Presidential Decree No. 1692

Article 194 of PD 442, as amended, is hereby further amended, to read as follows:

• Article 194  Death.
  • a

    Under such regulations as the Commission may approve, the System shall pay to the primary beneficiaries upon the death of the covered employee under this Title an amount equivalent to his monthly income benefit for as long as the beneficiaries are entitled thereto, plus ten percent thereof for each dependent child, but not exceeding five, beginning with the youngest and without substitution: Provided, however, That the monthly income benefit shall be guaranteed for five years: Provided, further, That if he has no primary beneficiary, the System shall pay to his secondary beneficiaries a lump sum equivalent to sixty times the monthly income benefit: Provided, finally, That the minimum income benefit shall not be less than twelve thousand pesos;

  • b

    Under such regulations as the Commission may approve, the System shall pay to the primary beneficiaries upon the death of a covered employee who is under permanent total disability under this Title, eighty percent of the monthly income benefit for as long as they are entitled thereto, and his dependents to the dependents' pension: Provided, that the marriage must have been validly subsisting at the time of disability: Provided, further, That if he has no primary beneficiary, the System shall pay to his secondary beneficiaries a lump sum benefit equivalent to sixty times the monthly pension, excluding the dependents' pension: Provided, finally, That the lump sum benefit shall not be less than twelve thousand pesos.

The funds necessary to implement this Decree shall be drawn from the resources of the State Insurance Fund. The implementation of this Decree shall not involve an increase in employer or employee contributions and in the event that the Fund is unable to immediately support the additional benefits, implementation shall be phased by the Employees' Compensation Commission so as to be within the capability of the Fund.

This Decree shall take effect immediately.