Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL No. 4832

Introduced by Representative Jericho Jonas B. Nograles

EXPLANATORY NOTE

This bill seeks to upgrade the pension benefits under the Government Service
Insurance System, further amending Presidential Decree No. 1146, as amended, also
known as “The Government Service Insurance Act of 1997.”

Section 23 of Republic Act No. 10071, otherwise known as the “Prosecution
Service Act of 2010,” provides automatic increase in all pension benefits of retired
prosecutors of the National Prosecution Service whenever there is an increase in the
salary and allowance of the same position from which the prosecutor retired.

Also, Republic Act No. 9946 grants additional retirement, survivorship, and
other benefits to members of the Judiciary. Administrative Matter No. 17-08-01 SC
provides the same benefits to retirees and survivors of the Judiciary who retired before
the enactment of Republic Act No. 9946. Both afford the same automatic increase of
all pension benefits to retired members of the Judiciary whenever there is an increase
in the salary of the same position from which the member retired.

This proposed bill seeks to grant the same benefits to all members of the
Government Service Insurance System (GSIS). Like the prosecutors and judges, all
government employees during their service contributed to the GSIS fund. Certainly,
the wisdom behind the increase given to the Judiciary and the Prosecution Service
applies to all GSIS members. Therefore, it is but fitting that the pension benefits of
retired government employees be automatically increased corresponding to the
increase in the salary of the same position from which the employees or members
retired.

Having considered the foregoing, early approval of this bill is earnestly sought.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session
832

Introduced By : Representative Jericho Jonas B. Nograles

AN ACT
UPGRADING THE PENSION BENEFITS UNDER THE GOVERNMENT
SERVICE INSURANCE SYSTEM, FURTHER AMENDING FOR THE
PURPOSE PRESIDENTIAL DECREE NO. 1146, AS AMENDED, ALSO
KNOWN AS “THE GOVERNMENT SERVICE INSURANCE ACT OF
1997”

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

SECTION 1. Section 9 of Presidential Decree No. 1146, as amended,
also known as “The Government Service Insurance Act of 1997,” is hereby
further amended to read as follows:

“SEC. 9. Computation of Basic Monthly Pension. — (a) The

monthly pension is equal to:

“1) thirty-seven and one-half percent (37.5%) of the
revalued average monthly compensation; plus

“2) two and one-half percent (2.5%) of said revalued
average monthly compensation for each year of service in
excess of (15) years: Provided, That the basic monthly
pension shall not exceed ninety percent (90%) of the

average monthly compensation. d


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“(b) The basic monthly pension may be adjusted upon the
recommendation of the President and General Manager of the
GSIS and approved by the President of the Philippines in
accordance with the rules and regulations prescribed by the GSIS:
Provided, however, that the basic monthly pension shall not be less
than One thousand and three hundred pesos (P1,300.00):
Provided, further, that the basic monthly pension for those who
have rendered at least twenty (20) years of service after the
effectivity of this Act shall not be less than Two thousand four

hundred pesos (P2,400.00) a month,

“(c) CONSIDERING THAT RETIREES ALSO
CONTRIBUTED TO THE FUNDS OF THE GSIS, THE
BASIC MONTHLY PENSION AND ALL OTHER PENSION
BENEFITS OF RETIRED EMPLOYEES OR MEMBERS
SHALL BE AUTOMATICALLY INCREASED AND
INDEXED TO THE CORRESPONDING PERCENTAGE OF
INCREASE IN THE SALARIES OF THE FORMER
POSITIONS OR THEIR EQUIVALENT FROM WHICH

THE EMPLOYEES OR MEMBERS RETIRED.”


1 SEC. 2. This Act shall take effect fifteen (15) days after its publication in
2. the Official Gazette or in a newspaper of general circulation.

3 Approved,