NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

4.8. No, 3188

Introduced by Representative Ralph G. Recto

AN ACT
INSTITUTIONALIZING THE RIGHTS OF GOVERNMENT SERVICE
INSURANCE SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL
REPRESENTATION IN THE GSIS BOARD, ENSURING PROMPT PAYMENT OF
ALL THEIR BENEFITS, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Today, there are approximately 1.7 million government employees in the
country. They are the hardworking civil servants whom we engage with whenever
we avail of services from various government agencies. They serve with honor and
competence despite grueling workloads, uncomfortable work conditions, and meager

salaries.

In recognition of the valuable services rendered by the government
workforce, the Government Service Insurance System (GSIS) was established
through Republic Act (R.A.) No. 8291, otherwise known as the Government
Insurance Act of 1997, to respond to the needs of the growing bureaucracy. Under
this law, the GSIS is mandated to insure its members against the occurrence of
certain contingencies in exchange for their monthly premium contributions. Indeed,
through time, GSIS members and their dependents have relied primarily on the

benefits and claims from the GSIS as an additional resource to meet financial needs.

In the past, however, there have been several stories of misery,
disappointment, and desperation from many GSIS members. There were reported
complaints of delays in the receipt of payment for claims, non-updating and non-
reconciliation of members’ records and contributions, and inefficiency in providing


services, among others. These problems in one way or another have caused an

additional burden to its members.

To alleviate the problems encountered: by.the members of the GSIS, this bill
amends certain provisions of R.A. No. 8291 by institutionalizing a Members’ Rights
which perhaps is the first of its kind in the world as far as government pension
systems are concerned. In addition to their rights under existing laws, the GSIS
members are granted specific rights such as: a) Right to courteous and responsive
service; b) Right to information; c) Right to GSIS benefits; d) Right to expeditious
processing of claims, e) Right to be heard; and, f) Special Rights for the elderly.

The bill not only strengthens members’ rights but, as an added feature, also
spells out the responsibilities of the agency. This provision aims to address the
inefficiency and negligence of government agencies as employers in remitting
contributions to the GSIS. Under the bill, it is the main responsibility of the agencies
to remit employees’ and employer's contributions to the GSIS within the prescribed
time and in the prescribed format. The agencies concerned are also required to
promptly produce the documents generated by the agency and required to facilitate
the processing of a member's claim from GSIS.

The prescriptive period in claiming benefits is also lifted to allow members or
their designated beneficiaries to claim GSIS benefits for an indefinite period.

This bill also grants the Regional Trial Court (RTC) to have concurrent
jurisdiction over disputes arising from the grant of benefits provided by the law.
Hence, GSIS members will now have an alternative venue aside from the GSIS

should they opt to appeat decisions on their claims for benefits.

The proposed law likewise provides limitations on foreign investments so that
investible funds of the GSIS can be made available in the local market to finance

priority programs and projects of the government.

Additional representation for members of the GSIS board is also provided in
this bill. The Secretary of Education and Chairperson of the Civil Service Commission


shall be additional members of the board to further strengthen the representation of
teachers who compose approximately 60% of the GSIS membership and to promote

the welfare of the civil servants.

Lastly, to protect the rights of GSIS niembers, the bill adds penal provisions

for violations of the law.

While this bill is not expected to address all the problems of the GSIS, it is a
measure geared towards achieving a healthier and more responsive insurance
system that provides the benefits and services that our civil servants rightfully

deserve.

In light of the foregoing, immediate passage of the bill is earnestly sought.



NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
H. B. No. 3188

Introduced by Representative Ralph G. Recto

AN ACT
INSTITUTIONALIZING THE RIGHTS OF GOVERNMENT SERVICE
INSURANCE SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL
REPRESENTATION IN THE GSIS BOARD, ENSURING PROMPT PAYMENT OF
ALL THEIR BENEFITS, AND FOR OTHER PURPOSES

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

Section 1. Short Title. - This Act shall be known as the “Government Service
Insurance System (GSIS) Members’ Rights and Benefits 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
workers,

The State shall review and strengthen policies that advance and protect the
welfare of workers in the public sector.

The Constitution guarantees the right of all workers to participate in policy
and decision-making processes affecting their rights and benefits as may be
provided by law.

In the pursuit of these policies, 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;


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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; and

(e) Provide GSIS members and beneficiaries alternative venues in the
settlement of disputes.
Sec. 3. Section 2 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:
“Sec, 2. Definition of Terms. — Unless the context otherwise indicates,
the following terms shall mean:
“00x
“(f) Dependents — Dependents shall be the following:
(a) the legitimate spouse dependent for support upon the member or
pensioner; (b) legitimate, legitimated legally adopted child, including
the illegitimate child, who is unmarried, [Ret-gainfully-employed] not
over the age of majority, or is over the age of majority but
incapacitated and incapable of self-support due to mental or physical
[defect] DISABILITY acquired prior to the age of majority; and (c)
the parents dependent upon the member for support;
“XXX.”
Sec. 4. 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 be 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


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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 provided with copies of GSIS policies and regulations
pertaining to benefits and claims administration;

3. To be informed of the various modes and options in availing
benefits;

4. To receive accurate and updated membership data, records and
information, including records of premium remittances and loan
payments, among others;

5. To have GSIS data and records protected from unauthorized,
untawful or improper disclosure; and

6. To be informed in advance of documents required to facilitate
transaction, processing period 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 the service;

2. To avail the mode of retirement, among the different applicable
retirement laws and be allowed to change the preferred mode:
Provided, That the retirement pension package has not yet been
received;

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.

(a) 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


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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;

2. To participate in meaningful exchange of views in dialogues and
fora conducted by GSIS without fear of reprisal;

3. To be consulted on the policies and programs to be implemented
by the system;

4, To convey grievances and be accorded immediate response; and

5. To transact business with the GSIS in person or through electronic
access points.

Sec. 4-A, Special Rights for the Elderly, Disabled and Seriously-Il! Members,
Beneficiaries and Pensioners. - The following special rights are to be afforded to the
elderly, disabled and seriously-ill members, beneficiaries and pensioners, to wit:

1. To be provided special access lanes;

2. To be prioritized in the processing and releasing of claims and
benefits;

3. To be given preference in the dissemination of information
pertaining to policies; and

4. To be accorded leniency in the submission of documents: Provided,
That there is substantial compliance with the requirements
prescribed by the GSIS.

Sec. 5. Agency’s/Employer’s Responsibilities. - The government agencies
covered by the GSIS Act, as employers, shall have the following responsibilities:

1, To remit employees’ and employers’ contributions to the GSIS within
the prescribed time mandated by the GSIS Act;

2. To provide promptly documents from the agency required to
facilitate the processing of documents and claims;

3. To provide additional documents as necessary to reconcile the

records of accounts; and


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4. To inform the GSIS, through their agency authorized officers, of any
update pertaining to personal or service records that may affect the
processing of claims and benefits.

Sec. 6. Section 7 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:
“Sec. 7. Interests on Delayed Remittances. — Agencies which delay the
remittance of any and all monies due the GSIS shall be charged interests as
may be prescribed by the Board but not[less] MORE than two percent (2%)
simple interest per month. Such interest shall be paid by the employers
concerned.”
Sec. 7. Section 28 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:
“Sec. 28. Prescription. - Claims for benefits under this Act [exeept-for
fife-and-reti ] shall [prescribe-afterfour_(4)-years-from-the-date-of
contingerey} BE IMPRESCRIPTIBLE.”
Sec. 8, Section 30 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:
“Sec. 30. Settlement of Disputes. - The GSIS AND THE REGIONAL
TRIAL COURT (RTC) shall have original and [exclusive] CONCURRENT
jurisdiction to settle any dispute arising under this Act and any other laws
administered by the GSIS.

xx."
Sec. 9. Section 31 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:
“Sec. 31. Appeals. - Appeals from any decision or award of the Board
OR RTC shall be governed by [Rules-43-and-45-of] THE PERTINENT
RULES FOUND IN the 1997 Rules of Civil Procedure [adopted—by—the
Supreme—Court-on-April-8,1997-which-will-take—effeet-onJuly-+4997]:
Provided, That pending cases and those filed prior to July 1, 1997 shall be
governed by the applicable rules of procedure: Provided, further, That the
appeal shall take precedence over all other cases except criminal cases when
the penalty of life imprisonment or death or reclusion perpetua is imposable.

Bi


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XXX.

Sec. 10. Section 36 of Republic Act No. 8291, otherwise known as “The

Government Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 36. Investment of Funds. — xxx
XXX

*(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 listed in bourses of respective countries where
these instruments or assets are issued: Provided, further, That the issuing
company has proven track record of profitability over the last three (3) years
and payment of dividends at least once over the same period: PROVIDED,
FINALLY, THAT NOT MORE THAN FIVE PERCENT (5%) OF THE
ABOVE-MENTIONED FUNDS SHALL BE INVESTED ABROAD.”
Sec, 11. Section 42 of Republic Act No. 8291, otherwise known as “The

Government Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 42. The Board of Trustees; Its Composition; Tenure and
Compensation. - The 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)] TEN (10) other members
to be appointed by the President of the Philippines, one (1) of whom shall be
either the President of the Philippine Public School Teachers Association
(PPSTA) or the President of the Philippine Association of School
Superintendents (PASS), THE SECRETARY OF THE DEPARTMENT OF
EDUCATION (DepEd), THE CHAIRPERSON OF THE CIVIL SERVICE
COMMISSION (CSC), another two (2) shali represent the leading
organizations or associations of government employees/retirees, AND
another four (4) from the banking, finance, investment, and insurance
sectors, and one (1) recognized member of the legal profession who at the
time of appointment is also a member of the GSIS. The Trustees shall elect
from among themselves a Chair[manJPERSON while the President and

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vice-chair[man]PERSON, to comply with the provisions of paragraphS (R)
AND (w) of Section 41 AND SECTION 49 hereof, shall subject them to
imprisonment of not less than six (6) months nor more than one (1) year or a
fine of not less than [Five] TEN thousand pesos (P[5] 10,000.00) nor more
than [FeaJTWENTY thousand pesos (P[49]20,000.00) without prejudice to
any civil or administrative liability which may also arise therefrom[:]:
PROVIDED, THAT IN CASE THE GSIS FAILS TO COMPLY WITHOUT
VALID AND JUSTIFIABLE REASON WITH THE REQUIREMENTS
REFERRED TO IN SECTION 49 OF THIS ACT, A PENALTY OF NOT
MORE THAN TWO PERCENT (2%) SIMPLE INTEREST SHALL BE
CHARGED PER MONTH FROM THE GSIS: PROVIDED, HOWEVER,
THAT IN CASE THE RELEASE OF THE RETIREMENT BENEFITS
REFERRED TO IN SECTION 49 OF THIS ACT COULD NOT BE
ACCOMPLISHED DUE TO FORCE MAJEURE AND OTHER
INSUPERABLE CAUSES, THE PENALTY OF IMPRISONMENT AND FINE
IMPOSED UNDER THIS PARAGRAPH SHALL NOT APPLY.

“Criminal 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. 15. 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 Civil Service Commission (CSC) not later than
ninety (90) days after the approval of this Act.

Sec. 16. Separability Clause. — If any part or provision of this Act shall be held
to be unconstitutional or invalid, other parts or provisions hereof which are not
affected thereby shall continue to be in full force and effect.

Sec. 17. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, or parts thereof which are inconsistent with this Act are hereby
repealed, amended or modified accordingly.


General Manager of the GSIS shall automatically be the vice-
chair[man] PERSON.

YOK.

Sec. 12. Section 43 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 43. Powers and Functions of the Board of Trustees. — xxx

“sox
*(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 Republic Act No.
6758, otherwise known as the Salary Standardization Law and Republic Act
No. 7430, otherwise known as the Attrition Law.

300K.
Sec. 13. Section 49 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:
“Sec. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS
shall pay the retirement benefits to the employee on his last day of service in
the government: Provided, That all requirements are submitted to the GSIS
[within-a-reasenable-peried] SIXTY (60) DAYS prior to the effective date of
the retirement;
00."
Sec. 14. Section 52 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:
“Sec. 52. Penalty. — xxx
ox
“@) Failure of the PRESIDENT AND GENERAL MANAGER AS WELL

AS Members of the GSIS Board, including the chair[man]PERSON and the

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Sec. 18. Fffectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,