EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 754
n( il)i- i& .T fM q ’
‘19 JUL24 P4 36
Introduced by Senator Ralph G. Recto
RECEI’, .D 3U.
AN ACT
INSTITUTIONALIZING 
THE 
RIGHTS 
OF 
GOVERNMENT 
SERVICE 
INSURANCE SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL 
REPRESENTATION IN  THE GSIS BOARD, ENSURING PROMPT PAYMENT OF 
ALL THEIR BENEFITS AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Today, there are approximately 1.4 million government employees in the 
country. They are the hardworking civil servants whom we engage whenever we 
avail of services from various government agencies. They serve with honor and 
competence despite grueling workloads, uncomfortable work conditions and meager 
salaries.
In recognition of the valuable services rendered by the government 
workforce, the Government Service Insurance System (GSIS) was established 
through Republic Act (R.A.) No. 8291, otherwise known as the Government 
Insurance Act of 1997, to respond to the needs of the growing bureaucracy. Under 
this law, the GSIS is mandated to insure its members against the occurrence of 
certain contingencies in exchange to their monthly premium contributions. Indeed, 
through time, GSIS members and their dependents have relied primarily on the 
benefits and claims from the GSIS as an additional resource to meet financial needs.
In the past, however, there have been a number of stories of misery, 
disappointment and desperation from many GSIS members. There were reported 
complaints of delays in the receipt of payment for claims, non-updating and non­
reconciliation of members' records and contributions, and inefficiency in providing


services, among others. These problems in one way or another have caused 
additional burden to its members.
In order to alleviate the problems encountered by the members of the GSIS, 
this bill amends certain provisions of R.A. No. 8291 by institutionalizing a Members' 
Rights which perhaps is the first of its kind in the world as far as government 
pension systems are concerned. In addition to their rights under existing laws, the 
GSIS members are granted specific rights such as: a) Right to courteous and 
responsive service; b) Right to information; c) Right to GSIS benefits; d) Right to 
expeditious processing o f claims, e) Right to be heard; and, f) Special Rights for the 
elderly.
The bill not only strengthens members' rights but, as an added feature, it also 
spells out the responsibilities of the agency. This provision aims to address 
inefficiency and negligence of government agencies as employers in remitting 
contributions to the GSIS. Under the bill, it is the main responsibility of the agencies 
to remit employees and employer's contributions to the GSIS within the prescribed 
time and in the prescribed format. The agencies concerned are also required to 
promptly produce the documents generated by the agency and required to facilitate 
the processing of a member's claim from GSIS.
The prescriptive period in claiming of benefits is also lifted to allow members 
or their designated beneficiaries to claim GSIS benefits for an indefinite period.
This bill also grants the Regional Trial Court (RTC) to have concurrent 
jurisdiction over disputes arising from the grant of benefits provided by the law. 
Hence, GSIS members will now have an alternative venue aside from the GSIS 
should they opt to appeal decisions on their claims for benefits.
The proposed law likewise provides limitation on foreign investments so that 
investible funds of the GSIS can be made available in the local market to finance 
priority programs and projects of the government.


Additional representation for members in the GSIS board is also provided in 
this bill. The Secretary of Education and Chairperson of the Civil Service Commission 
shall be additional members of the board to further strengthen the representation of 
teachers who compose approximately 60% of the GSIS membership and to promote 
the welfare of the civil servants.
Lastly, in order to protect the rights of GSIS members, the bill adds penal 
provisions for violations of the law.
While this bill is not expected to address all the problems of the GSIS, it is a 
measure geared towards achieving a healthier and more responsive insurance 
system that provides the benefits and services that our civil servants rightfully 
deserve.
In light of the foregoing, immediate passage of the bill is earnestly sought.
LPH G
//m ksbc


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
)
SENATE 
S. No. 
7 5 4
tyr jp^cK tnrj*
■19 JUL24 P4:36
Introduced by Senator Ralph G. Recto
RECEIVE O t'/
(
I
AN ACT
INSTITUTIONALIZING 
THE 
RIGHTS 
OF 
GOVERNMENT 
SERVICE 
INSURANCE SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL 
REPRESENTATION IN THE GSIS BOARD, ENSURING PROMPT PAYMENT OF 
ALL THEIR BENEFITS AND FOR OTHER PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. 
Short Title. -  This Act shall be known as the "GSIS Members'
2 
Rights and Benefits Act".
3 
Sec. 2. Declaration o f Policy. -  It is a declared policy of the State to provide,
4 
develop and promote a sound social security system responsive to the needs of its
5 
workers.
6 
The State shall review and strengthen policies that advance and protect the
7 
welfare of workers in the public sector.
8 
The Constitution guarantees the right of all workers to participate in policy
9 
and decision-making processes affecting their rights and benefits as may be
10 
provided by law.
11 
In the pursuit of these policies, the State shall:
12 
(a) Ensure the adoption of policies beneficial to GSIS members paving
13 
the way for a responsible, integrated and transparent social security system;
14 
(b) Provide greater representation for members at the highest policy-
15 
making level of the GSIS;
16 
(c) Insulate the Social Insurance Fund (SIF) from dissipation due to
17 
the volatility of the global economy;


1 
(d) Ensure that top-level officials of the GSIS are held accountable for
2 
mismanagement and inefficiencies in the delivery of services to members and
3 
beneficiaries; and
4 
(e) Provide GSIS members and beneficiaries alternative venues in the
5 
settlement of disputes.
6 
Sec. 3. Section 2 of Republic Act No. 8291, otherwise known as "The
7 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
8 
"Sec. 2. Definition o f Terms. -  Unless the context otherwise indicates,
9 
the following terms shall mean:
10 
"xxx
11 
"(f) Dependents -  Dependents 
shall be the following:
12 
(a) the legitimate spouse dependent for support upon the member or
13 
pensioner; (b) legitimate, legitimated legally adopted child, including
14 
the illegitimate child, who is unmarried, [net-gatnfully-empleyed] not
15 
over the age of majority, or is over the age of majority but
16 
incapacitated and incapable of self-support due to mental or physical
17 
[defect] DISABILITY acquired prior to the age of majority; and (c)
18 
the parents dependent upon the member for support;
19 
"xxx."
20 
Sec. 4. Members' Rights. -  In addition to their rights under existing laws, the
21 
members shall have the following rights:
22 
(a) Right to Courteous and Responsive Service
23 
1. To be considered a GSIS member from the first day of government
24 
service;
25 
2. To be provided prompt and accurate service;
26 
3. To be accorded respect by the executives and employees of the
27 
GSIS; and
28 
4. To be afforded comfortable and customer-friendly facilities when
29 
transacting with the GSIS.
30 
(b) Right to Information


2
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15
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30
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1
1. 
To be informed of the laws, regulations, policies or programs 
affecting the members' rights, benefits, obligations, and privileges, 
including amendments or changes thereto;
2. 
To be provided with copies of GSIS policies and regulations 
pertaining to benefits and claims administration;
3. To be informed of the various modes and options in availing 
benefits;
4. To receive accurate and updated membership data, records and 
information, including records of premium remittances and loan 
payments, among others;
5. To have GSIS data and records protected from unauthorized, 
unlawful or improper disclosure; and
6. To be informed in advance of documents required to facilitate 
transaction, processing period and updated status of claims or loan 
applications.
(c) Right to GSIS Benefits
1. To receive on time the benefits the member has qualified to even 
after separation from the service;
2. To avail the mode of retirement, among the different applicable 
retirement laws and be allowed to change the preferred mode: 
Provided, That the retirement pension package has not yet been 
received;
3. To be protected against discrimination and thus receive the same 
benefits and privileges granted other members similarly situated; 
and
4. To receive benefits exempt from all taxes, fees, charges and duties 
of all kinds.
(d) Right to Expeditious Processing of Claims
1. To claim and receive on time benefits provided under applicable 
laws;
2. To exhaust all legal remedies under existing laws; and


1 
3. To be protected from diminution of benefits that may arise with the
2 
passage of a subsequent law or regulation.
3 
(e) Right to be Heard
4 
1. To be represented in the GSIS governing Board;
5 
2. To participate in meaningful exchange of views in dialogues and
6 
fora conducted by GSIS without fear of reprisal;
7 
3. 
To be consulted on the policies and programs to be implemented
8 
by the system;
9 
4. 
To convey grievances and be accorded immediate response; and
10 
5. 
To transact business with the GSIS in person or through electronic
11 
access points.
12 
Sec. 4-A. Special Rights for the Elderly, Disabled and Seriously-III Members,
13 
Beneficiaries and Pensioners. -  The following special rights are to be afforded to the
14 
elderly, disabled and seriously-ill members, beneficiaries and pensioners, to wit:
15 
1. To be provided special access lanes;
16 
2. To be prioritized in the processing and releasing of claims and
17 
benefits;
18 
3. To be given preference in the dissemination of information
19 
pertaining to policies; and
20 
4. To be accorded leniency in the submission of documents: Provided,
21 
That there is substantial compliance with the 
requirements
22 
prescribed by GSIS.
23 
Sec. 5. 
Agency's/Empioyer's Responsibilities. -  The government agencies
24 
covered by the GSIS Act, as employers, shall have the following responsibilities:
25 
1. To remit employees' and employers' contributions to the GSIS within
26 
the prescribed time mandated by the GSIS Act;
27 
2. To provide promptly documents from the agency required to
28 
facilitate the processing of documents and claims;
29 
3. To provide additional documents as necessary to reconcile the
30 
records of accounts; and


1 
4. To inform GSIS, through their agency authorized officers, of any
2 
update pertaining to personal or service records that may affect the
3 
processing of claims and benefits.
4 
Sec. 6. Section 7 of Republic Act No. 8291, otherwise known as "The
5 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
6 
"Sec. 7. Interests on Delayed Remittances. -  Agencies which delay the
7 
remittance of any and all monies due the GSIS shall be charged interests as
8 
may be prescribed by the Board but not[less] MORE than two percent (2%)
9 
simple interest per month. Such interest shall be 
paid by the employers
10 
concerned."
11 
Sec. 7. Section 28 of Republic Act No. 8291, otherwise known as "The
12 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
13 
"Sec. 28. Prescription. -  Claims for benefits under this Act [exeepf-for
15 
eontingeney^ BE IMPRESCRIPTIBLE."
16 
Sec. 8. 
Section 30 of Republic Act No. 8291, otherwise known as "The
17 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
18 
"Sec. 30. Settlement o f Disputes. -  The GSIS AND THE REGIONAL
19 
TRIAL COURT (RTC) shall have original and [exclusive] CONCURRENT
20 
jurisdiction to settle any dispute arising under this Act and any other laws
21 
administered by the GSIS.
22 
"XXX."
23 
Sec. 9. Section 31 of Republic Act No. 8291, otherwise known as "The
24 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
25 
"Sec. 31. Appeals. -  Appeals from any decision or award of the Board
26 
OR RTC shall be governed by [Rules 43 and 45 of] THE PERTINENT
27 
RULES FOUND IN the 1997 Rules of Civil Procedure [adopted by the
28 
Supreme Court on April 8, 1997 which will take effect on July 1, 1997]:
29 
Provided, That pending cases and those filed prior to July 1, 1997 shall be
30 
governed by the applicable rules of procedure: Provided, further, That the
31 
appeal shall take precedence over all other cases except criminal cases when
32 
the penalty of life imprisonment or death or reclusion perpetua is imposable.


1 
XXX.
2 
Sec. 10. Section 36 of Republic Act No. 8291, otherwise known as "The
3 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
4 
"Sec. 36. Investment o f Funds. -  xxx
5 
"xxx
6 
"(j) In foreign mutual funds and in foreign currency deposits or foreign
7 
currency-denominated debts, non-speculative equities and other financial
8 
instruments or other assets issued in accordance with existing laws of the
9 
countries where such financial instruments are issued: Provided, That these
10 
instruments or assets are listed in bourses of respective countries where
11 
these instruments or assets are issued: Provided, further. That the issuing
12 
company has proven track record of profitability over the last three (3) years
13 
and payment of dividends at least once over the same period: PROVIDED,
14 
FINALLY, THAT NOT MORE THAN FIVE PERCENT (5 % ) OF THE
15 
ABOVE-MENTIONED FUNDS SHALL BE INVESTED ABROAD."
16 
Sec. 11. Section 42 of Republic Act No. 8291, otherwise known as "The
17 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
18 
"Sec. 42. 
The Board o f Trustees; Its Composition; Tenure and
19 
Compensation. -  The corporate powers and functions of the GSIS shall be
20 
vested in and exercised by the Board of Trustees composed of the President
21 
and General Manager of the GSIS and [eight-(8)] TEN (10) other members
22 
to be appointed by the President of the Philippines, one (1) of whom shall be
23 
either the President of the Philippine Public School Teachers Association
24 
(PPSTA) 
or 
the 
President 
of 
the 
Philippine 
Association 
of 
School
25 
Superintendents (PASS), 
THE SECRETARY OF THE DEPARTMENT OF
26 
EDUCATION (DepEd), THE CHAIRPERSON OF THE CIVIL SERVICE
27 
COMMISSION (CSC), another two (2) shall 
represent the 
leading
28 
organizations or associations of government employees/retirees, 
AND
29 
another four (4) from the banking, finance, investment, and insurance
30 
sectors, and one (1) recognized member of the legal profession who at the
31 
time of appointment is also a member of the GSIS. The Trustees shall elect
32 
from among themselves a Chair[man^PERSON while the President and


1 
General 
Manager 
of 
the 
GSIS 
shall 
automatically 
be the 
vice-
2 
chair[mafl]PERSON,
3 
"XXX."
4 
Sec. 12. Section 43 of Republic Act No. 8291, otherwise known as "The
5 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
6 
"Sec. 43. Powers and Functions o f the Board o f Trustees. -  xxx
7 
"xxx
8 
"(d) upon the recommendation of the President and General Manager, to
9 
approve the GSIS' organizational and administrative structures and staffing
10 
pattern[7] SUBJECT TO EXISTING CIVIL SERVICE LAWS, RULES AND
11 
REGULATIONS and to establish, 
fix, review, revise and 
adjust the
12 
appropriate compensation package for the officers and employees of the GSIS
13 
with reasonable allowances, incentives, bonuses, privileges and other benefits
14 
as may be necessary or proper for the effective management, operation and
15 
administration of the GSIS, which shall be exempt from Republic Act 
No.
16 
6758, otherwise known as the Salary Standardization Law and Republic Act
17 
No. 7430, otherwise known as the Attrition Law.
18 
"xxx."
19 
Sec. 13. Section 49 of Republic 
Act No. 8291, otherwise known as "The
20 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
21 
"Sec. 49. Dispensation o f Sociai Insurance Benefits. -  (a) The GSIS
22 
shall pay the retirement benefits to the employee on his last day of service in
23 
the government: Provided, That all requirements are submitted to the GSIS
24 
[w ithin a reasonable-period] SIXTY (60) DAYS prior to the effective date of
25 
the retirement;
26 
"xxx."
27 
Sec. 14. Section 52 of Republic Act No. 8291, otherwise known as "The
28 
Government Service Insurance Act of 1997" is hereby amended to read as follows:
29 
"Sec. 52. Penalty. -  xxx
30 
"xxx
31 
"0) Failure of the PRESIDENT AND GENERAL MANAGER AS WELL
32 
AS Members of the GSIS Board, including the chair[man]PERSON and the


1 
vice-chair[maR]PERSON, to comply with the provisions of paragraphs (R)
2 
AND (w) of Section 41 AND SECTION 49 hereof, shall subject them to
3 
imprisonment of not less than six (6) months nor more than one (1) year or a
4 
fine of not less than [fiv e ] TEN thousand pesos (P [5] 10,000.00) nor more
5 
than [TenjTWENTY thousand pesos (P[10]20,000.00) without prejudice to
6 
any civil or administrative liability which may also arise therefromCr]:
7 
PROVIDED, THAT IN  CASE GSIS FAILS TO COMPLY W ITHOUT VALID
8 
AND JUSTIFIABLE REASON W ITH THE REQUIREMENTS REFERRED
9 
TO IN  SECTION 49 OF THIS ACT, A PENALTY OF NOT MORE THAN
10 
TWO PERCENT (2 % ) SIMPLE INTEREST SHALL BE CHARGED PER
11 
MONTH FROM GSIS: PROVIDED, HOWEVER, THAT IN  CASE THE
12 
RELEASE OF THE RETIREMENT BENEFITS REFERRED TO IN  SECTION
13 
49 OF THIS ACT COULD NOT BE ACCOMPLISHED DUE TO FORCE
14 
MAJEURE AND OTHER INSUPERABLE 
CAUSES, THE PENALTY OF
15 
IMPRISONMENT AND FINE IMPOSED UNDER THIS PARAGRAPH
16 
SHALL NOT APPLY.
17 
"Criminal actions arising from violations of the provisions of this Act
18 
may be commenced by the GSIS or by the aggrieved member, either under
19 
this Act or, in appropriate cases, under the Revised Penal Code[T] AND
20 
OTHER SPECIAL LAWS.
21 
Sec. 15. Implementing Rules and Regulations. -  The implementing rules and
22 
regulations to carry out the provisions of this Act shall be adopted and promulgated
23 
by the GSIS, in consultation with the Civil Service Commission (CSC) not later than
24 
ninety (90) days after the approval of this Act.
25 
Sec. 16. Separability Clause. -  If any part or provision of this Act shall be held
26 
to be unconstitutional or invalid, other parts or provisions hereof which are not
27 
affected shall continue to be in full force and effect.
28 
Sec. 17. Repealing Clause. -  All laws, decrees, executive orders, rules and
29 
regulations, or parts thereof which are inconsistent with this Act are hereby
30 
repealed, amended or modified accordingly.


1 
Sec. 18. 
Effectivity. -  This Act shall take effect fifteen (15) days after its
2 
publication in the Official Gazette or in at least two (2) newspapers of general
3 
circulation.
Approved,