Preamble
WHEREAS, PD 442, as amended, otherwise known as "Labor Code of the Philippines," has integrated social security, medicare, workmen's compensation and other social security benefits to eliminate redundancy, duplication and overlap of similar benefits administered by several agencies of the Government; WHEREAS, the national policy is to grant promptly adequate and meaningful benefits for employment-related disabilities and death; WHEREAS, Section 21 of Presidential Decree No. 850 has amended Article 193 of the Labor Code of the Philippines by allowing, as an alternative to a straight monthly pension, 50% lump sum of the 5-year guaranteed pension; WHEREAS, a lump sum payment under the present rate of contributions is not actuarially feasible and will seriously endanger the financial viability of the State Insurance Fund administered by the SSS and the GSIS; WHEREAS, a reasonable increase in income benefits is financially viable; and WHEREAS, it is necessary to harmonize, simplify and correlate the provisions of the Labor Code of the Philippines with the other provisions thereof to reflect the spirit and intent of this amendment; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree: