" 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
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OF THE PHILIPPINES 
) 
First Regular Session 
) 
'1:3 
JUL -1 
P5 :19 
SENATE 
S.No. 254 
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--------------------------------------------------
Introduced by Senator Ralph G. Recto, 
Explanatory Note 
Today, there are approximately 1.4 million government employees in the country. They 
are the hardworking civil servants whom we engage 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 of 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 daily needs. 
However in the recent past, there have been a number of 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 additiorial burden to its members. 
In order 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, j) Special Rights 
for the elderly. 
The bill not only strengthens members' rights but, as an added feature, it also spells out 
the responsibilities of the agency employers. This provision aims to address, 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 required to facilitate the 
processing ofa member's claim from GSIS. 
The prescriptive period in claiming of 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 appeal decisions on their 
claims for benefits. 


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.... 
The proposed law likewise provides limitation 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 in the GSIS board is also provided in this bill. The 
Secretary of Education and Chairman 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, in order to protect the rights of GSIS members, the bill adds penal provisions fIDr 
violations ofthe 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 the light of the foregoing, immediate passage of the bill is.;e"....., 
rnl<sbc 


SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 254 
Introduced by Senator Ralph G. Recto 
AN ACT 
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'13 
JUL -1 
P5 :19 
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 the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. -This Act shall be known as the "GSIS Members' 
2 
Rights and Benefits Act of2013." 
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Sec. 2. Declaration of Policy. - It is a declared policy of the State to provide, 
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develop and promote a sound socia!" security system responsive to the needs of its 
I 
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workers. 
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Furthermore, the State shall review and strengthen policies that advance and 
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protect the welfare of workers in the public sector. 
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Likewise,. the Constitution guarantees the right of all workers to participate in 
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policy and decision-making processes affecting their rights and benefits as may be 
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provided by law. 
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Towards this end, the State shall: 
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(a) Ensure the adoption of policies beneficial to GSIS members paving the 
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way for a responsible, integrated and transparent social security system; 
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(b) Provide greater representation for members at the highest policy-
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making level of the GSIS; 
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(c) Insulate the Social Insurance Fund (SIF) from dissipation due to the 
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volatility of the global economy; 
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(d) Ensure that top-level officials of the GSIS are held accountable for 
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mismanagement and inefficiencies in the delivery of services to members and 
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beneficiaries; and 


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(e) Provide GSIS members and beneficiaries alternative venues III the 
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settlement of disputes. 
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Sec. 3. Section 2 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 follows: 
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"Sec. 2. Definition a/Terms. - Unless the context otherwise indicates, the 
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following terms shall mean: 
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"xxx 
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"(f) Dependents - Dependents shall be the following: 
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(a) the legitimate spouse dependent for support upon the member or pensioner; (b) 
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legitimate, legitimated legally adopted child, including the illegitimate child, who 
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is unmarried, [not gainfully employed] not over the age of majority, or is over the 
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age of majority but incapacitated and incapable of self-support due to mental or 
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physical [defect] DISABILITY acquired prior to the age of majority; and (c) the 
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parents dependent upon the member for support; 
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"xxx 
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Sec. 4. Members' Rights. - In addition to their rights under existing laws, the 
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members shall have the following rights: 
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(a) Right to Courteous and Responsive Service 
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1. To be considered a GSIS member from the first day of government 
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service; 
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2. To be provided prompt and accurate service; 
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3. To be accorded respect by the executives and employees of the GSIS; 
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and 
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4. To be afforded comfortable and customer-friendly facilities when 
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transacting with the GSIS. 
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(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; 


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2. 
To be provided with copies of GSIS policies and regulations 
pertaining to benefits and claims administration; 
3. To be informed ofthe 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; 
5. To have GSIS data and records protected from unauthorized, unlawful 
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. 
(d) 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 
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; 


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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 
7 
access points. 
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Sec. 4-A. Special Rights for the Elderly. Disabled and Seriously-Ill Members. 
9 
Beneficiaries and Pensioners. - The following special rights are to be afforded to the 
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elderly, disabled and seriously-ill members, beneficiaries and pensioners, to wit: 
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1. To be provided special access lanes; 
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2. To be prioritized in the processing and releasing of claims and 
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benefits; 
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3. To be given preference in the dissemination of information pertaining 
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to policies; and 
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4. To be.accorded leniency in the submission of documents: Provided, 
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That there is substantial compliance with the requirements prescribed 
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by GSIS. 
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Sec. 5. 
Agency's/ Employer's Responsibilities. - The government agenCIes 
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covered by the GSIS Act, as employers, shall have the following responsibilities: 
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1. To remit employees' and employers' contributions to the GSIS within 
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the prescribed time mandated by the GSIS Act; 
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2. To provide promptly documents required to facilitate the processing of 
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documents and claims; 
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3. To provide additional documents as necessary to reconcile the records 
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of accounts; and 
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4. To inform GSIS, through their agency authorized officers, of any update 
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pertaining to personal or service records that may affect the processing 
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of claims and benefits. 


1 
Sec. 6. Section 7 of Republic Act No. 8291, otherwise known as "The 
2 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
3 
"Sec. 7. Interests on Delayed Remittances. - Agencies which delay the 
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remittance of any and all monies due the GSIS shall be charged interests as may 
5 
be prescribed by the Board but not [less] MORE than two percent (2%) simple 
6 
interest per month. Such interest shall be paid by the employers concerned. 
7 
Sec. 7. Section 28 of Republic Act No. 8291, otherwise known as "The 
8 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
9 
"Sec. 28. Prescription. - Claims for benefits under this Act [except for life 
10 
and retirement] shall NOT prescribe. [after four (4) years from the date of 
11 
contingency.] 
12 
Sec. 8. 
Section 30 of Republic Act No. 8291, otherwise known as "The 
13 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
14 
"Sec. 30. Settlement of Disputes. - The GSIS AND THE REGIONAL 
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TRIAL COURT (RTC) shall have original and [exclusive]CONCURRENT 
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jurisdiction to settle any dispute arising under this Act and any other laws 
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administered by the GSIS. 
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"xxx 
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Sec. 9. Section 31 of Republic Act No. 8291, otherwise known as "The 
20 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
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"Sec. 31. Appeals. - Appeals from any decision or award of the Board OR 
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RTC shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure 
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adopted by the Supreme Court on April 8, 1997 which will take effect on July 1, 
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1997: Provided, That pending cases and those filed prior to July 1, 1997 shall be 
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governed by the applicable rules of procedure: Provided, forther, That the appeal 
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shall take precedence over all other cases except criminal cases when the penalty 
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oflife imprisonment or death or reclusion perpetua is imposable. 
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"xxx 


1 
Sec. 10. Section 36 of Republic Act No. 8291, otherwise known as "The 
2 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
3 
"Sec. 36. Investment of Funds. - xxx 
4 
"xxx 
5 
"0) In foreign mutual funds and in foreign currency deposits or foreign 
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currency-denominated debts, non-speculative equities and other financial 
7 
instruments or other assets issued in accordance with existing laws of the 
8 
countries where such· financial instrnments are issued: Provided, That these 
9 
instruments or assets are listed in bourses of respective countries where these 
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instruments or assets are issued: PrOVided, further, That the issuing company has 
11 
proven track record of profitability over the last three (3) years and payment of 
12 
dividends at least once over the same period: PROVIDED, FINALLY, THAT 
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NOT MORE THAN FIVE 
PERCENT (5%) 
OF THE ABOVE-
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MENTIONED FUNDS SHALL BE INVESTED ABROAD. 
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Sec. 11. Section 42 of Republic Act No. 8291, otherwise known as "The 
16 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
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"Sec. 42. The Board of Trustees; Its Composition; Tenure and 
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Compensation. - The corporate powers and functions of the GSIS shall be vested 
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in and exercised by the Board of Trustees composed of the President and General 
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Manager of the GSIS and TEN (10) [eight (8)] other members to be appointed by 
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the President of the Philippines, one (1) of whom shall be either the President of 
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the Philippine Public School Teachers Association (PPSTA) or the President of 
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the Philippine Association of School Superintendents (PASS), 
THE 
SECRETARY OF THE DEPARTMENT OF EDUCATION (DepEd), THE 
CHAIRMAN OF THE CIVIL SERVICE COMMISSION (CSC), another two 
(2) shall 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 ofthe legal profession who 
at the time of appointment is also a member of the GSIS. The Trustees shall elect 


1 
from among themselves a Chairman while the President and General Manager of 
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the GSIS shall automatically be the vice-chainnan. 
3 
"xxx 
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Sec. 12. Section 43 of Republic Act No. 8291, otherwise known as "The 
5 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
6 
"Sec. 43. Powers and Functions of the Board of Trustees. - xxx 
7 
"xxx 
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"(d) upon the recommendation of the President and General Manager, to approve 
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the GSIS' organizational and administrative structures and staffing pattern[,) 
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SUBJECT TO EXISTING CIVIL SERVICE LAWS, RULES AND 
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REGULATIONS and to establish, fix, review, revise and adjust the appropriate 
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compensation package for the officers and employees of the GSIS with 
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reasonable allowances, incentives, bonuses, privileges and other benefits as may 
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be necessary or proper for the effective management, operation and 
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administration of the GSIS, which shall be exempt from Republic Act No. 6758, 
16 
otherwise known as the Salary Standardization Law and Republic Act No. 7430, 
17 
otherwise known as the Attrition Law. 
18 
"xxx 
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Sec. 13. Section 49 of Republic Act No. 8291, otherwise known as "The 
20 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
21 
"Sec. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall 
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pay the retirement benefits to the employee on his last day of service in the 
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government: Provided, That all requirements are submitted to the GSIS SIXTY 
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(60) DAYS [within a reasonable period) prior to the effective date of the 
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retirement; 
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"xxx 
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Sec. 14. Section 52 of Republic Act No. 8291, otherwise known as "The 
28 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
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"Sec. 52. Penalty. - xxx 


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"xxx 
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"0) Failure of the PRESIDENT AND GENERAL MANAGER AS 
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WELL AS Members of the GSIS Board, including the chairman and the vice-
4 
chairman, to comply with the provisions of paragraphS (R) AND (w) of Section 
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41 AND SECTION 49 hereof, shall subject them to imprisomnent of not less 
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than six (6) months nor more than one (I) year or a fine of not less than [Five] 
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TEN thousand pesos (P[S] 10,000.00) nor more than [Ten]TWENTY thousand 
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pesos (P[10]20,000.00) without prejudice to any civil or administrative liability 
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which may also arise therefrom[.]: PROVIDED, THAT IN CASE GSIS FAILS 
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TO COMPLY WITHOUT VALID AND JUSTIFIABLE REASON WITH 
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THE REQUIREMENTS REFERRED TO IN SECTION 49 OF THIS ACT, 
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A PENALTY OF NOT MORE THAN 2% SIMPLE INTEREST SHALL BE 
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CHARGED PER MONTH FROM GSIS: PROVIDED, HOWEVER, THAT 
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IN CASE THE RELEASE 
OF THE RETIREMENT BENEFITS \ 
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REFERRED TO IN SECTION 49 OF THIS ACT COULD NOT BE 
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ACCOMPLISHED 
DUE 
TO 
FORCE 
MAJEURE 
AND . OTHER 
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INSUPERABLE CAUSES, THE PENALTY OF IMPRISONMENT AND 
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FINE IMPOSED UNDER THIS PARAGRAPH SHALL NOT APPLY. 
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"Criminal actions arising from violations of the provisions ofthis Act may 
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be commenced by the GSIS or by the aggrieved member, either under this Act or, 
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in appropriate cases, under the Revised Penal Code[.] AND OTHER SPECIAL 
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LAWS. 
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Sec. 15. Implementing Rules and Regulations. - The implementing rules and 
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regulations to carry out the provisions of this Act shall be adopted and promUlgated by 
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the GSIS, in consultation with the Civil Service Commission (CSC) not later than ninety 
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(90) days after the approval of this act. 
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Sec. 16. Separability Clause. - If any part or provision of this Act shall be held to 
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be unconstitutional or invalid, other parts or provisions hereof which are not affected 
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shall continue to be in full force and effect. 


· . 
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Sec. 17. Repealing Clause. -All laws, decrees, executive orders, rules and 
2 
regulations, or parts thereof which are inconsistent with this Act are hereby repealed, 
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amended or modified accordingly. 
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Sec. 18. 
Effectivity. -
This Act shall take effect fifteen (15) days after its 
5 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved. 
mksbc