REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1651

House Bill No

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

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

LoansInterdependence Policy (CLIP) which appears to be very onerous as it affects housing
loans and retirement benefits 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
Joan 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.

MAND ABOCHAN IL

Magdalo Para Sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES.
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 1651

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

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:

SECTION 1. Short Title.This Act shall be known as the "GSIS Member's Rights and
Benefits Act."

SEC. 2. Declaration of Policy.- It is a declared policy of the State to provide, develop
and promote a sound social security system responsive to the needs of its
workers.Furthermore, the State shall review and strengthen policies that advance and protect
the welfare of workers in the public sector. Likewise, the Constitution guarantees the right of
all workers to participate in policy and decision-making processes affecting their rights and

benefits as may be provided by law.
Towards this end, the State shall:

A. Ensure the adoption of policies beneficial to GSIS members paving the way
for a responsible, integrated and transparent social security system;

B. Provide greater representation for members at the highest policy-making levelofthe
GSIS;

C. Insulate the Social Insurance Fund (SIF) from dissipation due to the volatility
of the global economy;

D. Ensure that top-level officials of the GSIS are held accountable for mismanagement
and inefficiencies in the delivery of services to members and beneficiaries; and

E, Provide GSIS members and beneficiaries alternative venues in the settlement
of disputes.

SEC. 3. Section 2 of Republic Act No. 8291, otherwise known as "The Government
Service Insurance Act of 1997", is hereby amended to read as follows:


"Sec. 2. Definition of Terms. — Unless the context otherwise indicates, the
following terms shall mean:

"3x

"(®) Dependents - Dependents shall be the following:
(@) the legitimate spouse dependent for support upon the member or pensioner;

(b) legitimate, legitimated legally adopted child, including the illegitimate child, who
is unmarried, [not gainfully employed) not over the age of majority, or is over the
age of majority but incapacitated and incapable of self-support due to mental or
physical [defect] HANDICAP acquired prior to the age of majority; and (c) the
parents dependent upon the member for support;

xx’

SEC. 4, Members’ Rights.- In addition to their rights under existing laws the
membersshall have the following rights:

(A) Right to Courteous and Responsive Service

. To be considered a GSIS member from the first day of government service;

. To be provided prompt and accurate service;

To be accorded respect by the executives and employees of the GSIS; and

To be afforded comfortable and customer-friendly facilities when transacting
with the GSIS.

aeNS

(B) Right to Information

To be informed of the laws, regulations, policies or programs affecting the
members’ rights, benefits, obligations, and privileges, including amendments
or changes thereto;

2. To be provided with copies of GSIS policies and regulations pertaining to
benefits and claims administration;

3. To be informed of the 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 m advance of documents required to facilitate transaction,
processing period and updated status of claims or loan applications

(©) Right to GSIS Benefits
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.

) Right to Expeditious Processing of Claims

. To claim and receive on time benefits provided under applicable laws;
2
3.

To exhaust all legal remedies under existing laws; and
To be protected from diminution of benefits that may arise with the passage of
a subsequent law or regulation.

Right to be Heard

4.
5.

SEC.

To be represented in the GSIS governing Board;
2
3.

To participate in meaningful exchange of views in dialogues and fora

To be consulted on the policies and programs to be implemented by the
system;

To convey grievances and be accorded immediate response; and,

To transact business with GSIS in person or through electronic access points.

4A. Special Rights for the Elderly, Disabled and Seriously-IIl Members,

Beneficiaries and Pensioners.— The following special rights are to be afforded to the elderly,
disabled and seriously-ill members, beneficiaries and pensioners, to wit:

1. Tobe provided special access lanes;

2. Tobe prioritized in the processing and releasing of claims and benefits;

3. To be given preference in the dissemination of information pertaining to
policies; and

4, To be accorded leniency in the submission of documents: Provided, That
there is substantial compliance with the requirements prescribed by GSTS.

SEC. 5. Agency’s/Employer’s Responsibilities. — The government agencies covered
by the GSISAct, as employers, shall have the following responsibilities:

SEC.

1. To remit employees’ and employers’ contributions to the GSIS within the
prescribed time mandated by the GSIS Act;

2. To provide promptly documents required to facilitate the processing of
documents and claims;

3. To provide additional documents as necessary to reconcile the records of
accounts; and

4. To inform GSIS, through their agency authorized officers, of any update
pertaining to personal or service records that may affect the processing of
claims and benefits.

6. Section 7 of Republic Act No. 8291, otherwise known as “The Government

Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 7. Interests on Delayed Remittances.” — Agencies which delay the
remittance of any and all monies due the GSIS shall be charged interests as
may be prescribed by the Board but not [less] MORE than two percent (2%)

simple interest per month, Such interest shall be paid by the employers
concerned.


SEC. 7. Section 28 of Republic Act No. 8291, otherwise known as "The Government
Service Insurance Act of 1997" is hereby amended to read as follows:

"Sec. 28. Prescription. - Claims for benefits under this Act [except for life and
retirement] shall NOT prescribe. [after four (4) years from the date of
contingency]

SEC. 8, Section 30 of Republic Act No, 8291, otherwise known as "The Government

Servicelnsurance Act of 1997" is hereby amended to read as follows:

"Seo. 30. Settlement of Disputes. - The GSIS AND THE REGIONALTRIAL
COURT (RTC) shall have original and [exclusive] CONCURRENT jurisdiction to
settleany dispute arising under this Act and any other laws administered by the GSIS.

Xxx”

SEC. 9. Section 31 of Republic Act No. 8291, otherwise known as "The Government
Service Insurance Act of 1997" is hereby amended to read as follows:

"Sec. 31. Appeals. - Appeals from any decision or award of the Board OR
RTC shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure
adopted by the Supreme Court on April 8, 1997 which will take effect on July 1,
1997: Provided, That pending cases and those filed prior to July I, 1997 shall be
governed by the applicable rules of procedure: Provided, further, That the appeal shall
take precedence over all other cases except criminal cases when the penalty of life
imprisonment or death or reclusionperpetuais imposable.

SEC. 10. Section 36 of Republic Act No. 8291, otherwise known as "The
Government Service Insurance Act of 1997" is hereby amended to read as follows:

“Sec, 36. Investment of Funds. — xxx
xx

"@j) In foreign mutual funds and in foreign currency deposits or foreign currency
denominated debts, non-speculative equities and other financial instruments or other
assets issued in accordance with existing laws of the countries where such financial
instruments are issued: Provided, That these instruments or assets are listed in bourses
of respective countries where these instruments or assets are issued: Provided, further,
‘That the issuing company has proven track record of profitability over the last three
(3) years and payment of dividends at least once over the same period: PROVIDED,
FINALLY, THAT NOT MORE THAN FIVE PERCENT (5%) OF THE ABOVE-
MENTIONED FUNDS SHALL BE INVESTED ABROAD.

SEC. 11. Section 42 of Republic Act No. 8291, otherwise known as "The
Government Service Insurance Act of 1997" is hereby amended to read as follows:

"Sec. 42. The Board of Trustees; Its Composition; Tenure and Compensation.
The corporate powers and functions of the GSIS shall be vested in and exercised by
the Board of Trustees composed of the President and General Manager of the GSIS
and TEN(10) [eight (8)] other members to be appointed by the President of the
Philippines, one (I)of whom shall be either the President of the Philippine Public
School TeachersAssociation (PPSTA) or the President of the Philippine Association

4


of SchoolSuperintendents (PASS), THE SECRETARY OF THE DEPARTMENT
OFEDUCATION (DepEd), THE CHAIRMAN OF THE CIVIL
SERVICECOMMISSION (CSC), another two (2) shall represent the leading
organizations or associations of government employees/tetirees, AND another four
(4) from the banking, finance, investment, and insurance sectors, and one (I)
recognized member of the legal profession who at the time of appointment is also a
member of the GSIS. The Trustees shall elect from among themselves a Chairman
while the President and General Manager of the GSIS shall automatically be the vice-
chairman.
xxx”

SEC. 12. Section 43 of Republic Act No. 8291, otherwise known as "The
Government Service Insurance Act of 1997" is hereby amended to read as follows:

"Sec. 43. Powers and Functions of the Board of Trustees. - xxx
XXX.

"(@) upon the recommendation of the President and General Manager, to approve the
GSIS' organizational and administrative structures and staffing pattern{,] SUBJECT
TO EXISTING CIVIL SERVICE LAWS, RULES AND REGULATIONS and to
establish, fix, review, revise and adjust the appropriate compensation package for the
officers and employees of the GSIS with reasonable allowances, incentives, bonuses,
privileges and other benefits as may be necessary or proper for the effective
management, operation and administration of the GSIS, which shall be exempt from
Republic Act No. 6758, otherwise known as the Salary Standardization Law and
Republic Act No. 7430, otherwise known as the Attrition Law.

Xxx

SEC. 13. Implementing Rules and Regulations.- The implementing rules and
regulations to carry out the provisions of this Act shall be adopted and promulgated by the
GSIS, in consultation with the Civil Service Commission (CSC) not later than ninety (90)
days after the approval of this act

SEC. 14, Separability Clause.- If any part ot provision of this Act shall be held to be
unconstitutional or invalid, other parts or provisions hereof which are not affected shall
continue to be in full force and effect.

SEC. 15. Repealing Clause.- Section 49 of Republic Act No. 8291, otherwise known
as "The Government Service Insurance Act of 1997" is hereby repealed to conform to the
provisions of Republic Act No. 10154. All laws, decrees, executive orders, rules and
regulations, or parts thereof which are inconsistent with this Act are hereby repealed,
amended or modified accordingly

SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazetteor in at least two (2) newspapers of general circulation.

Approved,