Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NO.3412

Introduced by Honorable Oscar “Richard” S. Garin, Jr.
1" District, lloilo

“AN ACT FURTHER AMENDING SECTION 9 OF PRESIDENTIAL

DECREE No. 1146 AND SECTION 1 OF REPUBLIC ACT No.
8291, OTHERWISE KNOWN AS “GSIS LAW OF 1997”, AND
FOR OTHER PURPOSES”

EXPLANATORY NOTE.

As written, Presidential Decree No. 1146 as amended by Republic Act No. 8291
otherwise known as the GSIS Law of 1997 appears to have created a system of
inequality between elected local officials and permanent employees in the civil
service. This is so because under the prevailing law, GSIS members who have
rendered less than fifteen (15) years of government service are not entitled to
any pension.

The Local Government Code of 1991 limits the tenure of elected local officials to
three (3) consecutive terms or a total of nine (9) years. Hence, after serving their
constituents for the entire duration of their 9-year tenure — competently, if one
may say, taking into account that the sovereign electorate generously re-elected
such official for three (3) consecutive terms — the local chief executive or
member of a local sanggunian is left holding a proverbial empty bag. He retires
without enjoying the fruits of his labor as he is excluded from the financial
security offered by a government pension through the GSIS. That is, in sum, the
sad and iniquitous reality besetting our local elected officials.

The proposed bill seeks to address this iniquity. Under the amendments herein
introduced a GSIS member who is an elected local official and has served for at
least nine (9) consecutive years shall be entitled to the same benefits being
received by an appointed government employee who has rendered service for at

pave: 29 NOV 2013 *)
Ai.

a\



least fifteen (15) years, thus placing a public servant holding an elective position
on even footing with a public servant holding an appointive position. Thus, the
provisions of Presidential Decree No. 1146 as amended by Republic Act No,
8291 are herein sought to be refined by the proposed amendment

Any apprehension whether the proposed amendment violates the equal
protection clause of the Constitution should be readily dispelled. This
constitutional imperative, while dictating that “all persons similarly situated should
be treated alike, both as to rights conferred and responsibilities imposed and that
it requires public bodies and institutions to treat similarly situated individuals in a
similar manner’ this same rule promotes a valid distinction between classes of
persons and allow such persons in different classes to be treated differently
provided that such classification is reasonable, viz: “(1) The classification rests
on substantial distinctions; (2) It is germane to the purpose of the law; (3) It is not
limited to existing conditions only; and (4) It applies equally to all members of the
same class.”

Thus, in the final reckoning, it is respectfully submitted that there appears to be
public interest sub-served when we make a reasonable distinction between
government officials holding elective positions and those holding appointive
positions since essentially, the purpose of Presidential Decree No. 1146 and
Republic Act No. 8291 is to provide a reasonable financial safety net for a public
servant upon retirement from service.

It is earnestly prayed that this measure be given due consideration.

OSCAR “1

+ piraogo vs. Truth Commission, G.R. No. 192935. December 7, 2010, En Banc.
* Beltran v. Secretary of Health, 512 Phil 560, 583 (2005) cited in G.R. No. 192935. Ibid.


Republic of the Philippines

HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NOB 412

Introduced by Honorable Oscar “Richard” S. Garin, Jr.
1* District, lloilo

“AN ACT FURTHER AMENDING SECTION 9 OF PRESIDENTIAL
DECREE No. 1146 AND SECTION 1 OF REPUBLIC ACT No.
8291, OTHERWISE KNOWN AS “GS/IS LAW OF 1997”, AND
FOR OTHER PURPOSES”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Section 9 of Presidential Decree No. 1146 as amended by Section 1
of Republic Act No. 8291 is hereby further amended to read as follows:

"SECTION 9. Computation of the Basic Monthly Pension. — (a) the basic
monthly pension is equal to

1) thirty-seven and one-half percent (37.5%) of the revalued average
monthly compensation; plus

2) two and one-half percent (2.5%) of said revalued average monthly
compensation for each year of service in excess of fifteen (15)
years: Provided, That the basic monthly pension shall not exceed
ninety percent (90%) of the average monthly compensation

3) ELECTED OFFICIALS OF LOCAL GOVERNMENT UNITS WHO

HAVE SERVED FOR AT LEAST NINE (9) CONSECUTIVE YEARS

SHALL BE ENTITLED TO THE BENEFITS MENTIONED IN PAR.

1 HEREIN, SUBJECT TO SUCH RULES, REGULATIONS AND

REQUIREMENTS PROMULGATED BY THE GSIS.

"(b) The basic monthly pension may be adjusted upon the
recommendation of the President and General Manager of the GSIS.


and approved by the President of the Philippines in accordance with
the rules and regulations prescribed by the GSIS: Provided, however,
That the basic monthly pension shall not be less than One thousand
and three hundred pesos (P1,300.00): Provided, further, That the
basic monthly pension for those who have rendered at least twenty
(20) years of service after the effectivity of this Act shall not be less
than Two thousand four hundred pesos (P2,400.00) a month.
PROVIDED FINALLY, THAT ELECTED OFFICIALS OF LOCAL
GOVERNMENT UNITS WHO HAVE SERVED FOR AT LEAST NINE
(9) CONSECUTIVE YEARS SHALL LIKEWISE BE ENTITLED TO
SUCH MONTHLY PENSION AND CORRESPONDING
ADJUSTMENTS AS MAY BE HERETOFORE IMPLEMENTED."

Section 2. Appropriations. — The amount necessary to carry out the provisions
of this Act shall be included in the respective annual budgets of the national
legislature and local government units in the fiscal year immediately following the
promulgation and adoption by the GSIS such implementing rules and
regulations necessary to carry out the provisions of this Act.

Section 3. Implementing Rules and Regulations. — The GSIS shall promulgate
such implementing rules and regulations necessary to carry out the provisions of
this Act within ninety (90) days from approval hereof.

Section 4. 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.

Section 5. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general

circulation.

Approved,