RECIIVED

Republic of the Philippines 04 AUG 2016

HOUSE OF REPRESENTATIVES —.
Quezon City, Philippines taal
SEVENTEENTH CONGRESS — “=
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+” House Bill No. BILLS © % 9a

SENT ATIVES

Introduced by Hon. WILTER “SHARKY” WEE PALMA II

EXPLANATORY NOTE

This bill seeks to include elected and appointed barangay officials as compulsory
members of the Government Service Insurance System (GSIS), amending for this purpose
Republic Act 8291, otherwise known as “The Government Service Insurance System Act of
1997".

Barangay officials work in the frontline of government services by serving as the
primary planning and implementing workforce of government programs and activities.
Their valuable contribution to the community through the delivery of basic social services as
well as the maintenance of peace and order cannot be overlooked.

The GSIS is a social security institution created by Commonwealth Act No. 186 and
later amended under Republic Act No. 8291. It was created as a social insurance institution
under a defined benefit scheme, which insures its members against the occurrence of
certain contingencies in exchange for their monthly premium contributions.

Republic Act No. 8291, specifically Section 2(d), defines Employee or Member as any
person, receiving compensation while in the service of an employer, whether by election or
appointment, irrespective of status of appointment, including barangay and sanggunian
officials. Compensation as defined in Section 2(i) of the said law however, refers to the basic
pay or salary received by an employee, pursuant to his election/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.

The said provisions of R.A. 8291 therefore, are not in harmony with Republic Act
7160, otherwise known as the Local Government Code of the Philippines. The latter
provides under Section 393 (a) that, barangay officials, including barangay tanods and
members of the lupong tagapamayapa, shall only receive honoraria. Honorarium is defined
in the Merriam-Webster dictionary as “a payment for a service (as making a speech) on
which custom or propriety forbids a price to be set.”


Hence, the urgent need to pass this measure to give recognition to our elective
barangay officials for their untiring efforts and genuine public service to the people and
their communities. In addition, this bill is intended to empower the barangay officials and
raise their economic and social status by providing them with decent and comfortable living
conditions after they retire from government service,

Due to the foregoing reasons, the immediate passage of this bill is earnestly sought.

aaa
WILTER “SHARKY” WEE PALMA II
1 District, Zamboanga Sibugay

Ps


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SEVENTEENTH CONGRESS
1 Regular Session

65

House Bill No.

Introduced By Hon. WILTER “SHARKY” WEE PALMA II

AN ACT
SEEKING TO INCLUDE BARANGAY OFFICIALS IN THE COMPULSORY
MEMBERSHIP OF THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS),
AMENDING FOR THIS PURPOSE RA 8291 AND APPROPRIATING FUNDS
THEREFOR

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

SECTION 1. Declaration of Policy. — It is hereby declared the policy of
the State to promote the welfare and quality of life of our elective barangay
officials. The State values the services of its barangay officials and shall
endeavor to provide them with insurance coverage to ensure efficient and
effective performance of their duties and functions.

SECTION 2. Barangay Officials - For purposes of this Act, barangay
officials shall refer to the Punong Barangay and the Sangguniang Barangay
Members, whether elected or appointed in accordance with Section 45 of the
Local Government Code.

SECTION 3. Section 2(d) of Republic Act No. 8291 is hereby further
amended to read as follows:

“SECTION 2. Definition of Terms. —
XXX XXX XXX


(d) Employee or Member — Any person, receiving
compensation while in the service of an employer as defined
herein, whether by election or appointment, irrespective of
status of appointment, including barangay and sanggunian
officials WHETHER OR NOT RECEIVING FIXED MONTHLY
COMPENSATION,’

XXX XXX XXX”

SECTION 4. Section 2(i) of the same Republic Act is hereby further
amended to read as follows:

“SECTION 2. Definition of Terms. —
XXX XXX XXX

i) Compensation — The basic pay or salary received by an
employee, pursuant to his election/appointment, excluding
per diems, bonuses, overtime pay, honoraria EXCEPT IN THE
CASE OF BARANGAY AND SANGGUNIAN OFFICIALS,
allowances and any other emoluments received in addition
to the basic pay which are not integrated into the basic pay
under existing laws;’

XXX XXX XXX”

SECTION 5. Compulsory Coverage. — All barangay officials shall be
included in the compulsory membership of the Government Service and
Insurance System under Section 3 of Republic Act No. 8291.

SECTION 6. Implementing Rules and Regulations. - The Government
Service and Insurance System, in coordination and consultation with the
Department of Interior and Local Governmentm, Liga ng Mga Barangays and
other agencies concerned, shall promulgate and adopt such rules and
guidelines as may be necessary for the proper implementation of this Act.


SECTION 7. The provinces, cities or municipalities, subject to the
availability of funds of the local government unit, may opt to contribute or
subsidize the monthly contributions of said barangay officials.

SECTION 8. Repealing Clause. — All laws, decrees, executive orders, rules
and regulations or parts thereof inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a national newspaper of
general circulation.

Approved,