Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 3127

INTRODUCED BY REPRESENTATIVE ROLANDO LEDESMA MACASAET

EXPLANATORY NOTE

‘The international sentiment on retirement pension is consistent among all
nations — retirees intend to maintain their standard of living pre-retirement or at least
the same at a similar level. In considering their options for retirement
pension, the average person considers inflation, pension rates, the possibility of
increase, the age when starting retirement planning, and the duration by which they
are to rely on their pension.!

In the Philippines, among the major considerations for retirement planning
under the Government Service Insurance System (GSIS) are the age of the
government employce and the mandatory number of years in government service.

Currently, under Republic Act no. 8129, for a person to be entitled to
retirement benefits under the GSIS, he/she must have rendered at least fifteen (15)
years of service, be at least sixty (60) years old at the time of retirement, and not be
a recipient of a monthly disability pension benefit?

Given these parameters, a person who intends to retire at the age of 60 shall
be in government service by 45 years old at the latest. To be entitled to GSIS
retirement pension, he/she must be in uninterrupted and qualified government
service from said age.

For many, this is not an easy feat to accomplish. Some take years before
ing the Civil Service Examination and finding government employment that
ifies them under the GSIS retirement pension.

pas
qual

“As of March 2025, GSIS has a total of 2, 736, 710 members and pensioners
broken down as follows: 2, 100, 257 active members and 636,453 old-age and
survivorship pensioners.”®

Realistically, of the 2, 100, 257 active members, only a portion will complete
the 15-year mandatory service requirement and qualify for retirement pension.

As legislators, it is our duty to make sure that our laws work for the people. It
is time to revisit Republic Act no. 8291 and determine whether the intentions of law

+ 2022 Mercer CFA Institute Global Pension Index.
? Section 13-4,
* https://icrs.ece.gov.ph/profiles/esis/. Accessed 24 June 2025,


are still served today by the 28-year old provisions or if they need to be updated to.
make retirement pension more accessible by our people.

This bill secks to amend the law and shorten the mandatory service
requirement for a GSIS member to qualify for retirement pension from fifteen (15)
to ten (10) years. By reducing the required years of contribution from 15 to 10, the
bill harmonizes the GSIS contribution period with that of the Social Security System
(SSS), which covers private-sector employees, thereby promoting parity between
the two major pension systems.

In view thereof, the passage of this bill is earnestly sought.

MACASAET
ONADO PARTYLIST



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

=
HOUSE BILL NO, 3127

INTRODUCED BY REPRESENTATIVE ROLANDO LEDESMA MACASAET

AN ACT SHORTENING THE MANDATORY SERVICE REQUIREMENT
FOR RETIREMENT BENEFITS UNDER THE GOVERNMENT SERVICE
INSURANCE SYSTEM TO TEN YEARS, FURTHER AMENDING
PRESIDENTIAL DECREE NO. 1146 AS AMENDED BY REPUBLIC ACT
NO. 8291 OR 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 pertinent portions of Section 11 of Presidential Decree no. 1146,
as amended by Republic Act no. 8291 are hereby amended to read as follows:

“SECTION 11. Separation Benefits. — The separation benefit shall consist
of:

(a).a cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for each year of service he paid
contributions, but not less than Twelve thousand pesos (P12,000)
payable 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 TEN (10) years; or

(b) A cash payment equivalent to eighteen (18) times his basic monthly
pension payable at the time of resignation 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 TEN (10) years of service and is below sixty (60)
years of age at the time of resignation or separation.

SEC. 2. The pertinent portions of Section 13 of Presidential Decree no. 1146, as
amended by Republic Act no. 8291 are hereby amended to read as follows:

“SECTION 13. Retirement Benefits. —
(a) Retirement benefit shall be:

1) the lump sum payment as defined in this Act payable at the time of
retirement plus an old-age pension benefit equal to the basic


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monthly pension payable monthly for life, starting upon expiration
of the five-year (5) guaranteed period covered by the lump sum; or

2) cash payment equivalent to eighteen (18) months of his basic
monthly pension plus monthly pension for life payable immediately
with no five-year (5) guarantee.

(b) Unless the service is extended by appropriate authorities, retirement
shall be compulsory for an employee at sixty-five (65) years of age with at
least TEN (10) years of service: Provided, That if he has less than TEN
(10) years of service, he may be allowed to continue in the service in
accordance with existing civil service rules and regulations.”

SEC. 3. The pertinent portions of Section 13-A of Presidential Decree no. 1146, as
amended by Republic Act no. 8291 are hereby amended to read as follows:

“SECTION 13-A. Conditions for Entitlement. — A member who retires from
the service shall be entitled to the retirement benefits in paragraph (a) of
Section 13 hereof: Provided, That:

(1) he has rendered at least TEN (10) years of service;
(2) he is at least sixty (60) years of age at the time of retirement; and
(3) he is not receiving a monthly pension benefit from permanent total
disability.”

SEC. 4. Coverage — This law shall cover qualifications of all active members of
GSIS from the date of effectivity.

SEC. 5. Separability Clause. — If any provision of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall remain valid.

SEC. 6. Repeating Clause. - All laws, presidential decrees, executive orders or parts
thereof that are inconsistent with the provisions of this Act are hereby repealed or
amended accordingly.

SEC. 7 Effectivity. - This Act shall take effect after fifteen (15) days following its
complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,