FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
Senate Bill No. 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
Upon retirement or voluntary separation from the service, one of the 
benefits expected by employees is the refund of premiums paid on GSlS 
insurance policy, both the personal share and the share of the government with 
interest. However, those government employees whose insurance policies have 
not yet matured at the time of resignation or retirement will receive only their 
personal share and not the share of the government. 
To address the above problem, this bill seeks to provide additional 
retirement benefits to government employees who opt to separate from the 
service even before the maturity of their GSlS policy through refund of its 
premium which shall include both the personal share and the government share. 
In view of the foregoing, the approval of this bill is earnestly requested. 


- I  
FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
I 
ii 
First Regular Session 
Senate Bill No. 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
PROVIDING FOR AN ADDITIONAL SEPARATION BENEFITS TO MEMBERS 
OF THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) WHO OPT 
TO RESIGN OR RETIRE BEFORE THE MATURITY OF THEIR INSURANCE 
POLICY THROUGH REFUND OF INSURANCE PREMIUMS PAID INCLUSIVE 
OF GOVERNMENT SHARE, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NO. 8291, OTHERWISE KNOWN AS THE “GSIS ACT OF 1997” AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 11 of RA 8291 is hereby amended by adding another 
paragraph, to read as follows: 
SEC. 11 Separation Benefits- The separation benefits shall 
consist of - 
a. a cash payment equivalent to 100 hundred percent 
(100%) of his average monthly compensation for each year of 
service be paid contributions, but less than Twelve Thousand 
Pesos (P12,OOO) payable upon reaching sixty (60) years of age or 
upon reaching sixty (60) years of age or upon separation, 
whichever comes later, Provided, That the member resigns or 
separates from the service after he has rendered at least three (3) 
years of service but less than fifteen (15) years; or 
b. a cash payment equivalent to eighteen (18) times his 
basic monthly pension payable at the time of registration or 


separation, plus an old-age pension benefit equal to the basic 
monthly pension payable monthly for life upon reaching the age of 
sixty (60); Provided, that the member resigns or separates from the 
service after he has rendered at least fifteen (15) years of service 
and is below sixty (60) years of age at the time of resignation or 
separation [.I; 
PROVIDED, FURTHER, THAT A MEMBER WHO OPTS TO 
SEPARATE BY RESIGNATION, RETIREMENT OR OTHERWISE 
FROM THE SERVICE PRIOR TO THE MATURITY OF HlSlHER 
INSURANCE POLICY, MAY, AT HIS OPTION, EITHER: 
1. RECEIVE A CASH AMOUNT EQUIVALENT TO THE 
REFUND OF PREMIUMS PAID BY BOTH THE MEMBER AND 
THE GOVERNMENT, WITH INTEREST THEREOF; OR 
2. TRANSFER AND CONTINUE HIS MEMBERSHIP WITH 
THE SSS SHOULD HE GO TO THE PRIVATE SECTOR; OR 
3. STAY WITH THE GSlS AND CONTINUE TO PAY HIS 
CONTRIBUTIONS AND THAT OF THE GOVERNMENT'S. 
SECTION 2. Any provision of law, executive order, decree or rules of 
court, which may be inconsistent with the provisions of this Act are hereby 
repealed, amended or modified accordingly. 
SECTION 3. This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least two (2) national newspapers of general 
circulation. 
Approved,