SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
S.NO. 
483 
,s"nab 
dJH\;t of tIlt' ~f'fftl'ti;1tU 
Introduced by Senator Antonio "Sonny" F. TriIIanes IV 
EXPLANATORY NOTE 
Republic Act No. 8291 or the Government Service Insurance System (GSIS) Act of 1997 was 
enacted to expand and increase the coverage and benefits of GSIS members. Despite the 
provisions stipulated therein, GSIS is continuously hounded by complaints from members due to 
its failure and inefficiency to provide the benefits for its members. These complaints include the 
undue delay in the processing and delivery of the members' benefits; alleged inefficiency in 
updating members' records, non-posting or delayed posting of premium remittances causing 
underpayments or non-payment of dividends, and non-deduction of loan remittances; and 
problematic issuance of an E-Card Plus and implementation of Claims and Loans 
Interdependence Policy (CLIP), which appears to be very onerous as it affects housing loans and 
retirement bent;fits of members. 
One of the leading complaints against GSIS came from the public school teachers who were 
labeled as "delinquent members" per records of GSIS, despite the fact that payments for their 
loan accounts and GSIS premium contributions are regularly deducted every month from their 
salaries and these deductions are reflected on their monthly payrolls. 
In view of the foregoing considerations, the proposed bill seeks to protect and promote the 
welfare of our government employees. It institutionalizes the rights of GSIS members, including 
the right to courteous and responsive service, right to information, right to GSIS benefits, right to 
expeditious processing of claims, and right to be heard. 
This law also increases the composition of GSIS Board of Trustees to include the Secretary of 
the Department of Education and the Chairman of the Civil Service Commission. This increased 
representation will hopefully provide teachers and other government employees better 
opportunity to air their concerns and effect solutions to their problems. 
Approval of this bill is therefore earnestly requested. 
L 
ONNY" . T . LLANES IV 
Senator 
I 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
S.NO. 4Sa 
'1:; 
JUL -4 All:1 2 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
"AN ACT 
INSTITUTIONALIZING THE RIGHTS OF GOVERNMENT SERVICE INSURANCE 
SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL REPRESENTATION 
IN THE GSIS BOARD, AND FOR OTHER PURPOSES" 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
I 
SECTION 1 .. Short Title. -:- This Act shall be known as the "GSIS Membef.s' Rights and 
2 
Benefits Act of2013." 
3 
4 
SEC. 2. Declaration of Policy. - It is a declared policy of the State to provide, develop and 
5 
promote a sound social security system responsive to the needs of its workers. 
6 
Furthermore, the State shall review and strengthen policies that advance and protect the 
7 
welfare of workers in the public sector. 
8 
Likewise, the Constitution guarantees the right of all workers to participate in policy and 
9 
decision-making processes affecting their rights and benefits as may be provided by law. 
10 
Towards this end, the State shall: 
II 
(A) Ensure the adoption of policies beneficial to GSIS members paving the way 
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for a responsible, integrated and transparent social security system; 
13 
(B) Provide greater representation for members at the highest policy-making level 
14 
ofthe GSIS; 
15 
(C) Insulate the Social Insurance Fund (SIF) from dissipation due to the volatility 
16 
of the global economy; 


(D) En,sure that top-level officials of the GSIS are held 
ac~ountable for 
2 
mismanagement and inefficiencies in the delivery of services to members 
3 
and beneficiaries; and 
4 
(E) Provide GSIS members and beneficiaries alternative venues in the settlement 
5 
of disputes. 
6 
7 
SEC. 3. Section 2 of Republic Act No. 8291, otherwise known as "The Government 
8 
Service Insurance Act of 1997", is hereby amended to read as follows: 
9 
"Sec. 2. Definition of Terms, - Unless the context otherwise indicates, the 
10 
following terms shall mean: 
11 
"xxx 
12 
"(f) Dependents - Dependents shall be the following: 
13 
(a) the legitimate spouse dependent for support upon the member or pensioner; 
14 
(b) legitimate, legitimated legally adopted child, including the illegitimate child, who is 
15 
unmarried, [not gainfully employed) not over the age of majority, or is over the age of 
16 
majority but incapacitated and incapable of self-support due to mental or physical 
17 
[defect) HANDICAP acquired prior to the age of majority; and (c) the parents dependent 
18 
upon the member for support; 
19 
"xxx 
20 
, 
I 
21 
SEC. 4. Members' Rights, - In addition to their rights under existing lawsr the members 
22 
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 service; 
25 
2. To be provided prompt and accurate service; 
26 
3, To be accorded respect by the executives and employees of the GSIS; and 
27 
4, To be afforded comfortable and customer-friendly facilities when transacting with 
28 
the GSIS. 
29 
(B) Right to Information 
2 


I 
I. To be informed of the laws, regulations, policies or programs affecting the 
2 
members' rights, benefits, obligations, and privileges, including amendments or 
3 
changes thereto; 
4 
2. To be provided with copies of GSIS policies and regulations pertaining to benefits 
5 
and claims administration; 
6 
3. To be informed of the various modes and options in availing benefits; 
7 
4. To receive accurate and updated membership data, records and information, 
8 
including records of premium remittances and loan payments; 
9 
5. To have GSIS data and records protected from unauthorized, unlawful or improper 
10 
disclosure; and 
I 
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6. To be informed m advance of documents required to facilitate transaction, 
12 
processing period and updated status of claims or loan applications. 
13 
(C) Right to GSIS Benefits 
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1. To receive on time the benefits the member has qualified to even after separation 
IS 
from the service; 
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2. To avail the mode of retirement, among the different applicable retirement laws 
17 
and be allowed to change the preferred mode: Provided, That the retirement pension 
18 
package has not yet been received; 
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3. To be protected against discrimination and thus receive the same benefits and 
20 
privileges granted other members similarly situated; and 
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4. To receive benefits exempt from all taxes, fees, charges and duties of all kinds. 
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(D) Right to Expeditious Processing of Claims 
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1. To claim and receive on time benefits provided under applicable laws; 
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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 
26 
a subsequent law or regulation. 
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(E) Right to be Heard 
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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 
i 
30 
3. To be consulted on the policies and programs to be implemented by the system; 
3 


4 


I 
but not[less] MORE tban two percent (2%) simple interest per month. Such interest shall be 
2 
paid by the employers concerned. 
3 
4 
SEC. 7. Section 28 of Republic Act No. 8291, otberwise known as "The Government Service 
5 
Insurance Act of 1997" is hereby amended to read as follows: 
6 
"Sec. 28. Prescription. - Claims for benefits under tbis Act [except for life and 
7 
retirement] shall NOT prescribe. [after four (4) years from the date of contingettcy.] 
8 
9 
SEC. 8. Section 30 of Republic Act No. 8291, otherwise known as "The Government Service 
10 
Insurance Act of 1997" is hereby amended to read as follows: 
II 
"Sec. 30. Settlement of Disputes. - The GSIS AND THE REGIONAL TRIAL 
12 
COURT (RTC) shall have original and [exclusive] CONCURRENT jurisdiction to settle 
13 
any dispute arising under tbis Act and any other laws administered by the GSIS. 
14 
"xxx 
15 
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SEC. 9. Section 31 of Republic Act No. 8291, otherwise known as "The Government Service 
17 
Insurance Act of 1997" is hereby amended to read as follows: 
18 
"Sec. 31. Appeals. - Appeals from any decision or award of the Board OR RTC shall 
19 
be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure adopted by the 
20 
Supreme Court on April 8, 1997 which will take effect on July 1, 1997: Provided, That 
21 
pending cases and those filed prior to July I, 1997 shall be governed by the applicable 
22 
rules of procedure: Provided, further, That the appeal shall take precedence over all other 
23 
cases except criminal cases when the penalty of life imprisonment or death or reclusion 
24 
perpetua is imposable. 
25 
"xxx 
26 
27 
SEC. 10. Section 36 of Republic Act No. 8291, otberwise known as "Thb Government 
28 
Service Insurance Act of 1997" is hereby amended to read as follows: 
29 
"Sec, 36. Investment of Funds. - xxx 
5 


1 
"xxx 
2 
"(j) In foreign mutual funds and in foreign currency deposits or foreign currency-
3 
denominated debts, non-speculative equities and other financial instruments or other 
4 
assets issued in accordance with existing laws of the countries where such financial 
5 
instruments are issued: Provided, That these instruments or assets are listed in bourses of 
6 
respective countries where these instruments or assets are issued: Provided, further, That 
7 
the issuing company has proven track record of profitability over the last three (3) years 
8 
and payment of dividends at least once over the same period: PROVIDED, FINALLY, 
9 
THAT NOT MORE THAN FIVE PERCENT (5%) OF THE ABOVE-
10 
MENTIONED 
FUNDS 
SHALL 
BE 
INVESTED 
ABROAD. 
11 
12 
SEC. 11. Section 42 of Republic Act No. 8291, otherwise known as "The Government 
13 
Service Insurance Act of 1997" is hereby amended to read as follows: 
14 
"Sec. 42. The Board of Trustees; Its Composition; Tenure and Compensation. -
15 
The corporate powers and functions of the GSIS shall be vested in and exkrcised by the 
, 
16 
Board of Trustees composed of the President and General Manager of the GSIS and TEN 
17 
(10) [eight (8)] other members to be appointed by the President of the Philippines, one (1) 
18 
of whom shall be either the President of the Philippine Public School Teachers 
19 
Association (PPSTA) or the President of the Philippine Association of School 
20 
Superintendents (PASS), THE SECRETARY OF THE DEPARTMENT OF 
21 
EDUCATION 
(DepEd), 
THE 
CHAIRMAN OF THE CIVIL SERVICE 
22 
COMMISSION (CSC), another two (2) shall represent the leading organizations or 
23 
associations of government employees/retirees, AND another four (4) from the banking, 
24 
finance, investment, and insurance sectors, and one (I) recognized member of the legal 
25 
profession who at the time of appointment is also a member of the GSIS. The Trustees 
26 
shall elect from among themselves a Chairman while the President and General Manager 
27 
of the GSIS shall automatically be the vice-chairman. 
28 
"xxx 
29 
6 


I 
SEC. 12. Section 43 of Republic Act No. 8291, otherwise known as "The Government 
2 
Service Insurance Act of 1997" is hereby amended to read as follows: 
3 
"Sec. 43. Powers and Functions of the Board of Trustees. - xxx 
4 
"xxx 
, 
I 
5 
"(d) upon the recommendation of the President and General Manager, to approve the 
6 
GSIS' organizational and administrative structures and staffing pattem[,] SUBJECT TO 
7 
EXISTING CIVIL SERVICE LAWS, RULES AND REGULATIONS and to 
8 
establish, fix, review, revise and adjust the appropriate compensation package for the 
9 
officers and employees of the GSIS with reasonable allowances, incentives, bonuses, 
10 
privileges and other benefits as may be necessary or proper for the effective management, 
II 
operation and administration of the GSIS, which shall be exempt from Republic Act No. 
12 
6758, otherwise known as the Salary Standardization Law and Republic Act No. 7430, 
13 
otherwise known as the Attrition Law. 
14 
"xxx 
IS 
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SEC. 13. Implementing Rules and Regulations. - The implementing rules and 
17 
regulations to carry out the provisions of this Act shall be adopted and promulgated by the GSIS, 
18 
in consultation with the Civil Service Commission (CSC) not later than ninety (90) days after 
19 
the approval of this act. 
20 
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SEC. 14. Separability Clause. - If any part or provision of this Act shall be held to be 
22 
unconstitutional or invalid, other parts or provisions hereof which are not affected shall continue 
23 
to be in full force and effect. 
24 
25 
SEC. 15. Repealing Clause. - Section 49 of Republic Act No. 8291, otherwise known as 
26 
"The Government Service Insurance Act of 1997" is hereby repealed to conform to the 
27 
provisions of Republic Act No. 10154. 
All laws, decrees, executive orders, rules and 
28 
regulations, or parts thereof which are inconsistent with this Act are hereby repealed, amended or 
29 
modified accordingly. 
7 


2 
SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days following its 
3 
publication in at least two (2) newspapers of general circulation or the Official Gazette. 
4 
5 
Approved 
8