FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session 4

HOUSE OF REPRESENTATIVES

1050

House Bill No.

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

EXPLANATORY NOTE

This bill gives government employees who retired from government service
the option to enjoy the benefits of their retirement either under Republic Act No. 1616
or Republic Act No, 660.

Under Republic Act No. 1616 which amended certain provisions of
Commonwealth Act Numbered 186, as amended, by prescribing two other modes of
retirement and for other purposes, a government retiree is entitled to: 1.) gratuity
payable by the last employer based on the total creditable service converted into
gratuity months multiplied by the highest compensation received; and 2.) refund of
retirement premiums consisting of personal contributions of the employee plus
interest, and government share without interest, payable by GSIS.

On the other hand, a government retiree under Republic Act No. 660 is
entitled to: 1.) automatic pension subject to certain conditions; 2.) initial three-year
lump sum; and 3.) five-year lump sum for those who are at least 63 years of age or
over on the date of retirement.

Government employees who devoted their productive years to government
service deserve to maximize the benefits of their retirement. By giving them the
option to avail of the same under any of the aforementioned laws will give due
recognition to the years they devoted to public service. This proposed measure
seeks to implement such recognition.

In view of the foregoing, immediate passage of this bill is earnestly requested.

RUFUS B. IGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

1050

House Bill No.

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

AN ACT
TO FURTHER AMEND PRESIDENTIAL DECREE NO. 1146 AS AMENDED BY
REPUBLIC ACT NO. 8291 OTHERWISE KNOWN AS THE “REVISED
GOVERNMENT SERVICE INSURANCE ACT OF 2007”.

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

Section 1. Section 10 (b) of Presidential Decree No. 1146 as amended by
R.A. 8291 is hereby further amended to read as follows:

Section 2. The same Presidential Decree is hereby amended by adding a
new section after Section 14 to be denominated as Section 14- A to read as follow:

“Section 14- A RETIREMENT OPTION-EMPLOYEES, INCLUDING THOSE
WHO HAVE PREVIOUSLY RETIRED OR SEPERATED FROM THE
SERVICE BUT WERE REEEMPLOYED OR REINSTATED AND
SUBSEQUENTLY COMPULSORILY RETIRED AFTER THE EFFECTIVITY
AND IMPLEMETTATION OF R.A. 8291 AND THOSE WHO ARE IN
GOVERNMENT SERVICE UPON THE EFFECTIVITY OF THE SAID LAW
SHALL, AT THE TIME THEIR RETIREMENT, BE ACCORDED THE OPTION
TO RETIRE UNDER R.A. 1616 OR R.A. 660, AND THEIR BENEFITS AND.
ENTITLEMENTS THERETO BE DETERMINED INACCORDANCE WITH
THE PROVISIONS OF THE LAW SO OPTED OR CHOSEN.”

Section 3. The Repealing Clause-—-All laws and any other law or parts of law
specifically inconsistent herewith are hereby repealed or modified accordingly:
Provided, That the rights under existing laws, rules and regulations vested upon or
acquired by an employee who is already in the service as of the effectivity of this Act
shall remain in force and effect: PROVIDED,FURTHER, THAT [ subsequent to the
effectivity of this Act] A NEW EMPLOYEE [or an employee] WHO HAS
PREVIOUSLY RETIRED OR SEPARATED FROM THE SERVICE AND IS
REEMPLOYED [ in the service shall be covered by the provision] AFTER THE
EFFECTIVITY OF THE ACT, HIS SUBSEQUENT RETIREMENT SHALL BE
COVERED BY THE PROVISIONS OF THIS ACT.


Section 4. Retroactivity Clause---This Act shall have retroactive effect those
who have already retired compulsorily after the effectivity of R.A. 8291 but wrer not
given the option to retire under R.A. 1616 or R.A. 660.

SEC. 4. Separability Clause. - If any provision of this Act is declared invalid,

the remainder of this Act or any provision not affected thereby shall remain in force
and effect

SEC. 5. Repealing Clause. - All laws, presidential decrees, executive orders
and their implementing rules, inconsistent with the provisions of this act are hereby
repealed, amended or modified accordingly.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) national newspapers of general circulation.

Approved.