14th Congress of the Republic) 
y 
of the Philippines 
) 
~r& Regular Session 
) 
SENATE 
sa'3568 
f f 
Introdl,lced by Senator Aquilino Q. Pimentel, Jr. 
EXPLANATORY NOTE 
/ 
The Government Service Insurance Systems (GSIS) is a government 
financial institution in the country specifically tasked to ensure the social security 
benefits for the workers in the public sector. Such is the Herculean task played 
by the GSIS in the lives of government employees. 
It is alarming, to say the least, that there are alleged discrepancies in the 
service records of GSIS members, contribution reports, the non-payment of 
dividends, non-deductions of loan remittances, among others, that threaten the 
government assurance for its members. 
The GSIS authorities should undertake major endeavor to overhaul its 
services, by bringing up to date its documentation. 
And while this is being 
undertaken, there is an imperative need to provide remedial measure to this 
situation. 
This bill seeks to authorize the Land Bank of the Philippines to receive 
payments of the monthly premium contributions from all government employees 
under Republic Act 8291, or the Government Service Insurance Systems Act, 
and to facilitate the payment of benefits, proceeds and claims under the said law. 
To date, there are a total of 342 branches of the Land Bank of the 
Philippines nationwide, with 286 branches performing full banking services. 
Under this measure, the authority given to the Lank Bank of the 
Philippines shall be for a period of one year from its enactment. However, this 
period may be extended for a reasonable duration, until such time when the 
records of the GSIS service records, contribution reports, records on loans and 
remittances, and other related documents, are properly updated and organized. 
Thereafter, the authority granted to the Land Bank of the Philippines under this 
Act shall revert to the GSIS. 
In view of the foregoing, immediate ""'"(W,,, of this bill is earnestly 
ht. 
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14th Congress of the Republic) 
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of the Philippines 
) 
1i~ Regular Session 
) 
SENATE 
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SB 3568 
Introduced by Senator Aquilino Q. Pimentel, .!JIf,;CF!\IfD P'f 
AN ACT GRANTING AD INTERIM AUTHORITY TO THE LAND BANK OF THE 
PHILIPPINES TO RECEIVE PAYMENTS OF GOVERNMENT SERVICE 
INSURANCE SYSTEM MONTHLY PREMIUM CONTRIBUTIONS FROM THE 
EMPLOYEES OF THE GOVERNMENT, AND TO FACILITATE PAYMENT OF 
BENEFITS, PROCEEDS, AND CLAIMS UNDER REPUBLIC ACT 8291, 
OTHERWISE KNOWN AS THE GOVERNMENT SERVICE INSURANCE 
SYSTEM ACT OF 1997 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. The Land Bank of the Philippines (LBP) is hereby authorized 
to receive payments of the monthly premium contributions from all government 
employees under Republic Act 8291, or the Government Service Insurance 
Systems (GSIS) Act, and to facilitate the payment of benefits, proceeds and 
claims under the said law. 
SECTION 2. The powers and functions of GSIS to receive payments of 
the monthly premium contributions and facilitate payment of benefits, proceeds, 
and claims shall be transferred to the Land Bank of the Philippines for a period of 
one year from the enactment of this Act. 
During the said one year period, the 
GSIS shall update government employees' service records, contribution reports, 
records on loans and remittances, and other related documents. However, this 
period may be extended for a reasonable duration, until such time when the 
records of the GSIS are properly updated and organized. Thereafter, the 
authority granted under this Act shall automatically cease and the power granted 
to the LBP under this Act shall revert to the GSIS. 
/' 
SECTION 1;, All contracts and agreements entered into by the GSIS prior 
to the effectivity of this Act shall remain in full force and effect unless otherwise 
terminated, modified or amended for lawful cause. 
SECTION « 
The GSIS and the LBP shall, within thirty (30) days from 
effectivity of this Act, issue such rules and regulations necessary for the proper 
implementation of the provisions of this law. 
y 
SECTION '1. Any provision of RA 8291, RA 3844, as amended, and all 
laws, executive orders, rules and regulations or any part thereof inconsistent 
herewith are deemed repealed, modified or amended accordingly. 
I 
SECTION 6. 
Separability Clause. 
In case any provision of this Act is 
declared unconstitutional or invalid, the other provisions hereof which are not 
affected thereby shall continue in full force and effect. 
SECTION )'. Effectivity. -
This Act shall take effect fifteen (15) days after 
its publication in two (2) national newspapers of general circulation. 
Approved,