Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

HOUSE BILL NO. 5084

Introduced by Honorable Rogelio J. Espina

EXPLANATORY NOTE

This bill seeks to mandate the Government Service Insurance System (GSIS)
to establish the Calamity Home Fund which will serve as the funding facility for
housing loans that may be availed of by eligible GSIS members whose houses are
destroyed by a calamity, amending for the purpose Presidential Decree (PD) No.
1146, as amended by Republic Act No, 8291, otherwise known as the
“Government Service Insurance System Act of 1997.”

Our country is often visited by a great number of destructive calamities.
When a storm, typhoon, storm surge, flood, volcanic eruption, earthquake or fire
occurs, homes are destroyed which results to displacement of families. Under the
proposed bill, once an area is declared under a state of calamity, the GSIS
members who are residents of that area are eligible for loans in case their houses
are destroyed because of the calamity.

Under PD 1146, as amended, it is the policy of the State to promote the
efficiency and welfare of workers, whether in public or private establishments, and
administer laws that grant to said workers social security and emergency
assistance. The GSIS was established mainly for the purpose of meeting the
increasing needs of workers in the government sector and their families through
social security and insurance programs. Under the law, GSIS is allowed to fix and
periodically adjust the rates of interest and other terms and conditions for loans and
credits being extended to its members. While it is recognized that GSIS should


definitely generate substantial income in order to meet its actuarial requirements,
the same should be balanced with the need to support the emergency financial
needs of its members without the need to charge exorbitant rates and without
delay. Ordinarily, it takes a considerable amount of time to release the loan
proceeds which, in case of a calamity or disaster, would be disadvantageous to
survivors who are in desperate need of money for the immediate repair of their
houses. It must be noted that the funds used by GSIS to finance the loans availed
of by government employees are their very own monetary contributions to GSIS.

Section 36 (c) of PD 1146, as amended, identifies the need for the GSIS to
respond to the needs of members particularly during emergency cases. This
proposed measure seeks to institutionalize the Calamity Home Fund which will
help members to rebuild houses destroyed during a calamity. Since the payment of
premium is automatically deductible from a member’s salary, it is only proper that
funds allocated for housing loans are also readily available to GSIS members. This
form of assistance will be of great help to improve the living conditions of many of
our public servants especially after a calamity. It will serve as a spring board for
those who had been affected by recent calamities by allowing them to start anew.

In view of the foregoing, approval of this bill is earnestly sought.



waeraursene

Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

HOUSE BILL No, _9084

Introduced by Honorable Rogelio J. Espina

AN ACT
MANDATING THE GOVERNMENT SERVICE INSURANCE SYSTEM
(GSIS) TO ESTABLISH THE CALAMITY HOME FUND, AMENDING
FOR THE PURPOSE PRESIDENTIAL DECREE NO. 1146, AS
AMENDED BY REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS
THE “GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997”

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress Assembled:

SECTION 1. — Section 36 (c) of Presidential Decree No. 1146, as
amended by Republic Act No. 8291, is hereby further amended to read as
follows

“SEC. 36. Investments 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 satisfy the requirements of liquidity, safety/security and yield
in order to ensure the actuarial solvency of the funds of the GSIS:
Provided, further, That the GSIS shall submit an annual report on
all investments made to both Houses of Congress of the
Philippines, to wit

(a) xxx xX xX

(b) xxx xx XXX


28

29

30

a1

32

34

(c) In direct housing loans to members and group housing
projects secured by first mortgage, giving priority to the low
income groups and in short- and medium-term loans to members
such as salary, policy educational, emergency, stock purchase plan
and other similar loans: Provided, That no less than forty percent
(40%) of the investable fund of the GSIS Social Insurance Fund
shall be invested for these purposes: PROVIDED, FURTHER,
THAT THE GSIS SHALL ESTABLSIH A HOUSING LOAN
FACILITY, TO BE KNOWN AS THE CALAMITY HOME
FUND, FOR MEMBERS WHO RESIDE IN AN AREA
WHICH HAS BEEN DECLARED UNDER A STATE OF
CALAMITY BY THE PRESIDENT OR BY THE LOCAL
SANGGUNIAN AND WHOSE HOUSES WERE EITHER
TOTALLY OR PARTIALLY DESTROYED BY THE
CALAMITY: PROVIDED, FINALLY, THAT THE GSIS
SHALL ENSURE THE IMMEDIATE RELEASE OF THE
LOAN PROCEEDS FOR ELIGIBLE GSIS MEMBERS
AVAILING OF THE HOUSING LOAN UNDER THE
CALAMITY HOME FUND NOT LATER THAN FIFTEEN
(15) DAYS FROM THE SUBMISSION OF COMPLETE
LOAN REQUIREMENTS;

XXX axx com

SEC. 2. Implementing Rules and Regulations, — Within sixty (60) days

from the approval of this Act, the GSIS shall promulgate the necessary rules and
regulations for the effective implementation of this Act.

SEC. 3. Repealing Clause. — All laws, decrees orders, rules and

regulations and other issuances or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved.