Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS “NICK” C. ENCISO VIII 
EXPLANATORY NOTE 
The primary objective of this bill is to adapt to the recent developments on the needs of our 
government workers as well as address long-running issues on lack of transparency, 
inefficient collection, poor record-keeping, and even numerous corruption allegations in the 
Government Service Insurance System (GSIS). This is in line with Section 27, Article II of 
the 1987 Constitution which states that the State shall maintain honesty and integrity in the 
public service and take positive and effective measures against graft and corruption. 
The salient points of the bill include (a) giving the government employee who retired from 
government service the option to enjoy retirement benefits under Republic Act No. 1616 or 
Republic Act No. 660, (b) increasing the GSIS Board of Trustees to nine (9) members to 
accommodate a member from the retiree’s group, (c) equalizing the grant of retirement 
benefits for all branches of the government, and (d) expanding the coverage and benefits of 
the government employees under the GSIS to allow dependents to avail of survivorship 
benefits whether they are gainfully employed or not.  Penalties for failure to pay premium 
payments of workers are also proposed to be increased.  
This bill was introduced in the 15th Congress where it reached approval in the 3rd reading but 
was not acted upon by the Senate. It was introduced again in the 16th, 17th, and 18th 
Congress but were also unfruitful.  
With the unwavering dedication to instill reforms in the GSIS, the immediate passage of the 
bill is most earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS “NICK” C. ENCISO VIII 
August 23, 2022
2:00 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS “NICK” C. ENCISO VIII 
AN ACT 
FURTHER STRENGTHENING THE GOVERNMENT SERVICE INSURANCE 
SYSTEM 
Be it enacted by the Senate and the of Representatives of the Philippines In 
Congress assembled: 
SEC. 1. Short Title. — This Act shall be known as the “Revised Government 
Service Insurance System (GSIS) Act" 
SEC. 2. Declaration of Policy. — It is a declared policy Of the State to provide, 
develop and promote a sound social security system responsive to the needs of its 
employees, Likewise. the State shall review and strengthen policies that advance 
and protect the welfare of employees in the public sector and ensure their right to 
participate in policy and decision-making processes affecting their rights and 
benefits. Toward this end, the State shall: 
(a)
Ensure the adoption of policies beneficial to GSIS members, paving the way for
a responsible, integrated and transparent social security system;
(b)
Provide greater representation for members at the highest policy-making level
of the GSIS;
(c)
Insulate the Social Insurance Fund (SIF) from dissipation due to the volatility of
the global economy; and
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(d) Ensure that top-level officials of the GSIS are held accountable for 
mismanagement and inefficiencies in the delivery of services to members and 
beneficiaries. 
 
PART I - DEFINITIONS 
SEC. 3. Definition of Terms. — Unless the context Otherwise indicates. the 
following terms shall mean: 
a) GSIS — The Government Service Insurance System created by 
Commonwealth Act No. 186; 
b) Board — The Board of Trustees of the Government Service Insurance 
System: 
c) Employer — The national government. its political subdivisions. branches, 
agencies, or instrumentalities. including. government-owned or controlled 
corporations. and financial institutions with original charters, the Constitutional 
commissions, and the judiciary; 
d) Employee or Member — Any person. receiving compensation while in the 
service of un employer as defined herein. whether by election or appointment, 
irrespective of status of appointment, including barangay and sanggunian 
officials, (e) Active Member — A member who is not separated from the 
service; 
e) Beneficiaries — Beneficiaries Shall be the following:  
1) For married members 
(i) 
The legitimate spouse, and 
(ii) 
The legitimate. legitimated. legally adopted child, including the 
illegitimate child. who is unmarried. not over the age of 
majority. or IS over the age of majority but is considered a 
person with disability (PWD) and incapable of self-support 
due to a mental or physical Impairment acquired prior to age 
of majority; 
2) For unmarried members 
(i) 
The legitimate, legitimated. legally adopted child. including the 
illegitimate child, who is unmarried, not over the age of 
majority. or is over the age of majority but is considered a 


person with disability (FWD) and incapable of self-support 
due to a mental or physical impairment acquired prior to the 
age of majority, or 
(ii) In the absence of children, the parents Provided. however. 
That the parents no longer be considered as beneficiaries 
once the member marries and/or begets a child: or 
(iii) In the absence of either (i) and (ii), a designated beneficiary 
who shall have the same qualifications and be entitled to the 
same benefits as a legitimate. legitimated, legally adopted or 
illegitimate child under paragraph (f)(1)(ii) of this Section: 
Provided, That the designation must be made before the 
member turns 50 years old: Provided. further. That the 
designation can only be made once. 
f) Benefits — refer to those administered by GSIS on behalf of its members. as 
found under Sections 14 to 38 of this Act, especially retirement, separation, 
unemployment, disability, death/funeral, survivorship and life insurance; 
g) Compensation — The basic pay or salary received by an employee, pursuant 
to his/her election or appointment. excluding per diems, bonuses. Overtime 
pay, honoraria. allowances and any other emoluments received in addition to 
the basic pay which are not integrated into the basic pay under existing laws; 
h) Contribution — The amount payable to the GSIS by the member and the 
employer in accordance with Section 10 of this Act; 
i) Current Daily Compensation — The actual daily compensation or the actual 
monthly compensation divided by the number of working days in the month of 
contingency but not to exceed twenty-two (22) working days; 
j) Average Monthly Compensation (AMC) — quotient arrived at after dividing 
the aggregate compensation received by the member during his/her lust 
thirty-six 
(36) 
months 
of 
service 
preceding 
his/her 
separation/retirement/disability/death by thirty-six 36). or by the number of 
months he/she received such compensation if he/she has less than thirty-six 
(36) months of service: Provided. That the average monthly compensation 
shall in no case exceed the amount and rate as may be respectively set by 


the Board under the rules and regulations implementing this Act as 
determined by the actuary of the GSIS'. 
k) Revalued Average Monthly Compensation — An amount equal to one 
hundred seventy percent (170%) of the first One Thousand Pesos 
(P1.000,00) of the average monthly compensation plus one hundred percent 
100%) of the average monthly compensation in excess of One Thousand 
Pesos (P1,000.00); 
l) Pensioner — Any person receiving old-age or permanent total disability 
pension or any person who has received the retirement benefits Provided. 
however. That one who is receiving survivorship pension benefits as defined 
in Sections 33 to 36 Of this Act is not considered pensioner; 
m) Disability — Any loss or impairment of the normal functions of the physical 
and/or mental faculty of a member which reduces or eliminates his/her 
capacity to continue with his/her current gainful occupation; 
n) Permanent Partial Disability — Accrues or arises due to complete and 
permanent loss of certain portions of the physical faculties. resulting in the 
disability to work for a limited period of time; 
o) Permanent Total Disability Accrues — or arises due to injury or disease. 
causing 
complete, 
irreversible. 
and 
permanent 
incapacity 
that 
will 
permanently disable a member to work or to engage in the same occupation 
resulting in loss of income; 
p) Temporary Total Disability — Accrues or arises when the impaired physical 
and/or mental faculties can be rehabilitated and/or restored to their normal 
functions. but such disability shall result in temporary incapacity to work or to 
engage in any occupation; 
q) Total Admitted Assets — as used under this Act. refers to the value, as 
appearing in the GSIS' financial statements, of its revenues, income, and 
other property. less the amount of its liabilities; 
r) Total Length of Service — The number of years in government service 
regardless of status of employment, with or without premium contributions to 
be used in determining the eligibility of a member for retirement under this 
Act. The term service shall include fulltime service with compensation: 
Provided. That curt-time and other services with compensation may be 


included under such rules and regulations as may be prescribed by the GSIS; 
and 
s) Revaluation Factor (RF) — A supplemental amount to the AMC that is 
calculated relative to the annual average inflation rate. The revaluation factor 
shall be periodically adjusted as may be recommended by the GSIS' Actuary 
and approved by the Board of Trustees. 
t) Total Income — The amount of profit derived from the GSIS’ operations and 
investments Provided. That compulsory and optional premium contributions to 
the Social Insurance Fund from both employers and employees shall not form 
part of GSIS’ total income. 
 
PART II - MEMBERSHIP IN THE GSIS 
SEC. 4. Compulsory Membership. — 
(a) All government personnel, whether elective or appointive, irrespective of status 
of appointment, provided they are receiving fixed monthly compensation and 
have not reached the mandatory retirement age of 65 years. are compulsorily 
covered as members of the GSIS and shall be required to pay contributions: 
(b) Contractual and casual employees who an employee-employer relationship 
with a government agency are also compulsorily covered; 
(c) An employee who is already beyond the mandatory retirement age of 65 but 
whose appointment in government service has been approved by the Office of 
the President of the Philippines or has been extended by the Civil Service 
Commission for the purpose of completing the fifteen (15) years of service 
required under R.A. No. 8291 to qualify for retirement benefits; 
(d) Following government employees are not members of the GSIS: 
1)  
Uniformed personnel Of the Armed Forces of the Philippines (AFP), 
Philippine National Police (PNP), Bureau of Fire Protection (BFP) and 
Bureau of Jail Management and Penology (BJMP); 
2) 
Barangay, Sanggunian and other government officials who are not 
receiving fixed monthly compensation: 
3) 
Government employees covered by separate retirement schemes, as 
enumerated under Section 4(e) of this Act; and 


4) 
Personnel who are not receiving fixed monthly compensation and/or do 
not have monthly regular hours of work. 
(e) The following who are covered by separate retirement schemes are also 
required to remit regular monthly contributions to the GSIS for their life 
insurance policies in order to answer for their life insurance benefits defined 
under this Act. 
1) 
Members of the Constitutional bodies: 
2) 
Members of the Judiciary, including those with equivalent ranks; 
3) 
Members of the National Prosecution Service; and 
4) 
All others who are or may be subsequently covered by a separate 
retirement law. 
 
SEC. 5. Optional Membership. — The following shall be given the option to 
continue their membership in GSIS. even beyond the mandatory retirement age of 
65: 
(a)  An official elected to public office before age 65 but who will reach the 
mandatory retirement age of 65 during his/her term. The elective official shall 
be allowed to continue paying life and retirement premiums until the end of 
his/her term, including any periods of reelection or election to another public 
office: Provided, That such period/s of re-election or election are continuous; 
(b)  An official appointed by the President of the Philippines to public once before 
age 65 for a fixed term and with a fixed monthly compensation but who will 
reach the mandatory retirement age of 65 during his/her tenure. The appointive 
official shall be allowed to continue paying life and retirement premiums until 
the end of his/her tenure, including any period/s of term extension or re-
appointment to another office: Provided, the of extension or re-appointment 
is/are continuous; 
(c)  An official or employee who holds a co-terminus or highly confidential position 
who reaches the age of 65 years. and whose services are considered 
automatically extended until the expiration of the employee's or official's 
appointment or until the employee's or official 's services are earlier terminated. 
 
SEC. 6. Effect of Separation from the service. — A member separated from the 
service either by resignation, retirement, disability, dismissal from the service or 


retrenchment shall be deemed an inactive member of the system. An inactive 
member shall be entitled to whatever he/she has qualified for in the event of any 
contingency compensable under this Act. 
 
SEC. 7. Members’ Rights. — In addition to their rights under existing laws, the 
members shall have the following rights: 
(a) Right to courteous and responsive service 
1) To be considered a GSIS member from the first day of government 
service, 
2) To provided prompt and accurate service; 
3) To be accorded respect by the executives and employees of the 
GSIS; and 
4) To be afforded comfortable and customer-friendly facilities when 
transacting with the GSIS. 
 
(b) Right to information 
1) To be informed of the laws, regulations, policies or programs 
affecting the members' rights, benefits, obligations, and privileges, 
including amendments or changes thereto; 
2) To be informed of GSIS policies and regulations pertaining to 
benefits and claims administration: 
3) To be informed of the various modes and options in availing 
themselves of benefits; 
4) To receive accurate and updated membership data, records, and 
information. including records of premium remittances and loan 
payments; 
5) To have GSIS data and records protected from unauthorized, 
unlawful, or Improper disclosure; and 
6) To be informed in advance of documents required to facilitate 
transaction, processing and updated Status of claims or loan 
applications. 
 
(c) Right to GSIS benefits 


1) To receive on time the benefits the member has qualified to even 
after separation from service; 
2) To avail of a mode of retirement from among the different applicable 
retirement laws and to be to change the chosen mode: Provided. 
That the member has met the qualifications required under the 
chosen mode: Provided, further. That the pension has not yet been 
received or paid; 
3) To be protected against discrimination and thus receive the same 
benefits and privileges granted other members similarly situated; 
and 
4) To receive benefits exempt from all taxes, fees, charges and duties 
of all kinds except for unpaid personal premium contributions and 
monetary liabilities due to the fund. 
 
(d) Right to expeditious processing of claims 
1) To claim and receive on time benefits provided under applicable 
laws: 
2)  To exhaust all legal remedies under existing laws. and 
3) To be protected from diminution of benefits that may arise with the 
passage of a subsequent law or regulation. 
 
(e) Right to be heard 
1) To be represented in the GSIS governing Board of Trustees (Board); 
2) To participate in meaningful exchanges of views, dialogues and for a 
conducted by GSIS without fear of reprisal; 
3) To be consulted on the policies and programs to be implemented by 
the GSIS, 
4) To convey grievances and be accorded immediate response; and 
5) To transact business with the GSIS in person. 
 
SEC. 8. Special Rights for the Elderly, PWDs, and Seriously-III Members, 
Pensioners and Beneficiaries. — The following rights are to be afforded to the 
elderly, PWDs and seriously-ill member pensioners and beneficiaries: 


(a)  To be provided special access lanes; 
(b)  To be prioritized in the processing and releasing of claims and benefits; 
(c) 
To be given preference in the dissemination of information pertaining to 
policies; 
(d) 
To be accorded leniency in the submission of documents. 
 
SEC. 9. Agencies/employers’ Responsibilities. — The government agencies 
covered by this Act, as employers, shall have the following responsibilities. 
(a) 
To deduct and remit employees' and employers' contributions to the GSIS 
within the prescribe time mandated by law. 
(b) 
To promptly provide documents required to facilitate the processing of claims 
(c) 
To provide additional documents as necessary to reconcile the records of 
accounts; 
(d)  To promptly inform GSIS. through their Agency Authorized Officers (AAOs) of 
any update pertaining to personal or service records that may affect the 
processing of their employees’ claims and benefits. 
 
PART III - SOURCES OF FUNDS 
SEC. 10. Contributions. — 
(a) 
It shall be mandatory for the member and the employer to pay the monthly 
contributions specified in the following schedule: 
 
 
Monthly 
Compensation 
Percentage of Monthly Compensation Payable 
By 
Member 
9% 
Employer 
12% 
 
Members who are excluded from compulsory retirement coverage as enumerated 
under Section 4(e) of this Act shall pay three percent (3%) of their monthly 
compensation as personal share, and their employers a corresponding three percent 
(3%) for their life insurance coverage. 
 


(b)  The employer shall include in its annual appropriation the necessary amounts 
for its share of the contributions indicated above, plus any additional premiums 
that may be required on account of the hazards or risks of its employees' 
occupation, 
 
(c)  It shall be mandatory and compulsory for all employers to include the payment 
of contributions in their annual appropriations. The appropriate penal. civil and 
administrative sanctions under Section 65 of this Act shall be imposed upon 
employers who rail to include the payment of contributions in their annual 
appropriations or otherwise fail to remit the accurate/exact amount of 
contributions on time. or delay the remittance of premium contributions to the 
GSIS. The heads of offices and agencies shall be administratively liable for 
non-remittance or delayed remittance of premium contributions to GSIS. 
 
SEC. 11. Collection and Remittance of Contributions. — 
(a) 
The employer shall report to the GSIS the names of all its employees, their 
corresponding employment status, positions, salaries and such other pertinent 
information. including subsequent changes therein. if any, as may be required 
by the GSIS. The employer shall deduct each month from the monthly salary 
or compensation of each employee the contribution payable by him/her in 
accordance with the schedule prescribed in the rules and regulations 
Implementing this Act. 
(b) 
Each employer shall remit directly to the GSIS the employees' and employers' 
contributions and loan amortizations within the first ten (10) days of the 
calendar month following the month to which the contributions apply. The 
collection and remittance by the employer of the contributions and loan 
amortizations to the GSIS shall take priority over and above the payment of 
any and all obligations, except salaries and wages of its employees. 
(c) 
All outstanding government share premium contributions which were not paid 
by any government office or agency shall include the annual budget and shall 
be remitted automatically by the Department of Budget and Management 
(DBM) to the GSIS. 
 


SEC. 12. Interests on Delayed Remittances. — Agencies which delay the 
remittance of any and all monies due the GSIS shall be charged interest as may be 
prescribed by the Board but not more than two percent (2%) simple interest per 
month. Such interest shall paid by the employers concerned. 
 
SEC. 13. Government Guarantee. — The government of the Republic of the 
Philippines hereby guarantees the fulfillment of the obligations of the GSIS to its 
members as and when they fall due. 
 
PART IV — BENEFITS 
SEC. 14. Determination of Amount of Benefits. — 
(a) 
The computation of total length of service for the purpose of determining a 
member's eligibility to the benefits payable under this Act shall be based on the 
service rendered starting from the date of original assumption/election, 
including periods of service at different times under one or more employers, 
those performed overseas under the authority of the Republic of the 
Philippines, and those that may be prescribed by the GSIS in coordination with 
the Civil Service Commission. 
(b) 
The computation of actual benefits payable under this Act shall be based on 
the total length of service, Provided, However. That computation of benefits 
prior to June 24, 1997 shall be based on the period/s of service when required 
premium contributions were paid. 
For the purpose of this section, the term service shall include full-time service 
with compensation: Provided, that part-time and other services with compensation 
may be included under such rules and regulations as may be prescribed by the 
GSIS. 
 
RETIREMENT BENEFITS 
SEC. 15. General Conditions for Entitlement. — A member who retires from 
service shall be entitled to the retirement benefits enumerated in Section 16 (a) 
hereof: Provided, That the member: 
(a) Has rendered at least fifteen 15) years of service; 
(b) Is at least Sixty (60) years of age at the time of retirement; and 
(c) Is not receiving a monthly pension benefit from permanent total disability. 


 
SEC. 16. Retirement Benefits. — 
(a) 
Retirement benefit shall either be: 
1)  
Cash payment equivalent to sixty (60) months of the member's basic 
monthly pension (BMP) payable at the time of retirement plus an old-age 
pension benefit equal to the baste monthly pension payable monthly for 
life, starting upon expiration of the five-year (5) guaranteed period 
covered by the cash payment. or 
2)  
Cash payment equivalent to eighteen (18) months of the member's basic 
monthly pension plus monthly pension for life payable immediately with 
no five-year (5) guarantee. 
(b) 
Unless the service is allowed under Section 5 of this Act or extended by 
appropriate authorities, retirement shall compulsory for an employee at Sixty-
five (65) years of age with at least fifteen (15) years of service: Provided. That 
if the employee has less than fifteen (15) years of service, he/she may be 
allowed to continue in the service in accordance with existing civil service rules 
and regulations 
 
SEC. 17.  Computation of the Basic Monthly Pension. - 
(a) 
The basic monthly pension is equal to two and one half percent (2.5%) of the 
sum of the Average Monthly Compensation and Revaluation Factor, multiplied 
by the total length of service and taking into consideration Section 14 of this 
Act: Provided, that the basic monthly pensions shall exceed ninety percent 
(90%) Of the average monthly compensation. 
(b) 
The basic monthly pension may be adjusted upon the recommendation of the 
GSIS actuary, and approved by the Board or Trustees. 
 
SEC. 18. Periodic Pension Adjustment. — The monthly pension of all pensioners 
including all those receiving survivorship pension benefits shall be periodically 
adjusted as may be recommended by the GSIS' actuary and approved by the Board 
in accordance with the rules and regulations prescribed by the GSIS. 
 


SEPARATION BENEFITS 
SEC. 19. General Conditions for Entitlement. — A member Who separates from 
the service before he/she is eligible for retirement under Section 15 of this Act shall 
be entitled to the separation benefits enumerated in Section 20 hereof: Provided, 
That the member: 
(a)  Has rendered at least three (3) years of service; and 
(b)  Is not receiving a monthly pension benefit from permanent total disability. 
 
 
SEC. 20. Separation Benefits. —  The separation benefit shall be paid as follows: 
(a) 
If the member has rendered at least three (3) years but less than fifteen (15) 
years Of service and is at least sixty (60) years or age at the time of resignation 
or separation, he/she shall be entitled to a one-time cash payment equivalent 
to one hundred percent (100%) of his/her average monthly compensation for 
each year of service that paid premium contributions, but not less than Twelve 
thousand pesos (P12,000.00). The one-time cash payment shall be payable 
immediately or upon reaching sixty (60) years of age, at the option of the 
member: Provided. that the average monthly compensation is equivalent to the 
average salary received by the member during the last three (3) years of 
service, 
(b) 
If the member has rendered at least fifteen (15) years of service but is below 
sixty (60) years of age at the time of resignation or separation, he/she shall be 
entitled to a one-time cash payment equivalent to eighteen (18) times his/her 
basic monthly pension at the time of resignation or separation. plus an old-age 
pension benefit equal to the basic monthly pension payable monthly for life 
upon reaching the age of sixty (60). 
 
SEC. 21. Effect of Re-Employment in Government Service After Separation. — 
All service credited for retirement, resignation or separation for which corresponding 
benefits have been paid under this Act or other laws shall be excluded in the 
computation of service in case of reinstatement in government service and 
subsequent retirement or separation which is compensable under this Act. 
 


UNEMPLOYMENT BENEFITS 
SEC. 22. General Conditions for Entitlement. — A member who is separated from 
the service due to the abolition of his/her office or position resulting from 
reorganization shall be entitled to the unemployment benefits enumerated in Section 
23 hereof: Provided, That the member: 
(a) 
Has been paying the required contributions for at least one (l) year prior to 
separation; 
(b) 
Has not been paid the voluntary separation benefit equivalent to onetime cash 
payment or 18 times the BMP, should he/she opt to avail of the same before 
reaching the age of 60; and 
(c) 
Has not availed of any early retirement program as a result of his/her office’s 
reorganization. 
 
SEC. 23. Unemployment or Involuntary Separation Benefits. — Unemployment 
benefits shall be computed as fifty percent (50%) of the average monthly 
compensation of the member, payable in accordance with the following schedule: 
 
 
 
 
 
 
 
 
 
 
The first payment shall be equivalent to two (2) monthly benefits. A seven (7) 
day waiting period shall be imposed on succeeding monthly payments. 
All accumulated unemployment benefits paid to the employee during his/her 
entire membership with the GSIS shall be deducted from voluntary separation 
benefits. 
The GSIS shall prescribe the detailed guidelines in the operationalization of 
this Section in the rules and regulations implementing this Act. 
 
Contributions Made 
Benefit 
Duration 
1 year but less than 3 years 
2 months 
3 or more years but less than 6 years 
3 months 
6 or more years but less than 9 years 
4 months 
9 or more years but less than 11 years 
5 months 
11 or more years but less than 15 
years 
6 months 


PERMANENT DISABILITY BENEFITS 
SEC. 24. General Conditions Entitlement. — A member who suffers permanent 
disability for reasons not due to his grave misconduct, notorious negligence, 
habitual intoxication, or willful intention to kill himself/herself or another, shall he 
entitled to the disability benefits provided for in this Act: Provided, That he/she is in 
the service at the time of disability or has paid a total of at least one hundred eighty 
(180) monthly contributions prior to his/her disability. if already separated from the 
service. 
 
SEC. 25. Types of Disability Benefits. — There are two (2) types of permanent 
disability, which shall be determined by the GSIS based on established medical 
standards: (a) permanent total disability and (b) permanent disability 
 
SEC. 26. Permanent Total Disability Benefits. — 
(a) 
The following disabilities shall be deemed permanent and total. 
1) 
complete loss of sight of both eyes; 
2) 
loss of two (2) limbs at or above the ankle and wrist; 
3) 
permanent complete paralysis (2) limbs; 
4) 
brain injury resulting in incurable imbecility or insanity; and 
5) 
such other cases as may be determined by GSIS Board of Trustees. 
(b) 
The member shall receive a monthly income benefit for life equal to the basic 
monthly pension effective from the date of disability. 
(c) 
A cash payment equivalent to eighteen (18) times his/her basic monthly 
pension shall also be given if the member IS in the service at the time of 
disability and he/she has paid a total Of at least one hundred eighty (180) 
monthly contributions. 
(d) 
A member cannot enjoy the monthly income benefit for permanent disability 
and old-age retirement simultaneously. 
(e) 
If a member does not satisfy the conditions stated under Section 24 hereof but 
has rendered at least three (3) years of service at the time of his/her disability, 
he/she shall be advanced the cash payment equivalent to one hundred percent 
(100%) of his/her average monthly compensation for each year of service 


he/she paid contributions. but not less than Twelve Thousand Pesos 
(P12,000.00) which should have been his/her separation benefit. 
(f) 
Unless the member has reached the minimum retirement age at the time of 
disability, his/her entitlement to permanent total disability benefit shall be when: 
1) 
 He/She recovers from disability as determined by the GSIS, whose 
decision shall be final and binding; or 
2) 
He/She fails to undergo medical examination when required by the GSIS. 
 
SEC. 27. Effect of Re-Employment on the Disability Benefits Being Received. - 
(a) 
Entitlement to permanent total disability benefit shall continue in the event of 
reemployment and the member's new salary grade, rank or position is lower 
than that of his/her previous employment prior to his/her disability Provided, 
That the member has properly informed the GSIS of his/her re-employment; 
(b) 
The disability benefits to be received after re-employment shall be adjusted by 
the GSIS; to be computed as the difference between the amount of the existing 
disability benefit and the member's salary from his/her new employment; 
(c) 
Failure by the member to inform the GSIS of the re-employment shall result in 
the suspension of disability benefits being received. 
 
PERMANENT PARTIAL DISABILITY BENEFITS 
SEC. 28. Permanent Partial Disability Benefits. — 
(a) 
The following disabilities shall be deemed permanent partial: 
1) 
 Complete and permanent loss of the use of: 
(i) 
any finger 
(ii) 
any toe 
(iii) one arm 
(iv) one hand 
(v) 
one foot 
(vi) one leg 
(vii) one or both ears 
(viii) sight of one eye 
2) 
 Such Other cases may be determined by the GSIS. 


(b) 
The member shall receive a cash payment in accordance with a schedule of 
disabilities to be prescribed by the GSIS. 
 
TEMPORARY TOTAL DISABILITY BENEFITS 
SEC. 29. General Conditions for Entitlement. — An active member whose injuries 
result in temporary incapacity to work or to engage in any occupation, shall be 
entitled to the temporary total disability benefits provided for in this Act 
 
SEC. 30. Temporary Total Disability Benefit. — 
(a) 
A member shall be entitled to seventy-five percent (75%) of his/her current 
daily compensation for each day or fraction thereof of temporary disability 
benefit not exceeding one hundred twenty (120) days in one calendar year 
after exhausting all his/her sick leave credits and collective negotiation 
agreement sick leave benefits, if any, but not earlier than the fourth day Of 
his/her temporary total disability: Provided, however, That a member cannot 
enjoy the temporary total disability benefit and sick leave pay simultaneously: 
Provided, further, That if the disability requires more extensive treatment that 
lasts beyond one hundred twenty (120) days, the payment of the temporary 
total disability benefit may be extended by the GSIS but not to exceed a total of 
two hundred forty (240) days. 
 
(b) 
The temporary total disability benefit shall in no case be less than One 
Hundred Sixty-Five Pesos (P 165.00) a day subject to periodic review every 
three (3) years. 
 
(c) 
Notices required of the and the employer, the mode of payment, and the other 
requirements for entitlement to temporary total disability benefits shall be 
provided in the rules and regulations to be prescribed by the GSIS. 
 
SEC. 31. Non-scheduled Disability. — For injuries or illnesses resulting in a 
disability not listed in the schedule of partial/total disability provided herein, the GSIS 
shall determine the nature of the disability and the corresponding benefits therefor. 
 
DEATH BENEFITS 


SEC. 32. Funeral Benefit. — The amount of funeral benefit shall be determined and 
specified by the GSIS in the rules and regulations but shall not be less than Thirty 
Thousand pesos (P30,000.00) Provided, That it shall be adjusted after five (5) years 
upon proper recommendation by the GSIS President and General Manager and 
approved by the GSIS Board of Trustees and shall paid upon the death of any of the 
following: 
(a) 
An active member as defined under Section 3(e) Of this Act; or 
(b) 
A member who has been from the service, but who may be entitled to 
future benefit pursuant to Section 6 of this Act; or 
(c) 
A pensioner, as defined in Section 3(m) or this Act; or 
(d) 
A retiree who at the time of higher retirement was of pensionable age 
under this Act but who opted to retire under RA No. 1616. 
 
SURVIVORSHIP BENEFITS 
SEC. 33. General Entitlement Survivorship Benefits. — When a member or 
pensioner dies, the qualified beneficiaries shall be entitled to the survivorship 
benefits provided under Sections 34 to 36, subject to the conditions therein provided 
for. 
 
SEC. 34. Survivorship Pension. — The survivorship pension shall consist of; 
(a) 
The basic survivorship which is fifty percent (50%) of the basic monthly 
pension but shall not be more than fifty percent (50%) of the maximum step 
salary of an Undersecretary The cap on the survivorship pension may be 
reviewed every five (5) years by the Board, based on the recommendations of 
the GSIS actuary. by considering the issuances on the salary standardization 
law; and 
(b) 
The children's not exceeding fifty percent (50%) of the basic monthly pension. 
The maximum amount of basic survivorship pension prevailing at the time of 
death of the member or pensioner shall apply. Any subsequent increase/s in 
the maximum step salary of an Undersecretary will not result in any adjustment 
to the survivorship pension already being paid. 
 
SEC. 35. Death of a Member. — (a) Upon the death of a member, the qualified 
beneficiaries shall Entitled to survivorship benefits, which shall paid as follows: 


(a) 
If at the time of death, a married member was in active service and has 
rendered at least fifteen (15) years of service: 
1) 
The legitimate spouse, if he/she is the sole beneficiary, shall receive the 
cash payment equivalent to eighteen (18) multiplied by (x) the BMP and 
the basic survivorship pension for life; 
2) 
The qualified children, as defined under Section 3(f)(1)(ii) hereof are the 
only beneficiaries. they shall be entitled to pension equivalent to ten 
percent (10) of the BMP for each child but not to exceed fifty percent 
(50%) of the BMP; 
3) 
When the survivors are the legitimate spouse and the qualified children, 
the legitimate spouse shall receive the cash payment equivalent to 
eighteen (18) multiplied by (x) the BMP and the basic survivorship 
pension, and the qualified children shall receive the children's pension 
mentioned in the preceding paragraph (2); 
(b) 
If at the time of death. the unmarried member was in the active service and has 
rendered at least fifteen (15) years of service: 
1) 
 The qualified children, as defined under Section 3(f)(2)(i) hereof are the 
only beneficiaries, they shall be entitled to pension equivalent to ten 
percent (10%) of the BMP tor each child but not to exceed fifty percent 
(50%) of the BMP; 
2) 
The parent/s, if they are the only qualified beneficiaries shall receive the 
cash payment equivalent to eighteen (18) multiplied by (x) the BMP; 
3) 
In the absence of a child and the parent/s, the designated beneficiary, 
as defined under Section 3(f)(2)(iii) hereof, if he/she is the only qualified 
beneficiary. shall receive the cash payment equivalent to eighteen (18) 
multiplied by (x) BMP: Provided, however, That if the designated 
beneficiary is a child, he/she shall be entitled to pension equivalent to 
ten percent (10%) of the BMP until he/she reaches the age of majority; 
(c) 
If at the time of death, the member was in active service with less than fifteen 
(15) years of service, the qualified beneficiaries shall receive the cash payment 
equivalent to 100% of the AMC for every year of service but not less than 
Twelve Thousand Pesos (P12,000.00) to be computed in accordance with 
Section 14 of this Act. 


(d) 
If at the time of death. the member was separated from the service, the 
qualified survivors shall be entitled to: 
1) 
The survivorship pension if the inactive member has at least fifteen (15) 
years of service; or 
2) 
The cash payment equivalent to one hundred percent (100%) of the 
AMC for every year with paid contributions. but not less than twelve 
thousand pesos (P12,000.00) if the inactive member has at least three 
(3) years but less than fifteen (15) years of service, was less than sixty 
(60) years old at the time of death und has not yet received his/her 
separation benefit from the GSIS. 
 
SEC. 36. Death of a Pensioner. — Upon the death of an old-age pensioner or a 
member receiving the monthly income benefit for permanent disability, the qualified 
beneficiaries shall be entitled to the survivorship pension defined in Section 34 of 
this Act, subject to the provisions Of Section 35 hereof. When the pensioner dies 
within the five-year guaranteed period covered by the cash payment, the 
survivorship pension shall be paid only after the expiration of the said period. 
 
LIFE INSURANCE BENEFITS 
SEC. 37. Compulsory Life Insurance. — All employees, except for those 
enumerated under Section 4(e) of this Act, shall, under such terms and conditions as 
may be promulgated by the GSIS. be compulsorily covered with life insurance, which 
shall automatically take effect on the date of their employment. 
 
SEC. 38. Dividends. — An annual dividend may be granted to all members of the 
GSIS whose life insurance is in force for at least one (l) year in accordance with a 
dividend allocation formula to be determined by the GSIS. 
 
SEC. 39. Optional Insurance. — Subject to the rules and regulations prescribed by 
the GSIS, a member may apply for insurance and/or pre-need coverage embracing 
life, health, hospitalization, education, memorial plans, and such other plans as may 
be designed by the GSIS, for himself/herself and/or his/her dependents. Any 
employer may likewise apply for group insurance coverage for its employees. The 
payment of the premiums/installments for optional insurance and pre-need products 


may be made by the insured or his/her employer and/or any person acceptable to 
the GSIS. 
 
SEC. 40. Reinsurance. — The GSIS may reinsure any of its interests or thereof 
with any private company or reinsurer whether domestic or foreign: Provided, That 
the GSIS shall submit an annual report on its reinsurance operations to the 
Insurance Commission. 
 
PART V - ADJUDICATION OF CLAIMS AND DISPUTES 
SEC. 41. Prescription. — Claims for administered by GSIS as defined under 
Section 3(g) of this Act shall not prescribe: Provided, however, that a claim based on 
a contingency which occurred poor to the effectivity of this Act shall be subject to the 
four-year prescriptive period. 
 
SEC. 42. Facility of Payment. — GSIS shall prescribe rules and regulations to 
facilitate payment of benefits. proceeds. and clams for benefits under this Act and 
any other laws administered by the GSIS. Payments made by the GSIS prior to its 
receipt of an adverse claim, to a beneficiary or claimant subsequently found not 
entitled thereto, shall not bar the legal and eligible recipient to his/her right to 
demand the payment of benefits, proceeds. and clams from the GSIS. 
 
SEC. 43. Settlement of Disputes. — The GSIS shall have original and exclusive 
jurisdiction to settle any dispute regarding claims and benefits arising under this Act 
and any other laws administered by the GSIS. 
The Board may designate any member of the Board or official of the GSIS who 
is a lawyer, to act as hearing officer to receive evidence, make findings of fact and 
submit recommendations together with all the documentary and testimonial 
evidence, to the Board within thirty (30) working days from the time the parties have 
closed their respective evidence and filed their last pleading. The Board shall decide 
the case within thirty (30) days from the receipt of the hearing officer’s findings and 
recommendations. The cases heard directly by the Board shall be decided within 
thirty (30) working days from the time they are submitted by the parties for decision. 
 


SEC. 44. Appeals. — Decisions of the Board of Trustees shall be appealable to the 
Court of Appeals. The appeal shall not stay the execution of the award or decision 
unless ordered by the Court of Appeals or by the Supreme Court. 
 
SEC. 45. Execution of Decision. — When no appeal is perfected and there is no 
order to stay by the Board, by the Court of Appeals, or by the Supreme Court, any 
decision or award of the Board shall be enforced and executed in the same manner 
as decisions of the Regional Trial Court. For this purpose, the Board shall have the 
power to issue to the city or provincial sheriff or its appointed sheriff such writs or 
execution as may be necessary for the enforcement of such decision or and any 
person who shall fail or refuse to comply with such decision, award, writ or after 
being required to do so shall, upon application by the GSIS, be punished for 
contempt. 
 
SEC. 46. Oaths Witnesses. and Production of Records. — When authorized by 
the Board, an official or employee of the GSIS shall have the power to administer 
oath and affirmation, take depositions. certify to official acts, and issue subpoena ad 
testificandum and subpoena duces tecum to compel the attendance of witnesses 
and the production of books, papers, correspondences and other records deemed 
necessary as evidence in connection with any question arising under this Act. Any 
case of contumacy shall be dealt with in accordance with the provisions of Section 
580 of the Revised Administrative Code. 
 
PART VI - FUNDS OF THE GSIS 
SEC. 47. Funds. — The GSIS shall administer the Social Insurance Fund, which 
consists of all contributions payable under Section 10 of this Act together with the 
earnings and accruals thereon. The said Fund shall be used to finance the benefits 
administered by the GSIS under this Act. In addition, the GSIS shall administer the 
following funds, to be known collectively as the "GSIS-Administered Funds": 
(a) The Optional Insurance Fund for the insurance coverage described in Section 
39 hereof, 
(b) The Employees' Compensation Insurance Fund created under P.D. 626, as 
amended, 
(c) 
The General Insurance Fund created under Act No. 656, as amended, and 


(d) Such other special funds existing or that may be created for special groups or 
persons rendering services to the government. 
 
The GSIS shall appropriate of its surplus for each fund under this section to 
guarantee the fulfillment of its obligations. The appropriate surplus shall be 
maintained to ensure the payment of under this Act and the other GSIS 
Administered Funds governed under the above-mentioned laws. The appropriated 
surplus cannot be used for any purposes other than those for which they were set 
aside and appropriated. 
 
The funds administered by the GSIS shall not be used for purposes Other than 
those provided for under th1S Act, The Board of Trustees may allocate an amount 
not exceeding fifty percent (50%) of the unappropriated surplus from any of the 
GSIS-Administered Funds, except the Employees' Compensation Insurance Fund, 
to the Social Insurance Fund: Provided, That the amount shall be used solely to 
meet the required reserves to fulfill the obligations of the GSIS to its members: 
Provide further, That it is approved by the President of the Philippines, upon the 
recommendation of the Governance Commission for Government-Owned and 
Controlled Corporations (GCG). 
 
No portion of the funds of the GSIS or income thereof shall accrue to the general 
fund of the national government and its political subdivisions, instrumentalities and 
other agencies including government-owned and controlled corporations except as 
may be allowed under this Act. 
 
SEC. 48. Deposits and Disbursements. — All revenues collected, and all accruals 
thereto shall deposited, administered and disbursed in accordance with the law. A 
maximum expense loading of twelve percent (12%) of the yearly total income and 
0.7% of the total admitted assets may be disbursed for administrative and 
operational expenses except as may be otherwise approved by the President of the 
Philippines on the basis of actuarial and management studies. 
 
SEC. 49. Investment of Funds. — The funds Of the GSIS which are not needed to 
meet the current obligations may be invested under such terms and conditions and 


rules and regulations as may be prescribed by the Board: Provided, That 
investments shall optimize the requirements of liquidity, safety/security and yield as 
embodied in formal Investment policy guidelines approved by the Board in order to 
ensure the actuarial solvency of the funds of the GSIS: Provided further, That the 
GSIS shall submit un annual report on all investments made to both Houses of 
Congress of the Philippines. The funds may be invested in the following: 
(a) 
in interest-bearing or zero-coupon bonds or securities or other 
evidence of indebtedness of the Government of the Philippines; 
(b) 
in interest-bearing or zero-coupon deposits or securities in any 
domestic bank doing business in the Philippines: Provided, That in the case of such 
deposits, these shall not exceed at any time the unimpaired capital and surplus or 
total private deposits of the depository bank, whichever is smaller: Provided further, 
That said bank has prior designation as a depository for the purpose by the 
Monetary Board of the Central Monetary Authority; 
(c) 
in short-and-medium term loans to members such as salary, policy, 
educational, emergency, stock purchase plan and other similar loans: Provided, That 
GSIS shall lend no less than forty percent (40%) of the investable fund of the GSIS 
Social Insurance Fund for these purposes; 
(d) 
in bonds, securities, promissory notes or other evidence of 
indebtedness of educational or medical institutions to finance the construction, 
improvement and maintenance of schools and hospitals; 
(e) 
in real estate property including shares of stocks involving real estate 
property and investments secured by first mortgages on real estate or other 
collaterals acceptable to the GSIS: Provided, that such investments shall, in the 
determination of the Board, redound to the benefit of the GSIS. its members, as well 
as the general public; 
(f) 
in debt instruments and other securities traded in the secondary 
markets; 
(g) 
in loans to or in bonds, debentures, promissory notes or other 
evidence of indebtedness of any solvent corporation created or ex1St1ng under the 
laws of the Philippines; 
(h) 
in common and preferred stocks of any solvent corporation or financial 
institution created or existing under the laws of the Philippines listed in the stock 
exchange subject to the requirements of liquidity, safety, security, and returns as 


embodied in formal investment policy guidelines approved by the GSIS Board of 
Trustees; 
(i) 
in domestic mutual funds including investments related to the 
operations of mutual funds; and 
(j) 
in foreign mutual funds and in foreign currency deposits or foreign 
currency-denominated 
debts, 
non-speculative 
equities 
and 
other 
financial 
instruments or other assets issued in accordance with existing laws of the countries 
where such financial instruments are issued: Provided, That these Instruments or 
assets are tradable and/or listed in a duly recognized exchange: Provided further, 
That not more than ten percent (10%) of the investable funds shall be invested 
abroad. 
 
SEC. 50. Records and Reports. — The GSIS shall keep and cause to keep such 
records as may be necessary for the purpose of making actuarial studies, 
calculations and valuations of the funds of the GSIS including such data needed in 
the computation of rates of disability, mortality, morbidity, separation and retirement 
among the members and any other information useful for the adjustment of the 
benefits of the members. The GSIS shall maintain appropriate books of accounts to 
record its assets, liabilities, income, expenses, receipts and disbursements of funds 
and other financial transactions and operations. 
 
SEC. 51. Exemption und Valuation of the Funds. — The GSIS shall make a 
periodic actuarial examination and valuation of its funds in accordance with 
accepted actuarial principles. 
 
SEC. 52. Exemption for Tax, Legal Process and Lien. — It is hereby reaffirmed 
as a State policy that the actuarial solvency of the funds of the GSIS shall be 
preserved and maintained at all times and that contribution rates necessary to 
sustain the benefits under this Act shall be kept as low as possible m order not 10 
burden the of the GSIS and their employers. Taxes imposed on the GSIS tend to 
impair the actuarial solvency of its funds and increase contribution rate necessary to 
sustain the benefits of this Act. Accordingly, notwithstanding any laws to the 
contrary, the GSIS, its revenues (including all accruals thereto), transactions and 
benefits paid shall remain exempt from all forms and kinds of direct or indirect taxes, 


assessments, fees, charges or duties imposed by the national or local government. 
These exemptions shall continue unless expressly, specifically, and categorically 
revoked or repealed, and any assessment against the GSIS as of the approval of 
this Act is hereby considered paid and cancelled. Consequently, all laws, 
ordinances, regulations, issuances, opinions or jurisprudence contrary to or in 
derogation of this provision are hereby deemed repealed, superseded and rendered 
ineffective and without legal force and effect. 
 
The exemptions provided herein shall neither be affected nor derogated by 
subsequent laws to the contrary unless this Section is expressly, specifically, and 
categorically revoked or repealed by law and a provision is enacted to substitute or 
replace the exemption referred to herein as an essential factor to maintain or protect 
the solvency of the fund, notwithstanding and independently of the guarantee of the 
national government to secure such solvency or liability. 
 
The funds and/or the properties of the GSIS referred to herein shall exempt from 
attachment, garnishment, execution, levy or other processes issued by the courts, 
quasi-judicial agencies or administrative bodies including Commission on Audit 
(COA) disallowances. The benefits, sums or monies corresponding to the benefits 
under this Act shall likewise be exempt from attachment, garnishment, execution, 
levy or other processes issued based on financial obligations or liability of any 
member, including any percuniary accountability arising from or caused or 
occasioned by his/her exercise or performance of his/her official functions or duties, 
or incurred relative to or in connection with his/her position or work except when 
his/her monetary liability, contractual or otherwise, is in favor of GSIS. 
 
PART VII- ADMINISTRATION 
SEC. 53. Implementing Body. — The Government Service Insurance System as 
created under Commonwealth Act No. 186 Shall Implement the provisions of this 
Act. 
 
SEC 54. Powers and Functions of the GSIS. — The GSIS shall exercise the 
following powers and functions: 


(a) 
Formulate, adopt, amend and/or rescind such rules and regulations as 
may be necessary to carry out the provisions and purposes of this Act, as well as the 
effective exercise of the powers and functions, and the discharge of duties and 
responsibilities of the GSIS. its officers and employees: Provided, that these 
implementing rules and regulations shall not contravene the provisions of this Act, 
nor shall it result in the diminution of any benefit provided by law. 
(b) 
Adopt or approve the annual and supplemental budget of receipts and 
expenditures including salaries and allowances of the GSIS personnel and to 
authorize such capital and operating expenditures and disbursements of the GSIS 
as may be necessary and for the effective management and operation of the GSIS; 
(c) 
Invest the funds of the GSIS, directly or indirectly. in accordance with 
the provisions of this Act; 
(d) 
Acquire. utilize or dispose of, in any manner recognized by law, real or 
personal property in the Philippines or elsewhere necessary to carry out the 
purposes of this Act; 
(e) 
Conduct continuing actuarial and statistical studies and valuations to 
determine the financial condition of the GSIS and. taking into consideration such 
studies and valuations and the limitations herein provided, re-adjust the benefits. 
contributions. premium rates. interest rates or the allocation or re-allocation of the 
funds to the contingencies covered'. 
(f)  
Have the power of succession; 
(g)  
Sue and be sued: 
(h)  
Enter into. make. perform and carry out contracts of every kind and 
description with any person, firm or association or corporation, domestic or foreign; 
(i)  
Carry on any other law-fill business whatsoever in pursuance of, or in 
connection with the provisions of this Act; 
(j)  
Have one or more offices in and outside Of the Philippines. and to 
conduct its business and exercise its powers throughout and in any part of the 
Republic of the Philippines and/or in any or all foreign countries, states and 
territories: Provided, That the GSIS shall maintain a branch office in every province 
where there exists a minimum of fifteen thousand (15,000) membership. 
(k)  
Borrow funds from any source, private or government, foreign or 
domestic. only as an incident to the securitization of housing mortgages Of the GSIS 
and on account Of Its receivables from any government or private entity. 


(I)  
Invest, own or otherwise participate in equity in any establishment. firm 
or entity. 
(m)  
Approve appointments in the GSIS. except appointments to positions 
which are policy determining. primarily confidential or highly technical in nature. 
according to the Civil Service rules and regulations: Provided. That all positions in 
the GSIS shall be governed by a compensation and position classification system 
and qualifications standards approved by the GSIS Board of Trustees based on a 
comprehensive job analysis and audit Of actual duties and responsibilities: Provided, 
further, That the compensation plan shall be comparable with the prevailing 
compensation plans in the private sector and shall be subject to the periodic review 
by the Board no more than once every four (4) years without prejudice to yearly 
merit reviews or Increases based on productivity and profitability. 
(n)  
Design and adopt an Early Retirement Incentive Plan (ERIP) and/or 
financial assistance for the purpose of retirement for its own personnel; 
(o)  
Fix and periodically review and adjust the rates of interest and other 
terms and conditions for loans and credits extended to members or other persons. 
whether natural or juridical, 
(p)  
Enter into agreement with the Social Security System or any Other 
entity. enterprise, corporation or partnership for the benefit of members transferring 
from one system to another subject to the provision or RA 7699. otherwise known as 
the Portability Law'. 
(q)  
Have the power to float proper instrument to liquefy long term maturity 
by pooling funds for short-term secondary market; 
(r)  
Submit annually. not later than June 30. a public report to the 
President of the Philippines and the Congress of the Philippines regarding its 
activities in the administration and enforcement of this Act during the preceding year 
Including information and recommendations on Board policies for the development 
and perfection of the programs of the GSIS. 
(s)  
Maintain a provident fund, which consists of contributions made by 
both the GSIS and its officials and employees and their earnings, for the payment of 
benefits to such officials and employees or their heirs under such terms and 
conditions as it may prescribe; 
(t)  
Approve and adopt guidelines affecting investments, insurance 
coverage of government properties. settlement of claims. disposition of acquired 


assets, privatization or expansion of subsidiaries, development of housing projects, 
increased and loan packages to members and the enforcement of the provisions of 
this Act. 
(u)  
Any provision of law to the contrary notwithstanding, to authorize the 
payment of extra remuneration to the officials and employees directly involved in the 
collection and/or remittance of contribution, loan re-payment and other monies due 
to the GSIS at such rates and under such conditions as it may adopt. Provided. That 
the best interest Of the GSIS shall be observed thereby; 
(v)  
Determine, fix and impose interest upon unpaid premiums due from 
employers and employees; 
(w)  
Ensure the collection or recovery of all indebtedness, liabilities and/or 
accountabilities, including unpaid premiums or contributions in favor of the GSIS 
arising from any cause or source whatsoever. due from all obligors. whether public 
or private. The GSIS shall demand payment or settlement of the obligations referred 
to herein within thirty (30) days from the date the obligation becomes due. and in the 
event of failure or refusal of the obligor or debtor to comply with the demand, to 
initiate or institute the necessary or proper actions or suits, criminal. Civil or 
administrative or otherwise. before the courts, tribunals, commissions. boards. or 
bodies of jurisdiction within thirty (30) days reckoned from the expiry date of the 
period fixed in the demand within winch to or settle the account; 
(x)  
Design and implement programs that will promote and mobilize 
savings and provide additional resources for social security expansion and at the 
same 
time 
afford 
individual 
members 
appropriate 
returns 
on 
their 
savings/investments. programs shall be so designed as to spur socio-economic 
Lake-off and maintain continued growth; and 
(y)  
Exercise such powers and perform such other acts as may be 
necessary, useful. incidental or auxiliary to carry out the provisions of this Act. or to 
attain the purposes and objectives of this Act. 
 
SEC 55. The Board of Trustees. — corporate powers and functions of the GSIS 
shall be vested in and exercised by the Board of Trustees composed of the 
President and General Manager of the GSIS and eight (8) other members to be 
appointed by the President of the Philippines. Of these, four (4) shall be active or 
retired members of the GSIS: at least one (l) shall a representative from the teachers 


recommended by either the Philippine Public School Teachers Association (PPSTA), 
the Philippine Association of School Superintendents (PASS), or by a leading 
national organization of teachers; at least two (2) shall be from the leading 
organizations or associations of government employees/retirees who possess the 
ethics. Experience and competence to represent the needs of their sectors; and one 
(1) shall be a member of the legal profession who at the time of appointment is also 
a member of the GSIS. The remaining five shall recognized individuals from any of 
the following fields of expertise banking and finance. investment, insurance. law. 
human resources, audit, management and information technology. The Trustees 
shall elect from among themselves a Chairman and a President and General 
Manager. who shall automatically be the vice-chairman. 
 
The Trustees, except the President and General Manager who shall cease as 
trustee upon his separation. shall hold office for six (6) years to ensure continuity 
and stability of programs and policies, or until their successors are duly appointed 
and qualified. Provided, that one (l) or more members may be replaced every year 
depending on the annual performance of the GSIS, subject to applicable laws: 
Provided further. That vacancy, other than through the expiration of the tern. shall be 
filled for the unexpired term only. The members of the Board shall be entitled to 
remuneration as may be provided by law, 
 
SEC. 56. Powers and Functions of the Board of Trustees. — The Board of 
Trustees shall have the following powers and functions: 
(a) 
to formulate the policies. guidelines and programs to effectively Carry 
Out the purposes of this Act, 
(b) 
to promulgate such rules and regulations as may be necessary or 
proper for the effective exercise of the powers and functions as well as the 
discharge of the duties and responsibility of the GSIS. its officers and employees; 
(c) 
the recommendation of the President and General Manager. to 
approve the annual and supplemental budget of receipts and expenditures of the 
GSIS. and authorize such operating and capital expenditures and disbursements of 
the GSIS us may be necessary or proper for the effective management. operation 
and administration of the GSIS; 


(d) 
upon the recommendation of the President and General Manager, to 
approve the GSIS' organizational and administrative structures and staffing pattern 
subject to existing civil service laws, rules and regulations, and to establish. fix. 
review. revise and adjust the appropriate compensation package for the officers and 
employees of the GSIS with reasonable allowances. incentives. bonuses, privileges, 
and other benefits as may be necessary or proper for the effective management. 
operation and administration of the GSIS. which shall be exempt from R.A. No. 
6758. otherwise known as the Salary Standardization Law, and R.A No, 7430. 
otherwise known as the Attrition Law. 
(e) 
to fix and periodically review and adjust the rates of interest and other 
terms and conditions for loans and credits extended to its members or other 
whether natural or juridical. 
(f) 
the provision of any law to the contrary notwithstanding. to compromise 
or release, in whole or in pan. any claim or settle liability to the GSIS. regardless of 
the amount involved. under such terms and conditions as it may impose for the best 
interest of the GSIS; 
(g) 
to approve and adopt guidelines affecting investments, insurance 
coverage of government properties, settlement of clams. disposition of acquired 
assets, development of housing projects, increased benefit and loan packages to 
members, and the enforcement of the provisions of this Act; 
(h) 
to determine, fix and impose interest upon unpaid or unremitted 
premiums and/or contributions, and 
(i) 
to do and perform any and all acts necessary, proper or incidental to 
the attainment of the purposes and objectives of this Act. 
 
SEC. 57. Positions in the GSIS. — The President and General Manager of the 
GSIS shall be its Chief Executive Officer and shall be appointed by the President of 
the Philippines. He/She shall be with management and investments expertise 
necessary for the effective performance or his duties and functions under this Act, 
The GSIS President and General Manager shall be assisted by one or more 
executive vice-presidents. senior vice-presidents, vice-presidents and managers in 
addition to the usual supervisory and rank and file positions who shall be appointed 
and removed by the President and General Manager with the approval of the Board, 
in accordance with the existing Civil Service rules and regulations 


 
SEC 58. Powers and Duties of the President and General Manager. — The 
President and General Manager of the GSIS shall, among others. execute and 
administer the policies and resolutions approved by the Board and direct and 
supervise the administration and operations of the GSIS, The President and General 
Manager, subject to the approval of the Board, shall appoint the personnel of the 
GSIS, remove, suspend or otherwise discipline them for cause in accordance with 
existing Civil Service rules and regulations and prescribe their dunes and 
qualifications to the end that only competent persons may be employed. 
 
SEC. 59.  Auditor. — 
(a) 
The Chairperson of the Commission on Audit shall the ex officio 
auditor of the GSIS and may assign the necessary personnel to assist the chairman 
of the commission on audit in the performance of his/her duties; and 
(b) 
The Chairperson of the Commission on Audit Or his/her authorized 
representative shall submit to the Board soon after the close of each calendar year, 
an audited statement showing the financial condition and progress Of the GSIS for 
the calendar year Just ended. 
 
SEC. 60. Legal Counsel. — The Government Corporate Counsel shall be the legal 
adviser and consultant of the GSIS. but the GSIS may assign to the Office of the 
Government Corporate Counsel (OGCC) cases for legal action or trial, issues for 
legal opinions, preparation and review of contracts/agreement and others, as the 
GSIS may decide or determine from time to time: Provided, however. That the 
present legal services group in the GSIS shall serve as its in-house legal counsel. 
 
SEC. 61. Powers of the Insurance Commission. — The Insurance Commissioner 
or his/her authorized representatives shall make an examination of the financial 
condition of the GSIS at least once every three (3) years: Provided, however. That 
the GSIS shall pay the Office of the Insurance Commissioner an amount equal to the 
actual incurred by the said office in the conduct of the examination, Including the 
salaries of the examiners and of the actuary of such examination for the actual time 
spent. 
 


The report of said examination shall submitted to the Board of Trustees and 
considered by the GSIS in the formulation of guidelines affecting insurance 
coverage of government properties. Copies thereof shall likewise be furnished to the 
Office of the President and the two Houses of Congress of the Philippines within five 
(5) days after the close of examination. 
 
PART VIII - GENERAL PROVISIONS 
SEC. 62. Dispensation of Social Insurance Benefits. — 
(a) 
The GSIS shall release the retirement benefits to the employee within thirty 
(30) days from the actual date of retirement: Provided. That all requirements 
are submitted to the GSIS at least ninety (90) days prior to the effective date of 
the retirement; 
(b) 
The GSIS shall not process nor adjudicate retirement claims under R.N No. 
1616 which function shall be vested in the agencies concerned, who shall 
process and pay the gratuities of thew employees. The GSIS shall process and 
adjudicate only the refund of retirement premium under R.A No. 910, The 
Board shall adopt the proper rules and procedures for the Implementation Of 
this provision. 
 
SEC. 63. Development and Disposition Acquired Assets. — The GSIS shall 
have the right to develop and dispose of its acquired assets obtained in the ordinary 
course of its business. To add value to, improve profitability on, and/or enhance the 
marketability of an acquired asset. the GSIS may further develop/renovate Its 
assets. either with Its own capital or through a joint venture arrangement with private 
companies or individuals. 
 
The GSIS may sell its acquired assets in accordance with existing Commission on 
Audit (COA) rules and regulations for an amount not lower than the current market 
value of the property. For this purpose. the GSIS shall conduct an annual appraisal 
of Its property or acquired assets to determine its current market value; All notices of 
sale shall be published in newspapers of general circulation. 
 


No injunction or restraining order issued by any Court. commission. tribunal or Office 
shall bar. impede or delay the sale and disposition by the GSIS of its acquired 
assets except on questions of ownership and national or public interest 
 
SEC. 64. Government Assistance to the GSIS. — The GSIS may call upon any 
employer for such assistance as may be necessary in the discharge of its duties and 
functions. 
 
PART IX - SANCTIONS 
SEC. 65. Penalty. — 
(a) 
The heads of the offices of the national government. its political 
subdivisions, branches, agencies and instrumentalities, including government-
owned or controlled corporations and government financial Institutions, and the 
personnel of such offices who are involved in the collection of premium 
contributions. loan amortization and other accounts due the GSIS who shall fail, 
refuse or delay the payment, turnover. remittance or delivery of such accounts to 
the GSIS Within thirty (30) days from the time that the same shall have been due 
and demandable shall. upon conviction by final Judgment, suffer the penalties of 
imprisonment of not less than twenty (20) years nor more than thirty (30) years and 
a fine of not less than Five Hundred Thousand Pesos (5,000,000.00) nor more than 
Five Million Pesos (5,000,000.00) and in addition. shall suffer absolute perpetual 
disqualification from holding public office and other accessory penalties as may be 
provided by law. 
(b) 
The treasurer. finance officer. cashier. disbursing officer, budget officer 
or other official or employee who fails to include in the annual budget the amount 
corresponding to the employer and employee contributions. or who fails or refuses 
or delays to remit to the GSIS by more than thirty (30) days from the time such 
amount becomes due and demandable, or to deduct the monthly contributions of 
the employee shall, upon conviction by final Judgment. suffer the penalties of 
imprisonment from twelve (12) years and one (1) day to twenty (20) years and a fine 
of not less than Five Hundred Thousand Pesos (P500,000.00) nor more than Two 
Million Pesos (2,000.000.00) and, in addition, shall suffer absolute perpetual 
disqualification from holding public office. 


(c) 
Any employee, who after deducting the monthly contribution or loan 
amortization from a member's compensation fails to remit the same to the GSIS 
within thirty (30) days from the date they should have been remitted under Section 
11(b) shall be presumed to have misappropriated such contribution or loan 
amortization and shall conviction by final judgment, suffer the penalties of 
imprisonment from twelve (12) years and one (1) day to twenty (20) years and a fine 
of less than Five Hundred Thousand Pesos (500.000.00) nor more than Two Million 
Pesos 
(2,000.000.00) 
and, 
in 
addition, 
shall 
suffer 
absolute 
perpetual 
disqualification from holding public office. 
(d) 
Any employee or member who receives or keeps fund or property 
belonging payable or deliverable to the GSIS and appropriates the same. or takes 
or misappropriates or uses the same to any purpose other than that authorized by 
this Act or permits another person to take. misappropriate or use said fund or by 
expressly consenting thereto. or through abandonment or negligence. or is 
otherwise guilty of the misappropriation of said fund or property, in whole or in part, 
shall be punished by a fine of not less than Five Hundred Thousand Pesos 
(500.000.00) nor more than Two Million Pesos (2,000.000.00) and by imprisonment 
of not less than twelve (12) years and one (1) day to twenty (20) years, and in 
addition, shall suffer absolute perpetual disqualification from holding public office. 
(e) 
Any person found to have participated directly or indirectly in the 
commission of fraud, collusion. falsification, or misrepresentation in any transaction 
with the GSIS whether for himself/herself or for some other persons, shall be 
punished by a fine of not less than Five Hundred Thousand Pesos (500,000.00) nor 
more than Two Million Pesos (2,000.000.00) and by Imprisonment of not less than 
six (6) years and one (1) day to twelve (12) years, and in addition. shall suffer 
absolute perpetual disqualification from holding public office. 
(f) 
Whoever shall obtain or receive any money or check invoking any 
provision of this Act or any agreement hereunder, without being entitled thereto with 
the intent to defraud any member, any employer, the GSIS, or any third party. shall 
be punished by a fine of not less than Five Hundred Thousand Pesos (500,00.00) 
nor more than One Million Pesos (1,000.000.00) and by imprisonment of not less 
than six (6) years and one (1) day to twelve (12) years and such other accessory 
penalties as may be provided by law. 


(g) 
Whoever fails or refuses to comply with the provisions of this Act or 
with the rules and regulations adopted by the GSIS shall punished by a fine of not 
less than Five Hundred Thousand Pesos (P500,00.00) nor more than One Million 
Pesos (1,000.000.00) and by imprisonment of not less than six (6) years and one 
(1) day to twelve (12) years, and such other accessory penalties as may be 
provided by law. 
(h) 
The officers and/or personnel referred to in paragraph (a) of this 
Section shall be liable not only criminally but also civilly to the GSIS or to the 
employee or member concerned in the form of damages, Including surcharges and 
interests. 
(i) 
For the charges or complaints referred to in paragraph (a) of this 
Section. the liabilities therein set forth shall be construed as waiver of the State of its 
immunity from suit, hence, the above-mentioned offices and/or personnel may not 
invoke the defense of non-suability of the State. 
(j) 
It is presumed that all acts of the Board are made in the exercise of 
their regular functions. In the event of failure, of the members of the Board, the 
President and General Manager, and/or other officials of the GSIS to comply with 
their duties and obligations under this Act, they shall be subjected to suspension of 
not less than six (6) months nor more than one (1) year or a fine of not less than 
Five Hundred Thousand Pesos (P500,000.00) nor more than Two Million Pesos 
(P2,000,000.00) without prejudice to any criminal. civil. or administrative liability 
which may also arise therefrom. 
Criminal and civil actions arising from violations of the provisions of this Act 
may be commenced by the GSIS or by the aggrieved member. either under this Act 
or. in appropriate cases, under the Revised Penal Code and other special laws 
 
SEC. 66. Implementing Rules and Regulations. — The implementing rules and 
regulations to carry out the provisions of this Act shall be adopted and promulgated 
by the GSIS. in consultation with the Governance Commission on Government-
Owned and Controlled Corporations (GCG) not later than ninety (90) days after the 
approval of this Act. 
 
SEC. 67 Non-impairment of Benefits, Powers. Jurisdiction, Rights, Privileges, 
Functions and Activities. — Nothing in this Act shall be construed to repeal. 


amend or limit any provision of existing laws, Presidential Decrees, Letters of 
Instructions, not otherwise specifically inconsistent with the provisions of this Act. 
 
SEC. 68. Exclusiveness of Benefits. — Whenever other laws provide similar 
benefits for the same contingencies covered by this Act, the who qualifies for these 
benefits shall have the option to choose which benefits Will be paid to him/her 
However. If the benefits provided by the law chosen are less than the benefits 
provided under this Act, the GSIS shall only the difference. 
 
SEC. 69. Non-Conversion of Mode of Retirement. — No change in the mode of 
retirement chosen shall be allowed once the proceeds, or a portion thereof. of the 
member's retirement claim under a particular law were received by the member. 
whether through check, e-crediting to his or her GSIS eCard/Unified Multi-purpose 
Identification (UMID) Card. or such other manner as may be approved by the Board 
of Trustees 
 
SEC. 70. Appropriations. — The amount necessary to carry out the provisions of 
this Act shall be included in the respective budgets of the agencies in the national 
government obligation program of the year following its enactment into law and 
thereafter. 
 
SEC. 71. Separability Clause.  — Should any provision of this Act or any part 
thereof be declared invalid, the other provisions, so far as they are separable from 
the invalid ones, shall remain in force and effect. 
 
SEC. 72. Repealing Clause. — Presidential Decree No. 1146, Republic Act No. 
8291, Presidential Decree No. 712, and Section 9 of Republic Act No 656, as 
amended by Presidential Decree No 245, are hereby expressly repealed. All other 
laws and any other law or parts of law specifically inconsistent herewith are hereby 
repealed or modified accordingly Provided. That the rights under the existing laws, 
rules and regulations vested upon or acquired by an employee who is already in the 
service as of the effectivity of this Act shall remain in force and effect Provided, 
further, that subsequent to the effectivity of this Act, a new employee or an employee 


who has previously retired or separated and is reemployed in the service shall be 
covered by the provisions of this Act. 
 
SEC 73, Effectivity. — This Act shall take effect fifteen (l5) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,