yuus) °F REPRESENTATIVES

Republic of the Philippings RECEIVED
HOUSE OF REPRESENTATIVES oc.3 1 AUG 2016
Quezon City

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SEVENTEENTH CONGRES
First Regular Session

House Bill No.3399

Introduced by Hon. ROSANNA “RIA” V.)

EXPLANATORY NOTE

‘The barangay, also known as the barrio during the Spanish era, is the smallest
administrative unit in the Philippines. It is the basic template for grassroots democracy in
action. The barangay captains and other barangay officials are thus our local community
leaders who help in keeping the peace and in providing security in their locale, among others.

As far back as 20 June 1959, Republic Act 2370 or the Barrio Charter Act changed
the council along with the Barrio Lieutenant from appointed positions to elected positions. In
1974, President Marcos issued Presidential Decree (PD) No. 557, declaring all barrios in the
Philippines as barangays, as the basic political unit after its revival under PD No. 86.
Landmark changes in the powers and responsibilities of the barangay system came about with

the Local Government Code of 1991, which explicitly tagged the barangay as the basi

political unit." serving as "the primary planning and implementing unit of government

policies, plans, programs, projects, and activities in the community, and as a forum wherein

the collective views of the people may be expressed, crystallized and considered, and where

disputes may be amicably settled”.
Despite this key role in our country, however, our barangay officials are not

considered members of the Government Service Insurance System (GSIS). This bill seeks to

change this unreasonable state of affairs. It will thus augment the meager compensation and
benefits enjoyed by barangay officials by including them in the coverage of the GSIS Law.

‘The early adoption of this measure is thus earnestly requested.

\.V

SANNA “RIA” V. VERGARA
Representative, 3rd Disttict of Nueva Ecija



BREN

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS
First Regular Session

House Bill No3 399

Introduced by Hon. ROSANNA “RIA” V. VERGARA

AN ACT
AMENDING REPUBLIC ACT NO. 8291, ALSO KNOWN AS THE
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997,
EXPANDING THE MEMBERSHIP AND BENEFITS OF THE GOVERNMENT
SERVICE INSURANCE SYSTEM TO COVER BARANGAY OFFICIALS

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

Section 1. The coverage of the Government Service Insurance System (GSIS) is
hereby expanded by including barangay officials as members of the System. Section 2(i) of
Republic Act No. 8291, otherwise known as the “Government Service Insurance System Act
of 1997”, is hereby amended to read as follows:

“(i) Compensation — The basic pay or salary received by an employee, pursuant to his
clection/ appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances
and any other emoluments received in addition to the basic pay which are not integrated into
the basic pay under existing laws. IN THE CASE OF ELECTED AND APPOINTED
BARANGAY OFFICIALS, THEIR COMPENSATION FOR THE PURPOSE OF

DETERMINING THEIR CONTRIBUTION, SHALL BE COMPUTED BY ADDING THE

AMOUNT OF THE

HONORARIA, ALLOWANC: AND SUCH OTHER

COMPENSATION THAT THEY REGULARLY RECEIVE AS MAY BE ALLOWED BY

LAW OR ORDINANCE.
Section 2. The premium contribution and thereafter, the standard monthly
contributions, shall be borne by the LGU concemed; Provided, that the National Government



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shall subsidize fifty percent (50%) of the contributions of fourth, fifth, and sixth class
municipalities.
Upon passage of this Act, barangay officials shall be automatically entitled to the

retirement, disability, burial benefits, and other supplemental benefits, as enumerated under

Republic Act No, 8291 or the “Government Service Insurance System Act of 1997”.
Barangay officials shall not be required to pay monthly contributions and all other fees or
charges for them to be entitled to these benefits.

Section 3. Implementing Rules and Regulations. — Within three (3) months after the

passage of this Act, the GSIS in consultation and in coordination with the Department of
Interior and Local Government and the league representing barangay captains and officials,
shall issue the necessary rules and regulations to implement the provisions of this Act. The
rules and regulations shall cover the rate of premiums and the manner of its payment, the
extent of insurance coverage, and the participation of the local government units and the
National Government.

Section 4. Separability Clause. — If any provision, or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.

Section 5. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule, ordinance, or regulation contrary to or
inconsistent with, the provisions of this Act is hereby repealed, modified, or amended
accordingly.

Section 6. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved.