EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E  
S. No. 1 S 7 3
^e n a U ' '
tr ef tijf ftrcrrMrp
20 
JAN 20 P2
RECEIlDBr:
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
ESTABLISHING THE REVISED CHARTER OF THE GOVERNMENT SERVICE 
INSURANCE SYSTEM
EXPLANATORY NOTE
On 14 November 1936, the Government Service Insurance System (GSIS) was 
created by virtue of Commonwealth Act (C.A.) No. 186 to ensure that government 
employees who devoted their lives to public service are taken care of upon retirement 
and amply protected in case of contingency or disability. To pursue this mandate, the 
GSIS Charter was amended by Presidential Decree (P.D.) No. 1146, Republic Act (R.A.) 
No. 660, R.A. No. 1616, and most recently, by R.A. No. 8291 (Revised GSIS Act of 
1997).
This bill aims to introduce amendments to R.A. No. 8291 in order develop and 
promote the GSIS as a premier social insurance institution providing adequate and 
excellent social insurance benefits and non-life insurance needs to members, 
pensioners and stakeholders, ensure the adoption of policies that are beneficial to 
them and presen/e and sustain the financial viability and actuarial solvency of the GSIS 
Fund.


As of 01 October 2019, there are 1,843,183 active members of the GSIS and 
486,569 active pensioners who consist of 353,193 old age and 133,376 survivorship 
pensioners.
Government employees depend greatly on the GSIS' established processes in 
providing pension, life insurance, disability, employees'compensation, burial benefits, 
survivorship benefits and available loans to mitigate the effect of certain contingencies. 
In order for the State to safeguard public servants from the socio-economic impacts 
of old age, death, loss of job and disability, it is essential to review and amend R.A. 
No. 8291.
This bill introduces amendments to R.A. No. 8291 to make it more responsive 
to the changing needs of the GSIS, its members, pensioners and stakeholders. It 
highlights the significance of premium contributions of government employees, and 
supports their involvement in developing and making policies of the GSIS.
The bill also seeks to strengthen and clarify the corporate powers and authority 
granted to GSIS under R.A. No. 8291 relative to appointments of personnel, authority 
to approve GSIS'organizational and administrative structures and staffing patterns, to 
establish, fix, review, revise and adjust the appropriate compensation package, 
benefits, reasonable allowances, incentives, bonuses, privileges for the officers and 
employees of the GSIS, and budget autonomy, among others.
The bill likewise seeks to enhance and expand the reinsurance function of the 
GSIS by exempting the same from the provisions of R.A. No. 9184 (Government 
Procurement Reform Act) or any subsequent procurement law to allow foreign 
reinsurance entities to participate in the reinsurance of government properties and 
interests without being limited by the rigidity and other inflexible requirements of 
government procurement law, provided that the contract to be awarded shall be the 
most advantageous for the GSIS or Government of the Philippines guided by the 
principles of transparency and competitiveness.


Salient provisions include:
1. 
Emphasis on periods with paid premiums as basis for the computation of actual 
benefits payable;
2. 
Revision of the definition of Average Monthly Compensation (AMC);
3. 
Revision of the computation of the Basic Monthly Pension (BMP);
4. 
Clarification and rationalization of the survivorship benefits and eligibility 
therefor, including the pension of surviving spouse and dependent children, 
survivorship benefits of members in active service, and survivorship benefits of 
members not in active service;
5. 
Institutionalization of a sound and tax exempt social security system responsive 
to the needs of government employees, pensioners and stakeholders;
6. 
Enhancement and expansion of the reinsurance functions of the GSIS by 
exempting the same from the provisions of R.A. No. 9184 (Government 
Procurement Reform Act) or any subsequent procurement law to allow foreign 
reinsurance entities to participate in the reinsurance of government properties 
and interests without being limited by the rigidity and other inflexible 
requirements of government procurement law, provided that the contract to be 
awarded shall be the most advantageous for the GSIS or Government of the 
Philippines guided by the principle of transparency and competitiveness;
7. 
Exemption from Filing Fees and Government Procurement Law on Reinsurance 
Contracts;
8. 
Without need of approval or review by the President of the Philippines or named 
government agencies or instrumentalities, the GSIS shall continue to have the 
powers to:
a) Adopt or approve its annual and supplemental budget of receipts and 
expenditures including salaries and allowances of GSIS personnel;
b) Approve certain appointments in the GSIS;
c) Approve GSIS' organizational and administrative structures and staffing 
pattern; and,
d) Exemption from Land Reform Program and other existing or future land 
and agrarian reform legislations.


9. 
Revised the composition of the Board of Trustees from eight (8) members to 
eleven (11) members.
10. 
All GSIS claims and benefits are now imprescriptible.
In light of the foregoing, the immediate passage of this bill is most earnestly 
sought.
RAM^KBONG r e v il l a,JR.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
s. NO. 1273
Sieiiatc
er t*)r fiffcrftarp
20 
JAN 20 F2'-45
RECFi'^^Dm':
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
ESTABLISHING THE REVISED CHARTER OF THE GOVERNMENT SERVICE 
INSURANCE SYSTEM
Be it  enacted by the Senate and House o f Representative o f the Philippines in Congress 
assembled:
1 
Section 1. Short Title. -  This Act shall be known as the "Revised GSIS Act’.
2 
Sec. 2. Declaration o f Policy. -  The State shall provide, develop and promote
3 
a sound and tax-exempt social security system responsive to the needs of its
4 
government employees, pensioners and stakeholders. Accordingly, the State shall
5 
review and strengthen policies that advance and protect the welfare of employees in
6 
the public sector and ensure their right to participate in policy and decision-making
7 
processes affecting their rights and benefits. Toward this end, the State shall:
8 
(a) 
Establish a premier and financially viable government social insurance
9 
institution providing excellent service to its members, pensioners and
10 
other constituents;
11 
(b) 
Ensure the adoption of policies beneficial to GSIS members, pensioners
12 
and other constituents, toward 
a responsible, integrated, autonomous,
13 
automated and transparent social security system;
14 
(c) 
Provide greater representation for members at the highest policy-making
15 
level of the GSIS; and.


1 
(d) 
Preserve and sustain the fiscal stability of the System, financial viability
2 
and actuarial solvency of the fund and protect the rights and benefits of
3 
members.
4 
A. DERNmONS
5 
Sec. 3. 
Definition o f Terms. -  Unless the context indicates otherwise, the
6 
following terms shall mean:
7 
(a) 
''Active M em bef -  A member who is not separated from the service;
8 
(b) 
"Average Monthly Compensation (AMC)' -  The quotient arrived at after
9 
dividing the aggregate compensation received by the member during
10 
his/her last thirty-six (36) months of service, with premium payments,
11 
preceding his/her separation/retirement/disability/death by thirty-six
12 
(36) or by the number of months he/she received such compensation if
13 
he/she has less than thirty-six (36) months of periods with premium
14 
payments: Provided, That for the new entrant and those active members
15 
with less than fifteen (15) years with paid premiums in government
16 
service at the time of the effectivity of this Act, the AMC shall be his/her
17 
quotient arrived at after dividing the aggregate compensation received
18 
by the member during his/her last sixty (60) months of service, with
19 
premium 
payments, 
preceding 
his/her
20 
separation/retirement/disability/death by sixty (60), or by the number of
21 
months he/she received such compensation if he/she has less than sixty
22 
(60) months of periods with premium payments: Provided further, That
23 
the AMC in no case exceed the amount and rate as may be respectively
24 
set by the Board under the rules and regulations implementing this Act
25 
as determined by the actuary of the GSIS;
26 
(c) 
"Benefit^' -  Unless otherwise provided in this Act, Benefits shall refer to
27 
those administered by GSIS on behalf of its members, as found under
28 
Sections 11 to 34 of this Act, specifically: retirement, separation,
29 
unemployment, disability, funeral, survivorship and life insurance;
30 
(d) 
"Board' -  The Board of Trustees of the GSIS;
31 
(e) 
" CompensatiorC -  The basic pay or salary received by an employee,
32 
pursuant to his/her election or appointment, excluding per diems.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
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;
(f) 
"Current Daily Compensatiorf' -  For purposes of computing disability 
benefits, it refers to 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;
(g) 
"D isability -  Any loss or impairment of the normal functions of the 
physical and/or mental faculties of a member which reduces or 
eliminates his/her capacity to continue any gainful occupation;
(h) 
"Employe/1' -  The national government, its political subdivisions, 
branches, agencies or instrumentalities, including, government-owned 
or controlled corporations with or without original charters, and 
government 
financial 
institutions 
with 
original 
charters, 
the 
constitutional commissions and the judiciary;
(i) 
"Employed' or "Membet" -  Any person, receiving compensation as 
defined herein while in the service of the employer, whether by election 
or appointment, irrespective of status of appointment, including 
barangay and sanggunian officials;
(j) 
"Gainful Occupatiori' -  Any productive activity that provides the member 
with income at least equal to the minimum compensation of government 
employees;
(k) 
"GSIS' -  The Government Service Insurance System created by 
Commonwealth Act (C.A.) No. 186, as amended;
(l) 
"Inactive Mem bef -  A member who is separated from the service, either 
by resignation, retirement, disability, dismissal, or retrenchment;
(m) 
"Legal H e if -  Refers to those heirs other than primary and secondary 
beneficiaries defined under this Act, who are entitled to succession as 
defined by law. For purposes of claiming benefits under this law, the 
GSIS shall only consider legal heirs up to 4th civil degree of 
consanguinity;


1
(n)
2
3
(0)
4
5
6
7
(P)
8
9
10
11
(q)
12
13
14
(r)
15
16
(S)
17
18
(t)
19
20
(U)
21
22
23
(V)
24
25
(w)
26
27
28
29
30
31
32
''New Entrant' -  refers to new government employees covered by this 
Act who enters government service after the effectivity of this Act; 
"Periods with Paid Premiums (PPP)' -  Refers to the periods of service of 
a regular member while in government service for which the 
corresponding compulsory premium contributions were actually paid and 
remitted to the GSIS;
"Pensioner1' -  Any person receiving old-age or permanent total disability 
pension or any person who has received retirement benefits: Provided, 
however, That one who is receiving survivorship pension benefits as 
defined in Sections 29 to 31 of this Act is not a pensioner;
"Permanent Partial Disability -  Accrues or arises upon the irrevocable 
loss or impairment of certain portion/s of the physical faculties, despite 
which the member is able to pursue a gainful occupation;
"Permanent Total Disability -  Accrues or arises when recovery from the 
impairment mentioned in Section 3(u) is medically remote;
"Primary beneficiaried' -  The legal dependent spouse until he/she 
remarries and the dependent children;
"Secondary beneficiaried' -  The dependent parents and legitimate 
descendants other than the dependent children;
"Temporary Total Disability -  Accrues or arises when there is 
impairment of physical 
and/or mental 
faculties which 
can 
be 
rehabilitated and/or restored to their normal functions;
" TotalAssetd' -  As used under this Act, refers to the value of total assets 
as appearing in the GSIS' statements of financial position;
" Total Length o f Servicd' -  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.
B. MEMBERSHIP IN THE GSIS


1 
Sec. 4. Compulsory Membership. -  (a) All government personnel, officers and
2 
employees, whether elective or appointive, irrespective of status of appointment,
3 
provided they are receiving fixed monthly compensation and have not reached the
4 
mandatory retirement age of sixty five (65) years, are compulsorily covered as
5 
members of the GSIS and shall be required to pay contributions;
6 
(b) Contractual and casual employees who have an employee-employer
7 
relationship with a government agency are also compulsorily covered;
8 
(c) An employee who is already in the government service and reaches the
9 
mandatory retirement age of sixty five (65) but whose service has been extended by
10 
the Civil Service Commission (CSC) for the purpose of completing the fifteen (15) years
11 
of service required under Republic Act (R.A.) No. 8291 to qualify for retirement
12 
benefits;
13 
(d) The following are not members of the GSIS:
14 
(l)Barangay officials and other government officials who are not
15 
receiving fixed monthly compensation;
16 
(2) Personnel who are not receiving fixed monthly compensation and/or
17 
do not have monthly regular hours of work;
18 
(3) Personnel covered by contract of service including consultancy and
19 
job order, where no employee-employer relationship exists between
20 
the individual and the employer; and,
21 
(4) Uniformed personnel of the Armed Forces of the Philippines (AFP),
22 
Philippine National Police (PNP), Bureau of Fire Protection (BFP) and
23 
Bureau of Jail Management and Penology (BJMP).
24 
(e) The following, who are covered by separate retirement schemes, are also
25 
required to remit regular monthly contributions to the GSIS for their life insurance
26 
policies in order to answer for their life insurance benefits defined under this Act:
27 
(1) Members of the constitutional bodies;
28 
(2) Members of the judiciary, including those with equivalent ranks;
29 
(3) Members of the National Prosecution Service;
30 
(4) Members of the Public Attorney's Office; and
31 
(5) All others who are or may be subsequently covered by a separate
32 
retirement law.


1 
Sec. 5. 
Optional Membership. -  TTie following shall be given the option to
2 
continue their membership in GSIS, even beyond the mandatory retirement age of
3 
sixty five (65):
4 
(a) An official elected to public office before age sixty five (65) but who will
5 
reach the mandatory retirement age of sixty five (65) during his/her term
6 
shall be allowed to continue paying life and retirement premiums until
7 
the end of his/her term, including any periods of re-election or election
8 
to another public office: Provided, That such period/s of re-election or
9 
election are continuous;
10 
(b) An official appointed by the President of the Philippines to public office
11 
before age 65 for a fixed term and with a fixed monthly compensation,
12 
but who will reach the mandatory retirement age of sixty five (65) during
13 
his/her tenure shall be allowed to continue paying life and retirement
14 
premiums until the end of his/her tenure, including any period/s of term
15 
extension or re-appointment to another office: Provided, That the
16 
period/s of extension or re-appointment is/are continuous;
17 
(c) Non-presidential appointees whose services are extended pursuant to
18 
special laws such as, but not limited to, R.A. No. 8292 (Higher Education
19 
Modernization Act of 1997) and R.A. No. 9500 (University of the
20 
Philippines Charter of 2008). The appointee shall be given an option to
21 
continue paying premium contributions upon reaching the age of 65 until
22 
the end of his/her extended service;
23 
(d)An official or employee who holds a co-terminus or highly confidential
24 
position who reaches the age of sixty five (65) years, and whose services
25 
are considered automatically extended until the expiration of the
26 
employee's or official's appointment or until the employee's or official's
27 
services are earlier terminated shall be allowed to continue paying life
28 
and retirement premiums until the end of his/her tenure; and,
29 
(e) An official or employee whose period of government service is extended
30 
by appropriate authorities and who continues to pay his/her life and
31 
retirement premiums until the end of his/her tenure.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
Sec. 6. Effect o f Separation from the Service. -  A member separated from the 
service either by resignation, retirement, disability, dropping from the rolls, dismissal 
from the service or retrenchment, or those who are qualified for compulsory 
retirement but opted not to continue membership in the GSIS shall be deemed an 
inactive member of the system. An inactive member shall be eligible to whatever 
benefits he/she has already qualified for in the event of any contingency compensable 
under this Act.
C. SOURCES OF FUNDS 
SEC. 7. 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 o f Monthly 
Compensation Payable by
Member
Employer
I. Maximum Average Monthly 
Compensation (AMC) Limit
And Below 
9.0% 
12.0%
II. Over the Maximum 
AMC Limit
-Up to the Maximum AMC Limit 
9.0% 
12.0%
-In Excess of the AMC Limit 
2.0% 
12.0%
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) It shall be mandatory and compulsory for all employers to include in their 
annual appropriations the necessary amounts for the payment of 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) The appropriate penal, civil and administrative sanctions under Section 66 
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


1 
accurate/exact amount of contributions on time, or delay the remittance of premium
2 
contributions to the GSIS. The heads of offices and agencies shall be administratively
3 
liable for non-remittance or delayed remittance of premium contributions to the GSIS.
4 
Sec. 8. Collection and Remittance o f Contributions. -  (a) The employer shall
5 
report to the GSIS the names of all its employees, their corresponding employment
6 
status, positions, salaries and such other pertinent information, including subsequent
7 
changes therein, if any, as may be required by the GSIS. The employer shall deduct
8 
each month from the monthly salary or compensation the contributions payable by
9 
him/her in accordance with the schedule prescribed in the rules and regulations
10 
implementing this Act and the loan amortizations of each employee.
11 
(b) Each employer shall remit directly to the GSIS the employees' and
12 
employers' contributions and loan amortizations within the first ten (10) days of the
13 
calendar month following the month to which the contributions apply. The collection
14 
and remittance by the employer of the contributions and loan amortizations to the
15 
GSIS shall take priority over and above the payment of any and all obligations, except
16 
salaries and wages of its employees.
17 
(c) All outstanding government share premium contributions which were not
18 
paid by any government office or agency, including interest, shall be included in the
19 
annual budget and shall be remitted automatically by the Department of Budget and
20 
Management (DBM) to the GSIS.
21 
(d) The deduction and remittance by the employer of loan amortizations due to
22 
the GSIS shall, at all times, take priority over and above the deductions and payment
23 
of any and all obligations and payment of any and all obligations of the member due
24 
to private creditors.
25 
Sec. 9. 
Penalties on Delayed Remittances. -  Agencies which delay the
26 
remittance of the monthly premium contributions and other amounts due the GSIS
27 
shall be charged a penalty in the form of interest per month or a portion thereof as
28 
may be prescribed by the Board but not less than two percent (2%) simple interest.
29 
Such interest shall be paid by the employers concerned.
30 
Sec. 10. 
Government Guarantee. -T h e  Government of the Republic of the
31 
Philippines hereby guarantees the fulfillment of the obligations of the GSIS to its


1 
members as and when they fall due and accepts general responsibility for the solvency
2 
of the GSIS.
3 
D. BENEFITS
4 
Sec. 11. Determination o f Amount o f Benefits. -  (a) The computation of total
5 
length of service for the purpose of determining a member's eligibility to the retirement
6 
benefits payable under this Act shall be based on the service rendered starting from
7 
the date of assumption of office by virtue of a valid appointment or election, including
8 
periods of service at different times under one or more employer/s, those performed
9 
overseas under the authority of the Republic of the Philippines, and those which may
10 
be prescribed by the GSIS in coordination with the CSC.
11 
(b) The computation of actual benefits payable under this Act shall be based on
12 
periods with paid premiums.
13 
For the purpose of this Section, the term service shall include full-time service
14 
with compensation: Provided, That part-time and other services with compensation
15 
may be included under such rules and regulations as may be prescribed by the GSIS.
16 
RETIREMENT BENEFITS
17 
Sec. 12. 
General Conditions for Entitlement. -  A member who retires from
18 
service shall be entitled to the retirement benefits enumerated in Section 13(a) hereof:
19 
Provided, That the member:
20 
(a) Has rendered at least fifteen (15) years of service;
21 
(b) Is at least sixty (60) years of age; and,
22 
(c) Is not receiving a monthly pension benefit from permanent total disability
23 
under this Act.
24 
Sec. 13. Retirement Benefits. -  (a) Retirement benefit shall either be:
25 
(1) Lump sum payment equivalent to sixty (60) months of the member's
26 
basic monthly pension (BMP) payable at the time of retirement plus an
27 
old-age pension benefit equal to the basic monthly pension payable
28 
monthly for life, starting upon expiration of the five-year (5) period
29 
covered by the cash payment; or,
30 
(2) Cash payment equivalent to eighteen (18) months of the member's
31 
basic monthly pension 
plus monthly pension 
for life 
payable
32 
immediately starting from date of retirement.


1 
(b) Unless the service is allowed under Section 5 of this Act or extended by
2 
appropriate authorities, retirement shall be compulsory for an employee at sixty-five
3 
(65) years of age: Provided, That if the employee has less than fifteen (15) years of
4 
service, he/she may be allowed to continue in the service in accordance with existing
5 
civil service rules and regulations.
6 
Sec. 14. Computation o f the Basic Monthly Pension (BMP).-
7 
(a) The basic monthly pension is equal to two and one half percent (2.5%)
8 
multiply by the Average Monthly Compensation multiply by the periods with paid
9 
premiums: Provided, That the basic monthly pension shall not exceed ninety percent
10 
(90%) of the Average Monthly Compensation.
11 
(b) For the new entrant and those active members with less than fifteen (15)
12 
years with paid premiums in government service at the time of effectivity of this Act,
13 
the basic monthly pension is equal to two percent (2%) multiply by the Average
14 
Monthly Compensation multiply by the periods with paid premiums: Provided, That
15 
the basic monthly pension shall not exceed eighty percent (80%) of the Average
16 
Monthly Compensation.
17 
(c) The basic monthly 
pension 
(BMP) 
may 
be 
adjusted 
upon the
18 
recommendation of the GSIS' Actuary and the GSIS President and General Manager
19 
(PGM), and approved by the Board of Trustees in accordance with the rules and
20 
regulations prescribed by the GSIS.
21 
Sec. 15. Periodic Pension Adjustment -  The monthly pension of all pensioners
22 
including all those receiving survivorship pension benefits shall be periodically adjusted
23 
as may be recommended by the GSIS Actuary and the GSIS PGM, and approved by
24 
the Board of Trustees of GSIS in accordance with the rules and regulations prescribed
25 
by the GSIS.
26 
SEPARATION BENEFITS
27 
Sec. 16. General Conditions for Entitlement -  A member who separates from
28 
the service before he/she is eligible for retirement under Section 12 of this Act shall
29 
be entitled to the separation benefits enumerated in Section 17 hereof: Provided, That
30 
the member:
31 
(a) Flas rendered at least three (3) years of service; and
10


1 
(b)Is not receiving a monthly pension benefit from permanent total disability
2 
under this Act.
3 
Sec. 17. Separation Benefits. -  The separation benefit shall be paid as follows:
4 
(a) If the member has rendered at least three (3) years but less than fifteen
5 
(15) years of service at the time of resignation or separation, he/she shall be entitled
6 
to a one-time cash payment equivalent to one hundred percent (100%) of his/her
7 
Average Monthly Compensation for each year of service that he/she paid premium
8 
contributions, but not less than Twelve thousand pesos (Phpl2,000). The one-time
9 
cash payment shall be payable immediately or upon reaching sixty (60) years of age,
10 
at the option of the member: Provided, That the Average Monthly Compensation of
11 
new entrants in government service is equivalent to the average salary received by
12 
the member during the last five (5) years of service with paid premiums;
13 
(b) If the member has rendered at least fifteen (15) years of service but is
14 
below sixty (60) years of age at the time of resignation or separation, he/she shall be
15 
entitled to a one-time cash payment equivalent to eighteen (18) times his/her basic
16 
monthly pension at the time of resignation or separation, plus an old-age pension
17 
benefit equal to the basic monthly pension payable monthly for life upon reaching the
18 
age of sixty (60).
19 
Sec. 18. Effect o f Re-Empioyment in Government Service after Separation. -
20 
All services credited for retirement, resignation or separation for which corresponding
21 
benefits have been paid under this Act or other laws shall in all cases and without any
22 
exception, be excluded in the computation of service in case of reinstatement in
23 
government service and subsequent retirement or separation which is compensable
24 
under this Act. Notwithstanding any other laws and rules and regulations to the
25 
contrary, no refund or return of any applicable retirement or separation benefits
26 
previously availed and received shall be allowed for purposes of including the prior
27 
government services credited for retirement, resignation or separation where benefits
28 
have already been paid to the total years of government service in case of subsequent
29 
retirement or separation.
30 
UNEMPLOYMENT BENEFITS
31 
Sec. 19. 
General Conditions fo r Entitlement -  A member who is separated
32 
from the service due to the abolition of his/her office or position resulting from
11


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
reorganization shall be entitled to the unemployment benefits enumerated in Section 
20 hereof: Provided, That the member:
(a) Has been paying the required premium contributions for at least one (1) 
year prior to separation;
(b) Has no pending application of separation benefits or has not been paid the 
voluntary separation benefit equivalent to one-time cash payment or 18 times the 
basic monthly pension, should he/she opt to avail of the same; and
(c) Has not availed of any early retirement program as a result of his/her office's 
reorganization.
Sec. 20. 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
I  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
I I  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
Sec. 21. 
General Conditions for Entitlement -  A member who suffers 
permanent disability for reasons not due to his/her 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 
was in the service at the time of disability.
12


1 
Sec. 22. Types o f Disability Benefits. -  There are two (2) types of permanent
2 
disability, which shall be determined by the GSIS based on established medical
3 
standards: (a) permanent total disability and (b) permanent partial disability.
4 
Sec. 23. Permanent Total Disability Benefits. -
5 
(a) The following disabilities shall be deemed permanent and total:
6 
(1) Complete loss of sight of both eyes;
7 
(2) Loss of two (2) limbs at or above the ankle and wrist;
8 
(3) Permanent complete paralysis of two (2) limbs;
9 
(4) Complete loss of hearing of both ears;
10 
(5) Brain injury resulting in physical incapacity, incurable imbecility or
11 
insanity; and,
12 
(6) Such other cases as may be determined by the Board of Trustees.
13 
(b) The member shall receive a monthly income benefit for life equal to the
14 
basic monthly pension effective from the date of disability.
15 
(c) A cash payment equivalent to eighteen (18) times his/her basic monthly
16 
pension shall also be given if the member is in the service at the time of disability and
17 
he/she has paid a total of at least one hundred eighty (180) monthly contributions.
18 
(d) A member cannot enjoy the monthly income benefit for permanent disability
19 
and old-age retirement simultaneously.
20 
(e) If a member does not satisfy the conditions stated under Section 21 hereof
21 
but has rendered at least three (3) years of service at the time of his/her disability,
22 
he/she shall be advanced the cash payment equivalent to one hundred percent
23 
(100%) of his/her Average Monthly Compensation for each year of service he paid
24 
contributions, but not less than Twelve Thousand Pesos (Phpl2,000.00) which should
25 
have been his/her separation benefit.
26 
(f) Unless the member has reached the minimum retirement age at the time of
27 
disability, his entitlement to permanent total disability benefit shall be suspended
28 
when:
29 
(1) He/she recovers from disability as determined by the GSIS, whose
30 
decision shall be final and binding; or
31 
(2) He/she fails to undergo medical examination when required by the GSIS.
32 
PERMANENT PARTIAL DISABILITY BENEFITS
13


1 
Sec. 24. Permanent Partial Disability Benefits.-
2 
(a) The following disabilities shall be deemed permanent partial:
3 
1. SCHEDULED - Complete and permanent loss of the use of:
4 
(i) Any finger
5 
(ii) Any toe
6 
(iii) One arm
7 
(iv) One hand
8 
(v) One foot
9 
(vi) One leg
10 
(vii) One or both ears
11 
(viii) Hearing of one or both ears
12 
(ix) Sight of one eye
13 
2. NON-SCHEDULED - Such other cases as may be determined by the GSIS.
14 
(b) The member shall receive a cash payment in accordance with a schedule of
15 
disabilities to be prescribed by the GSIS.
16 
TEMPORARY TOTAL DISABILITY BENEFITS
17 
Sec. 25. General Conditions for Entitlement -  An active member whose injuries
18 
result in temporary incapacity to work or to engage in any occupation shall be entitled
19 
to the temporary total disability benefit provided for in this Act.
20 
Sec. 26. 
Temporary Total Disability Benefit — (a) A member who suffers
21 
temporary total disability for reasons not due to any of the conditions enumerated in
22 
Section 21 hereof shall be entitled to seventy-five percent (75%) of his/her current
23 
daily compensation for each day or fraction thereof of temporary disability benefit not
24 
exceeding one hundred twenty (120) days in one calendar year after exhausting all
25 
his/her sick leave credits and collective bargaining agreement sick leave benefits, if
26 
any, but not earlier than the fourth day of his/her temporary total disability: Provided,
27 
That:
28 
(1) he/she is in the service at the time of his/her disability; or
29 
(2) if separated, he/she has rendered at least three (3) years of service and
30 
has paid at least six (6) monthly contributions in the twelve-month period
31 
immediately preceding his/her disability.
14


1 
Provided, however, That a member cannot enjoy the temporary total disability
2 
benefit and sick leave pay simultaneously: Provided, further, That if the disability
3 
requires more extensive treatment that lasts beyond one hundred twenty (120) days,
4 
the payment of the temporary total disability benefit may be extended by the GSIS
5 
but not to exceed a total of two hundred forty (240) days.
6 
(b) The temporary total disability benefit shall in no case be less than Seventy
7 
pesos (Php70.00) a day.
8 
(c) The notices required of the member and the employer, the mode of
9 
payment, and the other requirements for entitlement to temporary total disability
10 
benefits shall be provided in the rules and regulations to be prescribed by the GSIS.
11 
Sec. 27. 
Non-scheduied Disability. -  For injuries or illnesses resulting in a
12 
disability not listed in the schedule of partial/total disability provided herein, the GSIS
13 
shall determine the nature of the disability and the corresponding benefits therefor.
14 
DEATH BENEFITS
15 
Sec. 28. Funeral Benefit -  The amount of funeral benefit shall be determined
16 
and specified by the GSIS in the rules and regulations implementing this Act but which
17 
shall not be less than Thirty Thousand Pesos (Php30,000.00): Provided, That it may
18 
be adjusted after every five (5) years upon recommendation of the GSIS Actuary and
19 
the GSIS PGM and approved by the Board in accordance with the rules and regulations
20 
prescribed by the GSIS. The funeral benefit shall be paid upon the death of any of
21 
the following:
22 
(a) A member who:
23 
(1) died while in active service; or
24 
(2) although separated from government service, is or would have been entitled
25 
to future separation or retirement benefits under Section 17 C'Separation Benefits")
26 
or Section 13 fRetirem ent Benefits") of this Act, respectively, and the rule on
27 
constructive filing shall apply in case there is also a filed claim for survivorship benefit.
28 
(3) retired under R.A. No. 1616 prior to 24 June 1997 with at least 20 years of
29 
service, regardless of age; or
30 
(4) retired under R.A. No. 1616 on or after 24 June 1997, with at least 20 years
31 
of service, and is at least 60 years of age at the time of his/her retirement.
32 
(b) An old-age or disability pensioner.
15


1 
SURVIVORSHIP BENEFITS
2 
Sec. 29. Genera! Entitlement to Survivorship Benefits. -  When a member or
3 
pensioner dies, the qualified beneficiaries, shall be entitled to the following
4 
survivorship benefits, whichever is applicable.
5 
Sec. 30. Survivorship Pension. -  The survivorship pension shall consist of:
6 
(a) The basic survivorship pension which is fifty percent (50%) of the basic
7 
monthly pension but shall not be more than fifty percent (50%) of the current Step 8
8 
salary of an Undersecretary. The cap on the survivorship pension may be reviewed
9 
every five (5) years by the Board, upon recommendation of the GSIS Actuary and the
10 
GSIS PGM, and approved by the Board of Trustees in accordance with the rules and
11 
regulations prescribed by the GSIS, by considering the issuances on the salary
12 
standardization law.
13 
(b) The dependent children's pension equivalent to ten percent (10%) of the
14 
basic monthly pension for each child not exceeding fifty percent (50%) of the basic
15 
monthly pension but which shall not be more than fifty percent (50%) of the current
16 
Step 8 salary of an Undersecretary.
17 
(c) The maximum amount of basic survivorship pension prevailing at the time
18 
of death of the member or pensioner shall apply. Any subsequent increase in the Step
19 
8 salary of an Undersecretary will not result in any adjustment to the survivorship
20 
pension already being received.
21 
(d) The survivorship pension shall not be guaranteed yearly adjustments due
22 
to inflation.
23 
(1) Cash payment equivalent to eighteen (18) months BMP; or
24 
(2) Cash payment equivalent to one hundred percent (100%) of the AMC
25 
for every period with paid premiums but not less than Twelve
26 
Thousand Pesos (Phpl2,000.00).
27 
Sec. 31. Death o f a Member. -  Upon the death of a member, the qualified
28 
beneficiaries shall be entitled to:
29 
(a) Survivorship pension: Provided, That the deceased:
30 
(1) Was in the service at the time of his death and has rendered at least
31 
fifteen (15) years of period with paid premiums (PPP); or
32 
(2) If separated from the service, has at least fifteen (15) years of PPP.
16


1 
(b) The survivorship pension plus a cash payment equivalent to eighteen (18)
2 
months BMP: Provided, That the deceased was in the service at the time of his death
3 
with at least fifteen (15) years of PPP;
4 
(c) 
A cash payment equivalent to one hundred percent (100% of the AMC
5 
for each year of period with paid premiums, but not less than Twelve Thousand Pesos
6 
(P12,000.00): Provided, That the deceased member was in the service at the time of
7 
his death or if separated from the service, has at least three (3) years of PPP.
8 
The survivorship pension shall be paid as follows:
9 
(a) when the dependent spouse is the only survivor, he/she shall receive the
10 
basic survivorship pension for life or until he/she remarries, cohabits, or engages in a
11 
common-law relationship;
12 
(b) when only the dependent children are the survivors, they shall be entitled
13 
only to the dependent children's pension for a maximum of five (5) children for as
14 
long as they are qualified, counted from the youngest and without substitution;
15 
(c) when the survivors are the dependent spouse and the dependent
16 
children, the dependent spouse shall receive the basic survivorship pension for life or
17 
until he/she remarries, cohabits, or engages in a common-law relationship, and the
18 
dependent children shall receive the dependent children's pension;
19 
(d) when the dependent spouse and dependent children are already
20 
receiving the basic survivorship pension 
and dependent children's pension,
21 
respectively, any subsequent death, emancipation or disqualification of any one of
22 
them shall not entitle the other beneficiaries to the forfeited share;
23 
(e) when the retiree dies before reaching sixty (60) years of age but has
24 
already received the separation benefit in the form of cash payment equivalent to 18
25 
months BMP, the survivorship pension shall be paid effective from the date of death;
26 
(f) when the pensioner dies within the 5-year period after receiving the five-
27 
year lump sum, the survivorship pension shall be paid only after the expiration of the
28 
said five-year period.
29 
Survivorship Benefits o f Members in Active Service
30 
(a) If at the time of death, a member was in the service and had rendered at
31 
least fifteen (15) years of PPP:
17


1 
(1) His/her primary beneficiaries shall receive the survivorship pension and
2 
cash payment equivalent to eighteen (18) times the BMP; or
3 
(2) In the absence of primary beneficiaries, his/her secondary beneficiaries
4 
shall receive the cash payment equivalent to 18 times the BMP; or
5 
(3) In the absence of the primary and secondary beneficiaries, the legal
6 
heirs of the member shall receive the cash payment equivalent to 18 times
7 
the BMP;
8 
(b) If at the time of death, the member was in the service with less than fifteen
9 
(15) years of PPP; his primary beneficiaries shall receive the cash payment equivalent
10 
to 100% of the AMC for every PPP.
11 
Survivorship Benefits o f Inactive Members
12 
(a) Survivors of members who retired under retirement laws not administered
13 
by the GSIS shall not receive any survivorship benefits;
14 
(b) Primary beneficiaries of inactive members who have at least fifteen (15)
15 
years of PPP shall receive the survivorship pension only;
16 
(c) Primary beneficiaries of inactive members who have at least three (3) years
17 
of PPP but less than fifteen (15) years and were less than sixty (60) years of age at
18 
the time of death shall receive a cash benefit/payment equivalent to 100% of the
19 
deceased inactive member's AMC for every year PPP, but not less than Phpl2,000;
20 
(d) Primary beneficiaries of inactive members who have less than fifteen (15)
21 
years of PPP and were at least sixty (60) years of age at the time of separation from
22 
the service, shall not be entitled to receive survivorship benefits. 
However, if the
23 
member has not yet received separation benefit within four (4) years after his/her
24 
separation, the primary beneficiaries shall receive the cash benefit equivalent to 100%
25 
of the inactive member's AMC for every year of PPP, but not less than Phpl2,000.
26 
LIFE INSURANCE BENEFITS
27 
Sec. 32. 
Compulsory Life Insurance. -  All employees, except for those
28 
enumerated under Section 4(e) of this Act, shall, under such terms and conditions as
29 
may be promulgated by the GSIS, be compulsorily covered with life insurance, which
30 
shall automatically take effect on the date of their employment.
18


1 
Sec. 33. Dividends. -  An annual dividend may be granted to all members of
2 
the GSIS whose life insurance is in force for at least one (1) year in accordance with
3 
a dividend allocation formula to be determined by the GSIS.
4 
Sec. 34. Optional Insurance. -  Subject to the rules and regulations prescribed
5 
by the GSIS, a member may apply for insurance and/or pre-need coverage embracing
6 
life, health, hospitalization, education, memorial plans, and such other plans as may
7 
be designed by the GSIS, for himself/herself and/or his/her dependents. 
Any
8 
employer may likewise apply for group insurance coverage for its employees. The
9 
payment of the premiums/installments for optional insurance and pre-need products
10 
may be made by the insured or his/her employer and/or any person acceptable to the
11 
GSIS.
12 
NON-LIFE INSURANCE
13 
Sec. 35. Insurance and Reinsurance. -  In line with its mandate under R.A No.
14 
656 as amended and other related laws, the GSIS shall engage in all kinds of insurance
15 
and reinsurance and all other forms of undertaking to indemnify any person or party
16 
against loss, damage, or liability, including third party liability, arising from unknown
17 
or contingent event, properties or assets, contracts or agreements, causes or rights
18 
of action, or other insurable interests, to the extent of the interests of the government,
19 
against any insurable risk.
20 
The GSIS shall have the authority to secure reinsurance support for government
21 
insurable interest or part thereof from any financially sound and capable domestic
22 
reinsurance corporation, foreign corporation that is authorized to transact reinsurance
23 
business in the Philippines in accordance with R.A. No. 10607, or from any insurance
24 
institution owned and operated by a foreign insurance entity; Provided, That in the
25 
award of reinsurance contracts, the GSIS shall be exempt from the provisions of R.A.
26 
No. 9184 or any subsequent procurement law and shall ensure that the contract to be
27 
awarded shall be the most advantageous for the GSIS or Government of the
28 
Philippines guided by the principle of transparency and competitiveness thru the
29 
adoption of its own rules and regulations: Provided further, That the GSIS shall have
30 
the authority to determine the required capitalization and financial reserve of
31 
interested entities: Provided, finally. That the GSIS shall submit an annual report on
19


1 
its insurance or reinsurance operations to the insurance commission for monitoring
2 
purposes only.
3 
For purposes hereof, insurable interest shall mean every interest in property,
4 
whether real or personal, or any relation thereto, or liability in respect thereof, of such
5 
nature that a contemplated peril might directly indemnify the insured.
6 
It shall also refers to those interest in which the government or government
7 
agency has a relation or connection with, or concern in it including but not limited to
8 
Overseas Filipino Workers, such that the said government or government agency will
9 
derive pecuniar/ benefit or advantage from its preservation and will suffer pecuniary
10 
loss or damage from its destruction, termination or injury by the happening of the
11 
event insured against.
12 
It may consist in an existing interest, inchoate interest founded on an existing
13 
interest, or an expectancy, coupled with an existing interest in that out of which the
14 
expectancy arises.
15 
Accordingly, the insurable interest of government, parent, subsidiary and
16 
acquired asset corporations, including government financial institutions, as these
17 
corporations are defined in Presidential Decree (P.D.) No. 2029, shall also extend to
18 
their physical assets which by declared policy of the government are required to be
19 
privatized.
20 
E. ADJUDICATION OF CLAIMS AND DISPUTES
2! 
Sec. 36. 
Prescription. -  Upon the effectivity of this Act, all benefits due as
22 
defined under Section 3(c) of this Act shall not prescribe.
23 
Sec. 37. Facility o f Payment. -  Tlie GSIS shall prescribe rules and regulations
24 
to facilitate payment of benefits, proceeds and claims for benefits under this Act and
25 
any other laws administered by the GSIS. Payments made by the GSIS prior to its
26 
receipt of an adverse claim, to a beneficiary or claimant subsequently found not
27 
entitled thereto, shall not bar the legal and eligible recipient from his/her right to
28 
demand the payment of benefits, proceeds, and claims from the GSIS.
29 
Sec. 38. Settlement o f Disputes. -  The GSIS shall have original and exclusive
30 
jurisdiction to settle any disputes or issues including but not limited to claims and
31 
benefits arising under this Act, C.A. No. 186, as amended, R.A. No. 8291 and other
20


1 
laws administered by the GSIS, including its implementing rules and regulations,
2 
policies and guidelines.
3 
The Board may designate any member of the Board or official of the GSIS who
4 
is a lawyer, to act as hearing officer to receive evidence, make findings of fact and
5 
submit recommendations together with all the documentary and testimonial evidence,
6 
to the Board within thirty (30) working days from the time the parties have closed
7 
their respective evidence and filed and submitted their last pleading or other reguested
8 
documents. The Board shall decide the case within thirty (30) days from the receipt
9 
of the hearing officer's findings and recommendations. The cases heard directly by
10 
the Board shall be decided within thirty (30) working days from the time they are
11 
submitted by the parties for decision.
12 
Sec. 39. Appeals. -  Decisions of the Board shall be appealable to the Court of
13 
Appeals. The appeal shall not stay the award, order or decision sought to be reviewed
14 
unless ordered by the Court of Appeals or by the Supreme Court.
15 
Sec. 40. Execution o f Decision. -  When no appeal is perfected and there is no
16 
order to stay by the Board, by the Court of Appeals, or by the Supreme Court, any
17 
decision or award of the Board shall be enforced and executed in the same manner
18 
as decisions of the Regional Trial Court. For this purpose, the Board shall have the
19 
power to issue to the city or provincial sheriff or its appointed sheriff such writs of
20 
execution as may be necessary for the enforcement of such decision or award, and
21 
any person who shall fail or refuse to comply with such decision, award, writ or process
22 
after being required to do so shall, upon application by the GSIS, be punished for
23 
contempt.
24 
Sec. 41. Oaths, Witnesses, and Production o f Records. -  When authorized by
25 
the Board, an official or employee of the GSIS shall have the power to administer oath
26 
and affirmation, take depositions, certify to official acts, and issue subpoena ad
27 
testificandum and subpoena duces tecum to compel the attendance of witnesses and
28 
the production of books, papers, correspondences and other records deemed
29 
necessary as evidence in connection with any question arising under this Act. Any case
30 
of contumacy shall be dealt with in accordance with the provisions of Section 580 of
31 
the Revised Administrative Code.
32 
F. FUNDS OF THE GSIS
21


1 
Sec. 42. Funds. -  The GSIS shall administer the Social Insurance Fund, which
2 
consists of all contributions payable under Section 7 of this Act together with the
3 
earnings and accruals thereon. 
Said Fund shall be used to finance the benefits
4 
administered by the GSIS under this Act. In addition, the GSIS shall administer the
5 
following funds, to be known collectively as the "GSIS-Administered Funds":
6 
(a) The Optional Insurance Fund for the insurance coverage described in
7 
Section 34 hereof;
8 
(b)The Employees' Compensation Insurance Fund created under P.D. No. 626,
9 
as amended;
10 
(c) The General Insurance Fund created under R.A. No. 656, as amended; and,
11 
(d) Such other special funds existing or that may be created for special groups
12 
or persons rendering services to the government.
13 
The GSIS shall maintain the required reserves for each fund to guarantee the
14 
fulfillment of its obligations under this Act.
15 
The funds administered by the GSIS shall not be used for purposes other than
16 
those provided for under this Act, any prior or subsequent laws, issuances and rules
17 
and regulations to the contrary notwithstanding.
18 
No portion of the funds of the GSIS or income thereof shall accrue to the general
19 
fund of the national government and its political subdivisions, instrumentalities and
20 
other agencies including government-owned and controlled corporations.
21 
Sec. 43. Deposits and Disbursements. -  All revenues collected and all accruals
22 
thereto shall be deposited, administered and disbursed in accordance with law. A
23 
maximum expense loading of two percent (2%) of the total assets may be disbursed
24 
for administrative and operational 
expenses except as 
may 
be otherwise
25 
recommended by the GSIS Actuar/ and the GSIS PGM, and approved by the Board of
26 
Trustees of GSIS in accordance with the rules and regulations prescribed by the GSIS.
27 
Sec. 44. Investment o f Funds. -  The funds of the GSIS which are not needed
28 
to meet the current obligations may be invested under such terms and conditions and
29 
rules and regulations as may be prescribed by the Board: Provided, That investments
30 
shall optimize the requirements of liquidity, safety, security and yield as embodied in
31 
formal investment policy guidelines approved by the Board in order to ensure the
32 
actuarial solvency of the funds of the GSIS: Provided, further. That the GSIS shall
22


1 
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
submit an annual report on all investments made to both Houses of Congress of the
Philippines. Tfie funds may be invested in the following:
(a) Interest-bearing or zero-coupon bonds or securities or other evidence o f
indebtedness of the Government of the Philippines;
(b) 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 depositor/ bank, whichever is smaller: Provided, further, That said 
bank has prior designation as a depository for the purpose by the Monetary Board of 
the Bangko Sentral ng Pilipinas;
(c) Short-and-medium term loans to members such as salary, policy,
educational, emergency, and other similar loans;
(d) 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) 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 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) Debt instruments and other securities traded in secondary markets,
(g) 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) 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 experted 
returns as embodied in formal investment policy guidelines approved by the Board;
(i) Domestic mutual funds including investments related to the operations of
mutual funds; and,
(j) Foreign mutual funds and in foreign currency deposits or foreign currency- 
denominated debts, non-speculative equities and other financial instruments or other
23


1 
assets issued in accordance with existing laws of the countries where such financial
2 
instruments are issued: Provided, further, That the issuing company has proven track
3 
record of profitability over the last three (3) years.
4 
Sec. 45. Records and Reports. -  The GSIS shall keep and cause to manage
5 
such records as may be necessary for the purpose of making actuarial studies,
6 
calculations and valuations of the funds of the GSIS including such data needed in the
7 
computation of rates of disability, mortality, morbidity, separation and retirement
8 
among the members and any other information useful for the adjustment of the
9 
benefits of the members. The GSIS shall maintain appropriate books of accounts to
10 
record its assets, liabilities, income, expenses, receipts and disbursements of funds
11 
and other financial transactions and operations.
12 
Sec. 46. Examination and Valuation o f the Funds. -  The GSIS shall make a
13 
periodic actuarial examination and valuation of its funds in accordance with accepted
14 
actuarial principles and best practices.
15 
Sec. 47. Exemption from Tax, Legal Process and Lien. -  It is hereby reaffirmed
16 
as a State policy that the actuarial solvency of all the funds of the GSIS, including
17 
GSIS Administered Funds, shall be preserved and maintained at all times and that
18 
contribution rates necessary to sustain the benefits under this Act shall be kept as low
19 
as possible in order not to burden the members of the GSIS and their employers.
20 
Taxes imposed on the GSIS tend to impair the actuarial solvency of all of its
21 
funds and increase the contribution rate necessary to sustain the benefits under this
22 
Act. Accordingly, notwithstanding any laws to the contrary, the GSIS, including GSIS
23 
wholly owned and controlled corporations and its subsidiaries, whether as a direct
24 
taxpayer, collecting or remitting agent, all of its funds, including the non-life and
25 
property insurance funds and those that GSIS is mandated to administered under
26 
special laws, assets, properties, all contributions collected, including all accruals
27 
thereto, all revenues, income or investment earnings therefrom including all accruals
28 
thereto, transactions and benefits paid, as well as all supplies, equipment, papers or
29 
documents shall remain and be exempt from any and all forms and kinds of direct or
30 
indirect taxes, including output and input Value Added Taxes (VAT) and Documentary
31 
Stamp Taxes (DST), assessments, fees, charges, customs or import duty or duties
32 
imposed by the national or local government and shall not be liable to attachments.
24


1 
garnishments, levy or seizure by or under any legal or equitable process, whatsoever,
2 
either before or after receipt by the person or persons entitled thereto. 
These
3 
exemptions shall continue unless expressly, specifically, and categorically revoked or
4 
repealed, and any tax assessment imposed against the GSIS as of the approval of this
5 
Act or subsequent thereto is shall be null and void and considered paid and cancelled.
6 
No tax measure of whatever nature enacted shall apply to the GSIS unless it expressly
7 
and categorically revokes the declared policy of the State in this Act and in this Section
8 
granting tax-exemption to the GSIS. Consequently, all laws, ordinances, regulations,
9 
issuances, opinions or jurisprudence contrary to or in derogation of this provision are
10 
hereby deemed repealed, superseded and rendered ineffective and without legal force
11 
and effect.
12 
The exemptions provided herein shall not be affected nor derogated by
13 
subsequent laws to the contrary unless this Section is expressly, specifically, and
14 
categorically revoked or repealed by law and a provision is enacted to substitute or
15 
replace the exemption herein referred as an essential factor to maintain and/or protect
16 
the solvency of the fund, notwithstanding and independently of the guarantee of the
17 
national government to secure such solvency or liability.
18 
All funds, including the non-life and property insurance funds and those that
19 
GSIS is mandated to administered under special laws, and/or the properties of the
20 
GSIS referred to herein shall be exempt from attachment, garnishment, execution,
21 
levy, seizure or any other legal or equitable processes issued by the courts, quasi-
22 
judicial agencies or administrative bodies including Commission on Audit (COA)
23 
disallowances.
24 
All the benefits, sums or monies corresponding to the benefits under this Act
25 
shall likewise be exempt from attachment, garnishment, execution, levy, seizure or
26 
any other legal or equitable processes issued by the courts, quasi-judicial agencies or
27 
administrative bodies including COA disallowances, based on financial obligations or
28 
liability of any member, including any pecuniary accountability arising from or caused
29 
or occasioned by exercise or performance of his/her official functions or duties, or
30 
incurred relative to or in connection with his/her position or work except when his/her
31 
monetary liability, contractual or otherwise, is in favor of the GSIS.
25


1 
Sec. 48. 
Exemption from Filing Fees and Government Procurement Law on
2 
Reinsurance Contracts - H ie GSIS shall be exempted from payment of filing fees in
3 
any courts, quasi-judicial agencies or administrative bodies.
4 
The selection by the GSIS of reinsurer and the award of reinsurance contracts
5 
pursuant to Section 35 of this Act and other applicable laws shall be exempted from
6 
the provisions of R.A. No. 9184, otherwise known as the Government Procurement
7 
Reform Act or any subsequent procurement law. Provided, that the GSIS shall
8 
prescribe its own rules and regulations guided by the principles of transparency and
9 
competitiveness and shall ensure that the contract to be awarded shall be the most 
10 
advantageous for the GSIS or Government of the Philippines.
n  
G. ADMINISTRATION
12 
Sec. 49. Implementing Body. — The GSIS shall implement the provisions of this
13 
Act.
14 
Sec. 50. 
Powers and Functions o f the GSIS. -  The GSIS shall exercise the
15 
following powers and functions:
16 
(a) Formulate, adopt, amend or rescind rules and regulations necessary to
17 
carry out the provisions and purposes of this Act;
18 
(b) Adopt or approve the annual and supplemental budget of receipts and
19 
expenditures including salaries and allowances of the GSIS personnel; to authorize
20 
such capital and operating expenditures and disbursements of the GSIS as may be
21 
necessary and proper for the effective management and operation of the GSIS without
22 
need of approval or review by the President of the Philippines, DBM, Governance
23 
Commission 
for 
GOCCS 
(GCG), 
COA 
or 
other 
government 
agencies 
or
24 
instrumentalities, notwithstanding any laws, rules, regulations and other issuances to
25 
the contrary and the same shall not be affected by subsequent laws, rules, regulations
26 
and issuances to the contrary unless this provision is expressly, specifically and
27 
categorically revoked or repealed by law.
28 
Consequently, this provision shall apply retroactively and all laws, ordinances,
29 
regulations, issuances, opinions or jurisprudence contrary to or in derogation of this
30 
provision are hereby repealed, superseded and rendered ineffective and without legal
31 
force and effect.
26


1 
(c) Invest the funds of the GSIS, directly or indirectly, in accordance with the
2 
provisions of this Act;
3 
(d) Acquire, develop, utilize or dispose of, in any manner recognized by law,
4 
real or personal property in the Philippines or elsewhere necessary to carry out the
5 
purposes of this Act;
6 
(e) Conduct continuing actuarial and statistical studies and valuations to
7 
determine the financial condition of the GSIS and, taking into consideration such
8 
studies, and valuations and the limitations herein provided, re-adjust the benefits,
9 
contributions, premium rates, the formula or the terms and conditions relative to
10 
benefits and claims, interest rates or the allocation or re-allocation of the funds to the
11 
contingencies covered;
12 
(f) Have the power of succession;
13 
(g) Sue and be sued;
14 
(h) Enter into, make, perform and carry out contracts of every kind and
15 
description with any person, firm or association or corporation, domestic or foreign in
16 
accordance with law: Provided, That the procurement by the GSIS of infrastructure
17 
projects, goods, consulting services, and reinsurance shall be exempt from the
18 
provisions of R.A. No. 9184; Provided, further, That, in the procurement of said
19 
infrastructure projects, goods, consulting services and reinsurance, the GSIS shall be
20 
governed by the same principles of transparency, competitiveness, simplicity,
21 
accountability and public monitoring as enumerated under Section 3 of R.A. No. 9184.
22 
(i) Engage in any lawful business in pursuance of and in furtherance of the
23 
provisions of this Act;
24 
0) Have one or more offices, conduct its business and exercise its powers within
25 
and outside the Philippines: Provided, That the GSIS shall maintain a branch office in
26 
every province where there exists a minimum of fifteen thousand (15,000)
27 
membership;
28 
(k) Borrow funds from any source, private or government, foreign or domestic,
29 
only as an incident to the securitization of housing mortgages of the GSIS and on
30 
account of its receivables from any government or private entity;
31 
(I) Invest, own or otherwise participate in equity in any establishment, firm or
32 
entity;
27


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(m) Approve appointments in the GSIS, except appointments to positions which 
are policy determining, primarily confidential or highly technical In nature according to 
the qualification standards and rules and regulations set by the GSIS PGM and Board 
provided hereinafter; Provided, That all positions in the GSIS shall be permanent in 
nature unless otherwise indicated, and belong to the second level and not classified 
as part of the Career Executive Service, and shall be governed by a compensation and 
posihon classification system and qualifications standards approved by the GSIS Board 
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; and whrch shall be 
unqualifiedly and absolutely exempted from any form of approval or review by the 
President of the Philippines, DBM, GCG, COA or other government agencies or 
instrumentalities, notwithstanding any laws, rules, regulations and other issuances to 
the contrary and the same shall not be affected by subsequent laws, rules, regulations 
and issuances to the contrary unless this provision is expressly, specifically and
categorically revoked or repealed by law.
Consequently, this provision shall apply retroactively and all laws, ordinances,
regulations, issuances, opinions or jurisprudence contrary to or in derogation of this 
provision are hereby repealed, superseded and rendered ineffective and without legal
force and effect.
(n) 
Design and adopt an Early Retirement Incentive Plan (ERIP) and/or 
financial assistance for the purpose of retirement of its own personnel;
(0) 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 provisions of R.A. No. 7699, otherwise known as
the "Portability Law";
28


1 
(y) Exercise such powers and perform such acts as may be necessary, useful,
2 
incidental or auxiliary to carry out the provisions and attain the purposes and
3 
objectives of this Act.
4 
Sec. 51. The Board o f Trustees. -  The corporate powers and functions of the
5 
GSIS shall be vested in and exercised by the Board composed of the President and
6 
General Manager of the GSIS and ten (10) other members to be appointed by the
7 
President of the Philippines. Of these, five (5) shall be active or retired members of
8 
the GSIS: at least two (2) shall be a representative from the teachers recommended
9 
by 
the Philippine Public School Teachers Association (PPSTA), the Philippine
10 
Association of School Superintendents (PASS), or by a leading national organization of
11 
teachers; at least two (2) shall be from the leading organizations or associations of
12 
government employees/retirees who possess the ethics, experience and competence
13 
to represent the needs of their sectors; and one (1) shall be a member of the legal
14 
profession who at the time of appointment is also a member of the GSIS. The
15 
remaining five (5) shall be recognized individuals from any of the following fields of
16 
expertise: banking and finance, investment, insurance, law, human resources, audit,
17 
management and information technology. The Trustees shall elect from among
18 
themselves a Chairman and a President and General Manager, who shall automatically
19 
be the vice-chairman.
20 
The Trustees, except the President and General Manager who shall cease as
21 
trustee upon his/her separation, shall hold office for six (6) years without
22 
reappointment, unless sooner removed or separated, or until their successors are duly
23 
appointed and qualified: Provided, 
That the vacancy, other than through the
24 
expiration of the term, shall be filled for the unexpired term only. The members of the
25 
Board (Trustees) shall be considered as officers, and are members of the GSIS, subject
26 
to the conditions and eligibility of compulsory membership of the GSIS. (42a)
27 
Sec. 52. Powers and Functions o f the Board o f Trustees. -  The Board shall
28 
have the following powers and functions:
29 
(a) Formulate policies, guidelines and programs to effectively carry out the
30 
purposes of this Act;
30


1 
(b) Promulgate such rules and regulations as may be necessary or proper for
2 
the effective exercise of the powers and functions as well as the discharge of duties
3 
and responsibilities of the GSIS, its officers and employees;
4 
(c) Upon recommendation of the President and General Manager, to approve
5 
the annual and supplemental budget of receipts and expenditures of the GSIS, and to
6 
authorize such operating and capital expenditures and disbursements of the GSIS as
7 
may be necessary or proper for the effective management, operation and
8 
administration of the GSIS without need of review or approval by the President of the
9 
Philippines, DBM, GCG, COA or other government agencies or instrumentalities and
10 
notwithstanding any provision of law, rules and regulations and any other issuances
11 
to the contrary unless this Section is expressly, specifically and categorically revoked
12 
or repealed by law. Consequently, this provision shall apply retroactively and all laws,
13 
ordinances, regulations, issuances, opinions or jurisprudence contrary or in derogation
14 
of this provision are hereby repealed, superseded and rendered ineffective and without
15 
legal force and effect.
16 
(d) Upon the recommendation of the President and General Manager, to
17 
approve the GSIS' organizational and administrative structures and staffing pattern,
18 
and to establish, fix, review, revise and adjust compensation packages of officers and
19 
employees of the GSIS with reasonable allowances, incentives, bonuses, privileges
20 
and other benefits as may be necessary or proper for the effective management,
21 
operation and administration of the GSIS, which shall be exempt from R.A. No. 6758,
22 
otherwise known as the "Salary Standardization Law," R.A No. 7430, otherwise known
23 
as the "Attrition Law" and R.A. No. 10149 otherwise known as the "GOCC Governance
24 
Act of 2011"; Provided, That all positions in the GSIS shall be permanent in nature
25 
unless otherwise indicated, and belong to the second level and not classified as part
26 
of the Career Executive Service. 
These powers and functions shall be exercised
27 
without need of review or approval by the President of the Philippines, DBM, GCG or
28 
other government agencies or instrumentalities and notwithstanding any provision of
29 
law, rules and regulations and any other issuances to the contrary unless this Section
30 
is expressly, specifically and categorically revoked or repealed by law. Consequently,
31 
this provision shall apply retroactively and all laws, ordinances, regulations, issuances.
31


1 
opinions or jurisprudence contrary or in derogation of this provision are hereby
2 
repealed, superseded and rendered ineffective and without legal force and effect;
3 
(e) Fix and periodically review and adjust the rates of interest and other terms
4 
and conditions for loans and credits extended to its members or other persons,
5 
whether natural or juridical;
6 
(f) The provision of any law, rules and regulations and issuances to the contrary
7 
notwithstanding, to compromise, release, condone or write off from the books of
8 
accounts, in whole or in part, without need of prior approval from and by the President
9 
of the Philippines, COA, Congress of the Philippines, or other agencies, any claim or
10 
settle liability, for or against the GSIS, including, interests, penalties and surcharges
11 
imposed upon delinquent premium contributions and loan amortizations and any civil
12 
liability to GSIS, regardless of the amount involved under such terms and conditions
13 
as the as the Board may find acceptable and practicable in accordance with applicable
14 
laws rules and regulations, subject to the Board's best business judgment and the best
15 
interest of the GSIS;
16 
(g) Approve and adopt guidelines affecting investments, insurance coverage of
17 
government properties, settlement of claims, disposition of acquired assets,
18 
development of housing projects, increased benefit and loan packages to members,
19 
and the enforcement of the provisions of this Act;
20 
(h) Determine, fix and impose interest on unpaid or unremitted premiums
21 
and/or contributions; and,
22 
(i) Perform any and all acts necessary and proper to attain the purposes and
23 
objectives of this Act.
24 
Sec. 53. Appointment and Qualifications o f the President and General Manager
25 
and Other Personnel. -  The President and General Manager of the GSIS shall be its
26 
Chief Executive Officer and shall be appointed by the President of the Philippines.
27 
He/she shall be a person with management and investments expertise necessary for
28 
the effective performance of his/her duties and functions under this Act.
29 
TTie President and General Manager shall be assisted by one or more senior
30 
executive vice-presidents, executive vice-presidents, senior vice-presidents, vice-
31 
presidents and managers in addition to the usual supervisory and rank and file
32 
positions all of whom shall be appointed pursuant to the qualification standards and
32


1 
rules and regulations set by the President and General Manager and the Board of
2 
Trustees and removed only for just and valid cause by the President and General
3 
Manager with the approval of the Board without undermining their security of tenure.
4 
Sec. 54. 
Powers and Duties o f the President and General Manager. -  The
5 
President and General Manager shall, among others, execute and administer the
6 
policies and resolutions approved by the Board and direct and supervise the
7 
administration and operations of the GSIS. The President and General Manager,
8 
subject to the approval of the Board, shall appoint the personnel of the GSIS, remove,
9 
suspend or otherwise discipline them for valid and just causes, in accordance with
10 
existing Civil Service rules and regulations, and prescribe their duties and qualifications
11 
to the end that only competent persons may be employed.
12 
All appointments and plantilla positions in the GSIS shall be permanent in
13 
nature unless otherwise indicated, and belong to the second level and not classified
14 
as part of the Career Executive Service. These plantilla positions shall not be arbitrarily
15 
abolished without any valid and just causes.
16 
Sec. 55. The Senior Executive Vice Presidents and Executive Vice Presidents -
17 
Within the guidelines and limits of authority established by policies of the GSIS, the
18 
Senior Executive Vice Presidents and Executive Vice Presidents shall, among others,
19 
provide overall direction in the delivery of effective, efficient and quality services to
20 
members, pensioners, and/or other constituents. He/she shall also have the overall
21 
direction in the integration of functions of various operational and/or support services
22 
to ensure synergy, uniform and consistent application of polices, guidelines and
23 
management systems to achieve established objectives and targets.
24 
The position of Executive Vice President shall be permanent in nature, unless
25 
otherwise indicated, and belong to the second level and not classified as part of the
26 
Career Executive Service. The plantilla position of Executive Vice President shall not
27 
be arbitrarily abolished without any valid and just causes.
28 
Sec. 56. Auditor. -  (a) The Chairman of the COA shall be the ex-officio auditor
29 
of the GSIS. For this purpose, he/she may appoint a representative, who shall be the
30 
auditor of the GSIS, and the necessary personnel to assist said representative in the
31 
performance of his/her duties.
33


1 
(b) The Chairman of the COA or his/her authorized representative shall submit
2 
to the Board soon after the close of each calendar year an audited statement showing
3 
the financial condition and progress of the GSIS for the calendar year just ended.
4 
Sec. 57. Legal Counsel. -  The Legal Services Group (LSG) of the GSIS shall
5 
be the legal counsel of the GSIS. The LSG shall be headed by a Chief Legal Counsel,
6 
who shall be the head counsel of the GSIS with a permanent and highly technical
7 
plantilla position. The Chief Legal Counsel enjoys security of tenure and may not be
8 
removed except for a just and valid cause.
9 
The GSIS may refer to the Office of the Government Corporate Counsel (OGCC)
10 
cases for legal action or trial, issues for legal opinions, preparation and review of
11 
contracts/agreements and others, as the GSIS may decide or determine from time to
12 
time.
13 
The GSIS may, subject to approval by the proper court, deputize any personnel
14 
of the Legal Services Group to act as special sheriff in the enforcement of writs and
15 
processes issued by the court, quasi-judicial agencies or administrative bodies in cases
16 
involving the GSIS.
17 
Sec. 58. Powers o f the Insurance Commission. -  The Insurance Commissioner
18 
or his/her authorized representatives shall make an examination of the financial
19 
condition of the GSIS at least once every three (3) years; Provided, however, That the
20 
GSIS shall pay the Office of the Insurance Commissioner an amount equal to the actual
21 
expenses incurred by said Office in the conduct of the examination, including the
22 
salaries of the examiners and the actuary of such examination for the actual time
23 
spent.
24 
The report of said examination shall be submitted to the Board furnishing the
25 
Office of the President and both Houses of Congress copies thereof within five (5)
26 
days after the close of examination.
27 
H. GENERAL PROVISIONS
28 
Sec. 59. Dispensation o f Soda! Insurance Benefits. -  (a) The GSIS shall release
29 
the retirement benefits to the employee within twenty (20) working days from the
30 
actual date of retirement or date of filing of application, whichever comes later:
31 
Provided, That all requirements are submitted to the GSIS within a reasonable period
32 
prior to the effective date of retirement.
34


1 
(b) The GSIS shall not process or adjudicate retirement claims under R.A. No.
2 
1616 except refund of retirement premiums and R.A. No. 910. Instead all agencies
3 
concerned shall process and pay the gratuities of their employees. The Board shall
4 
adopt the proper rules and procedures for the implementation of this provision.
5 
Sec. 60. Development and Disposition o f Acquired Assets. -  The GSIS shall
6 
have the right to develop and dispose of its acquired assets obtained in the ordinary
7 
course of its business. To add value to, improve profitability of and/or enhance the
8 
marketability of an acquired asset, the GSIS may further develop/renovate its assets,
9 
either with its own capital or through a joint venture arrangement with private
10 
companies or individuals.
11 
The GSIS may sell its acquired assets in accordance with existing COA rules
12 
and regulations for an amount not lower than the current market value of the property.
13 
For this purpose, the GSIS shall conduct an annual appraisal of its properties or
14 
acquired assets to determine their current market value. All notices of sale shall be
15 
published in newspapers of general circulation.
16 
No injunction or restraining order issued by any court, commission, tribunal or
17 
office shall bar, impede or delay the sale and disposition by the GSIS of its acquired
18 
assets except on questions of ownership and national or public interest.
19 
Sec. 61. Exemption from Land Reform Program. -  The GSIS acquired assets
20 
shall be exempted or excluded from the coverage of the following:
21 
(a) Comprehensive Agrarian Reform Program (CARP) as provided under R.A.
22 
No. 6657, as amended, in relation to Executive Order (E.O.) No. 407;
23 
(b) Land Reform as provided under P.D. No. 27; and,
24 
(c) Other existing or future land and agrarian reform legislations.
25 
Sec. 62. Expropriation. No entity whether private or public may expropriate
26 
any GSIS property without the express consent or approval of the GSIS President and
27 
General Manager, the GSIS Board of Trustees, the Secretary of Finance and the
28 
President of the Philippines.
29 
Sec. 63. Government Assistance to the GSIS. -  The GSIS may call upon any
30 
officer or employee of any department, bureau or office, subdivision, agency or
31 
instrumentality of the Government, including government-owned or controlled
35


1 
corporations and local governments for such assistance as may be necessary in the
2 
discharge of its duties and functions.
3 
I. SANCTIONS
4 
Sec. 64. Penalty- (a) Heads of offices of the national government, its political
5 
subdivisions, branches, agencies and instrumentalities, including government-owned
6 
or controlled corporations and government financial institutions, and the personnel of
7 
such offices who are involved in the collection of premium contributions, loan
8 
amortization and other accounts due the GSIS who shall fail, refuse or delay the
9 
payment, turnover, remittance or delivery of such accounts to the GSIS, within thirty
10 
(30) days from the time that the same shall have become due and demandable, shall
11 
upon conviction by final judgment, suffer the penalties of imprisonment of not less
12 
than twenty (20) years but not more than thirty (30) years and a fine of not less than
13 
Five Hundred Thousand Pesos (Php500,000.00) but not more than Five Million Pesos
14 
(Php5,000,000.00) and, in addition, shall suffer the penalty of absolute perpetual
15 
disqualification from holding public office and/or other accessory penalties as may be
16 
provided by law.
17 
(b) The treasurer, finance officer, cashier, disbursing officer, budget officer or
18 
other ofFicial or employee who fails to include in the annual budget the amount
19 
corresponding to the employer and employee contributions, or who fails or refuses or
20 
delays to remit to the GSIS by more than thirty (30) days from the time such amount
21 
becomes due and demandable, or fails to deduct the monthly contributions of the
22 
employee shall, upon conviction by final judgment, suffer the penalties of
23 
imprisonment of not less than twelve (12) years but not more than twenty (20) years,
24 
and a fine of not less than Five Hundred Thousand Pesos (Php500,000.00) but not
25 
more than Two Million Pesos (Php2,000,000.00) and, in addition, shall suffer absolute
26 
perpetual disqualification from holding public office.
27 
(c) Any employee, who after deducting the monthly contribution or loan
28 
amortization from a member's compensation, fails to remit the same to the GSIS within
29 
thirty (30) days from the date they should have been remitted under Section 11(b)
30 
hereof shall be presumed to have misappropriated such contribution or loan
31 
amortization and shall, upon conviction by final judgment, suffer the penalties of
32 
imprisonment of not less than twelve (12) years but not more than twenty (20) years
36


1 
and a fine of not less than Five Hundred Thousand Pesos (Php500,000.00) but not
2 
more than Two Million Pesos (Php2,000,000.00) and, in addition, shall suffer absolute
3 
perpetual disqualification from holding public office.
4 
(d) Any employee or member who receives or keeps fund or property
5 
belonging, payable or deliverable to the GSIS and appropriates the same, or takes or
6 
misappropriates or uses the same for any purpose other than that authorized by this
7 
Act, or permits another person to take, misappropriate or use said fund or property
8 
by expressly consenting thereto, or through abandonment or negligence, or is
9 
otherwise guilty of the misappropriation of said fund or property, in whole or in part
10 
shall, upon conviction by final judgment, suffer the penalties of imprisonment of not
11 
less than twelve (12) years but not more than twenty (20) years and a fine of not less
12 
than Five Hundred Thousand Pesos (Php500,000.00) but not more than Two Million
13 
Pesos 
(Php2,000,000.00) 
and, 
in 
addition, 
shall 
suffer 
absolute 
perpetual
14 
disqualification from holding public office.
15 
(e) Any person found to have participated directly or indirectly in the
16 
commission of fraud, collusion, falsification, or misrepresentation in any transaction
17 
with the GSIS whether for himself/herself or for some other persons shall, upon
18 
conviction and final judgment, suffer the penalties of imprisonment of not less than
19 
six (6) years but not more than twelve (12) years and a fine of not less than Five
20 
Hundred Thousand Pesos (Php500,000.00) but not more than Two Million Pesos
21 
(Php2,000,000.00) and, in addition, suffer absolute perpetual disqualification from
22 
holding public office.
23 
(f) Any person who shall willfully, wrongfully and fraudulently obtain or receive
24 
any money or check invoking any provision of this Act or any agreement thereunder,
25 
without being entitled thereto, shall, upon final judgment, suffer the penalties of
26 
imprisonment of not less than six (6) years but not more than twelve (12) years and
27 
a fine of not less than Five Hundred Thousand Pesos (Php500,00.00) but not more
28 
than One Million Pesos (Phpl,000,000.00) and such other accessory penalties as may
29 
be imposed by law.
30 
(g) Any person who fails or refuses to comply with the provisions of this Act or
31 
with the rules and regulations adopted by the GSIS shall, upon final judgment, suffer
32 
the penalties of imprisonment of not less than six (6) years but not more than twelve
37


1 
(12) years and a fine of not less than Five Hundred Thousand Pesos (Php500,000.00)
2 
but not more than One Million Pesos (Phpl,000,000.00) and such accessory penalties
3 
as may be provided by law.
4 
(h) The officers and personnel referred to in paragraph (a) of this Section shall
5 
also be civilly liable to the GSIS or to the employee or member concerned in the form
6 
of damages, including surcharges and interests.
7 
(i) For the charges or complaints referred to in paragraph (a) of this Section,
8 
the penalties therein set forth shall be construed as an agreement to waive any claim
9 
to sovereign immunity from suit or legal proceedings. Thus, abovementioned officials
10 
and personnel may not invoke the defense of non-suability of the State. Waiver of the
11 
State of its immunity from suit, hence, the above-mentioned offices officials and/or
12 
personnel may not invoke the defense of non-suability of the State.
13 
Criminal and civil actions arising from violations of the provisions of this Act
14 
may be commenced by the GSIS or by the aggrieved member, either under this Act
15 
or, in appropriate cases, under the Revised Penal Code and other special laws.
16 
Sec. 65. Implementing Rules and Regulations. -  Within ninety (120) days from
17 
the effectivity of this Act, the GSIS shall promulgate such rules and regulations as may
18 
be necessary to carry out the provisions of this Act.
19 
Sec. 66. Non-impairment o f Benefits, Powers, Jurisdiction, Rights, Privileges,
20 
Functions and Activities. -  Nothing in this Act shall be construed to repeal, amend or
21 
limit any provision of existing laws. Presidential Decrees, Letters of Instructions, not
22 
otherwise specifically inconsistent with the provisions of this Act.
23 
Sec. 67. 
Exclusiveness o f Benefits. — Whenever other laws provide similar
24 
benefits for the same contingencies covered by this Act, the member who qualifies to
25 
the benefits shall have the option to choose which benefits will be paid to him/her.
26 
However, if the benefits provided by the law chosen are less than the benefits provided
27 
under this Act, the GSIS shall pay only the difference.
28 
Sec. 68. Non-Conversion o f Mode o f Retirement. -  No change in the mode of
29 
retirement chosen shall be allowed once the proceeds, or a portion thereof, of the
30 
member's retirement claim under a particular law have been credited to the account
31 
of the member or received by the member.
38


1 
Sec. 69. Appropriations. -  The amount necessary to carry out the provisions
2 
of this Act shall be included in the respective budgets of the agencies in the national
3 
government obligation program of the year following its enactment into law and
4 
thereafter.
5 
Sec. 70. Separability Clause. -  Should any provision of this Act or any part
6 
thereof be declared invalid, the other provisions, so far as they are separable from the
7 
invalid ones, shall remain in force and effect.
8 
Sec. 71. Repealing Clause. -  C.A. 186, P.D. No. 1146, as amended by R.A. No.
9 
8291, P.D. No. 712, and Section 9 of R.A. No. 656, as amended by P.D. No. 245,
10 
Section 86 (r) of R.A. 10963 otherwise known as the Tax Reform for Acceleration and
11 
Inclusion (TRAIN) Act, are hereby expressly repealed. The provisions of R.A. No. 9184
12 
otherwise known as "Government Procurement Reform Act" and R.A. No. 10149
13 
otherwise known as the "GOCC Governance Act of 2011" are hereby modified
14 
accordingly. All other laws, decrees, executive orders, rules and regulations or parts
15 
thereof which are contrary to or specifically inconsistent with the provisions of this Act
16 
are hereby repealed or amended accordingly: Provided, That the rights under existing
17 
laws, rules and regulations vested upon or acquired by an employee who is already in
18 
the service as of the effectivity of this Act shall remain in force and effect: Provided,
19 
further, That subsequent to the effectivity of this Act, a new employee or an employee
20 
who has previously retired or separated and is reemployed in the service shall be
21 
covered by the provisions of this Act.
22 
Sec. 72. 
Effectivity. -  This Act shall take effect fifteen (15) days after its
23 
publication in the Official Gazette or in at least two (2) newspapers of general
24 
circulation.
25 
Approved,
39