THlRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THEPHILIPPINES 
First Regular Session 
I/ 
Introduced by Senator Magsaysay, Jr. 
EXPLANATORY NOTE 
Republic Act No. 8291, otherwise known as the "Government Service Insurance 
Act of 1997, was enacted for the purpose of increasing and expanding the social security 
protection of government workers. This is consonance with the government's objective 
of honoring those who spent their productive lives in the service of the country. This bill 
seeks to provide for improved retirement and/or separation benefits for government 
employees. 
One of the benefits expected by employees upon retirement or voluntary 
separation from the service is the refund of premiums paid on GSIS insurance policy, 
both the personal share and the share of the government with interest. The amount serves 
as a supplement to the retirementheparation proceeds which, in one way or another, 
insure the financial stability of retirees. 
However, those government employees whose insurance policies have not yet 
matured at the time payable both the personal as well as the government share until said 
policy matures. The problem is when its maturity takes effect for still quite a time, they 
prefer to claim its refind rather than continue the insurance. This is the time when said 
retirees receive only minimal amounts as refund of premiums which are-exclusive of 
government share. 
This bill, therefor, aims to provide additional retirement benefits to government 
employees who opt to separate fiom the service even before the maturity of their GSIS 
policy through refund of its premium which shall include both the personal share and the 
government share. 
In view of the foregoing consideration, passage of this bill is earnestly sought. 


THIRTEBNTH CONGRESS OF THE REpuBLrc 
OF THEPHILIPPINES 
First Regular Session 
S E N A T E  
S.B. No. 
1176 
Introduced by Senator Magsaysay, Jr. 
AN ACT 
PROVIDING FOR AN ADDITIONAL SEPARATION BENEFITS TO MXMBERS 
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 TEE "GSIS ACT OF 1997" AND FOR 
OTHER PURPOSES 
Be it'enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 11 of R.A. 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 one hundred percent (100%) of 
his average monthly compensation for each year of service be 
paid contributions, but not 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 fiReen (15) years; or 
b. A cash payment equivalent to eighteen (18) times his basic 
monthly pensidn 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 " H E R  INSURANCE POLICY, MAY, AT 
M S  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 
STAY WITH THE GSIS AND CONT- 
TO PAY H[S 
CONTRIBUTIONS 
AND 
THAT 
OF 
THE 
G O v E r n N T ’ S .  
3. 
SEC. 3. All laws, presidential decrees, letter of instruction, executive orders, 
rules and regulations insofar as they are inconsistent with this Act are hereby repealed or 
amended, as the case may be. 
SEC. 4. This Act shall take effect after fifteen (15) days following its publication 
in at least two (2) newspapers of general circulation. 
Approved,