13th CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
FIRST REGULAR SESSION 
) 
S. BILL NO. 
INTRODUCED BY HONORABLE RALPH G. RECTO 
EXPLANATORY NOTE 
This bill seeks to reduce the ceiling on the administrative costs of the Government 
Service Insurance System (GSIS) from 12% to 8% to safeguard the mandated 
contribution of government employees to the system. 
Low paying members resort to ‘belt-tightening’ measures as mandatory contributions are 
deducted from their meager earnings. These contributions, 51s foreseen by the members, 
will help them face the remaining ‘best twilight years’ of their lives. I 
The GSIS, however, is besieged with unsound investment decisions and imprudent 
administrative policies that have led public servants to howl in protest and resound alarm 
over the scandalous and extravagant lifestyle of its leadership. 
The public trust and social fimd for which the GSIS stands for appears to be losing 
ground in light of the publicized anomalies which threaten the contributions of the 
members and their right to reap the fruit of their noble profession of serving the people. 
Hence, the immediate passage of this bill is earnestly sough 


13TH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S. BILLNO. 
Introduced by SENATOR RALPH G. RECTO 
AN ACT 
RATIONALIZING THE DISBURSEMENT OF FUNDS BY THE GOVERNhlENT 
SERVICE INSURANCE SYSTEM (GSIS) FOR ADiMINISTRATIVE AND 
OPERATIKG EXPEXSES, THEREBY MIENDING SECTION 35 OF REPUBLIC 
ACT NUMBERED 8291 OTHERM ISE KNOWN AS THE GSIS ACT OF 1997 
Re it enncred by rhe Senme trnif rhe lforrse of Represenrutrver oj rhe Phrlrpprne~ i n  
Congress crssemhled 
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SECTION 1. Section 35 of Republic Act No. 8291, otherwise known as the 
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“Government Service Insurance Act of 1997,” is hereby amended to read as 
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follows: 
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“Sec. 35. 
Deposits and Disbursements. - All revenues 
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collected and all accruals thereto shall be deposited, administered and 
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disbursed in accordance with the law. A maximum expense loading of 
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[twelve] EIGHT percent ([12]8%) of the yearly revenues from all sources 
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may be disbursed for administrative and operational expenses as may be 
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otherwise approved by the President of the Philippines on the basis of 
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actuarial and management studies.” 
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SEC. 3. 
Repealing Clause. - All other laws, decrees, orders, issuances 
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and rules and regulations or parts thereof inconsistent with this Act are hereby amended 
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or repealed accordingly. 
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SEC. 4. 
Separability Clause. - The provisions of this Act are hereby 
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declared to be separable and, in the event any of such provisions is declared 
SEC. 2. 
Implementing Rules and Regulations. - The Department of Finance 
@OF) and other appropriate government agencies shall promulgate rules and regulations 
necessary for the effective implementation of this Act. 
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force and effect. 
unconstitutional, the order provision which is not affected thereby shall remain in,fidl 
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SEC. 5. 
Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) newspapers of general circulation. 
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Approved, 
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