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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. BILL NO. 2129 
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Introduced by Senator Ralph G. Recto 
Explanatory Note 
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Of the 1.4 million members of the GSIS, about 600,000 or 40% are teachers. This 
number continues to increase as there is a yearly appropriation for the hiring of additional 
teachers to fill in the newly created positions provided in the General Appropriations Act. 
In recognition of our public school teachers as the most important educational resource in 
the country, this bill seeks to increase the representation of public school teachers in the Board of 
Trustees of the Government Service Insurance System (GSIS) amending for the purpose Section 
42 of Republic Act No. 8291, otherwise known as "the GSIS Act of 1997". 
This bill also increases the representation of government employees by providing for an 
additional member of the Board knowledgeable in the field of finance. This will bring the GSIS 
Board membership to ten, from the current membership of eight. 
The current Board membership allows for only one seat to represent teachers, who shall 
either be the President of the Philippine Public School Teachers Association (PPSTA) or, the 
President of the Philippine Association of School Superintendents (PASS), while allowing four 
representatives from the banking, finance, investment, and insurance sectors. 
Increasing teachers' representation and government employees with expertise in finance 
in the GSIS Board will provide them more influence in the formulation of policies and more 
power to ensure the prudent use of the financial resources of the GSIS. 
These additional board seats will hopefully give our teachers and government employees 
in general, the necessary voice to air their grievances against the persistent allegations of 
inefficiencies and irregularities in the processing of claims and benefits of members. Likewise, 
this will allow them to be in a better position to effect solutions to the many challenges 
confronting the government pension system. 


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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
S. BILL NO. 2129 
.('1" 
Introdnced by Senator Ralph G. Recto 
AN ACT 
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INCREASING THE REPRESENTATION OF PUBLIC SCHOOL TEACHERS AND 
ALLOWING ONE BOARD SEAT FOR A GOVERNMENT EMPLOYEE WITH A 
KNOWN EXPERTISE IN FINANCE THEREBY INCREASING THE COMPOSITION 
OF THE BOARD OF TRUSTEES OF THE GOVERNMENT SERVICE INSURANCE 
SYSTEM (GSIS) AMENDING FOR THE PURPOSE SECTION 42 OF REPUBLIC ACT 
NO. 8291, OTHERWISE KNOWN AS "THE GSIS ACT OF 1997" 
Be it enacted by the Senate and the House of Representative of the Philippines in Congress 
assembled: 
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SECTION 1. Section 42 of Republic Act No. 8291, otherwise known as the "Government 
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Service Insurance System Act of 1997," is hereby amended to read as follows: 
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"Sec. 42. The Board of Trustees; Its Composition; Tenure and Compensation -
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The corporate powers and functions of the GSIS shall be vested in and exercised by the 
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Board of Trustees composed of the President and General Manager of the GSIS and TEN 
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(10) [eight] other members to be appointed by the President of the Philippines, one (1) of 
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whom shall be either the President of the Philippine Public School Teachers Association 
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(PPSTA) or, the President of the Philippine Association of School Superintendents 
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(PASS), ANOTHER ONE (1) SHALL BE A PUBLIC SCHOOL TEACHER WHO 
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SHALL BE 
RECOMMENDED BY ANOTHER LEADING ORGANIZATION 
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OR ASSOCIATION OF PUBLIC SCHOOL TEACHERS, another two (2) shall 
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represent the leading organizations or associations of government employees/retirees, 
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ANOTHER ONE (1) SHALL BE A GOVERNMENT EMPLOYEE WITH 
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KNOWN EXPERTISE IN FINANCE, another four (4) from the banking, finance, 
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investment, and insurance sectors, and one (1) recognized member of the legal profession 
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who at the time of appointment is also a member of the GSIS. The trustees shall elect 
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from among themselves a Chairman while the President and General Manager of the 
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GSIS shall automatically be the vice-chairman. The trustees, except the President and 
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General Manager who shall cease as trustee upon his separation, shall hold office for six 
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(6) years, without reappointment, or until their successors are duly appointed and 


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qualified. Vacancy, other than through the expiration of the term, shall be filled for the 
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unexpired term only. The members of the Board shall be entitled to a per diem of Two 
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thousand five hundred pesos (P2,500) for each board meeting actually by them, but not to 
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exc'eed Ten thousand pesos (PIO,OOO) a month and reasonable transportation and 
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representation allowances as may be fixed by the Board." 
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SEC. 2. Separability Clause. - If any part or provision of this Act shall be held to be 
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unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall 
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continue to be in full force and effect. 
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SEC. 3. Repealing Clause. - All laws, decrees, executive orders, rules and regulations, or 
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parts thereof which are inconsistent with this Act are hereby repealed, amended or modified 
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accordingly. 
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SEC. 4. EffectiVity. - This Act shall take effect fifteen days (15) days following its 
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publication in at least two (2) newspapers of general circulation or the Official Gazette. 
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Approved,