FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Sessian 
) 
'11 
MAY 31 
P4 :28 
SENATE 
RECEIVED BY:~ 
COMMITTEE REPORT NO, 41 
Submitted jointly by the Committees on Government Corporations and Public Enterprises; Civil 
Service and Governme~t Reo:~anization; ~ducation. Arts and Culture; local Government; Ways 
and Means; and Finance ortvlAY 3 1 1fi\1 
Re: Senate Bill No. ~ 8 5 4 
Recommending its approval in substitution of Senate Bill Nos. 194, 285, 479, 488, 585, 906, 
1132, 1251, 1316, 1831, 2090, 2093, 2106, 2129, 2276, 2490, 2784, 2785 and 2797 taking into 
consideration Proposed Senate Resolution No. 23. 
Sponsor: Senator Recto 
MR. PRESIDENT: 
The Committees on Government Corporations and Public Enterprises; Civil Service and 
Government Reorganization; Education, Arts and Culture; local Government; Ways and Means; 
and Finance to which were referred Senate Bill No. 194, introduced by Senator Trillanes IV, 
entitled: 
"AN ACT 
LIMITING THE INVESTMENT OF FUNDS OF THE GOVERNMENT SERVICE INSURANCE 
SYSTEM AMENDING FOR THE PURPOSE SECTION THIRTY-SIX OF PRESIDENTIAL 
DECREE NUMBERED ELEVEN HUNDRED FORTY-SIX AS AMENDED, OTHERWISE 
KNOWN AS THE REVISED GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1977." 
Senate Bill No. 285, introduced by Senator Trillanes IV, entitled: 
"AN ACT 
ENABLING RETIREES WHO HAVE NOT RECEIVED PENSIONS EITHER BY CHOICE OR 
OPERATION OF LAW TO RECEIVE PENSIONS AT AGE SEVENTY YEARS OR OVER, AND 
PROVIDING FUNDS THEREFOR." 
Senate Bill No. 479, introduced by Senator Ejercito-Estrada, entitled: 
"AN ACT 
GRANTING 
ADDITIONAL 
INSURANCE 
BENEFITS 
TO 
BARANGAY 
CAPTAINS, 
PROVIDING FUNDS FOR THE OTHER PAYMENT OF ITS PREMIUMS, AND FOR OTHER 
PURPOSES." 


Senate Bill No. 488, introduced by Senator Ejercito-Estrada, entitled: 
"AN ACT 
PROVIDING FOR A COLLEGE EDUCATION TRUST FUND FOR CHILDREN OF GSIS AND 
SSS MEMBERS." 
Senate Bill No. 585, introduced by Senator Ejercito-Estrada, entitled: 
"AN ACT 
GRANTING AD INTERIM AUTHORITY TO THE LAND BANK OF THE PHILIPPINES TO 
RECEIVE PAYMENTS OF GOVERNMENT SERVICE INSURANCE SYSTEM MONTHLY 
PREMIUM CONTRIBUTIONS FROM THE EMPLOYEES OF THE GOVERNMENT, AND TO 
FACILITATE PAYMENT OF BENEFITS, PROCEEDS, AND CLAIMS UNDER REPUBLIC ACT 
8291, OTHERWISE KNOWN AS THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT 
OF 1997." 
Senate Bill No. 906, introduced by Senator Ejercito-Estrada, entitled: 
"AN ACT 
GRANTING OLD-AGE PENSION FOR LIFE TO SENIOR CITIZENS WHO RETIRED UNDER 
REPUBLIC ACT 1616 AS WELL AS SURVIVORSHIP BENEFITS TO THEIR SURVIVORS." 
Senate Bill No. 1132, introduced by Senator Villar, entitled: 
"AN ACT 
PROVIDING FOR AN ADDITIONAL SEPARATION BENEFITS TO MEMBERS OF THE 
GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) WHO OPT TO RESIGN OR 
RETIRE BEFORE THE MATURITY OF THEIR INSURANCE POLICY THROUGH REFUND 
OF INSURANCE PREMIUMS PAID INCLUSIVE OF GOVERNMENT SHARE, AMENDING 
FOR THE PURPOSE REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS THE 'GSIS ACT 
OF 1997' AND FOR OTHER PURPOSES." 
Senate Bill No. 1251, introduced by Senator Villar, entitled: 
"AN ACT 
INCLUDING BARANGAY OFFICIALS WITHIN THE COVERAGE OF THE GOVERNMENT 
SERVICE INSURANCE SYSTEM." 
Senate Bill No. 1316, introduced by Senator Villar, entitled: 
"AN ACT 
MANDATING THE PAYMENT OF RETIREMENT BENEFITS TO SSS OR GSIS MEMBERS 
WITHIN A MAXIMUM PERIOD OF THIRTY (30) DAYS FROM THE RETIREMENT DATE 
AND FOR OTHER PURPOSES." 
Senate Bill No. 1831, introduced by Senator Defensor-Santiago, entitled: 
"AN ACT 
GRANTING OLD-AGE PENSION FOR LIFE TO SENIOR CITIZENS-RA 1616 RETIREES AS 
WELL AS SURVIVORSHIP BENEFITS TO THEIR SURVIVORS, AMENDING FOR THE 
PURPOSE PERTINENT PROVISIONS OF THE SECOND PARAGRAPH OF SECTION 12 (C) 
OF COMMONWEALTH ACT 186, AS AMENDED." 
Senate Bill No. 2090, introduced by Sen. Escudero, entitled: 
"AN ACT 
ESTABLISHING AN EDUCATION TRUST FUND FOR GRANTEES OF GSIS AND SSS 
MEMBERS AND FOR OTHER PURPOSES," 
2 


Senate Bill No. 2093, introduced by Sen. Escudero, entitled: 
"AN ACT 
AMENDING SECTIONS 7, 10, 23, 30, 31, 42 AND 52 OF REPUBIC ACT NO. 8291, 
OTHERWISE KNOWN AS THE GSIS ACT OF 1997." 
Senate Bill No. 2106, introduced by Senator Escudero, entitled: 
"AN ACT 
TO GRANT MONTHLY PENSION TO GOVERNMENT RETIREES UNDER R.A. 1616 WHO 
HAVE REACHED THE AGE OF SEVENTY (70) YEARS, APPROPRIATING FUNDS 
THEREFOR AND FOR OTHER PURPOSES." 
Senate Bill No. 2129, introduced by Senator Recto, entitled: 
"AN ACT 
INCREASING THE REPRESENTATION OF PUBLIC SCHOOL TEACHERS AND ALLOWING 
ONE BOARD SEAT FOR A GOVERNMENT EMPLOYEE WITH A KNOWN EXPERTISE IN 
FINANCE THEREBY INCREASING THE COMPOSITION OF THE BOARD OF TRUSTEES OF 
THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) AMENDING FOR THE 
PURPOSE SECTION 42 OF REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS "THE 
GSIS ACT OF 1997." 
Senate Bill No. 2276, introduced by Senator Defensor-Santiago, entitled: 
"AN ACT 
PROVIDING FOR THE WAIVER OF THE RETIREMENT AGE REQUIREMENT OF 
GOVERNMENT EMPLOYEES WHO HAVE RENDERED AT LEAST TWENTY YEARS (20) OF 
SERVICE, FURTHER AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 1146, 
AS AMENDED, OTHERWISE KNOWN AS THE REVISED GOVERNMENT SERVICE 
INSURANCE SYSTEM ACT OF 1977." 
Senate Bill No. 2490, introduced by Senator ReVilla, Jr. entitled: 
"AN ACT 
PROVIDING FOR THE WAIVER OF THE RETIREMENT AGE REQUIREMENT OF 
GOVERNMENT EMPLOYEES WHO HAVE RENDERED AT LEAST TWENTY YEARS OF 
GOVERNMENT SERVICE, FURTHER AMENDING FOR THE PURPOSE, PRESIDENTIAL 
DECREE 
NO. 
1146, AS 
AMENDED, OTHERWISE 
KNOWN 
AS THE 
REVISED 
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997." 
Senate Bill No. 2784, introduced by Senator Lacson, entitled: 
"AN ACT 
MANDATING THE PAYMENT OF ALL RETIREMENT BENEFITS TO ALL GOVERNMENT 
AND PRIVATE EMPLOYEES ON THE DATE OF THEIR RETIREMENT" 
Senate Bill No. 2785, introduced by Senator Lacson, entitled: 
"AN ACT 
AMENDING REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS THE "GOVERNMENT 
SERVICE INSURANCE SYSTEM ACT OF 1997" AND INSTITUTIONALIZING REFORMS 
AND 
CORRECTIVE 
MEASURES IN THE 
COLLECTION 
AND 
REMIlTANCE 
OF 
CONTRIBUTIONS OF GSIS PREMIUMS" 
and Senate Bill No. 2797, introduced by Senator Defensor Santiago, entitled: 
"AN ACT 
RAISING THE AGE OF COMPULSARY RETIREMENT FOR GOVERNMENT EMPLOYEES 
FROM SIXTY-FIVE (65) TO SEVENTY (70) YEARS OLD, AMENDING FOR THE PURPOSE 
SECTION 13 OF REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS THE GOVERNMENT 
SERVICE INSURANCE SYSTEM ACT OF 1997" 
3 


Taking into consideration Proposed Senate Resolution No. 23, introduced by Senator Recto, 
entitled: 
"RESOLUTION 
DIRECTING THE COMMITTEE ON GOVERNMENT CORPORATIONS AND PUBLIC 
ENTERPRISES TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE STATUS 
OF THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) SOCIAL INSURANCE 
FUND AND THE REPORTED NUMEROUS COMPLAINTS RAISED AGAINST GSIS FOR 
ALLEGED INEFFICIENCIES IN THE PROCESSING AND DELIVERY OF MEMBERS' 
BENEFITS, WITH THE END VIEW OF ENSURING A HEALTHY PENSION FUND SYSTEM 
THAT WOULD BE RESPONSIVE TO THE NEEDS OF ITS MEMBERS." 
have considered the same and have the honor to repo~ fiIj~ Alack to the Senate with the 
recommendation that the attached bill, Senate Bill No. _0_, j;-epared by the Committees, 
entitled: 
"AN ACT INSTITUTIONALIZING THE RIGHTS OF GOVERNMENT SERVICE 
INSURANCE SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL 
REPRESENTATION IN THE GSIS BOARD, ENSURING PROMPT PAYMENT OF 
ALL THEIR BENEFITS AND FOR OTHER PURPOSES" 
be approved in substitution of Senate Bill Nos. 194, 285, 479, 488, 585, 906, 1132, 1251, 1316, 
1831, 2090, 2093, 2106, 2129, 2276, 2490, 2784, 2785 and 2797 taking into consideration 
Proposed Senate Resolution No. 23 with Senators Trillanes IV, Ejercito-Estrada, Villar, Defensor-
Santiago, Escudero, Recto, Revilla Jr., Lacson, Angara, Marcos Jr., and Drilon as authors thereof. 
Respectfully submitted: 
. . """fhairmen 
:~ 
. 
~ 
y?1" 
, 
" 
J'" 
, 
' , 
r 
~ 
C 
R \ 
H .tf"":;iret 
Commlltee on Gove1ment:corp~ and PubliC Enterprises 
Cofomiffe'~ on Ways and Means 
IfmJJy~ Committee on Finance 
Member. '10mmiffee on Local Government 
AN~~~1:LANES 
IV 
Committee on Civil Service and Government Reorganization 
Member. Committee on Education. Arls and Culture 
Member, Committee on Local Government 
Member, Committee on Ways and Means 
"RDI.A.CeoS. JR. 
Committee on /peal Government 
thv 
/;7/l. 
EDGARDO J. ANGARA~ 
Committee on Education, Arls and Culture 
Member, Commiltee on Finance 
Member, Committee on Local Government 
Member, Committee on Ways and Means 
am ittee on Finance 
ice· hair. Commiltee on Ways and Means 
Member, 
Co,mmittee 
on 
Civil Service and Government 
Reorganization 
Member, Commiffee on Education, Arls and Culture 
Member, Commiffee on Finance 
Mem er. Committee on Government Corporations and 
ubi Enterprises 
e ber, Commiffee on Education, Arls and Culture 
4 


Vice Chairmen: 
TEOFISTO L G 'INGONA III 
Committee on ~ 
nment Corporations and Public Enterprises 
Member, Committee on Education, Arls and Culture 
Member, Committee on Finance 
Member, Committee on Ways and Means 
",.0 
MANUEL "LITO" M. lAPID 
Committee on Civil Service and Govin;lent Reorganization 
Committee on Education, Arts and Culture 
Committee on Finance 
Committee on Local Government 
Cornmiffee on Ways and Means 
-r-
_-,,_cc 
___ =_= __ 
=~"""'_ 
Committee on Civil 
rvice and Government Reorganization 
Committee 00 Educatl ,Arls and Culture 
Committee onlRrnmer? 
Committee on Ways and Means 
---~.;; / .. 
~-::::-~ I 
-.".. 
J~U;;:-F. ZUBIRI 
Cornmiffee on Education, Arls end Culture 
Committee on Finance 
Committee on Local Government 
~-./ ~~~~ Vo/; 
MIRIAM DEF 
SOR-SANTI~O 
Commiffee on Finane 
Committee on Ways and Means 
~~:::::> 
~---- -ToJiENiiEGARDA--- --
Members: 
Commiffee on Education, Arts and Culture 
Member, Commiltee on Government Corporations and 
Public Enterprises 
Member, Commiffee on Civil Service and Government 
Reorganization 
Member, Committee on Finance 
Member, Committee on Local Government 
iffee on Government Corporations and Public 
erprises 
Committee on Education, Arts and Culture 
Committee 911 inance 
Committee/on ocal Government 
comze on 
ays and Means 
Com ittee on Government Corporations and Public 
Ent 
rises 
Co mittee 
on 
Civil 
Service 
and 
Government 
Reorganization 
Commiffee on Education, Arts and Culture 
Commiffee on Finance 
Committee on Local Government 
,"=,-J 
Commiffee on Ways and Means 
~~ 
A~~MENAIII 
Committee on Education, Arls and Culture 
Committee on Finance 
Committee on Ways and Means 
~ 
FRANCIS "CHIZ" G. ESCUDERO 
Commiffee on Finance 
Committee on Local Government 
Commiffee on Ways and Means 
5 


A:~/'1 rv 
PANFrtO M. LACSON 
{ommiffees on Finance and Local Government 
JOKER P. ARROYO 
Committee on 
vernmen! Corporations and 
Public Enterpris s 
Commiffee on Government Corporations and Public 
Enterprises 
Commiffee on Education, Arts and Culture 
Commiltee on Finance 
Commiltee on Local Government 
Commiffee on Ways and Means 
fUpt.c 
Commiltee on Education, Arts and Culture 
Committee on Finance 
Committee on Local Government 
Committee on Ways and Means 
Commiffee on Government Co p ations and Public Enterprises 
Hon. JUAN PONCE ENRILE 
President 
Senate of the Philippines 
Pasay City 
Committee on Civil Service 
Government Reorganization 
Commiltee on Education, Arts and Culture 
Commiffee on Finance 
Comrniltee on Local Govarnment 
Commiffee on Ways and Means 
EX-OFFICIO MEMBERS: 
TE C. SOTTO II 
Majority Leader 
ALAN PETER "Companero" S. CAYETANO 
Minority Leader 
6 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B.No. 2854 
) 
) 
) 
'11 
MAY 31 
P4 :28 
(In Substitution ofSB Nos. 194,285,479,488,585,906,1132,1251,1316,1831,2090, 
2093, 2106, 2129, 2276, 2490, 2784, 2785, and 2797 Taking Into Consideration SRN 
23) 
Prepared and submitted jointly by the Committees on Government Corporations and 
Public Enterprises; Civil Service and Government Reorganization; Education, Arts and 
Culture; Local Government; Ways and Means; and Finance with Senators Trillanes IV, 
Ejercito-Estrada, Villar, Defensor-Santiago, Escudero, Recto, Revilla Jr., Lacson, 
Angara, Marcos Jr. and Drilon as authors thereof. 
"AN ACT 
INSTITUTIONALIZING 
THE 
RIGHTS 
OF 
GOVERNMENT 
SERVICE 
INSURANCE SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL 
REPRESENTATION IN THE GSIS BOARD, ENSURING PROMPT PAYMENT 
OF ALL THEIR BENEFITS AND FOR OTHER PURPOSES" 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. -This Act shall be known as the "OSIS Members' 
2 
Rights and Benefits Act of20ll." 
3 
SEC. 2. Declaration of Policy. - It is a declared policy of the State to provide, 
4 
develop and promote a sound social security system responsive to the needs of its 
5 
workers. 
6 
FUlthermore, the State shall review and strengthen policies that advance and 
7 
protect the welfare of workers in the public sector. 
8 
Likewise, the Constitution guarantees the right of all workers to participate in 
9 
policy and decision-making processes affecting their rights and benefits as may be 
10 
provided by law. 
11 
Towards this end, the State shall: 


2 
1 
(A) Ensure the adoption of policies beneficial to GSIS members paving the 
2 
way for a responsible, integrated and transparent social security system; 
3 
(B) Provide greater representation for members at the highest policy-
4 
making level of the GSIS; 
5 
(C) Insulate the Social Insurance Fund (SIF) from dissipation due to the 
6 
volatility of the global economy; 
7 
(D) Ensure that top-level officials of the GSIS are held accountable for 
8 
mismanagement and inefficiencies in the delivery of services to 
9 
members and beneficiaries; and 
10 
(E) Provide GSIS members and beneficiaries alternative venues in the 
11 
settlement of disputes. 
12 
SEC. 3. Section 2 of Republic Act No. 8291, otherwise known as "The 
13 
Government Service Insurance Act of 1997", is hereby amended to read as follows: 
14 
"Sec. 2. Definition of Terms. - Unless the context otherwise indicates, the 
15 
following terms shall mean: 
16 
"xxx 
17 
"(f) Dependents - Dependents shall be the following: 
18 
(a) the legitimate spouse dependent for support upon the member or 
pensIOner; 
19 
(b) legitimate, legitimated legally adopted child, including the illegitimate child, 
20 
who is unmarried, [not gainfully employed) not over the age of majority, or is 
21 
over the age of majority but incapacitated and incapable of self-support due to 
22 
mental or physical [defect) HANDICAP acquired prior to the age of majority; 
23 
and (c) the parents dependent upon the member for support; 
24 
"xxx 
25 
SEC. 4. Members' Rights. - In addition to their rights under existing laws, the 
26 
members shall have the following rights: 
27 
(A) Right to Courteous and Responsive Service 
28 
1. 
To be considered a GSIS member from the first day of government service; 


1 
2 
3 
3 
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 
4 
transacting with the GSIS. 
5 
(B) Right to Information 
6 
7 
8 
9 
10 
11 
12 
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 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, 
13 
including records of premium remittances and loan payments; 
14 
5. To have GSIS data and records protected from unauthorized, unlawful or 
15 
improper disclosure; and 
16 
6. To be informed in advance of documents required to facilitate transaction, 
17 
processing period and updated status of claims or loan applications. 
18 
(C) Right to GSIS Benefits 
19 
1. To receive on time the benefits the member has qualified to even after 
20 
separation from the service; 
21 
2. To avail the mode of retirement, among the different applicable retirement 
22 
laws and be allowed to change the preferred mode: Provided, That the 
23 
retirement pension package has not yet been received; 
24 
3. To be protected against discrimination and thus receive the same benefits and 
25 
privileges granted other members similarly situated; and 
26 
4. To receive benefits exempt from all taxes, fees, charges and duties of all 
27 
kinds. 
28 
(D ) Right to Expeditious Processing of Claims 


4 
1 
1. To claim and receive on time benefits provided under applicable laws; 
2 
2. To exhaust all legal remedies under existing laws; and 
3 
3. To be protected from diminution of benefits that may arise with the passage 
4 
of a subsequent law or regulation. 
5 
(E) Right to be Heard 
6 
I. To be represented in the GSIS governing Board; 
7 
2. To participate in meaningful exchange of views III dialogues and fora 
8 
conducted by GSIS without fear of reprisal; 
9 
10 
11 
12 
3. 
To be consulted on the policies and programs to be implemented by the 
system; 
4. 
To convey grievances and be accorded immediate response; and 
5. 
To transact business with the GSIS in person or through electronic access 
13 
points. 
14 
SEC. 4-A. Special Rights for the Elderly, Disabled and Seriously-Ill Members, 
15 
Beneficiaries and Pensioners. - The following special rights are to be afforded to the 
16 
elderly, disabled and seriously-ill members, beneficiaries and pensioners, to wit: 
17 
1. To be provided special access lanes; 
18 
2. To be prioritized in the processing and releasing of claims and benefits; 
19 
3. To be given preference in the dissemination of information pertaining to 
20 
policies; and 
21 
4. To be accorded leniency in the submission of documents: Provided, That 
22 
there is substantial compliance with the requirements prescribed by GSIS. 
23 
SEC. 5. 
Agency's/ Employer's Responsibilities. - The government agencies 
24 
covered by the GSIS Act, as employers, shall have the following responsibilities: 
25 
1. To remit employees' and employers' contributions to the GSIS within the 
26 
prescribed time mandated by the GSIS Act; 
27 
2. To provide promptly documents required to facilitate the processing of 
28 
documents and claims; 


5 
1 
3. To provide additional documents as necessary to reconcile the records of 
2 
accounts; and 
3 
4. To inform GSIS, through their agency authorized officers, of any update 
4 
pertaining to personal or service records that may affect the processing of 
5 
claims and benefits. 
6 
SEC. 6. Section 7 of Republic Act No. 8291, otherwise known as "The 
7 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
8 
"Sec. 7. Interests on Delayed Remittances. - Agencies which delay the 
9 
remittance of any and all monies due the GSIS shall be charged interests as may 
10 
be prescribed by the Board but not[less] MORE than two percent (2%) simple 
11 
interest per month. Such interest shall be paid by the employers concerned. 
12 
SEC. 7. Section 28 of Republic Act No. 8291, otherwise known as "The 
13 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
14 
"Sec. 28. Prescription. - Claims for benefits under this Act [except for life 
15 
and retirement] shall NOT prescribe. [after four (4) years from the date of 
16 
contingency.] 
17 
SEC. 8. 
Section 30 of Republic Act No. 8291, otherwise known as "The 
18 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
19 
"Sec. 30. Settlement of Disputes. - The GSIS AND THE REGIONAL 
20 
TRIAL COURT (RTC) shall have original and [exciusive]CONCURRENT 
21 
jurisdiction to settle any dispute arising under this Act and any other laws 
22 
administered by the GSIS. 
23 
"xxx 
24 
SEC. 9. Section 31 of Republic Act No. 8291, otherwise known as "The 
25 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
26 
"Sec. 31. Appeals. - Appeals from any decision or award of the Board OR 
27 
RTC shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure 
28 
adopted by the Supreme Court on April 8, 1997 which will take effect on July 1, 


6 
1 
1997: Provided, That pending cases and those filed prior to July I, 1997 shall be 
2 
governed by the applicable rules of procedure: Provided, further, That the appeal 
3 
shall take precedence over all other cases except criminal cases when the penalty 
4 
of life imprisonment or death or reclusion perpetua is imposable. 
5 
HXXX 
6 
SEC. 10. Section 36 of Republic Act No. 8291, otherwise known as "The 
7 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
8 
"Sec. 36. Investment of Funds. - xxx 
9 
"xxx 
10 
"0) In foreign mutual funds and in foreign currency deposits or foreign 
11 
currency-denominated debts, non-speculative equities and other financial 
12 
instruments or other assets issued in accordance with existing laws of the 
13 
countries where such financial instruments are issued: Provided, That these 
14 
instruments or assets are listed in bourses of respective countries where these 
15 
instruments or assets are issued: Provided, further, That the issuing company has 
16 
proven track record of profitability over the last three (3) years and payment of 
17 
dividends at least once over the same period: PROVIDED, FINALLY, THAT 
18 
NOT MORE 
THAN FIVE 
PERCENT 
(5%) OF 
THE ABOVE-
19 
MENTIONED FUNDS SHALL BE INVESTED ABROAD. 
20 
SEC. 11. Section 42 of Republic Act No. 8291, otherwise known as "The 
21 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
22 
"Sec. 42. The Board of Trustees; Its Composition; Tenure and 
23 
Compensation. - The corporate powers and functions of the GSIS shall be vested 
24 
in and exercised by the Board of Trustees composed of the President and General 
25 
Manager of the GSIS and TEN (10) [eight (8) J other members to be appointed by 
26 
the President of the Philippines, one (1) of whom shall be either the President of 
27 
the Philippine Public School Teachers Association (PPSTA) or the President of 
28 
the Philippine Association of School Superintendents (PASS), 
THE 


7 
1 
SECRETARY OF THE DEPARTMENT OF EDUCATION (DepEd), THE 
2 
CHAIRMAN OF THE CIVIL SERVICE COMMISSION (CSC), another two 
3 
(2) shall represent the leading organizations or associations of government 
4 
employees/retirees, AND another four (4) from the banking, finance, investment, 
5 
and insurance sectors, and one (1) recognized member of the legal profession who 
6 
at the time of appointment is also a member of the GSIS. The Trustees shall elect 
7 
from among themselves a Chairman while the President and General Manager of 
8 
the GSIS shall automatically be the vice-chairman. 
9 
"xxx 
10 
SEC. 12.' Section 43 of Republic Act No. 8291, otherwise known as "The 
11 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
12 
"Sec. 43. Powers and Functions of the Board of Trustees. - xxx 
13 
"xxx 
14 
"(d) upon the recommendation of the President and General Manager, to approve 
15 
the GSIS' organizational and administrative structures and staffing pattern[,] 
16 
SUBJECT TO EXISTING CIVIL SERVICE LAWS, RULES AND 
17 
REGULATIONS and to establish, fix, review, revise and adjust the appropriate 
18 
compensation package for the officers and employees of the GSIS with 
19 
reasonable allowances, incentives, bonuses, privileges and other benefits as may 
20 
be necessary or proper for the effective management, operation and 
21 
administration of the GSIS, which shall be exempt from Republic Act No. 6758, 
22 
otherwise known as the Salary Standardization Law and Republic Act No. 7430, 
23 
otherwise known as the Attrition Law. 
24 
~'xxx 
25 
SEC. 13. Section 49 of Repubiic Act No. 8291, otherwise known as "The 
26 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
27 
"Sec. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall 
28 
pay the retirement benefits to the employee on his last day of service in the 


8 
1 
government: Provided, That all requirements are submitted to the GSIS SIXTY 
2 
(60) DAYS [within a reasonable period] prior to the effective date of the 
3 
retirement; 
4 
"xxx 
5 
SEC. 14. Section 52 of Republic Act No. 8291, otherwise known as "The 
6 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
7 
"Sec. 52. Penalty. - xxx 
8 
"xxx 
9 
"0) Failure of the PRESIDENT AND GENERAL MANAGER AS 
10 
WELL AS Members of the GSIS Board, including the chairman and the vice-
11 
chairman, to comply with the provisions of paragraphS (R) AND (w) of Section 
12 
41 AND SECTION 49 hereof, shall subject them to imprisonment of not less 
13 
than six (6) months nor more than one (l) year or a fine of not less than [Five] 
14 
TEN thousand pesos (P[5] 10,000.00) nor more than [Ten]TWENTY thousand 
15 
pesos (P[1O]20,000.00) without prejudice to any civil or administrative liability 
16 
which may also arise therefrom[.]: PROVIDED, THAT IN CASE GSIS FAILS 
17 
TO COMPLY WITHOUT VALID AND JUSTIFIABLE REASON WITH 
18 
THE REQUIREMENTS REFERRED TO IN SECTION 49 OF THIS ACT, 
19 
A PENALTY OF NOT MORE THAN 2% SIMPLE INTEREST SHALL BE 
20 
CHARGED PER MONTH FROM GSIS: PROVIDED, HOWEVER, THAT 
21 
IN 
CASE THE RELEASE OF THE RETIREMENT BENEFITS 
22 
REFERRED TO IN SECTION 49 OF THIS ACT COULD NOT BE 
23 
ACCOMPLISHED 
DUE 
TO 
FORCE 
MAJEURE 
AND 
OTHER 
24 
INSUPERABLE CAUSES, THE PENALTY OF IMPRISONMENT AND 
25 
FINE IMPOSED UNDER THIS PARAGRAPH SHALL NOT APPLY. 
26 
"Criminal actions arising from violations of the provisions of this Act may 
27 
be commenced by the GSIS or by the aggrieved member, either under this Act or, 


9 
1 
in appropriate cases, under the Revised Penal Code[.] AND OTHER SPECIAL 
2 
LAWS. 
3 
SEC. 15. Implementing Rules and Regulations. - The implementing rules and 
4 
regulations to carry out the provisions of this Act shall be adopted and promulgated by 
5 
the GSIS, in consultation with the Civil Service Commission (CSC) not later than ninety 
6 
(90) days after the approval of this act. 
7 
SEC. 16. Separability Clause. - If any part or provision of this Act shall be held to 
8 
be unconstitutional or invalid, other parts or provisions hereof which are not affected 
9 
shall continue to be in full force and effect. 
10 
SEC. 17. Repealing Clause. -All laws, decrees, executive orders, rules and 
11 
regulations, or parts thereof which are inconsistent with this Act are hereby repealed, 
12 
amended or modified accordingly. 
13 
SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days following its 
14 
publication in at least two (2) newspapers of general circulation or the Official Gazette. 
Approved,