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FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPHPINES 
) 
) 
7 Jk -4 
fi!3 :I8 
First Regular Session 
1 
~ 
. .  
S E N A T E  
S.B. N o . x 6  
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill gives government employees who retired from government service the 
option to enjoy the benefits of their retirement either under Republic Act No. 1616 or 
Republic Act No. 660. 
Under Republic Act No. 1616 which amended certain provisions of 
Commonwealth Act Numbered 186, as amended, by prescribing two other modes of 
retirement and for other parposes, a government retiree is entitled to: 1.) gratuity 
payable by the last employer based on the total creditable service converted into 
gratuity months multiplied by the highest compensation received; and 2.) refund of 
retirement premiums consisting of personal contributions of the employee plus interest, 
and government share without interest, payable by GSIS. 
On the other hand, a.government retiree under Republic Act No. 660 is entitled 
to: 1.) automatic pension subject to certain conditions; 2.) initial three-year lump sum; 
and 2.) five-year lump sum for those who are at least 63 years of age or over on the date 
of retirement. 
Government employees who devoted their productive years to government 
service deserve to maximize the benefits of their retirement. By giving them the option 
to avail of the same under any of the aforementioned laws will give due recognition to 
the years they devoted to public service.. This proposed measure seeks to implement 
such recognition. 
In view of the foregoing, immediate passage of this bill is earnestly requested. 
LOREN LEGARDA 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPHPINES 
) 
1 
7 Juk -4 
AD :3w 
First Regular Session 
) 
S E N A T E  
/ 
S.B. ~ 0 . 2 6  
Introduced by Senator Loren Legarda 
AN ACT 
TO FURTHER AMEND PRESIDENTIAL DECREE NO. 1146 AS AMENDED BY 
REPUBLIC ACT NO. 
8291 OTHERWISE KNOWN AS THE ”REVISED 
GOVERNMENT SERVICE INSURANCE ACT OF 2007”. 
Be it enacted by the Senate and House of Representative of the Philippines in Congress 
assern bled: 
Section 1. Section 10 (b) of Presidential Decree No. 1146 as amended by R.A. 
8291 is hereby further to read as follows: 
Section 2. The same Presidential Decree is hereby amended by adding a new 
section after Section 14 to be denominated as Section 14- A to read as follow: 
”Section 14- A RETIREMENT OPTION-EMPLOYEES, INCLUDING THOSE 
WHO HAVE PREVIOUSLY RETIRED OR SEMRATED FRCM THE 
SERVICE 
BUT 
WERE 
REEEMPLOYED 
OR 
REINSTATED 
AND 
SUBSEQUENTLY COMPULSORILY RETIRED AFTER THE EFFECTIVITY 
AND IMPLEMETTATION OF R.A. 8291 AND THOSE WHO ARE IN 
GOVERNMENT SERVICE UPON THE EFFECTIVITY OF THE SAID LAW 
SHALL, AT THE TIME THEIR RETIREMENT, BE ACCORDED THE 
OPTION TO RETIRE UNDER R.A. 1616 OR R.A. 660, AND THEIR BENEFITS 
AND ENTITLEMENTS THERETO BE DETERMINED INACCORDANCE 
WITH THE PROVISIONS OF THE LAW SO OPTED OR CHOSEN.” 
Section 3. The Repealing Clause---All laws and any other law or parts of law 
specifically inconsistent herewith are hereby repealed or modified accordingly: 
Provided, That the rights under existing laws, rules and regulatioys 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 FROM THE SERVICE AND IS 
REEMPLOYED [ in the service shall be covered by the provision] AFTER THE 
EFFECTIVITY OF THE ACT, HIS SUBSEQUENT RETIREMENT SHALL BE 
COVERED BY THE PROVISIONS OF THIS ACT. 
Section 4. Retroactivity Clause---This Act shall have retroactive effect those who 
have already retired compulsorily after the effectivity of R.A. 8291 but &&not given 
the option to retire under R.A. 1616 or R.A. 660. 


SEC.5. Separability Clause. - If any provision of this Act is declared invalid, the 
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remainder of this Act or any provision not affected thereby shall remain in force and 
effect. 
SEC.6. Repealing Clause. - All laws, presidential decrees, executive orders and 
& 
their implementing rules; inconsistent with the provisions of this act are hereby 
repealed, amended or modified accordingly. 
SEC.? . Effectivity. - This Act shall take, effect fifteen (15) days after its 
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publication in at least two (2) national newspapers of genera1 circulation. 
Approved