13TH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
lST 
REGULAR SESSION 
INTRODUCED BY SENArylR RAMON B. MAGSAYMY, a. 
EXPLANATORY NOTE 
The New Government Service Insurance System Law is a law 
designed to expand and improve the social security and insurance 
program for the corps of government personnel. As intended, the statute 
increases pension benefits, expands disability benefits and will 
eventually extend the compulsory coverage of the social security and 
insurance program to all government officers and employees regardless 
of employment status. 
The GSIS Law is an example of welfare legislation, a specie of labor 
laws geared toward the promotion of public welfare. But more than its 
nature of being a welfare. Legislation is its character of conveying the 
insignia of social justice. The GSIS Law is envisioned to fulfil the age-old 
tenet of social justice. Allowing equitable diffusion of wealth for the 
common good and the adoption by the government of measures 
calculated to ensure economic stability of all component element of 
society. 
This amendatory bill is submitted in accord with the above'- 
mentioned principles and is highlighted by the following provisions: 
1. It allows retired government personnel to choose the retirement 
and separation program that will govern his/ her entitlements 
and benefits. This was the original intention in Republic Act 
8291 but was not expressly indicated in the existing statute. 
The amendment, therefore, is a remedial provision in accord 
with the "doctrine of compassionate justice" giving due weight 
to the equities of the situation and the involved persons. In this 
case, .the. retired government officers and employees who spent 
their best year in life in public service. 
2. The benefits accorded under the law is made to effect 
retroactively so as to give equal justice under the law. 
Immediate recognition of this legislation is earnestly sought citing 
its significance, being a mechanism imperative of every humane society. 


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13TH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
lST 
REGULAR SESSION 
1 1 7 5 .  
V
I
 
SENATE 
S.B. No. 
[ 
INTRODUCED BY SENATOR RAMONB. IMAGSAYaY, JR. 
I 
AN ACT 
TO FURTHER AMEND PRESIDENTIAL DECREE NO. 1146 AS AMENDED 
BY REPUBLIC ACT NO. 8291 OTHERWISE KNOWN AS THE “REVISED 
GOVERNMENT SERVICE INSURANCE ACT OF 1977”. 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
Section 1. Section 10 (b) of Presidential Decree No. 1146 as 
amended by R.A. 8291 is hereby further to read as follows: 
Section 2. The same Presidential Decree is hereby amended by 
adding a new section after Section 14 to be denominated as Section 14-A 
to read as follow: 
“Section 14-A RETIREMENT OPTION-EMPWYEES, INCLUDING THOSE WHO 
HAVE PREVIOUSLY RETIRED OR SEPARATED FROM THE SERVICE BUT WERE 
REEMPWYED OR REINSTATED AND SUBSEQUENTLY COMPULSORILY RETIRED 
AFTER THE EFFECTWITY AND IMPLEMENTATION OF R.A. 8291 AND THOSE WHO 
ARE IN THE GOVERNMGNT SERVICE UPON THE EFFECTNIm OF THE SAID LAW 
SHALL, AT THE TIME OF THEIR RETLREMENT, BE ACCORDED THE OPTION To 
RETIRE UNDER R.A. 
1616 OR R.A. 660, AND ?WEIR BEA?ElTTS 
AND 
EN!lYTmMENlS 
TH%RETO 
BE ‘DETERMINED IUACCORDANCE 
WITH 
THE 
PROVISIONS OF THE LAW SO OPTBD OR CHOSEN.” 
Section 3. The Repealing Clause---All laws and any other law or 
parts of law specifically inconsistent herewith are hereby repealed or 
modified accordingly: Provided, That the rights under existing laws, rules 
and regulations vested upon or acquired by an employee who is already 
in the service as of the effectivity of this Act shall remain in force and 
effect: PROVIDED, FURTHER, THAT [SUBSEQUENT TO THE EFFECTIVITY 
OF THIS ACT] A NEW EMPLOYEE [OR AN EMPLOYEE] WHO HAS 
PREVIOUSLY RETIRED OR SEPARATED FROM THE SERVICE AND IS 
REEMPLOYED [ IN THE SERVICE SHALL BE COVERED BY THE 
PROVISIONS] AFTER THE EFFECTIVITY OF THE ACT, HIS SUBSEQUENT 
RETBEMENT SHALL BE COVERED BY THE PROVISIONS OF THIS ACT. 
Section ’ 4. Retroactivity Clause---This Act shall have retroactive 
effect to those who have already retired compulsorily after the effectivity 
of R.A. 8291 but were not given the option to retire under R.A. 1616 or 
R.A. 660. 
Section 5. Effectivity---This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) 
newspapers of general circulation, which ever comes earlier. 
Approved