Republic of the Philippines

HOUSE OF REPRESENTATIVES . f D
Quezon City EIVED

i 17 NOY 2014

SIXTEENTH CONGRESS ZB
Second Regular Session

HOUSE BILLNo, 9199

Introduced by Hon. Jerry P. Trefias

EXPLANATORY NO1

‘The Government Service Insurance System (GSIS) was created in 1936 pursuam to
Commonwealth Act No, 186, which established the GSIS to promote the efficiency and welfare of the
employees of the Government,’ The organic law of the GSIS had been amended through the years, and
it was overhauled by the passage of Republic Act No. $291 or the GSIS Law of 19972

However, the GSIS law still needs further refinement due to the exigencies of the current socio-
economic context and the ever-changing condition of the country’s economy. Section 14 of R.A. No.
8291 empowers the GSIS Actuary and Board to periodically adjust the monthly pension of GSIS
members, Unfortunately, this provision merely gives the GSIS the prerogative to adjust the monthly
pension instead of mandating set adjustments per year in order to reflect the changing economic
conditions of the Filipino people. In so being, it is strongly recommended to amend the said provision
in order to compel the yearly adjustment of the GSIS monthly premiums, taking to account to
prevailing inflation rate and the present consumer price index in the country.

It must be noted that the provision of adequate social services which promotes a just and
dynamic social order, ensures the prosperity and independence of the nation and frees the people from
poverty is Constitutional state policy of the country,” Our citizens trom the public sector, especially
those who have retired from civil service, heavily rely on the monthly pension they receive from the
GSIS.

Based on statistics from the National Statistics Office (NSO), the average inflation rate from
2009-2013 ranged from 3.0% to 4.6%, To fulfill the mandate of the Constitution and of the original
organic law of the GSIS, the monthly pension of the GSIS members must be adjusted per annum to
help the GSIS members cope with the rising cost of living due to inflation

JERRYP. YRENAS

| Section 3, Commonwealth Act No. 186 (November 14, 1936)
? Republic Act $291 (May 30, 1997)
Section 9, Arcticle 2, The 1987 Philippine Constitution


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Republic of the Philippine:
HOUSE OF REPRESENTATIVI
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNO, 5199

Introduced by Hon. Jerry P. Treiias

AN ACT AMENDING SECTION 14 OF REPUBLIC ACT NO, 8291, OTHERWISE
KNOWN AS THE GSIS ACT OF 1997

Be it enacted by the Senate and House of Represeniatives of the Philippines duly assembled.

Section 1. Section 14 of Republic Act No. 8291, otherwise known as the GSIS Act of 1997, is
hereby amended as follows:

"SECTION 14. Periodic Pension Adjustment. The monthly
pension of all pensioners including all those receiving survivorship
pension benefits shall be  [periodically—adjusted—as—may—be
recommended-by-the- GSIS"-aciuary-and-approved-by the Board in
accordance with the rales-and regulations preseribed-by-the GSIS}
ADJUSTED PER ANNUM BY THE GSIS BOARD;
PROVIDED, THAT THE ANNUAL ADJUSTMENT TO THE
MONTHLY PENSION OF ALL PENSIONERS SHALL:
TAKE INTO ACCOUNT THE PREVAILING INFLATION
RATE AND CONSUMER PRICE INDEX.

Section 2. Repealing Clause, — All provisions of laws, orders, decrees, including rules and
regulations inconsistent herewith are hereby repealed and/or modified accordingly.

Section 3. Separability Clause. ~ If any part or provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected thereby shall continue
to be in full force and effect

Section 4. Kffectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a national newspaper of general circulation

Approved,