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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT 
FURTHER STRENGTHENING THE 
GOVERNMENT SERVICE INSURANCE SYSTEM 
EXPLANATORY NOTE 
This measure seeks to strengthen the Government Service Insurance System (GSIS). 
The bill seeks to address some of the long-running concerns of GSIS members, many of whom 
suffered from years of mismanagement, poor recordkeeping, irregular remittances, inefficient 
collection, lack of transparency, and outright abuse and corruption on the part of GSIS and the 
government agencies who are jointly responsible for maintaining and ensuring the continuing 
viability of the state pension fund. 
In particular, this bill aims to strengthen the existing law by improving members’ 
benefits and institutionalizing members’ rights and responsibilities of agency employers, thus 
making regular remittance of premiums, reconciliation of records, and prompt processing of 
claims duly demandable and actionable rights. Another improvement in this bill is the use of 
the total length of service as basis for the determination of a member’s eligibility to receive 
benefits and the computation of the amounts thereof in lieu of the computation of service in a 
limited amount of time which would result in providing limited benefits to the beneficiaries. 
Salient provisions include: 
1. Institutionalization of members’ rights.
2. Broader representation in the Board of Trustees of actual members, with the
addition of a Trustee from a leading teaching or non-teaching organization
accredited by the CSC, another two coming from leading organizations of
government employees including those in local government units (LGUs), and one
to represent retirees.
3. Increased criminal and civil liabilities for erring officials/employees with regard to
the deduction and remittance of premium payments of members.
July 1, 2022 
8:00 am
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4. Deletion of the qualifier “dependent for support upon member or pensioner” for
beneficiaries under the survivorship benefit which would result in expanding the
coverage of the beneficiaries or pensioners.
5. Provision of an option to unmarried members to designate a beneficiary in the
absence of parents or children which would enable the designated pensioner to
benefit from the system.
The penalty for responsible personnel of agency employers who fail to remit to the 
GSIS premium payments already deducted from the members is also increased, from a penalty 
for mere estafa under the current law to imprisonment from twelve (12) years and one day to 
twenty (20) years and a fine of five hundred pesos (P500,000.00) to two million pesos 
(P2,000,000.00), plus absolute perpetual disqualification from holding public office. Where 
the offense is likewise attributable to heads of agencies, the penalty is higher. 
In view of the foregoing, the passage of this bill is earnestly sought 
JOEY SARTE SALCEDA 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT 
FURTHER STRENGTHENING THE 
GOVERNMENT SERVICE INSURANCE SYSTEM 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SEC. 1. Short Title. – This Act shall be known as the “Revised Government Service 
Insurance System (GSIS) Act of 2022”. 
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 employees.  Likewise, 
the State shall review and strengthen policies that advance and protect the welfare of employees 
in the public sector and ensure their right to participate in policy and decision-making processes 
affecting their rights and benefits.  Toward 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 level of
the GSIS; 
(c) Insulate the Social Insurance Fund (SIF) from dissipation due to the volatility of the
global economy; and 
(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. 
PART I – DEFINITIONS 
SEC. 3. Definition of Terms. – Unless the context otherwise indicates, the following 
terms shall mean: 
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(a) GSIS – The Government Service Insurance System created by Commonwealth Act 
No. 186; 
 
(b) Board – The Board of Trustees of the Government Service Insurance System; 
 
(c) Employer – The national government, its political subdivisions, branches, agencies 
or instrumentalities, including, government-owned or controlled corporations, and financial 
institutions with original charters, the Constitutional commissions and the judiciary; 
 
(d) Employee or Member – Any person, receiving compensation while in the service of 
an employer as defined herein, whether by election or appointment, irrespective of status of 
appointment, including barangay and sanggunian officials; 
 
(e) Active Member – A member who is not separated from the service; 
 
(f) Beneficiaries – Beneficiaries shall be the following:  
1) For married members 
(i) 
The legitimate spouse; and  
(ii) The legitimate, legitimated, legally adopted child, including the 
illegitimate child, who is unmarried, not over the age of majority, or 
is over the age of majority but is considered a person with disability 
(PWD) and incapable of self-support due to a mental or physical 
impairment acquired prior to age of majority;   
2) For unmarried members 
(i) 
The legitimate, legitimated, legally adopted child, including the 
illegitimate child, who is unmarried, not over the age of majority, or 
is over the age of majority but is considered a person with disability 
(PWD) and incapable of self-support due to a mental or physical 
impairment acquired prior to the age of majority; or 
(ii) In the absence of children, the parents: Provided, however, That the 
parents will no longer be considered as beneficiaries once the member 
marries and/or begets a child; or 
(iii) In the absence of either (i) and (ii), a designated beneficiary who shall 
have the same qualifications and be entitled to the same benefits as a 
legitimate, legitimated, legally adopted or illegitimate child under 
paragraph (f)(1)(ii) of this Section: Provided, That the designation 
must be made before the member turns 50 years old: Provided, further, 
That the designation can only be made once. 
 
(g) Benefits – refer to those administered by GSIS on behalf of its members, as found 
under Sections 14 to 38 of this Act, specifically: retirement, separation, unemployment, 
disability, death/funeral, survivorship and life insurance; 
 
(h) Compensation – The basic pay or salary received by an employee, pursuant to 
his/her election or appointment, excluding per diems, bonuses, overtime pay, honoraria, 
allowances and any other emoluments received in addition to the basic pay which are not 
integrated into the basic pay under existing laws; 
 


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(i) Contribution – The amount payable to the GSIS by the member and the employer in 
accordance with Section 10 of this Act; 
 
(j) Current Daily Compensation – The actual daily compensation or the actual monthly 
compensation divided by the number of working days in the month of contingency but not to 
exceed twenty-two (22) working days; 
 
(k) Average Monthly Compensation (AMC) – The quotient arrived at after dividing the 
aggregate compensation received by the member during his/her last thirty-six (36) months of 
service preceding his/her separation/retirement/disability/death by thirty-six (36), or by the 
number of months he/she received such compensation if he/she has less than thirty-six (36) 
months of service: Provided, That the average monthly compensation shall in no case exceed 
the amount and rate as may be respectively set by the Board under the rules and regulations 
implementing this Act as determined by the actuary of the GSIS; 
 
(l) Revalued Average Monthly Compensation – An amount equal to one hundred 
seventy percent (170%) of the first One Thousand Pesos (P1,000.00) of the average monthly 
compensation plus one hundred percent (100%) of the average monthly compensation in excess 
of One Thousand Pesos (P1,000.00); 
 
(m) Pensioner – Any person receiving old-age or permanent total disability pension or 
any person who has received the retirement benefits: Provided, however, That one who is 
receiving survivorship pension benefits as defined in Sections 33 to 36 of this Act is not 
considered a pensioner; 
 
(n) Disability – Any loss or impairment of the normal functions of the physical and/or 
mental faculty of a member which reduces or eliminates his/her capacity to continue with 
his/her current gainful occupation; 
 
(o) Permanent Partial Disability – Accrues or arises due to the complete and permanent 
loss of certain portions of the physical faculties, resulting in the disability to work for a limited 
period of time; 
  
(p) Permanent Total Disability – Accrues or arises due to injury or disease, causing 
complete, irreversible, and permanent incapacity that will permanently disable a member to 
work or to engage in the same occupation resulting in loss of income; 
 
(q) Temporary Total Disability – Accrues or arises when the impaired physical and/or 
mental faculties can be rehabilitated and/or restored to their normal functions; but such 
disability shall result in temporary incapacity to work or to engage in any occupation; 
 
(r) Total Admitted Assets – as used under this Act, refers to the value, as appearing in 
the GSIS’ financial statements, of its revenues, income, and other property, less the amount of 
its liabilities; 
 
(s) Total Length of Service – The number of years in government service, regardless of 
status of employment, with or without premium contributions, to be used in determining the 
eligibility of a member for retirement under this Act. The term service shall include full-time 
service with compensation; Provided, That part-time and other services with compensation 
may be included under such rules and regulations as may be prescribed by the GSIS; and  


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(t) Revaluation Factor (RF) – A supplemental amount to the AMC that is calculated 
relative to the annual average inflation rate.  The revaluation factor shall be periodically 
adjusted as may be recommended by the GSIS’ Actuary and approved by the Board of Trustees; 
 
(u) Total Income – The amount of profit derived from the GSIS’ operations and 
investments: Provided, That compulsory and optional premium contributions to the Social 
Insurance Fund from both employers and employees shall not form part of GSIS’ total income. 
 
 
PART II – MEMBERSHIP IN THE GSIS 
 
SEC. 4. Compulsory Membership. –  
 
(a) All government personnel, whether elective or appointive, irrespective of status of 
appointment, provided they are receiving fixed monthly compensation and have not reached 
the mandatory retirement age of 65 years, are compulsorily covered as members of the GSIS 
and shall be required to pay contributions; 
 
(b) Contractual and casual employees who have an employee-employer relationship 
with a government agency are also compulsorily covered; 
 
(c) An employee who is already beyond the mandatory retirement age of 65 but whose 
appointment in government service has been approved by the Office of the President of the 
Philippines or has been extended by the Civil Service Commission for the purpose of 
completing the fifteen (15) years of service required under R.A. No. 8291 to qualify for 
retirement benefits; 
 
(d) The following government employees are not members of the GSIS: 
1) Uniformed personnel of the Armed Forces of the Philippines (AFP), 
Philippine National Police (PNP), Bureau of Fire Protection (BFP) and 
Bureau of Jail Management and Penology (BJMP); 
2) Barangay, sanggunian and other government officials who are not receiving 
fixed monthly compensation; 
3) Government employees covered by separate retirement schemes, as 
enumerated under Section 4(e) of this Act; and 
4) Personnel who are not receiving fixed monthly compensation and/or do not 
have monthly regular hours of work. 
 
(e)  The following, who are covered by separate retirement schemes, are also required 
to remit regular monthly contributions to the GSIS for their life insurance policies in order to 
answer for their life insurance benefits defined under this Act: 
1) Members of the Constitutional bodies; 
2) Members of the judiciary, including those with equivalent ranks; 
3) Members of the national prosecution service; and 
4) All others who are or may be subsequently covered by a separate retirement 
law. 
 
SEC. 5. Optional Membership. – The following shall be given the option to continue 
their membership in GSIS, even beyond the mandatory retirement age of 65: 


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(a) An official elected to public office before age 65 but who will reach the mandatory 
retirement age of 65 during his/her term. The elective official shall be allowed to continue 
paying life and retirement premiums until the end of his/her term, including any periods of re-
election or election to another public office: Provided, That such period/s of re-election or 
election are continuous;  
 
(b) An official appointed by the President of the Philippines to public office before age 
65 for a fixed term and with a fixed monthly compensation, but who will reach the mandatory 
retirement age of 65 during his/her tenure. The appointive official shall be allowed to continue 
paying life and retirement premiums until the end of his/her tenure, including any period/s of 
term extension or re-appointment to another office: Provided, That the period/s of extension or 
re-appointment is/are continuous; 
 
(c) An official or employee who holds a co-terminus or highly confidential position 
who reaches the age of 65 years, and whose services are considered automatically extended 
until the expiration of the employee’s or official’s appointment or until the employee’s or 
official’s services are earlier terminated. 
 
SEC. 6. Effect of Separation from the Service. – A member separated from the service 
either by resignation, retirement, disability, dismissal from the service or retrenchment shall be 
deemed an inactive member of the system. An inactive member shall be entitled to whatever 
benefits he/she has qualified for in the event of any contingency compensable under this Act.  
 
SEC. 7. Members’ Rights. – In addition to their rights under existing laws, the members 
shall have the following rights: 
 
(a) Right to courteous and responsive service 
1) To be considered a GSIS member from the first day of government service; 
2) To be provided prompt and accurate service; 
3) To be accorded respect by the executives and employees of the GSIS; and 
4) To be afforded comfortable and customer-friendly facilities when 
transacting with the GSIS. 
 
(b) Right to information 
1) 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 informed of GSIS policies and regulations pertaining to benefits and 
claims administration;  
3) To be informed of the various modes and options in availing themselves of 
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. 
 


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(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 of a mode of retirement from among the different applicable 
retirement laws and to be allowed to change the chosen mode: Provided, That 
the member has met the qualifications required under the chosen mode: 
Provided, further, That the pension has not yet been received or paid; 
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 
except for unpaid personal premium contributions and monetary liabilities due 
to the fund. 
 
(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 of Trustees (Board);  
  
2) To participate in meaningful exchanges of views, dialogues and fora 
conducted by GSIS without fear of reprisal; 
3) To be consulted on the policies and programs to be implemented by the GSIS; 
4) To convey grievances and be accorded immediate response; and 
5) To transact business with the GSIS in person. 
 
SEC. 8. Special Rights for the Elderly, PWDs, and Seriously-Ill Members, Pensioners 
and Beneficiaries. – The following special rights are to be afforded to the elderly, PWDs and 
seriously-ill members, pensioners and beneficiaries: 
 
(a) To be provided special access lanes; 
 
(b) To be prioritized in the processing and releasing of claims and benefits; 
 
(c) To be given preference in the dissemination of information pertaining to policies; 
 
(d) To be accorded leniency in the submission of documents. 
 
SEC. 9. Agencies/Employers’ Responsibilities. – The government agencies covered by 
this Act, as employers, shall have the following responsibilities: 
 
(a) To deduct and remit employees’ and employers’ contributions to the GSIS within 
the prescribed time mandated by law; 
 
(b) To promptly provide documents required to facilitate the processing of claims; 
 
(c) To provide additional documents as necessary to reconcile the records of accounts; 
 


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(d) To promptly inform GSIS, through their Agency Authorized Officers (AAOs) of 
any update pertaining to personal or service records that may affect the processing of their 
employees’ claims and benefits. 
 
 
PART III – SOURCES OF FUNDS 
 
SEC. 10. Contributions. –  
 
(a) It shall be mandatory for the member and the employer to pay the monthly 
contributions specified in the following schedule: 
 
 
Monthly 
Compensation 
Percentage of Monthly Compensation Payable By 
Member 
9% 
Employer 
12% 
 
Members who are excluded from compulsory retirement coverage as enumerated under               
Section 4(e) of this Act shall pay three percent (3%) of their monthly compensation as personal 
share, and their employers a corresponding three percent (3%) for their life insurance coverage. 
 
(b) The employer shall include in its annual appropriation the necessary amounts for its 
share of the contributions indicated above, plus any additional premiums that may be required 
on account of the hazards or risks of its employees’ occupation. 
 
(c) It shall be mandatory and compulsory for all employers to include the payment of 
contributions in their annual appropriations. The appropriate penal, civil and administrative 
sanctions under Section 65 of this Act shall be imposed upon employers who fail to include the 
payment of contributions in their annual appropriations or otherwise fail to remit the 
accurate/exact amount of contributions on time, or delay the remittance of premium 
contributions to the GSIS. The heads of offices and agencies shall be administratively liable 
for non-remittance or delayed remittance of premium contributions to the GSIS. 
 
SEC. 11. Collection and Remittance of Contributions. – 
 
(a) The employer shall report to the GSIS the names of all its employees, their 
corresponding employment status, positions, salaries and such other pertinent information, 
including subsequent changes therein, if any, as may be required by the GSIS. The employer 
shall deduct each month from the monthly salary or compensation of each employee the 
contribution payable by him/her in accordance with the schedule prescribed in the rules and 
regulations implementing this Act. 
 
(b) Each employer shall remit directly to the GSIS the employees’ and employers’ 
contributions and loan amortizations within the first ten (10) days of the calendar month 
following the month to which the contributions apply. The collection and remittance by the 
employer of the contributions and loan amortizations to the GSIS shall take priority over and 
above the payment of any and all obligations, except salaries and wages of its employees. 
 
(c) All outstanding government share premium contributions which were not paid by 
any government office or agency shall be included in the annual budget and shall be remitted 
automatically by the Department of Budget and Management (DBM) to the GSIS.  


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SEC. 12. Interests on Delayed Remittances. – Agencies which delay the remittance of 
any and all monies due the GSIS shall be charged interest as may be prescribed by the Board 
but not more than two percent (2%) simple interest per month. Such interest shall be paid by 
the employers concerned. 
 
SEC. 13. Government Guarantee. – The government of the Republic of the Philippines 
hereby guarantees the fulfillment of the obligations of the GSIS to its members as and when 
they fall due. 
 
 
PART IV – BENEFITS 
 
SEC. 14. Determination of Amount of Benefits. –  
 
(a) The computation of total length of service for the purpose of determining a 
member’s eligibility to the benefits payable under this Act shall be based on the service 
rendered starting from the date of original assumption/election, including periods of service at 
different times under one or more employers, those performed overseas under the authority of 
the Republic of the Philippines, and those that may be prescribed by the GSIS in coordination 
with the Civil Service Commission. 
 
(b) The computation of actual benefits payable under this Act shall be based on the total 
length of service, Provided, However, That computation of benefits prior to June 24, 1997 shall 
be based on the period/s of service when required premium contributions were paid. 
 
For the purpose of this section, the term service shall include full-time service with 
compensation: Provided, that part-time and other services with compensation may be included 
under such rules and regulations as may be prescribed by the GSIS. 
 
RETIREMENT BENEFITS 
 
SEC. 15. General Conditions for Entitlement. – A member who retires from service 
shall be entitled to the retirement benefits enumerated in Section 16 (a) hereof: Provided, That 
the member: 
 
(a) Has rendered at least fifteen (15) years of service; 
 
(b) Is at least sixty (60) years of age at the time of retirement; and 
 
(c) Is not receiving a monthly pension benefit from permanent total disability. 
 
SEC. 16. Retirement Benefits. –  
 
(a) Retirement benefit shall either be: 
1) Cash payment equivalent to sixty (60) months of the member’s basic monthly 
pension (BMP) payable at the time of retirement plus an old-age pension 
benefit equal to the basic monthly pension payable monthly for life, starting 
upon expiration of the five-year (5) guaranteed period covered by the cash 
payment; or 


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2) Cash payment equivalent to eighteen (18) months of the member’s basic 
monthly pension plus monthly pension for life payable immediately with no 
five-year (5) guarantee. 
 
(b) Unless the service is allowed under Section 5 of this Act or extended by appropriate 
authorities, retirement shall be compulsory for an employee at sixty-five (65) years of age with 
at least fifteen (15) years of service: Provided, That if the employee has less than fifteen (15) 
years of service, he/she may be allowed to continue in the service in accordance with existing 
civil service rules and regulations. 
 
SEC. 17. Computation of the Basic Monthly Pension. – 
 
(a) The basic monthly pension is equal to two and one half percent (2.5% of the sum of 
the Average Monthly Compensation and Revaluation Factor, multiplied by the total length of 
service and taking into consideration Section 14 of this Act: Provided, That the basic monthly 
pensions shall not exceed ninety percent (90%) of the average monthly compensation. 
 
(b) The basic monthly pension may be adjusted upon the recommendation of the GSIS 
actuary, and approved by the Board of Trustees. 
 
SEC. 18. 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’ actuary and approved by the Board in accordance with the 
rules and regulations prescribed by the GSIS. 
 
SEPARATION BENEFITS 
 
SEC. 19. General Conditions for Entitlement. – A member who separates from the 
service before he/she is eligible for retirement under Section 15 of this Act shall be entitled to 
the separation benefits enumerated in Section 20 hereof: Provided, That the member: 
 
(a) Has rendered at least three (3) years of service; and 
 
(b) Is not receiving a monthly pension benefit from permanent total disability. 
 
SEC. 20. Separation Benefits. – The separation benefit shall be paid as follows: 
 
(a) If the member has rendered at least three (3) years but less than fifteen (15) years of 
service and is at least sixty (60) years of age at the time of resignation or separation, he/she 
shall be entitled to a one-time cash payment equivalent to one hundred percent (100%) of 
his/her average monthly compensation for each year of service that he/she paid premium 
contributions, but not less than Twelve thousand pesos (P12,000.00). The one-time cash 
payment shall be payable immediately or upon reaching sixty (60) years of age, at the option 
of the member: Provided, that the average monthly compensation is equivalent to the average 
salary received by the member during the last three (3) years of service;  
 
(b) If the member has rendered at least fifteen (15) years of service but is below sixty 
(60) years of age at the time of resignation or separation, he/she shall be entitled to a one-time 
cash payment equivalent to eighteen (18) times his/her basic monthly pension at the time of 


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resignation or separation, plus an old-age pension benefit equal to the basic monthly pension 
payable monthly for life upon reaching the age of sixty (60). 
 
SEC. 21. Effect of Re-Employment in Government Service After Separation. – All 
service credited for retirement, resignation or separation for which corresponding benefits have 
been paid under this Act or other laws shall be excluded in the computation of service in case 
of reinstatement in government service and subsequent retirement or separation which is 
compensable under this Act. 
 
UNEMPLOYMENT BENEFITS 
 
SEC. 22. General Conditions for Entitlement. – A member who is separated from the 
service due to the abolition of his/her office or position resulting from reorganization shall be 
entitled to the unemployment benefits enumerated in Section 23 hereof: Provided, That the 
member: 
 
(a) Has been paying the required contributions for at least one (1) year prior to 
separation; 
 
(b) Has not been paid the voluntary separation benefit equivalent to one-time cash 
payment or 18 times the BMP, should he/she opt to avail of the same before reaching the age 
of 60; and 
 
(c) Has not availed of any early retirement program as a result of his/her office’s 
reorganization. 
 
 
SEC. 23. Unemployment or Involuntary Separation Benefits. – Unemployment benefits 
shall be computed as fifty percent (50%) of the average monthly compensation of the member, 
payable in accordance with the following schedule: 
 
Contributions Made 
Benefit Duration 
1 year but less than 3 years 
2 months 
3 or more years but less than 6 years 
3 months 
6 or more years but less than 9 years 
4 months 
9 or more years but less than 11 years 
5 months 
11 or more years but less than 15 years 
6 months 
 
The first payment shall be equivalent to two (2) monthly benefits. A seven (7) day 
waiting period shall be imposed on succeeding monthly payments. 
 
All accumulated unemployment benefits paid to the employee during his/her entire 
membership with the GSIS shall be deducted from voluntary separation benefits. 
 
The GSIS shall prescribe the detailed guidelines in the operationalization of this Section 
in the rules and regulations implementing this Act. 
 
PERMANENT DISABILITY BENEFITS 
 


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SEC. 24. General Conditions for Entitlement. – A member who suffers permanent 
disability for reasons not due to his grave misconduct, notorious negligence, habitual 
intoxication, or willful intention to kill himself/herself or another, shall be entitled to the 
disability benefits provided for in this Act: Provided, That he/she is in the service at the time 
of disability or has paid a total of at least one hundred eighty (180) monthly contributions prior 
to his/her disability, if already separated from the service. 
 
SEC. 25. Types of Disability Benefits. – There are two (2) types of permanent disability, 
which shall be determined by the GSIS based on established medical standards: (a) permanent 
total disability and (b) permanent partial disability. 
 
SEC. 26. Permanent Total Disability Benefits. –  
 
(a) The following disabilities shall be deemed permanent and total: 
1) complete loss of sight of both eyes; 
2) loss of two (2) limbs at or above the ankle and wrist; 
3) permanent complete paralysis of two (2) limbs; 
4) brain injury resulting in incurable imbecility or insanity; and 
5) such other cases as may be determined by GSIS Board of Trustees. 
 
(b) The member shall receive a monthly income benefit for life equal to the basic 
monthly pension effective from the date of disability. 
 
(c) A cash payment equivalent to eighteen (18) times his/her basic monthly pension 
shall also be given if the member is in the service at the time of disability and he/she has paid 
a total of at least one hundred eighty (180) monthly contributions. 
 
(d) A member cannot enjoy the monthly income benefit for permanent disability and 
old-age retirement simultaneously. 
 
(e) If a member does not satisfy the conditions stated under Section 24 hereof but has 
rendered at least three (3) years of service at the time of his/her disability, he/she shall be 
advanced the cash payment equivalent to one hundred percent (100%) of his/her average 
monthly compensation for each year of service he/she paid contributions, but not less than 
Twelve Thousand Pesos (P12,000.00) which should have been his/her separation benefit. 
 
(f) Unless the member has reached the minimum retirement age at the time of disability, 
his/her entitlement to permanent total disability benefit shall be suspended when: 
1) He/She recovers from disability as determined by the GSIS, whose decision 
shall be final and binding; or 
2) He/She fails to undergo medical examination when required by the GSIS. 
 
SEC. 27. Effect of Re-Employment on the Disability Benefits Being Received. – 
 
(a) Entitlement to permanent total disability benefit shall continue in the event of 
reemployment and the member’s new salary grade, rank or position is lower than that of his/her 
previous employment prior to his/her disability: Provided, That the member has properly 
informed the GSIS of his/her re-employment; 
 


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(b) The disability benefits to be received after re-employment shall be adjusted by the 
GSIS; to be computed as the difference between the amount of the existing disability benefit 
and the member’s salary from his/her new employment; 
 
(c) Failure by the member to inform the GSIS of the re-employment shall result in the 
suspension of disability benefits being received. 
 
PERMANENT PARTIAL DISABILITY BENEFITS 
 
SEC. 28. Permanent Partial Disability Benefits. –  
 
(a) The following disabilities shall be deemed permanent partial: 
1) Complete and permanent loss of the use of: 
(i) 
any finger 
(ii) any toe 
(iii) one arm 
(iv) one hand 
(v) 
one foot 
(vi) one leg 
(vii) one or both ears 
(viii) sight of one eye 
2) Such other cases as may be determined by the GSIS. 
 
(b) The member shall receive a cash payment in accordance with a schedule of 
disabilities to be prescribed by the GSIS. 
 
TEMPORARY TOTAL DISABILITY BENEFITS 
 
SEC. 29. General Conditions for Entitlement. – An active member whose injuries result 
in temporary incapacity to work or to engage in any occupation, shall be entitled to the 
temporary total disability benefits provided for in this Act. 
 
SEC. 30. Temporary Total Disability Benefit. –  
 
(a) A member shall be entitled to seventy-five percent (75%) of his/her current daily 
compensation for each day or fraction thereof of temporary disability benefit not exceeding 
one hundred twenty (120) days in one calendar year after exhausting all his/her sick leave 
credits and collective negotiation agreement sick leave benefits, if any, but not earlier than the 
fourth day of his/her temporary total disability: Provided, however, That a member cannot 
enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided, 
further, That if the disability requires more extensive treatment that lasts beyond one hundred 
twenty (120) days, the payment of the temporary total disability benefit may be extended by 
the GSIS but not to exceed a total of two hundred forty (240) days. 
 
(b) The temporary total disability benefit shall in no case be less than One Hundred 
Sixty-Five Pesos (P165.00) a day subject to periodic review every three (3) years; 
 
(c) The notices required of the member and the employer, the mode of payment, and 
the other requirements for entitlement to temporary total disability benefits shall be provided 
in the rules and regulations to be prescribed by the GSIS. 


Page | 13  
 
 
SEC. 31. Non-scheduled Disability. – For injuries or illnesses resulting in a disability 
not listed in the schedule of partial/total disability provided herein, the GSIS shall determine 
the nature of the disability and the corresponding benefits therefor. 
 
DEATH BENEFITS 
 
SEC. 32. Funeral Benefit. – The amount of funeral benefit shall be determined and 
specified by the GSIS in the rules and regulations but shall not be less than Thirty Thousand 
pesos (P30,000.00); Provided, That it shall be adjusted after five (5) years upon proper 
recommendation by the GSIS President and General Manager and approved by the GSIS Board 
of Trustees and shall be paid upon the death of any of the following: 
 
(a)  An active member as defined under Section 3(e) of this Act; or 
 
(b)  A member who has been separated from the service, but who may be entitled to 
future benefit pursuant to Section 6 of this Act; or 
 
(c)  A pensioner, as defined in Section 3(m) of this Act; or 
 
(d) A retiree who at the time of his/her retirement was of pensionable age under this 
Act but who opted to retire under RA No. 1616. 
 
SURVIVORSHIP BENEFITS 
 
SEC. 33. General Entitlement to Survivorship Benefits. – When a member or pensioner 
dies, the qualified beneficiaries shall be entitled to the survivorship benefits provided under 
Sections 34 to 36, subject to the conditions therein provided for. 
 
SEC. 34. Survivorship Pension. – The survivorship pension shall consist of: 
 
(a) The basic survivorship pension which is fifty percent (50%) of the basic monthly 
pension but shall not be more than fifty percent (50%) of the maximum step salary of an 
Undersecretary. The cap on the survivorship pension may be reviewed every five (5) years by 
the Board, based on the recommendations of the GSIS actuary, by considering the issuances 
on the salary standardization law; and 
 
(b) The children’s pension not exceeding fifty percent (50%) of the basic monthly 
pension. 
 
The maximum amount of basic survivorship pension prevailing at the time of death of 
the member or pensioner shall apply. Any subsequent increase/s in the maximum step salary 
of an Undersecretary will not result in any adjustment to the survivorship pension already being 
paid. 
 
SEC. 35. Death of a Member. – (a) Upon the death of a member, the qualified 
beneficiaries shall be entitled to survivorship benefits, which shall be paid as follows: 
 
(a) If at the time of death, a married member was in active service and has rendered at 
least fifteen (15) years of service: 


Page | 14  
 
1) The legitimate spouse, if he/she is the sole beneficiary, shall receive the cash 
payment equivalent to eighteen (18) multiplied by (x) the BMP and the basic 
survivorship pension for life; 
2) The qualified children, as defined under Section 3(f)(1)(ii) hereof are the 
only beneficiaries, they shall be entitled to pension equivalent to ten percent 
(10%) of the BMP for each child but not to exceed fifty percent (50%) of the 
BMP; 
3) When the survivors are the legitimate spouse and the qualified children, the 
legitimate spouse shall receive the cash payment equivalent to eighteen (18) 
multiplied by (x) the BMP and the basic survivorship pension, and the 
qualified children shall receive the children’s pension mentioned in the 
preceding paragraph (2). 
 
(b) If at the time of death, the unmarried member was in the active service and has 
rendered at least fifteen (15) years of service: 
1) The qualified children, as defined under Section 3(f)(2)(i) hereof are the 
only beneficiaries, they shall be entitled to pension equivalent to ten percent 
(10%) of the BMP for each child but not to exceed fifty percent (50%) of the 
BMP; 
2) The parent/s, if they are the only qualified beneficiaries, shall receive the 
cash payment equivalent to eighteen (18) multiplied by (x) the BMP; 
3) In the absence of a child and the parent/s, the designated beneficiary, as 
defined under Section 3(f)(2)(iii) hereof, if he/she is the only qualified 
beneficiary, shall receive the cash payment equivalent to eighteen (18) 
multiplied by (x) BMP: Provided, however, That if the designated 
beneficiary is a child, he/she shall be entitled to pension equivalent to ten 
percent (10%) of the BMP until he/she reaches the age of majority; 
  
(c) If at the time of death, the member was in active service with less than fifteen (15) 
years of service, the qualified beneficiaries shall receive the cash payment equivalent to 100% 
of the AMC for every year of service but not less than Twelve Thousand Pesos (P12,000.00), 
to be computed in accordance with Section 14 of this Act. 
 
(d) If at the time of death, the member was separated from the service, the qualified 
survivors shall be entitled to: 
1) The survivorship pension if the inactive member has at least fifteen (15) 
years of service; or 
2) The cash payment equivalent to one hundred percent (100%) of the AMC 
for every year with paid contributions, but not less than twelve thousand 
pesos (P12,000.00) if the inactive member has at least three (3) years but 
less than fifteen (15) years of service, was less than sixty (60) years old at 
the time of death and has not yet received his/her separation benefit from the 
GSIS. 
 
SEC. 36. Death of a Pensioner. – Upon the death of an old-age pensioner or a member 
receiving the monthly income benefit for permanent disability, the qualified beneficiaries shall 
be entitled to the survivorship pension defined in Section 34 of this Act, subject to the 
provisions of Section 35 hereof. When the pensioner dies within the five-year guaranteed 
period covered by the cash payment, the survivorship pension shall be paid only after the 
expiration of the said period.  


Page | 15  
 
 
LIFE INSURANCE BENEFITS 
 
SEC. 37. Compulsory Life Insurance. – All employees, except for those enumerated 
under Section 4(e) of this Act, shall, under such terms and conditions as may be promulgated 
by the GSIS, be compulsorily covered with life insurance, which shall automatically take effect 
on the date of their employment. 
 
SEC. 38. Dividends. – An annual dividend may be granted to all members of the GSIS 
whose life insurance is in force for at least one (1) year in accordance with a dividend allocation 
formula to be determined by the GSIS. 
 
SEC. 39. Optional Insurance. – Subject to the rules and regulations prescribed by the 
GSIS, a member may apply for insurance and/or pre-need coverage embracing life, health, 
hospitalization, education, memorial plans, and such other plans as may be designed by the 
GSIS, for himself/herself and/or his/her dependents. Any employer may likewise apply for 
group insurance coverage for its employees. The payment of the premiums/installments for 
optional insurance and pre-need products may be made by the insured or his/her employer 
and/or any person acceptable to the GSIS. 
 
SEC. 40. Reinsurance. – The GSIS may reinsure any of its interests or part thereof with 
any private company or reinsurer whether domestic or foreign: Provided, That the GSIS shall 
submit an annual report on its reinsurance operations to the Insurance Commission. 
 
 
PART V – ADJUDICATION OF CLAIMS AND DISPUTES 
 
SEC. 41. Prescription. – Claims for benefits administered by GSIS as defined under 
Section 3(g) of this Act shall not prescribe: Provided, however, That a claim based on a 
contingency which occurred prior to the effectivity of this Act shall be subject to the four-year 
prescriptive period. 
 
SEC. 42. Facility of Payment. – The GSIS shall prescribe rules and regulations to 
facilitate payment of benefits, proceeds, and claims for benefits under this Act and any other 
laws administered by the GSIS. Payments made by the GSIS prior to its receipt of an adverse 
claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not bar the 
legal and eligible recipient to his/her right to demand the payment of benefits, proceeds, and 
claims from the GSIS. 
 
SEC. 43. Settlement of Disputes. – The GSIS shall have original and exclusive 
jurisdiction to settle any dispute regarding claims and benefits arising under this Act and any 
other laws administered by the GSIS. 
 
The Board may designate any member of the Board or official of the GSIS who is a 
lawyer, to act as hearing officer to receive evidence, make findings of fact and submit 
recommendations together with all the documentary and testimonial evidence, to the Board 
within thirty (30) working days from the time the parties have closed their respective evidence 
and filed their last pleading. The Board shall decide the case within thirty (30) days from the 
receipt of the hearing officer’s findings and recommendations. The cases heard directly by the 


Page | 16  
 
Board shall be decided within thirty (30) working days from the time they are submitted by the 
parties for decision. 
 
SEC. 44. Appeals. – Decisions of the Board of Trustees shall be appealable to the Court 
of Appeals. The appeal shall not stay the execution of the award or decision unless ordered by 
the Court of Appeals or by the Supreme Court. 
 
 
SEC. 45. Execution of Decision. – When no appeal is perfected and there is no order to 
stay by the Board, by the Court of Appeals, or by the Supreme Court, any decision or award of 
the Board shall be enforced and executed in the same manner as decisions of the Regional Trial 
Court.  For this purpose, the Board shall have the power to issue to the city or provincial sheriff 
or its appointed sheriff such writs of execution as may be necessary for the enforcement of such 
decision or award, and any person who shall fail or refuse to comply with such decision, award, 
writ or process after being required to do so shall, upon application by the GSIS, be punished 
for contempt. 
 
SEC. 46. Oaths, Witnesses, and Production of Records. – When authorized by the 
Board, an official or employee of the GSIS shall have the power to administer oath and 
affirmation, take depositions, certify to official acts, and issue subpoena ad testificandum and 
subpoena duces tecum to compel the attendance of witnesses and the production of books, 
papers, correspondences and other records deemed necessary as evidence in connection with 
any question arising under this Act. Any case of contumacy shall be dealt with in accordance 
with the provisions of Section 580 of the Revised Administrative Code.  
 
 
PART VI – FUNDS OF THE GSIS 
 
SEC. 47. Funds. – The GSIS shall administer the Social Insurance Fund, which consists 
of all contributions payable under Section 10 of this Act together with the earnings and accruals 
thereon. The said Fund shall be used to finance the benefits administered by the GSIS under 
this Act. In addition, the GSIS shall administer the following funds, to be known collectively 
as the “GSIS-Administered Funds”: 
 
(a) The Optional Insurance Fund for the insurance coverage described in Section 39 
hereof,  
 
(b) The Employees’ Compensation Insurance Fund created under P.D. 626, as 
amended, 
 
(c) The General Insurance Fund created under Act No. 656, as amended, and  
 
(d) Such other special funds existing or that may be created for special groups or 
persons rendering services to the government.  
 
The GSIS shall appropriate part of its surplus for each fund under this section to 
guarantee the fulfillment of its obligations. The appropriate surplus shall be maintained to 
ensure the payment of benefits under this Act and the other GSIS Administered Funds governed 
under the above-mentioned laws.  The appropriated surplus cannot be used for any purposes 
other than those for which they were set aside and appropriated. 
  


Page | 17  
 
The funds administered by the GSIS shall not be used for purposes other than those 
provided for under this Act. The  Board of Trustees may allocate an amount not exceeding fifty 
percent (50%) of the unappropriated surplus from any of the GSIS-Administered Funds, except 
the Employees’ Compensation Insurance Fund, to the Social Insurance Fund: Provided, That 
the amount shall be used solely to meet the required reserves to fulfill the obligations of the 
GSIS to its members: Provided further, That it is approved by the President of the Philippines, 
upon the recommendation of the Governance Commission for Government-Owned and 
Controlled Corporations (GCG).  
 
No portion of the funds of the GSIS or income thereof shall accrue to the general fund 
of the national government and its political subdivisions, instrumentalities and other agencies 
including government-owned and controlled corporations except as may be allowed under this 
Act. 
 
SEC. 48. Deposits and Disbursements. – All revenues collected and all accruals thereto 
shall be deposited, administered and disbursed in accordance with the law. A maximum 
expense loading of twelve percent (12%) of the yearly total income and 0.7% of the total 
admitted assets may be disbursed for administrative and operational expenses except as may 
be otherwise approved by the President of the Philippines on the basis of actuarial and 
management studies. 
 
SEC. 49. Investment of Funds. – The funds of the GSIS which are not needed to meet 
the current obligations may be invested under such terms and conditions and rules and 
regulations as may be prescribed by the Board: Provided, That investments shall optimize the 
requirements of liquidity, safety/security and yield as embodied in formal investment policy 
guidelines approved by the Board in order to ensure the actuarial solvency of the funds of the 
GSIS: Provided, further, That the GSIS shall submit an annual report on all investments made 
to both Houses of Congress of the Philippines. The funds may be invested in the following: 
 
(a) in interest-bearing or zero-coupon bonds or securities or other evidence of 
indebtedness of the Government of the Philippines; 
 
(b) in interest-bearing or zero-coupon deposits or securities in any domestic bank doing 
business in the Philippines: Provided, That in the case of such deposits, these shall not exceed 
at any time the unimpaired capital and surplus or total private deposits of the depository bank, 
whichever is smaller: Provided, further, That said bank has prior designation as a depository 
for the purpose by the Monetary Board of the Central Monetary Authority; 
 
(c) in short-and-medium term loans to members such as salary, policy, educational, 
emergency, stock purchase plan and other similar loans: Provided, That GSIS shall lend no less 
than forty percent (40%) of the investable fund of the GSIS Social Insurance Fund for these 
purposes; 
 
(d) in bonds, securities, promissory notes or other evidence of indebtedness of 
educational or medical institutions to finance the construction, improvement and maintenance 
of schools and hospitals; 
 
(e) in real estate property including shares of stocks involving real estate property and 
investments secured by first mortgages on real estate or other collaterals acceptable to the 


Page | 18  
 
GSIS: Provided, That such investments shall, in the determination of the Board, redound to the 
benefit of the GSIS, its members, as well as the general public; 
 
(f) in debt instruments and other securities traded in the secondary markets; 
 
(g) in loans to or in bonds, debentures, promissory notes or other evidence of 
indebtedness of any solvent corporation created or existing under the laws of the Philippines; 
 
(h) in common and preferred stocks of any solvent corporation or financial institution 
created or existing under the laws of the Philippines listed in the stock exchange subject to the 
requirements of liquidity, safety, security, and expected returns as embodied in formal 
investment policy guidelines approved by the GSIS Board of Trustees; 
 
(i) in domestic mutual funds including investments related to the operations of mutual 
funds; and 
 
(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 tradable and/or listed in a duly recognized 
exchange: Provided further, That not more than ten percent (10%) of the investible funds shall 
be invested abroad. 
 
SEC. 50. Records and Reports. – The GSIS shall keep and cause to keep such records 
as may be necessary for the purpose of making actuarial studies, calculations and valuations of 
the funds of the GSIS including such data needed in the computation of rates of disability, 
mortality, morbidity, separation and retirement among the members and any other information 
useful for the adjustment of the benefits of the members. The GSIS shall maintain appropriate 
books of accounts to record its assets, liabilities, income, expenses, receipts and disbursements 
of funds and other financial transactions and operations. 
 
SEC. 51. Examination and Valuation of the Funds. – The GSIS shall make a periodic 
actuarial examination and valuation of its funds in accordance with accepted actuarial 
principles. 
 
SEC. 52. Exemption from Tax, Legal Process and Lien. – It is hereby reaffirmed as a 
State policy that the actuarial solvency of the funds of the GSIS shall be preserved and 
maintained at all times and that contribution rates necessary to sustain the benefits under this 
Act shall be kept as low as possible in order not to burden the members of the GSIS and their 
employers. Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and 
increase the contribution rate necessary to sustain the benefits of this Act. Accordingly, 
notwithstanding any laws to the contrary, the GSIS, its assets, revenues (including all accruals 
thereto), transactions and benefits paid shall remain exempt from all forms and kinds of direct 
or indirect taxes, assessments, fees, charges or duties imposed by the national or local 
government. These exemptions shall continue unless expressly, specifically, and categorically 
revoked or repealed, and any assessment against the GSIS as of the approval of this Act is 
hereby considered paid and cancelled. Consequently, all laws, ordinances, regulations, 
issuances, opinions or jurisprudence contrary to or in derogation of this provision are hereby 
deemed repealed, superseded and rendered ineffective and without legal force and effect. 
 


Page | 19  
 
The exemptions provided herein shall neither be affected nor derogated by subsequent 
laws to the contrary unless this Section is expressly, specifically, and categorically revoked or 
repealed by law and a provision is enacted to substitute or replace the exemption referred to 
herein as an essential factor to maintain or protect the solvency of the fund, notwithstanding 
and independently of the guarantee of the national government to secure such solvency or 
liability. 
 
The funds and/or the properties of the GSIS referred to herein shall be exempt from 
attachment, garnishment, execution, levy or other processes issued by the courts, quasi-judicial 
agencies or administrative bodies including Commission on Audit (COA) disallowances. The 
benefits, sums or monies corresponding to the benefits under this Act shall likewise be exempt 
from attachment, garnishment, execution, levy or other processes issued based on financial 
obligations or liability of any member, including any pecuniary accountability arising from or 
caused or occasioned by his/her exercise or performance of his/her official functions or duties, 
or incurred relative to or in connection with his/her position or work except when his/her 
monetary liability, contractual or otherwise, is in favor of the GSIS.  
 
 
PART VII – ADMINISTRATION 
 
SEC. 53. Implementing Body. – The Government Service Insurance System as created 
under Commonwealth Act No. 186 shall implement the provisions of this Act. 
 
SEC. 54. Powers and Functions of the GSIS. – The GSIS shall exercise the following 
powers and functions:  
 
(a) Formulate, adopt, amend and/or rescind such rules and regulations as may be 
necessary to carry out the provisions and purposes of this Act, as well as the effective exercise 
of the powers and functions, and the discharge of duties and responsibilities of the GSIS, its 
officers and employees: Provided, That these implementing rules and regulations shall not 
contravene the provisions of this Act, nor shall it result in the diminution of any benefit 
provided by law; 
 
(b) Adopt or approve the annual and supplemental budget of receipts and expenditures 
including salaries and allowances of the GSIS personnel and to authorize such capital and 
operating expenditures and disbursements of the GSIS as may be necessary and proper for the 
effective management and operation of the GSIS; 
 
(c) Invest the funds of the GSIS, directly or indirectly, in accordance with the provisions 
of this Act; 
 
(d) Acquire, utilize or dispose of, in any manner recognized by law, real or personal 
property in the Philippines or elsewhere necessary to carry out the purposes of this Act; 
 
(e) Conduct continuing actuarial and statistical studies and valuations to determine the 
financial condition of the GSIS and, taking into consideration such studies and valuations and 
the limitations herein provided, re-adjust the benefits, contributions, premium rates, interest 
rates or the allocation or re-allocation of the funds to the contingencies covered; 
 
(f) Have the power of succession; 


Page | 20  
 
 
(g) Sue and be sued; 
 
(h) Enter into, make, perform and carry out contracts of every kind and description with 
any person, firm or association or corporation, domestic or foreign; 
 
(i) Carry on any other lawful business whatsoever in pursuance of, or in connection 
with the provisions of this Act;  
 
(j) Have one or more offices in and outside of the Philippines, and to conduct its 
business and exercise its powers throughout and in any part of the Republic of the Philippines 
and/or in any or all foreign countries, states and territories: Provided, That the GSIS shall 
maintain a branch office in every province where there exists a minimum of fifteen thousand 
(15,000) membership; 
 
(k) Borrow funds from any source, private or government, foreign or domestic, only as 
an incident to the securitization of housing mortgages of the GSIS and on account of its 
receivables from any government or private entity; 
 
(l) Invest, own or otherwise participate in equity in any establishment, firm or entity; 
 
(m) Approve appointments in the GSIS, except appointments to positions which are 
policy determining, primarily confidential or highly technical in nature, according to the Civil 
Service rules and regulations: Provided, That all positions in the GSIS shall be governed by a 
compensation and position classification system and qualifications standards approved by the 
GSIS Board of Trustees based on a comprehensive job analysis and audit of actual duties and 
responsibilities: Provided, further, That the compensation plan shall be comparable with the 
prevailing compensation plans in the private sector and shall be subject to the periodic review 
by the Board no more than once every four (4) years without prejudice to yearly merit reviews 
or increases based on productivity and profitability; 
 
(n) Design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial 
assistance for the purpose of retirement for its own personnel; 
 
(o) Fix and periodically review and adjust the rates of interest and other terms and 
conditions for loans and credits extended to members or other persons, whether natural or 
juridical; 
 
(p) Enter into agreement with the Social Security System or any other entity, enterprise, 
corporation or partnership for the benefit of members transferring from one system to another 
subject to the provision of RA 7699, otherwise known as the Portability Law; 
 
(q) Have the power to float proper instrument to liquefy long term maturity by pooling 
funds for short-term secondary market; 
 
(r) Submit annually, not later than June 30, a public report to the President of the 
Philippines and the Congress of the Philippines regarding its activities in the administration 
and enforcement of this Act during the preceding year including information and 
recommendations on Board policies for the development and perfection of the programs of the 
GSIS; 


Page | 21  
 
 
(s) Maintain a provident fund, which consists of contributions made by both the GSIS 
and its officials and employees and their earnings, for the payment of benefits to such officials 
and employees or their heirs under such terms and conditions as it may prescribe; 
 
(t) Approve and adopt guidelines affecting investments, insurance coverage of 
government properties, settlement of claims, disposition of acquired assets, privatization or 
expansion of subsidiaries, development of housing projects, increased benefit and loan 
packages to members and the enforcement of the provisions of this Act. 
 
(u) Any provision of law to the contrary notwithstanding, to authorize the payment of 
extra remuneration to the officials and employees directly involved in the collection and/or 
remittance of contributions, loan repayments and other monies due to the GSIS at such rates 
and under such conditions as it may adopt: Provided, That the best interest of the GSIS shall 
be observed thereby; 
 
(v) Determine, fix and impose interest upon unpaid premiums due from employers and 
employees; 
 
(w) Ensure the collection or recovery of all indebtedness, liabilities and/or 
accountabilities, including unpaid premiums or contributions in favor of the GSIS arising from 
any cause or source whatsoever, due from all obligors, whether public or private. The GSIS 
shall demand payment or settlement of the obligations referred to herein within thirty (30) days 
from the date the obligation becomes due, and in the event of failure or refusal of the obligor 
or debtor to comply with the demand, to initiate or institute the necessary or proper actions or 
suits, criminal, civil or administrative or otherwise, before the courts, tribunals, commissions, 
boards, or bodies of proper jurisdiction within thirty (30) days reckoned from the expiry date 
of the period fixed in the demand within which to pay or settle the account; 
 
(x) Design and implement programs that will promote and mobilize savings and provide 
additional resources for social security expansion and at the same time afford individual 
members appropriate returns on their savings/investments. The programs shall be so designed 
as to spur socio-economic take-off and maintain continued growth; and 
 
(y) Exercise such powers and perform such other acts as may be necessary, useful, 
incidental or auxiliary to carry out the provisions of this Act, or to attain the purposes and 
objectives of this Act. 
 
SEC. 55. The Board of Trustees. – 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 eight (8) other members to be appointed by the President of 
the Philippines. Of these, four (4) shall be active or retired members of the GSIS: at least one 
(1) shall be a representative from the teachers recommended by either the Philippine Public 
School Teachers Association (PPSTA), the Philippine Association of School Superintendents 
(PASS), or by a leading national organization of teachers; at least two (2) shall be from the 
leading organizations or associations of government employees/retirees who possess the ethics, 
experience and competence to represent the needs of their sectors; and one (1) shall be a 
member of the legal profession who at the time of appointment is also a member of the GSIS. 
The remaining five (5) shall be recognized individuals from any of the following fields of 
expertise: banking and finance, investment, insurance, law, human resources, audit, 


Page | 22  
 
management and information technology. The Trustees shall elect from among themselves a 
Chairman and a President and General Manager, who shall automatically be the vice-chairman. 
 
The Trustees, except the President and General Manager who shall cease as trustee 
upon his separation, shall hold office for six (6) years to ensure continuity and stability of 
programs and policies, or until their successors are duly appointed and qualified: Provided, 
That one (1) or more members may be replaced every year depending on the annual 
performance of the GSIS, subject to applicable laws: Provided further, That vacancy, other 
than through the expiration of the term, shall be filled for the unexpired term only. The 
members of the Board shall be entitled to remuneration as may be provided by law. 
 
SEC. 56. Powers and Functions of the Board of Trustees. – The Board of Trustees shall 
have the following powers and functions: 
 
(a) to formulate the policies, guidelines and programs to effectively carry out the 
purposes of this Act; 
 
(b) to promulgate such rules and regulations as may be necessary or proper for the 
effective exercise of the powers and functions as well as the discharge of the duties and 
responsibilities of the GSIS, its officers and employees; 
 
(c) upon the recommendation of the President and General Manager, to approve the 
annual and supplemental budget of receipts and expenditures of the GSIS, and to authorize 
such operating and capital expenditures and disbursements of the GSIS as may be necessary or 
proper for the effective management, operation and administration of the GSIS; 
 
(d) 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 R.A. No. 6758, otherwise known as the Salary Standardization Law, and R.A. No. 7430, 
otherwise known as the Attrition Law.  
 
(e) to fix and periodically review and adjust the rates of interest and other terms and 
conditions for loans and credits extended to its members or other persons, whether natural or 
juridical; 
 
(f) the provision of any law to the contrary notwithstanding, to compromise or release, 
in whole or in part, any claim or settle liability to the GSIS, regardless of the amount involved, 
under such terms and conditions as it may impose for the best interest of the GSIS; 
 
(g) to approve and adopt guidelines affecting investments, insurance coverage of 
government properties, settlement of claims, disposition of acquired assets, development of 
housing projects, increased benefit and loan packages to members, and the enforcement of the 
provisions of this Act; 
 
(h) to determine, fix and impose interest upon unpaid or unremitted premiums and/or 
contributions; and 


Page | 23  
 
 
(i) to do and perform any and all acts necessary, proper or incidental to the attainment 
of the purposes and objectives of this Act.   
 
SEC. 57. Positions in the GSIS. – The President and General Manager of the GSIS shall 
be its Chief Executive Officer and shall be appointed by the President of the Philippines. 
He/She shall be a person with management and investments expertise necessary for the 
effective performance of his duties and functions under this Act. 
 
The GSIS President and General Manager shall be assisted by one or more executive 
vice-presidents, senior vice-presidents, vice-presidents and managers in addition to the usual 
supervisory and rank and file positions who shall be appointed and removed by the President 
and General Manager with the approval of the Board, in accordance with the existing Civil 
Service rules and regulations. 
 
SEC. 58. Powers and Duties of the President and General Manager. – The President 
and General Manager of the GSIS shall, among others, execute and administer the policies and 
resolutions approved by the Board and direct and supervise the administration and operations 
of the GSIS. The President and General Manager, subject to the approval of the Board, shall 
appoint the personnel of the GSIS, remove, suspend or otherwise discipline them for cause, in 
accordance with existing Civil Service rules and regulations, and prescribe their duties and 
qualifications to the end that only competent persons may be employed. 
 
SEC. 59. Auditor. –  
 
(a) The Chairperson of the Commission on Audit shall be the ex officio auditor of the 
GSIS and may assign the necessary personnel to assist the chairman of the commission on audit 
in the performance of his/her duties; and 
 
(b) The Chairperson of the Commission on Audit or his/her authorized representative 
shall submit to the Board soon after the close of each calendar year, an audited statement 
showing the financial condition and progress of the GSIS for the calendar year just ended. 
 
SEC. 60. Legal Counsel. – The Government Corporate Counsel shall be the legal 
adviser and consultant of the GSIS, but the GSIS may assign to the Office of the Government 
Corporate Counsel (OGCC) cases for legal action or trial, issues for legal opinions, preparation 
and review of contracts/agreements and others, as the GSIS may decide or determine from time 
to time: Provided, however, That the present legal services group in the GSIS shall serve as its 
in-house legal counsel. 
 
SEC. 61. Powers of the Insurance Commission. – The Insurance Commissioner or 
his/her authorized representatives shall make an examination of the financial condition of the 
GSIS at least once every three (3) years; Provided, however, That the GSIS shall pay the Office 
of the Insurance Commissioner an amount equal to the actual expenses incurred by the said 
office in the conduct of the examination, including the salaries of the examiners and of the 
actuary of such examination for the actual time spent. 
 
The report of said examination shall be submitted to the Board of Trustees and 
considered by the GSIS in the formulation of guidelines affecting insurance coverage of 
government properties. Copies thereof shall likewise be furnished to the Office of the President 


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and the two Houses of Congress of the Philippines within five (5) days after the close of 
examination. 
 
 
PART VIII – GENERAL PROVISIONS 
 
SEC. 62. Dispensation of Social Insurance Benefits. –  
 
(a) The GSIS shall release the retirement benefits to the employee within thirty (30) 
days from the actual date of retirement: Provided, That all requirements are submitted to the 
GSIS at least ninety (90) days prior to the effective date of the retirement; 
 
(b) The GSIS shall not process nor adjudicate retirement claims under R.A. No. 1616 
which function shall be vested in the agencies concerned, who shall process and pay the 
gratuities of their employees. The GSIS shall process and adjudicate only the refund of 
retirement premium under R.A. No. 910. The Board shall adopt the proper rules and procedures 
for the implementation of this provision. 
 
SEC. 63. Development and Disposition of Acquired Assets. – The GSIS shall have the 
right to develop and dispose of its acquired assets obtained in the ordinary course of its 
business. To add value to, improve profitability on, and/or enhance the marketability of an 
acquired asset, the GSIS may further develop/renovate its assets, either with its own capital or 
through a joint venture arrangement with private companies or individuals. 
 
The GSIS may sell its acquired assets in accordance with existing Commission on Audit 
(COA) rules and regulations for an amount not lower than the current market value of the 
property. For this purpose, the GSIS shall conduct an annual appraisal of its property or 
acquired assets to determine its current market value. All notices of sale shall be published in 
newspapers of general circulation.  
 
No injunction or restraining order issued by any court, commission, tribunal or office 
shall bar, impede or delay the sale and disposition by the GSIS of its acquired assets except on 
questions of ownership and national or public interest. 
 
SEC. 64. Government Assistance to the GSIS. – The GSIS may call upon any employer 
for such assistance as may be necessary in the discharge of its duties and functions. 
 
 
PART IX – SANCTIONS 
 
SEC. 65. Penalty. –  
 
(a) The heads of the offices of the national government, its political subdivisions, 
branches, agencies and instrumentalities, including government-owned or controlled 
corporations and government financial institutions, and the personnel of such offices who are 
involved in the collection of premium contributions, loan amortization and other accounts due 
the GSIS who shall fail, refuse or delay the payment, turnover, remittance or delivery of such 
accounts to the GSIS within thirty (30) days from the time that the same shall have been due 
and demandable shall, upon conviction by final judgment, suffer the penalties of imprisonment 
of not less than twenty (20) years nor more than thirty (30) years and a fine of not less than 


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Five Hundred Thousand Pesos (P500,000.00) nor more than Five Million Pesos 
(P5,000,000.00), and in addition, shall suffer absolute perpetual disqualification from holding 
public office and other accessory penalties as may be provided by law. 
 
(b) The treasurer, finance officer, cashier, disbursing officer, budget officer or other 
official or employee who fails to include in the annual budget the amount corresponding to the 
employer and employee contributions, or who fails or refuses or delays to remit to the GSIS by 
more than thirty (30) days from the time such amount becomes due and demandable, or to 
deduct the monthly contributions of the employee shall, upon conviction by final judgment, 
suffer the penalties of imprisonment from twelve (12) years and one (1) day to twenty (20) 
years, and a fine of not less than Five Hundred Thousand Pesos (P500,000.00) nor more than 
Two Million Pesos (P2,000,000.00) and, in addition, shall suffer absolute perpetual 
disqualification from holding public office. 
 
(c) Any employee, who after deducting the monthly contribution or loan amortization 
from a member’s compensation, fails to remit the same to the GSIS within thirty (30) days 
from the date they should have been remitted under Section 11(b) shall be presumed to have 
misappropriated such contribution or loan amortization and shall upon conviction by final 
judgment, suffer the penalties of imprisonment from twelve (12) years and one (1) day to 
twenty (20) years and a fine of not less than Five Hundred Thousand Pesos (P500,000.00) nor 
more than Two Million Pesos (P2,000,000.00) and, in addition, shall suffer absolute perpetual 
disqualification from holding public office. 
 
(d) Any employee or member who receives or keeps fund or property belonging, 
payable or deliverable to the GSIS and appropriates the same, or takes or misappropriates or 
uses the same to any purpose other than that authorized by this Act, or permits another person 
to take, misappropriate or use said fund or property by expressly consenting thereto, or through 
abandonment or negligence, or is otherwise guilty of the misappropriation of said fund or 
property, in whole or in part, shall  be punished by a fine of not less than Five Hundred 
Thousand Pesos (P500,000.00) nor more than Two Million Pesos (P2,000,000.00) and by 
imprisonment of not less than twelve (12) years and one (1) day to twenty (20) years, and in 
addition, shall suffer absolute perpetual disqualification from holding public office. 
 
(e) Any person found to have participated directly or indirectly in the commission of 
fraud, collusion, falsification, or misrepresentation in any transaction with the GSIS whether 
for himself/herself or for some other persons, shall be punished by a fine of not less than Five 
Hundred Thousand Pesos (P500,000.00) nor more than Two Million Pesos (P2,000,000.00) 
and by imprisonment of not less than six (6) years and one (1) day to twelve (12) years, and in 
addition, shall suffer absolute perpetual disqualification from holding public office. 
 
(f) Whoever shall obtain or receive any money or check invoking any provision of this 
Act or any agreement hereunder, without being entitled thereto with the intent to defraud any 
member, any employer, the GSIS, or any third party, shall be punished by a fine of not less 
than  Five Hundred Thousand Pesos (P500,00.00) nor more than One Million Pesos 
(P1,000,000.00) and by imprisonment of not less than six (6) years and one (1) day to twelve 
(12) years and such other accessory penalties as may be provided by law. 
 
(g) Whoever fails or refuses to comply with the provisions of this Act or with the rules 
and regulations adopted by the GSIS shall be punished by a fine of not less than Five Hundred 
Thousand Pesos (P500,000.00) nor more than One Million Pesos (P1,000,000.00) and by 


Page | 26  
 
imprisonment of not less than six (6) years and one (1) day to twelve (12) years, and such other 
accessory penalties as may be provided by law. 
 
(h) The officers and/or personnel referred to in paragraph (a) of this Section shall be 
liable not only criminally but also civilly to the GSIS or to the employee or member concerned 
in the form of damages, including surcharges and interests; 
 
(i) For the charges or complaints referred to in paragraph (a) of this Section, the 
liabilities therein set forth shall be construed as waiver of the State of its immunity from suit, 
hence, the above-mentioned offices and/or personnel may not invoke the defense of non-
suability of the State. 
 
(j) It is presumed that all acts of the Board are made in the exercise of their regular 
functions. In the event of failure, of the members of the Board, the President and General 
Manager, and/or other officials of the GSIS to comply with their duties and obligations under 
this Act, they shall be subjected to suspension of not less than six (6) months nor more than 
one (1) year or a fine of not less than Five Hundred Thousand Pesos (P500,000.00) nor more 
than Two Million Pesos (P2,000,000.00) without prejudice to any criminal, civil, or 
administrative liability which may also arise therefrom. 
 
Criminal and civil actions arising from violations of the provisions of this Act may be 
commenced by the GSIS or by the aggrieved member, either under this Act or, in appropriate 
cases, under the Revised Penal Code and other special laws. 
 
SECT. 66. 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 Governance Commission on Government-Owned and 
Controlled Corporations (GCG) not later than ninety (90) days after the approval of this Act. 
 
SEC. 67. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, 
Functions and Activities. – Nothing in this Act shall be construed to repeal, amend or limit any 
provision of existing laws, Presidential Decrees, Letters of Instructions, not otherwise 
specifically inconsistent with the provisions of this Act. 
 
SEC. 68. Exclusiveness of Benefits. – Whenever other laws provide similar benefits for 
the same contingencies covered by this Act, the member who qualifies for these benefits shall 
have the option to choose which benefits will be paid to him/her. However, if the benefits 
provided by the law chosen are less than the benefits provided under this Act, the GSIS shall 
pay only the difference. 
 
 
SEC. 69. Non-Conversion of Mode of Retirement. – No change in the mode of 
retirement chosen shall be allowed once the proceeds, or a portion thereof, of the member’s 
retirement claim under a particular law were received by the member, whether through check, 
e-crediting to his or her GSIS eCard/Unified Multi-purpose Identification (UMID) Card, or 
such other manner as may be approved by the Board of Trustees. 
 
SEC. 70. Appropriations. – The amount necessary to carry out the provisions of this 
Act shall be included in the respective budgets of the agencies in the national government 
obligation program of the year following its enactment into law and thereafter. 
 


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SEC. 71. Separability Clause. – Should any provision of this Act or any part thereof be 
declared invalid, the other provisions, so far as they are separable from the invalid ones, shall 
remain in force and effect. 
 
SEC. 72. Repealing Clause. – Presidential Decree No. 1146, Republic Act No. 8291, 
Presidential Decree No. 712, and Section 9 of Republic Act No. 656, as amended by 
Presidential Decree No. 245, are hereby expressly repealed. All other laws and any other law 
or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: 
Provided, That the rights under the existing laws, rules and regulations vested upon or acquired 
by an employee who is already in the service as of the effectivity of this Act shall remain in 
force and effect: Provided, further, That subsequent to the effectivity of this Act, a new 
employee or an employee who has previously retired or separated and is reemployed in the 
service shall be covered by the provisions of this Act.  
 
SEC. 73. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,