SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B.No.~094 
Introduced By Senator Mauuel "Lito" M. Lapid 
EXPLANATORY NOTE 
~Pll1lj I' 
t.tfICr (IF flie' ~rtrtbr\! 
'14 
JAN 28 f'5 :07 
The State has been successful in making salaries and compensation of 
government employees competitive with their private sector counterparts. However, 
much work still needs to be done in t1le prOvision of truly competitive compensation 
packages that will ensure the dedicated and long-term service of a competent public 
sector workforce. 
One component of a competitive compensation package is a good retirement 
plan. Under the GSIS Act and its implementing rules and regulations, the monthly 
pension upon voluntary retirement is eqUivalent to at least Five Thousand Pesos (Php 
5,000) and not more than ninety percent (90%) of the average monfuly compensation. 
The present measure proposes to set all government employees on equal footing 
by raising the monfuly penSion provided under fue GSIS Act such fuat it is equal to fuat 
provided under R.A. 9946. By so doing, fue proponent hopes not only to give adequate 
reward to incumbent government employees who have reached their twilight years 
during the length of their public service, but also to provide compensation packages 
truly competitive with the private sector. 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
·14 
JAN 28 P 5 :07 
SENATE 
S.B. No.2094 
Introduced By Senator Manuel "Lito" M. Lapid 
AN ACT 
AMENDING SECTION 2 AND SECTION 9 OF REPUBLIC ACT NO. 8291, 
OTHERWISE KNOWN AS THE GOVERNMENT SERVICE INSURANCE SYSTEM 
ACT OF 1997 
Be it enacted In; the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Section 9 of Republic Act No. 8291, otherwise known as the 
2 
Government Service Insurance System (GSIS) Act of 1997, is hereby amended to read as 
3 
follows: 
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SECTION 9. Computation of the Basic Monthly Pension. - (a) the 
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basic monthly pension [is] SHALL BE equal to [: 
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1) thirty-seven and one-half percent (37.5%) of the revalued 
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average monthly compensation; plus 
9 
2) two and one-half percent (2.5%) of said revalued average 
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monthly compensation for each year of service in excess of fifteen (15) 
11 
years: Provided, That the basic monthly pension shall not exceed ninety 
12 
percent (90%) of the average monthly compensation. 
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(b) The basic monthly pension may be adjusted upon the 
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recommendation of the President and General Manager of the GSIS and 
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approved by the President of the Philippines in accordance with the rules 
16 
and regulations prescribed by the GSIS: Provided, however, That the basic 
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monthly penSion shall not be less than One thousand and three hundred 
18 
pesos (PI ,300.00): Provided, further, That the basic monthly penSion for 
19 
those who have rendered at least twenty (20) years of service after the 
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effectivity of this Act shall not be less than Two thousand for hundred 
21 
pesos 
(P2,400.00) 
a 
month.} 
THE 
ACTUAL 
MONTHLY 
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COMPENSATION RECEIVED AT THE TIME OF THE EMPLOYEE'S 
23 
RETIREMENT. 
24 
25 
SEC. 2. 
Implementing Agency. - The Government Service Insurance System 
26 
("GSIS") shall take charge of the enforcement and operation of this Act. The GSIS, in 
1 


1 
consultation with concerned government agencies, shall formulate the rules and 
2 
regulations to implement this Act. 
3 
4 
SEC. 3. 
Repealing Clause.-Alllaws, decrees, executive orders, issuances, 
5 
rules and regulations, or parts thereof not consistent with the provisions of this Act are 
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hereby repealed or modified accordingly. 
7 
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SEC. 4. 
Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its publication in at least two (2) newspapers of general circulation. 
Approved, 
2