibilities as are necessary, appropriate, or incidental to efficient and
effective provision of the basic services and facilities enumerated herein.
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(c) Notwithstanding the provisions of subsection (b) hereof, public works and
infrastructure projects and other facilities, programs and services funded by the
National Government under the annual General Appropriations Act, other
special laws, pertinent executive orders, and those wholly or partially funded
from foreign sources, are not covered under this section, except in those cases
where the local government unit concerned is duly designated as the
implementing agency for such projects, facilities, programs, and services.
There being no conflict to the duty of the LGUs to encourage and provide basic
services including its duty to uphold the policy of the state to alleviate the standards of
living of the citizens.

Whereas, Section 25, Article II of the 1987 Philippine constitution provides:

“SECTION 25. The State shall ensure the autonomy of local governments.”