Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

‘SIXTEENTH CONGRESS
First Regular Session

House BL No. 1174

Introduced by HON. PHILIP A. PICHAY

EXPLANATORY NOTE

Since its creation under Commonwealth Act No. 186, the Government Service Insurance
System (GSIS) has undergone transformations in order to better serve its dlientele - the public
sector officials and employees. The more notable of such improvements were instituted under
Presidential Decree No. 1146. In 1997, a new law, Republic Act No, 8291 (The Government
Service Insurance Act of 1997) was passed incorporating greater enhancements in the GSIS law
thereby benefiting even further workers in the public sector.

Notably, however, a segment of public servants was apparently left out and deprived of
the benefits attendant to membership in the GSIS. The GSIS law and its Implementing Rules
and Regulations fail to recognize the services of those who heed the call of public service
despite being beyond the mandatory retirement age. In such cases, their policies are
terminated and the GSIS refunds to them only their personal share for life and retirement
contributions without interest.

‘The adage that “wine tastes better with age” applies to these individuals who bring into
their offices their long years of experience, knowledge and skills which redound to the benefit
of the public they serve. This proposed measure intends to accord them with certain benefits
by mandating the refund of all life insurance and retirement premiums remitted to the
Government Service Insurance System (GSIS), with the applicable legal interest, including their
personal share and the government counterpart.

For some, this may only be a symbolic recognition of their untiring dedication to public
service. But for the majority of them, the amounts refunded would go a long way in helping
them cope with the challenges of old age, without additional cost for the GSIS.

In view of the foregoing, the immediate consideration and approval of this bill is
earnestly requested.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. x 17 4

Introduced by HON. PHILIP A. PICHAY

‘AN ACT
MANDATING THE REFUND OF GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)
PREMIUMS TO PERSONS ELECTED OR APPOINTED TO PUBLIC/GOVERNMENT
POSITIONS AFTER REACHING THE MANDATORY RETIREMENT AGE
AND FOR OTHER PURPOSES

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

SECTION 1. It is hereby declared the policy of the State to recognize the contribution
to nation-building of individuals who render government service after reaching the mandatory
retirement age in the public sector.

SEC. 2. Any person who is elected or appointed to a public/government office after
reaching the mandatory retirement age in the public sector, shall, upon his separation from
such office, be refunded all life insurance and retirement premiums remitted to the Government
Service Insurance System (GSIS), with the applicable legal interest, including both his personal
and the government shares,

SEC. 3. The immediately preceding section shall apply only to the following:

1. Any person who, at the time of his election to public office, already reached
the mandatory retirement age or more, including the period/s of his re-
election to the same position or election to another public office, with or
without interruption. This provision covers elected officials from the local to
the national levels.

2. Any person appointed to a government position by the President of the
Republic of the Philippines who, at the time of his appointment, already
reached the mandatory retirement age or more.


SEC. 3. Any laws, decrees, ordinances or rules and regulations which are inconsistent
with or contrary to the provisions of this Act are hereby amended or repealed.

SEC. 4. This Act shall take effect fifteen (15) days after its complete publication in at
least two (2) national newspapers of general circulation.

Approved,