NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
On 14 November 1936, the Government Service Insurance System (GSIS) was created by 
virtue of Commonwealth Act (C.A.) No. 186 to ensure that government employees who 
devoted their lives to public service are taken care of upon retirement and amply protected in 
case of contingency or disability. To pursue this mandate, the GSIS Charter was amended by 
Presidential Decree (P.D.) No. 1146, Republic Act (R.A.) No. 660, R.A. No. 1616, and most 
recently, by R.A. No. 8291 (Revised GSIS Act of 1997).  
This bill aims to introduce amendments to R.A. No. 8291 in order develop and promote the 
GSIS as a premier social insurance institution providing adequate and excellent social 
insurance benefits and non-life insurance needs to members, pensioners and stakeholders, 
ensure the adoption of policies that are beneficial to them and preserve and sustain the 
financial viability and actuarial solvency of the GSIS Fund. 
As of 01 October 2019, there are 1,843,183 active members of the GSIS and 486,569 active 
pensioners who consist of 353,193 old age and 133,376 survivorship pensioners.  
Government employees depend greatly on the GSIS’ established processes in providing 
pension, life insurance, disability, employees’ compensation, burial benefits, survivorship 
benefits and available loans to mitigate the effect of certain contingencies. In order for the 
State to safeguard public servants from the socio-economic impacts of old age, death, loss of 
job and disability, it is essential to review and amend R.A. No. 8291.  
This bill introduces amendments to R.A. No. 8291 to make it more responsive to the changing 
needs of the GSIS, its members, pensioners and stakeholders. It highlights the significance of 
premium contributions of government employees, and supports their involvement in 
developing and making policies of the GSIS.  
The bill also seeks to strengthen and clarify the corporate powers and authority granted to 
GSIS under R.A. No. 8291 relative to appointments of personnel, authority to approve GSIS’ 
organizational and administrative structures and staffing patterns, to establish, fix, review, 
revise and adjust the appropriate compensation package, benefits, reasonable allowances, 
incentives, bonuses, privileges for the officers and employees of the GSIS, and budget 
autonomy, among others. 
The bill likewise seeks to enhance and expand the reinsurance function of the GSIS by 
exempting the same from the provisions of R.A. No. 9184 (Government Procurement Reform 
Act) or any subsequent procurement law to allow foreign reinsurance entities to participate in 
the reinsurance of government properties and interests without being limited by the rigidity 
and other inflexible requirements of government procurement law, provided that the contract 
to be awarded shall be the most advantageous for the GSIS or Government of the Philippines 
guided by the principles of transparency and competitiveness. 
Salient provisions include: 
November 23, 2022
8:00 am
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1.
Emphasis on periods with paid premiums as basis for the computation of actual
benefits payable;
2.
Revision of the definition of Average Monthly Compensation (AMC);
3.
Revision of the computation of the Basic Monthly Pension (BMP);
4.
Clarification and rationalization of the survivorship benefits and eligibility therefor,
including the pension of surviving spouse and dependent children, survivorship
benefits of members in active service, and survivorship benefits of members not in
active service;
5.
Institutionalization of a sound and tax exempt social security system responsive to the
needs of government employees, pensioners and stakeholders;
6.
Enhancement and expansion of the reinsurance functions of the GSIS by exempting
the same from the provisions of R.A. No. 9184 (Government Procurement Reform Act)
or any subsequent procurement law to allow foreign reinsurance entities to participate
in the reinsurance of government properties and interests without being limited by the
rigidity and other inflexible requirements of government procurement law, provided that
the contract to be awarded shall be the most advantageous for the GSIS or
Government of the Philippines guided by the principle of transparency and
competitiveness;
7.
Exemption from Filing Fees and Government Procurement Law on Reinsurance
Contracts;
8.
Without need of approval or review by the President of the Philippines or named
government agencies or instrumentalities, the GSIS shall continue to have the powers
to:
a)
Adopt or approve its annual and supplemental budget of receipts and expenditures
including salaries and allowances of GSIS personnel;
b)
Approve certain appointments in the GSIS;
c)
Approve GSIS’ organizational and administrative structures and staffing pattern;
and
d)
Exemption from Land Reform Program and other existing or future land and
agrarian reform legislations.
9.
Revised the composition of the Board of Trustees from eight (8) members to eleven
(11) members.
10.
All GSIS claims and benefits are now imprescriptible.
In light of the foregoing, the immediate passage of this bill is most earnestly sought. 
RUFUS B. RODRIGUEZ 


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
THE REVISED CHARTER OF THE  
GOVERNMENT SERVICE INSURANCE SYSTEM 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. – This Act shall be known as the “Revised GSIS Act.” 
SEC. 2.  Declaration of Policy. – The State shall provide, develop and promote a sound and 
tax-exempt social security system responsive to the needs of its government employees, 
pensioners and stakeholders. Accordingly, the State shall review and strengthen policies that 
advance and protect the welfare of employees in the public sector and ensure their right to 
participate in policy and decision-making processes affecting their rights and benefits. Toward 
this end, the State shall: 
(a) Establish a premier and financially viable government social insurance institution 
providing excellent service to its members, pensioners and other constituents; 
(b) Ensure the adoption of policies beneficial to GSIS members, pensioners and other 
constituents, toward a responsible, integrated, autonomous, automated and transparent social 
security system;  
(c) Provide greater representation for members at the highest policy-making level of 
the GSIS; and 
(d) Preserve and sustain the fiscal stability of the System, financial viability and 
actuarial solvency of the fund and protect the rights and benefits of members. (n) 
A. DEFINITIONS
SEC. 3. Definition of Terms. – Unless the context indicates otherwise, the following terms shall 
mean: 
(a) Active Member – A member who is not separated from the service.
(b) Average Monthly Compensation (AMC) – The quotient arrived at after dividing the
aggregate compensation received by the member during his/her last thirty-six (36) months of 
service, with premium payments, preceding his/her separation/retirement/disability/death by 
thirty-six (36) or by the number of months he/she received such compensation if he/she has 
less than thirty-six (36) months of periods with premium payments: Provided, That for the new 
entrant and those active members with less than fifteen (15) years with paid premiums in 
government service at the time of the effectivity of this Act, the AMC shall be his/her quotient 
arrived at after dividing the aggregate compensation received by the member during his/her 
last sixty (60) months of service, with premium payments, preceding his/her 
separation/retirement/disability/death by sixty (60), or by the number of months he/she 
received such compensation if he/she has less than sixty (60) months of periods with premium 
payments. (n) 
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Provided further, that the AMC in no case exceed the amount and rate as may be 
respectively set by the Board under the rules and regulations implementing this Act as 
determined by the actuary of the GSIS. 
 
(c) Benefits – Unless otherwise provided in this Act, Benefits shall refer to those 
administered by GSIS on behalf of its members, as found under Sections 11 to 34 of this Act, 
specifically: retirement, separation, unemployment, disability, funeral, survivorship and life 
insurance.  
 
(d) Board – The Board of Trustees of the GSIS. 
 
(e) Compensation – The basic pay or salary received by an employee, pursuant to 
his/her election or appointment, excluding per diems, bonuses, overtime pay, honoraria, 
allowances and any other emoluments received in addition to the basic pay which are not 
integrated into the basic pay under existing laws. 
 
(f) Current Daily Compensation – For purposes of computing disability benefits, it 
refers to the actual daily compensation or the actual monthly compensation divided by the 
number of working days in the month of contingency but not to exceed twenty-two (22) working 
days. 
 
(g) Disability – Any loss or impairment of the normal functions of the physical and/or 
mental faculties of a member which reduces or eliminates his/her capacity to continue any 
gainful occupation. 
 
(h) Employer – The national government, its political subdivisions, branches, agencies 
or instrumentalities, including, government-owned or controlled corporations with or without 
original charters, and government financial institutions with original charters, the constitutional 
commissions and the judiciary. 
 
(i) Employee or Member – Any person, receiving compensation as defined herein 
while in the service of the employer, whether by election or appointment, irrespective of status 
of appointment, including barangay and sanggunian officials. 
 
(j) Gainful Occupation – Any productive activity that provides the member with income 
at least equal to the minimum compensation of government employees. 
 
(k) GSIS – The Government Service Insurance System created by Commonwealth 
Act (C.A.) No. 186, as amended. 
 
(l)  Inactive Member – A member who is separated from the service, either by 
resignation, retirement, disability, dismissal, or retrenchment. 
 
(m)  Legal Heir - Refers to those heirs other than primary and secondary beneficiaries 
defined under this Act, who are entitled to succession as defined by law.  For purposes of 
claiming benefits under this law, the GSIS shall only consider legal heirs up to 4th civil degree 
of consanguinity. 
 
(n) New Entrant – refers to new government employees covered by this Act who enters 
government service after the effectivity of this Act. 
 
(o) Periods with Paid Premiums (PPP) - Refers to the periods of service of a regular 
member while in government service for which the corresponding compulsory premium 
contributions were actually paid and remitted to the GSIS.   


 
(p) Pensioner – Any person receiving old-age or permanent total disability pension or 
any person who has received retirement benefits: Provided, however, that one who is 
receiving survivorship pension benefits as defined in Sections 29 to 31 of this Act is not a 
pensioner.   
 
(q) Permanent Partial Disability – Accrues or arises upon the irrevocable loss or 
impairment of certain portion/s of the physical faculties, despite which the member is able to 
pursue a gainful occupation. 
 
(r) Permanent Total Disability – Accrues or arises when recovery from the impairment 
mentioned in Section 3(u) is medically remote. 
 
(s) Primary beneficiaries – The legal dependent spouse until he/she remarries and the 
dependent children. 
 
(t) Secondary beneficiaries – The dependent parents and legitimate descendants 
other than the dependent children. 
 
(u) Temporary Total Disability – Accrues or arises when there is impairment of physical 
and/or mental faculties which can be rehabilitated and/or restored to their normal functions. 
 
(v) Total Assets – As used under this Act, refers to the value of total assets as 
appearing in the GSIS’ statements of financial position. 
 
(w)  Total Length of Service – The number of years in government service, regardless 
of status of employment, with or without premium contributions, to be used in determining the 
eligibility of a member for retirement under this Act. The term service shall include full-time 
service with compensation; Provided, That part-time and other services with compensation 
may be included under such rules and regulations as may be prescribed by the GSIS. 
 
B.  MEMBERSHIP IN THE GSIS 
 
SEC. 4. Compulsory Membership. – (a) All government personnel, officers and employees, 
whether elective or appointive, irrespective of status of appointment, provided they are 
receiving fixed monthly compensation and have not reached the mandatory retirement age of 
65 years, are compulsorily covered as members of the GSIS and shall be required to pay 
contributions; 
 
(b) Contractual and casual employees who have an employee-employer relationship 
with a government agency are also compulsorily covered; 
 
(c) An employee who is already in the government service and reaches the mandatory 
retirement age of 65 but whose service has been extended by the Civil Service Commission 
(CSC) for the purpose of completing the fifteen (15) years of service required under Republic 
Act (R.A.) No. 8291 to qualify for retirement benefits;  
 
(d) The following are not members of the GSIS: 
(1) Barangay officials and other government officials who are not receiving fixed 
monthly compensation; 
(2) Personnel who are not receiving fixed monthly compensation and/or do not 
have monthly regular hours of work;  
(3) Personnel covered by contract of service including consultancy and job 
order, where no employee-employer relationship exists between the individual 
and the employer; and 
(4) Uniformed personnel of the Armed Forces of the Philippines (AFP), 
Philippine National Police (PNP), Bureau of Fire Protection (BFP) and Bureau 
of Jail Management and Penology (BJMP). 


 
 
(e)  The following, who are covered by separate retirement schemes, are also required 
to remit regular monthly contributions to the GSIS for their life insurance policies in order to 
answer for their life insurance benefits defined under this Act: 
 
(1) Members of the constitutional bodies; 
 
(2) Members of the judiciary, including those with equivalent ranks; 
 
(3) Members of the National Prosecution Service;  
(4) Members of the Public Attorney’s Office; and 
 (5) All others who are or may be subsequently covered by a separate retirement 
law.  
 
SEC. 5. Optional Membership. – The following shall be given the option to continue their 
membership in GSIS, even beyond the mandatory retirement age of 65:  
 
(a) An official elected to public office before age 65 but who will reach the mandatory 
retirement age of 65 during his/her term shall be allowed to continue paying life and retirement 
premiums until the end of his/her term, including any periods of re-election or election to 
another public office: Provided, That such period/s of re-election or election are continuous;  
 
(b) An official appointed by the President of the Philippines to public office before age 
65 for a fixed term and with a fixed monthly compensation, but who will reach the mandatory 
retirement age of 65 during his/her tenure shall be allowed to continue paying life and 
retirement premiums until the end of his/her tenure, including any period/s of term extension 
or re-appointment to another office: Provided, That the period/s of extension or re-appointment 
is/are continuous; 
 
(c) Non-presidential appointees whose services are extended pursuant to special laws 
such as, but not limited to, R.A. No. 8292 (Higher Education Modernization Act of 1997) and 
R.A. No. 9500 (University of the Philippines Charter of 2008). The appointee shall be given an 
option to continue paying premium contributions upon reaching the age of 65 until the end of 
his/her extended service; 
(d) An official or employee who holds a co-terminus or highly confidential position who 
reaches the age of 65 years, and whose services are considered automatically extended until 
the expiration of the employee’s or official’s appointment or until the employee’s or official’s 
services are earlier terminated shall be allowed to continue paying life and retirement 
premiums until the end of his/her tenure; and 
 
(e)  An official or employee whose period of government service is extended by 
appropriate authorities and who continues to pay his/her life and retirement premiums until the 
end of his/her tenure.  
 
SEC. 6. Effect of Separation from the Service. – A member separated from the service either 
by resignation, retirement, disability, dropping from the rolls, dismissal from the service or 
retrenchment, or those who are qualified for compulsory retirement but opted not to continue 
membership in the GSIS shall be deemed an inactive member of the system. An inactive 
member shall be eligible to whatever benefits he/she has already qualified for in the event of 
any contingency compensable under this Act.  
 
C.  SOURCES OF FUNDS 
 
SEC. 7. Contributions –  
 
(a) It shall be mandatory for the member and the employer to pay the monthly 
contributions specified in the following schedule: 
 
Monthly Compensation 
Percentage of Monthly 
Compensation Payable by 
Member 
Employer 


I. Maximum  
Average 
Monthly  
Compensation 
(AMC) Limit and Below 
 
 
9.0% 
 
 
12.0% 
II
. 
Over the Maximum  
AMC Limit 
-Up to the Maximum  
AMC Limit 
9.0% 
12.0% 
-In Excess of the AMC Limit 
2.0% 
12.0% 
 
 
Members who are excluded from compulsory retirement coverage as enumerated 
under Section 4(e) of this Act shall pay three percent (3%) of their monthly compensation as 
personal share, and their employers a corresponding three percent (3%) for their life insurance 
coverage. 
 
 
(b) It shall be mandatory and compulsory for all employers to include in their annual 
appropriations the necessary amounts for the payment of its share of the contributions 
indicated above, plus any additional premiums that may be required on account of the hazards 
or risks of its employees’ occupation .  
 
(c) The appropriate penal, civil and administrative sanctions under Section 66 of this 
Act shall be imposed upon employers who fail to include the payment of contributions in their 
annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on 
time, or delay the remittance of premium contributions to the GSIS. The heads of offices and 
agencies shall be administratively liable for non-remittance or delayed remittance of premium 
contributions to the GSIS.  
 
SEC. 8. Collection and Remittance of Contributions. – (a) The employer shall report to the 
GSIS the names of all its employees, their corresponding employment status, positions, 
salaries and such other pertinent information, including subsequent changes therein, if any, 
as may be required by the GSIS. The employer shall deduct each month from the monthly 
salary or compensation the contributions payable by him/her in accordance with the schedule 
prescribed in the rules and regulations implementing this Act and the loan amortizations of 
each employee. 
 
(b) Each employer shall remit directly to the GSIS the employees’ and employers’ 
contributions and loan amortizations within the first ten (10) days of the calendar month 
following the month to which the contributions apply. The collection and remittance by the 
employer of the contributions and loan amortizations to the GSIS shall take priority over and 
above the payment of any and all obligations, except salaries and wages of its employees. 
 
(c) All outstanding government share premium contributions which were not paid by 
any government office or agency, including interest, shall be included in the annual budget 
and shall be remitted automatically by the Department of Budget and Management (DBM) to 
the GSIS.  
(d) The deduction and remittance by the employer of loan amortizations due to the 
GSIS shall, at all times, take priority over and above the deductions and payment of any and 
all obligations and payment of any and all obligations of the member due to private creditors. 
(6a) 
 
SEC. 9. Penalties on Delayed Remittances – Agencies which delay the remittance of the 
monthly premium contributions and other amounts due the GSIS shall be charged a penalty 
in the form of interest per month or a portion thereof as may be prescribed by the Board but 
not less than two percent (2%) simple interest. Such interest shall be paid by the employers 
concerned. 


 
SEC. 10. Government Guarantee - The Government of the Republic of the Philippines hereby 
guarantees the fulfillment of the obligations of the GSIS to its members as and when they fall 
due and accepts general responsibility for the solvency of the GSIS.  
 
D. BENEFITS 
 
SEC.  11.  Determination of Amount of Benefits.  – (a) The computation of total length of 
service for the purpose of determining a member’s eligibility to the retirement benefits payable 
under this Act shall be based on the service rendered starting from the date of assumption of 
office by virtue of a valid appointment or election, including periods of service at different times 
under one or more employer/s, those performed overseas under the authority of the Republic 
of the Philippines, and those which may be prescribed by the GSIS in coordination with the 
CSC. 
 
(b) The computation of actual benefits payable under this Act shall be based on periods 
with paid premiums. 
 
For the purpose of this Section, the term service shall include full-time service with 
compensation: Provided, That part-time and other services with compensation may be 
included under such rules and regulations as may be prescribed by the GSIS.  
 
RETIREMENT BENEFITS 
 
SEC. 12. General Conditions for Entitlement. – A member who retires from service shall be 
entitled to the retirement benefits enumerated in Section 13(a) hereof: Provided, That the 
member: 
 
(a)  Has rendered at least fifteen (15) years of service; 
 
(b)  Is at least sixty (60) years of age; and 
 
(c)  Is not receiving a monthly pension benefit from permanent total disability under 
this Act.  
 
SEC. 13.  Retirement Benefits. –  
(a) Retirement benefit shall either be: 
  
 
(1) Lump sum payment equivalent to sixty (60) months of the member’s basic monthly 
pension (BMP) payable at the time of retirement plus an old-age pension benefit equal to the 
basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) 
period covered by the cash payment; or 
 
(2) Cash payment equivalent to eighteen (18) months of the member’s basic monthly 
pension plus monthly pension for life payable immediately starting from date of retirement. 
 
(b) Unless the service is allowed under Section 5 of this Act or extended by appropriate 
authorities, retirement shall be compulsory for an employee at sixty-five (65) years of age: 
Provided, That if the employee has less than fifteen (15) years of service, he/she may be 
allowed to continue in the service in accordance with existing civil service rules and 
regulations.  
 
SEC. 14.  Computation of the Basic Monthly Pension (BMP). – 
(a) The basic monthly pension is equal to two and one half percent (2.5%) multiply by 
the Average Monthly Compensation multiply by the periods with paid premiums: Provided, 
That the basic monthly pension shall not exceed ninety percent (90%) of the Average 
Monthly Compensation. 
(b) For the new entrant and those active members with less than fifteen (15) years 
with paid premiums in government service at the time of effectivity of this Act, the basic 


monthly pension is equal to two percent (2%) multiply by the Average Monthly Compensation 
multiply by the periods with paid premiums: Provided, That the basic monthly pension shall 
not exceed eighty percent (80%) of the Average Monthly Compensation. 
 
(c) The basic monthly pension (BMP) may be adjusted upon the recommendation of 
the GSIS’ Actuary and the GSIS President and General Manager (PGM), and approved by 
the Board of Trustees in accordance with the rules and regulations prescribed by the GSIS.   
 
SEC. 15. Periodic Pension Adjustment. – The monthly pension of all pensioners including all 
those receiving survivorship pension benefits shall be periodically adjusted as may be 
recommended by the GSIS Actuary and the GSIS PGM, and approved by the Board of 
Trustees of GSIS in accordance with the rules and regulations prescribed by the GSIS.  
 
SEPARATION BENEFITS 
 
SEC. 16. General Conditions for Entitlement. – A member who separates from the service 
before he/she is eligible for retirement under Section 12 of this Act shall be entitled to the 
separation benefits enumerated in Section 17 hereof: Provided, That the member: 
(a)  Has rendered at least three (3) years of service; and 
(b) Is not receiving a monthly pension benefit from permanent total disability under this 
Act. 
 
SEC. 17.  Separation Benefits. – The separation benefit shall be paid as follows: 
 
(a)  If the member has rendered at least three (3) years but less than fifteen (15) years 
of service at the time of resignation or separation, he/she shall be entitled to a one-time cash 
payment equivalent to one hundred percent (100%) of his/her Average Monthly Compensation 
for each year of service that he/she paid premium contributions, but not less than Twelve 
thousand pesos (Php12,000). The one-time cash payment shall be payable immediately or 
upon reaching sixty (60) years of age, at the option of the member: Provided, That the Average 
Monthly Compensation of new entrants in government service is equivalent to the average 
salary received by the member during the last five (5) years of service with paid premiums;  
 
 
(b) If the member has rendered at least fifteen (15) years of service but is below sixty 
(60) years of age at the time of resignation or separation, he/she shall be entitled to a one-
time cash payment equivalent to eighteen (18) times his/her basic monthly pension 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).  
 
SEC. 18. Effect of Re-Employment in Government Service after Separation. – All services 
credited for retirement, resignation or separation for which corresponding benefits have been 
paid under this Act or other laws shall in all cases and without any exception, be excluded in 
the computation of service in case of reinstatement in government service and subsequent 
retirement or separation which is compensable under this Act. Notwithstanding any other laws 
and rules and regulations to the contrary, no refund or return of any applicable retirement or 
separation benefits previously availed and received shall be allowed for purposes of including 
the prior government services credited for retirement, resignation or separation where benefits 
have already been paid to the total years of government service in case of subsequent 
retirement or separation.  
UNEMPLOYMENT BENEFITS 
 
SEC. 19. General Conditions for Entitlement. – A member who is separated from the service 
due to the abolition of his/her office or position resulting from reorganization shall be entitled 
to the unemployment benefits enumerated in Section 20 hereof: Provided, That the member: 
 
(a) Has been paying the required premium contributions for at least one (1) year prior 
to separation; 


 
(b) Has no pending application of separation benefits or has not been paid the 
voluntary separation benefit equivalent to one-time cash payment  or 18 times the basic 
monthly pension, should he/she opt to avail of the same; and 
 
(c) Has not availed of any early retirement program as a result of his/her office’s 
reorganization. 
 
SEC. 20. Unemployment or Involuntary Separation Benefits – Unemployment benefits  shall 
be computed as fifty percent (50%) of the Average Monthly Compensation of the member, 
payable in accordance with the following schedule: 
 
Contributions Made 
 
 
 
 
 
Benefit Duration 
 
1 year but less than 3 years  
 
 
 
2 months 
3 or more years but less than 6 years 
 
 
3 months 
6 or more years but less than 9 years 
 
 
4 months 
9 or more years but less than 11 years 
 
 
5 months 
11 or more years but less than 15 years 
 
 
6 months 
 
 
The first payment shall be equivalent to two (2) monthly benefits. A seven (7) day 
waiting period shall be imposed on succeeding monthly payments. 
 
All accumulated unemployment benefits paid to the employee during his/her entire 
membership with the GSIS shall be deducted from voluntary separation benefits. 
 
The GSIS shall prescribe the detailed guidelines in the operationalization of this 
Section in the rules and regulations implementing this Act.  
 
PERMANENT DISABILITY BENEFITS 
 
SEC. 21. General Conditions for Entitlement. – A member who suffers permanent disability 
for reasons not due to his/her grave misconduct, notorious negligence, habitual intoxication, 
or willful intention to kill himself/herself or another, shall be entitled to the disability benefits 
provided for in this Act: Provided, that he/she was in the service at the time of disability.  
 
SEC. 22. Types of Disability Benefits. – There are two (2) types of permanent disability, which 
shall be determined by the GSIS based on established medical standards: (a) permanent total 
disability and (b) permanent partial disability.  
 
SEC. 23. Permanent Total Disability Benefits. –  
 
(a) The following disabilities shall be deemed permanent and total: 
 
(1) Complete loss of sight of both eyes; 
(2) Loss of two (2) limbs at or above the ankle and wrist; 
(3) Permanent complete paralysis of two (2) limbs; 
(4) Complete loss of hearing of both ears;  
(5) Brain injury resulting in physical incapacity, incurable imbecility or insanity; and 
(6) Such other cases as may be determined by the Board of Trustees. 
 
(b) The member shall receive a monthly income benefit for life equal to the basic monthly 
pension effective from the date of disability. 
 
(c) A cash payment equivalent to eighteen (18) times his/her basic monthly pension shall also 
be given if the member is in the service at the time of disability and he/she has paid a total of 
at least one hundred eighty (180) monthly contributions. 
 


(d) A member cannot enjoy the monthly income benefit for permanent disability and old-age 
retirement simultaneously. 
 
(e) If a member does not satisfy the conditions stated under Section 21 hereof but has 
rendered at least three (3) years of service at the time of his/her disability, he/she shall be 
advanced the cash payment equivalent to one hundred percent (100%) of his/her Average 
Monthly Compensation for each year of service he paid contributions, but not less than Twelve 
Thousand Pesos (Php12,000.00) which should have been his/her separation benefit. 
 
(f) Unless the member has reached the minimum retirement age at the time of disability, his 
entitlement to permanent total disability benefit shall be suspended when: 
 
(1) He/she recovers from disability as determined by the GSIS, whose decision shall 
be final and binding; or 
 
(2) He/she fails to undergo medical examination when required by the GSIS.  
 
PERMANENT PARTIAL DISABILITY BENEFITS 
 
SEC. 24.  Permanent Partial Disability Benefits. –  
 
(a) The following disabilities shall be deemed permanent partial: 
 
 
1. SCHEDULED -  Complete and permanent loss of the use of: 
(i)  Any finger 
 
(ii)  Any toe 
     (iii) One arm 
 
(iv)  One hand 
 
(v)  One foot 
 
(vi)  One leg 
      
(vii) One or both ears 
 
(viii) Hearing of one or both ears 
(ix)  Sight of one eye 
 
 
2. NON-SCHEDULED - Such other cases as may be determined by the GSIS. 
 
(b) The member shall receive a cash payment in accordance with a schedule of disabilities to 
be prescribed by the GSIS.  
 
TEMPORARY TOTAL DISABILITY BENEFITS 
 
SEC. 25. General Conditions for Entitlement. – An active member whose injuries result in 
temporary incapacity to work or to engage in any occupation shall be entitled to the temporary 
total disability benefit provided for in this Act.  
 
SEC. 26. Temporary Total Disability Benefit. — (a) A member who suffers temporary total 
disability for reasons not due to any of the conditions enumerated in Section 21 hereof shall 
be entitled to seventy-five percent (75%) of his/her current daily compensation for each day 
or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days 
in one calendar year after exhausting all his/her sick leave credits and collective bargaining 
agreement sick leave benefits, if any, but not earlier than the fourth day of his/her temporary 
total disability: Provided, That: 
 
(1) he/she is in the service at the time of his/her disability; or 
 


(2) if separated, he/she has rendered at least three (3) years of service and has paid 
at least six (6) monthly contributions in the twelve-month period immediately 
preceding his/her disability. 
 
Provided, however, That a member cannot enjoy the temporary total disability benefit 
and sick leave pay simultaneously: Provided, further, That if the disability requires 
more extensive treatment that lasts beyond one hundred twenty (120) days, the 
payment of the temporary total disability benefit may be extended by the GSIS but 
not to exceed a total of two hundred forty (240) days. 
 
(b) The temporary total disability benefit shall in no case be less than Seventy pesos 
(Php70.00) a day. 
 
(c) The notices required of the member and the employer, the mode of payment, and the other 
requirements for entitlement to temporary total disability benefits shall be provided in the rules 
and regulations to be prescribed by the GSIS.  
 
SEC. 27. Non-scheduled Disability. – For injuries or illnesses resulting in a disability not listed 
in the schedule of partial/total disability provided herein, the GSIS shall determine the nature 
of the disability and the corresponding benefits therefor.  
 
DEATH BENEFITS 
 
SEC. 28. Funeral Benefit. – The amount of funeral benefit shall be determined and specified 
by the GSIS in the rules and regulations implementing this Act but which shall not be less than 
Thirty Thousand Pesos (Php30,000.00): Provided, That it may be adjusted after every five (5) 
years upon recommendation of the GSIS Actuary and the GSIS PGM and approved by the 
Board in accordance with the rules and regulations prescribed by the GSIS. The funeral benefit 
shall be paid upon the death of any of the following: 
 
(a) A member who: 
1. died while in active service; or 
2. although separated from government service, is or would have been entitled to 
future separation or retirement benefits under Section 17 (“Separation 
Benefits”) or Section 13 (“Retirement Benefits”) of this Act, respectively, and 
the rule on constructive filing shall apply in case there is also a filed claim for 
survivorship benefit. 
3. retired under R.A. No. 1616 prior to 24 June 1997 with at least 20 years of 
service, regardless of age; or 
4. retired under R.A. No. 1616 on or after 24 June 1997, with at least 20 years of 
service, and is at least 60 years of age at the time of his/her retirement. 
 
(b) An old-age or disability pensioner.  
 
SURVIVORSHIP BENEFITS 
 
SEC. 29. General Entitlement to Survivorship Benefits. – When a member or pensioner dies, 
the qualified beneficiaries, shall be entitled to the following survivorship benefits, whichever is 
applicable.  
 
SEC. 30. Survivorship Pension. – The survivorship pension shall consist of: 
 
(a) The basic survivorship pension which is fifty percent (50%) of the basic monthly 
pension but shall not be more than fifty percent (50%) of the current Step 8 salary of an 
Undersecretary. The cap on the survivorship pension may be reviewed every five (5) years by 


the Board, upon recommendation of the GSIS Actuary and the GSIS PGM, and approved by 
the Board of Trustees in accordance with the rules and regulations prescribed by the GSIS, 
by considering the issuances on the salary standardization law. 
 
(b) The dependent children’s pension equivalent to ten percent (10%) of the basic 
monthly pension for each child not exceeding fifty percent (50%) of the basic monthly pension 
but which shall not be more than fifty percent (50%) of the current Step 8 salary of an 
Undersecretary. 
 
(c) The maximum amount of basic survivorship pension prevailing at the time of 
death of the member or pensioner shall apply. Any subsequent increase in the Step 8 salary 
of an Undersecretary will not result in any adjustment to the survivorship pension already being 
received.  
 
(d) The survivorship pension shall not be guaranteed yearly adjustments due to 
inflation. 
 
(1) Cash payment equivalent to eighteen (18) months BMP; or 
(2) Cash payment equivalent to one hundred percent (100%) of the AMC for 
every period with paid premiums but not less than Twelve Thousand Pesos 
(Php12,000.00). 
 
SEC. 31. Death of a Member. – Upon the death of a member, the qualified beneficiaries shall 
be entitled to: 
(a) Survivorship pension: Provided, That the deceased: 
 
(1) Was in the service at the time of his death and has rendered at least fifteen 
(15) years of period with paid premiums (PPP); or 
 
(2) If separated from the service, has at least fifteen (15) years of PPP. 
 
(b) The survivorship pension plus a cash payment equivalent to eighteen (18) 
months BMP: Provided, That the deceased was in the service at the time of his death with at 
least fifteen (15) years of PPP; 
 
(c) 
A cash payment equivalent to one hundred percent (100% of the AMC for each 
year of period with paid premiums, but not less than Twelve Thousand Pesos (P12,000.00): 
Provided, That the deceased member was in the service at the time of his death or if separated 
from the service, has at least three (3) years of PPP. 
 
The survivorship pension shall be paid as follows: 
 
(a)  when the dependent spouse is the only survivor, he/she shall receive the basic 
survivorship pension for life or until he/she remarries, cohabits, or engages in a common-law 
relationship; 
 
(b)  when only the dependent children are the survivors, they shall be entitled only 
to the dependent children’s pension for a maximum of five (5) children for as long as they are 
qualified, counted from the youngest and without substitution; 
 
(c)  when the survivors are the dependent spouse and the dependent children, the 
dependent spouse shall receive the basic survivorship pension for life or until he/she 
remarries, cohabits, or engages in a common-law relationship, and the dependent children 
shall receive the dependent children’s pension; 
 


(d)  when the dependent spouse and dependent children are already receiving the 
basic survivorship pension and dependent children’s pension, respectively, any subsequent 
death, emancipation or disqualification of any one of them shall not entitle the other 
beneficiaries to the forfeited share;  
 
(e)  when the retiree dies before reaching sixty (60) years of age but has already 
received the separation benefit in the form of cash payment equivalent to 18 months BMP, the 
survivorship pension shall be paid effective from the date of death; 
 
(f) when the pensioner dies within the 5-year period after receiving the five-year 
lump sum, the survivorship pension shall be paid only after the expiration of the said five-year 
period. 
 
Survivorship Benefits of Members in Active Service 
 
(a) If at the time of death, a member was in the service and had rendered at least fifteen 
(15) years of PPP: 
 
(1) His/her primary beneficiaries shall receive the survivorship pension and cash 
payment equivalent to eighteen (18) times the BMP; or 
 
(2) In the absence of primary beneficiaries, his/her secondary beneficiaries shall 
receive the cash payment equivalent to 18 times the BMP; or 
 
(3) In the absence of the primary and secondary beneficiaries, the legal heirs of 
the member shall receive the cash payment equivalent to 18 times the BMP; 
 
(b) If at the time of death, the member was in the service with less than fifteen (15) 
years of PPP; his primary beneficiaries shall receive the cash payment equivalent to 100% of 
the AMC for every PPP. 
 
Survivorship Benefits of Inactive Members  
 
(a) Survivors of members who retired under retirement laws not administered by the 
GSIS shall not receive any survivorship benefits; 
 
(b) Primary beneficiaries of inactive members who have at least fifteen (15) years of 
PPP shall receive the survivorship pension only; 
 
(c) Primary beneficiaries of inactive members who have at least three (3) years of PPP 
but less than fifteen (15) years and were less than sixty (60) years of age at the time of death 
shall receive a cash benefit/payment equivalent to 100% of the deceased inactive member’s 
AMC for every year PPP, but not less than Php12,000; 
 
(d) Primary beneficiaries of inactive members who have less than fifteen (15) years of 
PPP and were at least sixty (60) years of age at the time of separation from the service, shall 
not be entitled to receive survivorship benefits.  However, if the member has not yet received 
separation benefit within four (4) years after his/her separation, the primary beneficiaries shall 
receive the cash benefit equivalent to 100% of the inactive member’s AMC for every year of 
PPP, but not less than Php12,000. 
 
LIFE INSURANCE BENEFITS 
 
SEC. 32. Compulsory Life Insurance. – All employees, except for those enumerated under 
Section 4(e) of this Act, shall, under such terms and conditions as may be promulgated by the 


GSIS, be compulsorily covered with life insurance, which shall automatically take effect on the 
date of their employment.  
 
SEC. 33. Dividends. – An annual dividend may be granted to all members of the GSIS whose 
life insurance is in force for at least one (1) year in accordance with a dividend allocation 
formula to be determined by the GSIS.  
 
SEC. 34. Optional Insurance. – Subject to the rules and regulations prescribed by the GSIS, 
a member may apply for insurance and/or pre-need coverage embracing life, health, 
hospitalization, education, memorial plans, and such other plans as may be designed by the 
GSIS, for himself/herself and/or his/her dependents. Any employer may likewise apply for 
group insurance coverage for its employees. The payment of the premiums/installments for 
optional insurance and pre-need products may be made by the insured or his/her employer 
and/or any person acceptable to the GSIS.  
 
NON-LIFE INSURANCE  
 
SEC. 35. Insurance and Reinsurance. – In line with its mandate under R.A No. 656 as 
amended and other related laws, the GSIS shall engage in all kinds of insurance and 
reinsurance and all other forms of undertaking to indemnify any person or party against loss, 
damage, or liability, including third party liability, arising from unknown or contingent event, 
properties or assets, contracts or agreements, causes or rights of action, or other insurable 
interests, to the extent of the interests of the government, against any insurable risk. 
The GSIS shall have the authority to secure reinsurance support for government 
insurable interest or part thereof  from any financially sound and capable domestic reinsurance 
corporation, foreign corporation that is authorized to transact reinsurance business in the 
Philippines in accordance with R.A. No. 10607, or from  any insurance institution owned and 
operated by a foreign insurance entity; Provided , That in the award of reinsurance contracts, 
the GSIS shall be exempt from the provisions of R.A. No. 9184 or any subsequent 
procurement law and shall ensure that the contract to be awarded shall be the most 
advantageous for the GSIS or Government of the Philippines guided by the principle of 
transparency and competitiveness thru the adoption of its own rules and regulations:  Provided 
further, that the GSIS shall have the authority to determine the required capitalization and 
financial reserve   of interested entities. Provided, finally that the GSIS shall submit an annual 
report on its insurance or reinsurance operations to the insurance commission for monitoring 
purposes only. 
For purposes hereof, insurable interest shall mean every interest in property, whether 
real or personal, or any relation thereto, or liability in respect thereof, of such nature that a 
contemplated peril might directly damnify the insured.  
It shall also refers to those interest in which the government or government agency 
has a relation or connection with, or concern in it including but not limited to Overseas Filipino 
Workers, such that the said government or government agency will derive pecuniary benefit 
or advantage from its preservation and will suffer pecuniary loss or damage from its 
destruction, termination or injury by the happening of the event insured against. 
It may consist in an existing interest, inchoate interest founded on an existing interest, 
or an expectancy, coupled with an existing interest in that out of which the expectancy arises.  
Accordingly, the insurable interest of government, parent, subsidiary and acquired 
asset corporations, including government financial institutions, as these corporations are 
defined in Presidential Decree (P.D.) No. 2029, shall also extend to their physical assets which 
by declared policy of the government are required to be privatized.  
 
E.  ADJUDICATION OF CLAIMS AND DISPUTES 
 
SEC. 36. Prescription. – Upon the effectivity of this Act, all benefits due as defined under 
Section 3(c) of this Act shall not prescribe.  


 
SEC. 37. Facility of Payment. – The GSIS shall prescribe rules and regulations to facilitate 
payment of benefits, proceeds and claims for benefits under this Act and any other laws 
administered by the GSIS. Payments made by the GSIS prior to its receipt of an adverse claim, 
to a beneficiary or claimant subsequently found not entitled thereto, shall not bar the legal and 
eligible recipient from his/her right to demand the payment of benefits, proceeds, and claims 
from the GSIS.  
 
SEC. 38. Settlement of Disputes. – The GSIS shall have original and exclusive jurisdiction to 
settle any disputes or issues including but not limited to claims and benefits arising under this 
Act, C.A. No. 186, as amended, R.A. No. 8291 and other laws administered by the GSIS, 
including its implementing rules and regulations, policies and guidelines. 
The Board may designate any member of the Board or official of the GSIS who is a 
lawyer, to act as hearing officer to receive evidence, make findings of fact and submit 
recommendations together with all the documentary and testimonial evidence, to the Board 
within thirty (30) working days from the time the parties have closed their respective evidence 
and filed and submitted their last pleading or other requested documents. The Board shall 
decide the case within thirty (30) days from the receipt of the hearing officer’s findings and 
recommendations. The cases heard directly by the Board shall be decided within thirty (30) 
working days from the time they are submitted by the parties for decision. (30) 
 
SEC. 39. Appeals. – Decisions of the Board shall be appealable to the Court of Appeals. The 
appeal shall not stay the award, order or decision sought to be reviewed unless ordered by 
the Court of Appeals or by the Supreme Court.  
 
SEC. 40. Execution of Decision. – When no appeal is perfected and there is no order to stay 
by the Board, by the Court of Appeals, or by the Supreme Court, any decision or award of the 
Board shall be enforced and executed in the same manner as decisions of the Regional Trial 
Court.  For this purpose, the Board shall have the power to issue to the city or provincial sheriff 
or its appointed sheriff such writs of execution as may be necessary for the enforcement of 
such decision or award, and any person who shall fail or refuse to comply with such decision, 
award, writ or process after being required to do so shall, upon application by the GSIS, be 
punished for contempt.  
 
SEC. 41. Oaths, Witnesses, and Production of Records. – When authorized by the Board, an 
official or employee of the GSIS shall have the power to administer oath and affirmation, take 
depositions, certify to official acts, and issue subpoena ad testificandum and subpoena duces 
tecum to compel the attendance of witnesses and the production of books, papers, 
correspondences and other records deemed necessary as evidence in connection with any 
question arising under this Act. Any case of contumacy shall be dealt with in accordance with 
the provisions of Section 580 of the Revised Administrative Code.  
 
F.  FUNDS OF THE GSIS 
 
SEC. 42. Funds. – The GSIS shall administer the Social Insurance Fund, which consists of all 
contributions payable under Section 7 of this Act together with the earnings and accruals 
thereon. Said Fund shall be used to finance the benefits administered by the GSIS under this 
Act. In addition, the GSIS shall administer the following funds, to be known collectively as the 
“GSIS-Administered Funds”: 
 
 
(a) The Optional Insurance Fund for the insurance coverage described in Section 34 
hereof,  
 
(b) The Employees’ Compensation Insurance Fund created under P.D. No. 626, as 
amended, 
 
(c) The General Insurance Fund created under R.A. No. 656, as amended; and  


 
(d) Such other special funds existing or that may be created for special groups or 
persons rendering services to the government.  
  
The GSIS shall maintain the required reserves for each fund to guarantee the fulfillment 
of its obligations under this Act.  
The funds administered by the GSIS shall not be used for purposes other than those 
provided for under this Act, any prior or subsequent laws, issuances and rules and regulations 
to the contrary notwithstanding.  
No portion of the funds of the GSIS or income thereof shall accrue to the general fund 
of the national government and its political subdivisions, instrumentalities and other agencies 
including government-owned and controlled corporations.  
 
SEC. 43. Deposits and Disbursements. – All revenues collected and all accruals thereto shall 
be deposited, administered and disbursed in accordance with law. A maximum expense 
loading of two percent (2%) of the total assets may be disbursed for administrative and 
operational expenses except as may be otherwise recommended by the GSIS Actuary and 
the GSIS PGM, and approved by the Board of Trustees of GSIS in accordance with the rules 
and regulations prescribed by the GSIS.  
  
SEC. 44. Investment of Funds. – The funds of the GSIS which are not needed to meet the 
current obligations may be invested under such terms and conditions and rules and 
regulations as may be prescribed by the Board: Provided, That investments shall optimize the 
requirements of liquidity, safety, security and yield as embodied in formal investment policy 
guidelines approved by the Board in order to ensure the actuarial solvency of the funds of the 
GSIS: Provided, further, That the GSIS shall submit an annual report on all investments made 
to both Houses of Congress of the Philippines. The funds may be invested in the following: 
 
 
(a) Interest-bearing or zero-coupon bonds or securities or other evidence of 
indebtedness of the Government of the Philippines; 
 
 
(b) Interest-bearing or zero-coupon deposits or securities in any domestic bank doing 
business in the Philippines: Provided, That in the case of such deposits, these shall not exceed 
at any time the unimpaired capital and surplus or total private deposits of the depository bank, 
whichever is smaller: Provided, further, That said bank has prior designation as a depository 
for the purpose by the Monetary Board of the Bangko Sentral ng Pilipinas; 
 
 
(c) Short-and-medium term loans to members such as salary, policy, educational, 
emergency, and other similar loans; 
 
 
(d) Bonds, securities, promissory notes or other evidence of indebtedness of 
educational or medical institutions to finance the construction, improvement and maintenance 
of schools and hospitals; 
 
 
(e) Real estate property including shares of stocks involving real estate property and 
investments secured by first mortgages on real estate or other collaterals acceptable to the 
GSIS: Provided, That such investments shall, in the determination of the Board, redound to 
the benefit of the GSIS, its members, as well as the general public; 
 
 
(f) Debt instruments and other securities traded in secondary markets; 
 
 
(g) Loans to, or in bonds, debentures, promissory notes or other evidence of 
indebtedness of any solvent corporation created or existing under the laws of the Philippines; 
 
 
(h) Common and preferred stocks of any solvent corporation or financial institution 
created or existing under the laws of the Philippines listed in the stock exchange subject to 


the requirements of liquidity, safety, security, and expected returns as embodied in formal 
investment policy guidelines approved by the Board; 
 
 
(i) Domestic mutual funds including investments related to the operations of mutual 
funds; and 
 
 
(j) Foreign mutual funds and in foreign currency deposits or foreign currency-
denominated debts, non-speculative equities and other financial instruments or other assets 
issued in accordance with existing laws of the countries where such financial instruments are 
issued: Provided, further That the issuing company has proven track record of profitability over 
the last 3 years.  
 
SEC. 45. Records and Reports. – The GSIS shall keep and cause to manage such records 
as may be necessary for the purpose of making actuarial studies, calculations and valuations 
of the funds of the GSIS including such data needed in the computation of rates of disability, 
mortality, morbidity, separation and retirement among the members and any other information 
useful for the adjustment of the benefits of the members. The GSIS shall maintain appropriate 
books of accounts to record its assets, liabilities, income, expenses, receipts and 
disbursements of funds and other financial transactions and operations. 
 
SEC. 46. Examination and Valuation of the Funds. – The GSIS shall make a periodic actuarial 
examination and valuation of its funds in accordance with accepted actuarial principles and 
best practices.  
 
SEC. 47. Exemption from Tax, Legal Process and Lien. - It is hereby reaffirmed as a State 
policy that the actuarial solvency of all the funds of the GSIS, including GSIS Administered 
Funds, shall be preserved and maintained at all times and that contribution rates necessary 
to sustain the benefits under this Act shall be kept as low as possible in order not to burden 
the members of the GSIS and their employers.  
Taxes imposed on the GSIS tend to impair the actuarial solvency of all of its funds and 
increase the contribution rate necessary to sustain the benefits under this Act. Accordingly, 
notwithstanding any laws to the contrary, the GSIS, including GSIS wholly owned and 
controlled corporations and its subsidiaries, whether as a direct taxpayer, collecting or 
remitting agent, all of its funds, including the non-life and property insurance funds and those 
that GSIS is mandated to administered under special laws, assets, properties, all contributions 
collected, including all accruals thereto, all revenues, income or investment earnings 
therefrom including all accruals thereto, transactions and benefits paid, as well as all supplies, 
equipment, papers or documents shall remain and be exempt from any and all forms and kinds 
of direct or indirect taxes, including output and input Value Added Taxes (VAT) and 
Documentary Stamp Taxes (DST), assessments, fees, charges, customs or import duty or 
duties imposed by the national or local government and shall not be liable to attachments, 
garnishments, levy or seizure by or under any legal or equitable process, whatsoever, either 
before or after receipt by the person or persons entitled thereto. These exemptions shall 
continue unless expressly, specifically, and categorically revoked or repealed, and any tax 
assessment imposed against the GSIS as of the approval of this Act or subsequent thereto is 
shall be null and void and considered paid and cancelled. No tax measure of whatever nature 
enacted shall apply to the GSIS unless it expressly and categorically revokes the declared 
policy of the State in this Act and in this Section granting tax-exemption to the GSIS. 
Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary 
to or in derogation of this provision are hereby deemed repealed, superseded and rendered 
ineffective and without legal force and effect. 
The exemptions provided herein shall not be affected nor derogated by subsequent 
laws to the contrary unless this Section is expressly, specifically, and categorically revoked or 
repealed by law and a provision is enacted to substitute or replace the exemption herein 
referred as an essential factor to maintain and/or protect the solvency of the fund, 


notwithstanding and independently of the guarantee of the national government to secure such 
solvency or liability. 
All funds, including the non-life and property insurance funds and those that GSIS is 
mandated to administered under special laws, and/or the properties of the GSIS referred to 
herein shall be exempt from attachment, garnishment, execution, levy, seizure or any other 
legal or equitable processes issued by the courts, quasi-judicial agencies or administrative 
bodies including Commission on Audit (COA) disallowances.  
All the benefits, sums or monies corresponding to the benefits under this Act shall 
likewise be exempt from attachment, garnishment, execution, levy, seizure or any other legal 
or equitable processes issued by the courts, quasi-judicial agencies or administrative bodies 
including COA disallowances, based on financial obligations or liability of any member, 
including any pecuniary accountability arising from or caused or occasioned by exercise or 
performance of his/her official functions or duties, or incurred relative to or in connection with 
his/her position or work except when his/her monetary liability, contractual or otherwise, is in 
favor of the GSIS.  
 
Sec. 48. Exemption from Filing Fees and Government Procurement Law on Reinsurance 
Contracts - The GSIS shall be exempted from payment of filing fees in any courts, quasi-
judicial agencies or administrative bodies.  
The selection by the GSIS of reinsurer and the award of reinsurance contracts 
pursuant to Section 35 of this Act and other applicable laws shall be exempted from the 
provisions of R.A. No. 9184, otherwise known as the Government Procurement Reform Act or 
any subsequent procurement law. Provided, that the GSIS shall prescribe its own rules and 
regulations guided by the principles of transparency and competitiveness and shall ensure 
that the contract to be awarded shall be the most advantageous for the GSIS or Government 
of the Philippines.  
    
G.  ADMINISTRATION 
 
SEC. 49. Implementing Body. – The GSIS shall implement the provisions of this Act.  
 
SEC. 50. Powers and Functions of the GSIS. – The GSIS shall exercise the following powers 
and functions:  
 
 
(a)  Formulate, adopt, amend or rescind rules and regulations necessary to carry out 
the provisions and purposes of this Act;  
 
(b) Adopt or approve the annual and supplemental budget of receipts and expenditures 
including salaries and allowances of the GSIS personnel; to authorize such capital and 
operating expenditures and disbursements of the GSIS as may be necessary and proper for 
the effective management and operation of the GSIS without need of approval or review by 
the President of the Philippines, DBM, Governance Commission for GOCCS (GCG), COA or 
other government agencies or instrumentalities, notwithstanding any laws, rules, regulations 
and other issuances to the contrary and the same shall not be affected by subsequent laws, 
rules, regulations and issuances to the contrary unless this provision is expressly, specifically 
and categorically revoked or repealed by law. 
 
Consequently, this provision shall apply retroactively and all laws, ordinances, 
regulations, issuances, opinions or jurisprudence contrary to or in derogation of this provision 
are hereby repealed, superseded and rendered ineffective and without legal force and effect. 
 
 
(c) Invest the funds of the GSIS, directly or indirectly, in accordance with the provisions 
of this Act; 
 


 
(d) Acquire, develop, utilize or dispose of, in any manner recognized by law, real or 
personal property in the Philippines or elsewhere necessary to carry out the purposes of this 
Act; 
 
 
(e) Conduct continuing actuarial and statistical studies and valuations to determine the 
financial condition of the GSIS and, taking into consideration such studies, and valuations and 
the limitations herein provided, re-adjust the benefits, contributions, premium rates, the 
formula or the terms and conditions relative to benefits and claims, interest rates or the 
allocation or re-allocation of the funds to the contingencies covered; 
 
 
(f) Have the power of succession; 
 
 
(g) Sue and be sued; 
 
 
(h) Enter into, make, perform and carry out contracts of every kind and description with 
any person, firm or association or corporation, domestic or foreign in accordance with law: 
Provided, That the procurement by the GSIS of infrastructure projects, goods, consulting 
services, and reinsurance shall be exempt from the provisions of R.A. No. 9184; Provided, 
further, That, in the procurement of said infrastructure projects, goods, consulting services and 
reinsurance, the GSIS shall be governed by the same principles of transparency, 
competitiveness, simplicity, accountability and public monitoring as enumerated under Section 
3 of R.A. No. 9184.    
 
 
(i) Engage in any lawful business in pursuance of and in furtherance of the provisions 
of this Act; 
 
 
(j) Have one or more offices, conduct its business and exercise its powers within and 
outside the Philippines: Provided, That the GSIS shall maintain a branch office in every 
province where there exists a minimum of fifteen thousand (15,000) membership; 
 
 
(k) Borrow funds from any source, private or government, foreign or domestic, only as 
an incident to the securitization of housing mortgages of the GSIS and on account of its 
receivables from any government or private entity; 
 
 
(l) Invest, own or otherwise participate in equity in any establishment, firm or entity; 
 
 
(m) Approve appointments in the GSIS, except appointments to positions which are 
policy determining, primarily confidential or highly technical in nature according to the 
qualification standards and rules and regulations set by the GSIS PGM and Board provided 
hereinafter: Provided, That all positions in the GSIS shall be permanent in nature unless 
otherwise indicated, and belong to the second level and not classified as part of the Career 
Executive Service, and shall be governed by a compensation and position classification 
system and qualifications standards approved by the GSIS Board based on a comprehensive 
job analysis and audit of actual duties and responsibilities: Provided, further, That the 
compensation plan shall be comparable with the prevailing compensation plans in the private 
sector and shall be subject to the periodic review by the Board no more than once every four 
(4) years without prejudice to yearly merit reviews or increases based on productivity and 
profitability; and which shall be unqualifiedly and absolutely exempted from any form of 
approval or review by the President of the Philippines, DBM, GCG, COA or other government 
agencies or instrumentalities, notwithstanding any laws, rules, regulations and other 
issuances to the contrary and the same shall not be affected by subsequent laws, rules, 
regulations and issuances to the contrary unless this provision is expressly, specifically and 
categorically revoked or repealed by law. 


Consequently, this provision shall apply retroactively and all laws, ordinances, 
regulations, issuances, opinions or jurisprudence contrary to or in derogation of this provision 
are hereby repealed, superseded and rendered ineffective and without legal force and effect. 
 
 
(n)  Design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial 
assistance for the purpose of retirement of its own personnel; 
 
(o)  Fix and periodically review and adjust the rates of interest and other terms and 
conditions for loans and credits extended to members or other persons, whether natural or 
juridical; 
 
(p) Enter into agreement with the Social Security System or any other entity, enterprise, 
corporation or partnership for the benefit of members transferring from one system to another 
subject to the provisions of R.A. No. 7699, otherwise known as the “Portability Law”; 
 
 
(q) Float proper instrument to liquefy long term maturity by pooling funds for short-term 
secondary market; 
 
 
(r) Not later than June 30 of each year, publish and submit to the President of the 
Philippines and Congress an annual report regarding its activities relative to the administration 
and implementation of this Act including information and recommendations on policies relating 
to functions and operations of the GSIS;  
 
 
(s)  Maintain a provident fund, which consists of contributions from both the GSIS and 
its employees and their earnings, for the payment of benefits to such employees or their heirs 
under such terms and conditions as the GSIS may prescribe; 
 
 
(t) Approve and adopt guidelines affecting investments, insurance coverage of 
government properties, settlement of claims, disposition of acquired assets, privatization or 
expansion of subsidiaries, development of housing projects, increased benefit and loan 
packages to members and the enforcement of the provisions of this Act. 
 
 
(u) Determine, fix and impose interest on unpaid premiums due from employers and 
employees; 
 
 
(v) Ensure the collection or recovery of all indebtedness, liabilities and/or 
accountabilities, including unpaid premiums or contributions in favor of the GSIS due from all 
obligors, whether public or private. The GSIS shall demand payment or settlement of the 
obligations referred to herein within thirty (30) days from the date the obligation becomes due, 
and in the event of failure or refusal of the obligor or debtor to comply with the demand, to 
initiate or institute the necessary or proper actions or suits, criminal, civil or administrative or 
otherwise, before the courts, tribunals, commissions, boards, or bodies of proper jurisdiction 
within thirty (30) days reckoned from the expiry date of the period fixed in the demand within 
which to pay or settle the account; 
 
 
(w) Design and implement programs that will promote and mobilize savings and 
provide additional resources for social security expansion and at the same time afford 
individual members appropriate returns on their savings/investments. The programs shall be 
so designed as to spur socio-economic take-off and maintain continued growth; and 
 
 
(y) Exercise such powers and perform such acts as may be necessary, useful, 
incidental or auxiliary to carry out the provisions and attain the purposes and objectives of this 
Act.   
 


SEC. 51. The Board of Trustees. – The corporate powers and functions of the GSIS shall be 
vested in and exercised by the Board composed of the President and General Manager of the 
GSIS and ten (10) other members to be appointed by the President of the Philippines. Of 
these, five (5) shall be active or retired members of the GSIS: at least two  (2) shall be a 
representative from the teachers recommended by  the Philippine Public School Teachers 
Association (PPSTA), the Philippine Association of School Superintendents (PASS), or by a 
leading national organization of teachers; at least two (2) shall be from the leading 
organizations or associations of government employees/retirees who possess the ethics, 
experience and competence to represent the needs of their sectors; and one (1) shall be a 
member of the legal profession who at the time of appointment is also a member of the GSIS. 
The remaining five (5) shall be recognized individuals from any of the following fields of 
expertise: banking and finance, investment, insurance, law, human resources, audit, 
management and information technology. The Trustees shall elect from among themselves a 
Chairman and a President and General Manager, who shall automatically be the vice-
chairman. 
 
The Trustees, except the President and General Manager who shall cease as trustee 
upon his/her separation, shall hold office for six (6) years without reappointment, unless 
sooner removed or separated, or until their successors are duly appointed and qualified: 
Provided,  That the vacancy, other than through the expiration of the term, shall be filled for 
the unexpired term only. The members of the Board (Trustees) shall be considered as officers, 
and are members of the GSIS, subject to the conditions and eligibility of compulsory 
membership of the GSIS.  
 
SEC. 52. Powers and Functions of the Board of Trustees. – The Board shall have the following 
powers and functions: 
 
 
(a) Formulate policies, guidelines and programs to effectively carry out the purposes 
of this Act; 
 
(b) Promulgate such rules and regulations as may be necessary or proper for the 
effective exercise of the powers and functions as well as the discharge of duties and 
responsibilities of the GSIS, its officers and employees; 
 
(c) Upon recommendation of the President and General Manager, to approve the 
annual and supplemental budget of receipts and expenditures of the GSIS, and to authorize 
such operating and capital expenditures and disbursements of the GSIS as may be necessary 
or proper for the effective management, operation and administration of the GSIS without need 
of review or approval by the President of the Philippines, DBM, GCG, COA or other 
government agencies or instrumentalities  and notwithstanding any provision of law, rules and 
regulations and any other issuances to the contrary unless this Section is expressly, 
specifically and categorically revoked or repealed by law. Consequently, this provision shall 
apply retroactively and all laws, ordinances, regulations, issuances, opinions or jurisprudence 
contrary or in derogation of this provision are hereby repealed, superseded and rendered 
ineffective and without legal force and effect. 
  
(d) Upon the recommendation of the President and General Manager, to approve the 
GSIS’ organizational and administrative structures and staffing pattern, and to establish, fix, 
review, revise and adjust compensation packages of officers and employees of the GSIS with 
reasonable allowances, incentives, bonuses, privileges and other benefits as may be 
necessary or proper for the effective management, operation and administration of the GSIS, 
which shall be exempt from R.A. No. 6758, otherwise known as the “Salary Standardization 
Law,” R.A No. 7430, otherwise known as the “Attrition Law” and R.A. No. 10149 otherwise 
known as the “GOCC Governance Act of 2011”; Provided, That all positions in the GSIS shall 
be permanent in nature unless otherwise indicated, and belong to the second level and not 
classified as part of the Career Executive Service. These powers and functions shall be 
exercised without need of review or approval by the President of the Philippines, DBM, GCG 
or other government agencies or instrumentalities and notwithstanding any provision of law, 
rules and regulations and any other issuances to the contrary unless this Section is expressly, 


specifically and categorically revoked or repealed by law. Consequently, this provision shall 
apply retroactively and all laws, ordinances, regulations, issuances, opinions or jurisprudence 
contrary or in derogation of this provision are hereby repealed, superseded and rendered 
ineffective and without legal force and effect; 
 
(e) Fix and periodically review and adjust the rates of interest and other terms and 
conditions for loans and credits extended to its members or other persons, whether natural or 
juridical; 
 
(f) The provision of any law, rules and regulations and issuances to the contrary 
notwithstanding, to compromise, release, condone or write off from the books of accounts, in 
whole or in part, without need of prior approval from and by the President of the Philippines, 
COA, Congress of the Philippines, or other agencies, any claim or settle liability, for or against 
the GSIS, including, interests, penalties and surcharges imposed upon delinquent premium 
contributions and loan amortizations and any civil liability to GSIS, regardless of the amount 
involved under such terms and conditions as the as the Board may find acceptable and 
practicable in accordance with applicable laws rules and regulations, subject to the Board’s 
best business judgment and the best interest of the GSIS; 
 
(g) Approve and adopt guidelines affecting investments, insurance coverage of 
government properties, settlement of claims, disposition of acquired assets, development of 
housing projects, increased benefit and loan packages to members, and the enforcement of 
the provisions of this Act; 
 
(h) Determine, fix and impose interest on unpaid or unremitted premiums and/or 
contributions; and 
 
(i) Perform any and all acts necessary and proper to attain the purposes and objectives 
of this Act.   
 
SEC. 53.  Appointment and Qualifications of the President and General Manager and Other 
Personnel – The President and General Manager of the GSIS shall be its Chief Executive 
Officer and shall be appointed by the President of the Philippines. He/she shall be a person 
with management and investments expertise necessary for the effective performance of 
his/her duties and functions under this Act. 
The President and General Manager shall be assisted by one or more senior executive 
vice-presidents, executive vice-presidents, senior vice-presidents, vice-presidents and 
managers in addition to the usual supervisory and rank and file positions all of whom shall be 
appointed pursuant to the qualification standards and rules and regulations set by the 
President and General Manager and the Board of Trustees and removed only for just and 
valid cause by the President and General Manager with the approval of the Board without 
undermining their security of tenure.  
 
SEC. 54. Powers and Duties of the President and General Manager – The President and 
General Manager shall, among others, execute and administer the policies and resolutions 
approved by the Board and direct and supervise the administration and operations of the 
GSIS. The President and General Manager, subject to the approval of the Board, shall appoint 
the personnel of the GSIS, remove, suspend or otherwise discipline them for valid and just 
causes, in accordance with existing Civil Service rules and regulations, and prescribe their 
duties and qualifications to the end that only competent persons may be employed.  
All appointments and plantilla positions in the GSIS shall be permanent in nature 
unless otherwise indicated, and belong to the second level and not classified as part of the 
Career Executive Service. These plantilla positions shall not be arbitrarily abolished without 
any valid and just causes.  
 
SEC. 55. The Senior Executive Vice Presidents and Executive Vice Presidents - Within the 
guidelines and limits of authority established by policies of the GSIS, the Senior Executive 
Vice Presidents and Executive Vice Presidents shall, among others, provide overall direction 
in the delivery of effective, efficient and quality services to members, pensioners, and/or other 
constituents. He/she shall also have the overall direction in the integration of functions of 


various operational and/or support services to ensure synergy, uniform and consistent 
application of polices, guidelines and management systems to achieve established objectives 
and targets.  
The position of Executive Vice President shall be permanent in nature, unless 
otherwise indicated, and belong to the second level and not classified as part of the Career 
Executive Service.  The plantilla position of Executive Vice President shall not be arbitrarily 
abolished without any valid and just causes.  
 
SEC. 56. Auditor. – (a) The Chairman of the COA shall be the ex-officio auditor of the GSIS. 
For this purpose, he/she may appoint a representative, who shall be the auditor of the GSIS, 
and the necessary personnel to assist said representative in the performance of his/her duties. 
  
(b) The Chairman of the COA or his/her authorized representative shall submit to the 
Board soon after the close of each calendar year an audited statement showing the financial 
condition and progress of the GSIS for the calendar year just ended.  
 
SEC.  57. Legal Counsel. – The Legal Services Group (LSG) of the GSIS shall be the legal 
counsel of the GSIS. The LSG shall be headed by a Chief Legal Counsel, who shall be the 
head counsel of the GSIS with a permanent and highly technical plantilla position. The Chief 
Legal Counsel enjoys security of tenure and may not be removed except for a just and valid 
cause. 
The GSIS may refer to the Office of the Government Corporate Counsel (OGCC) cases 
for legal action or trial, issues for legal opinions, preparation and review of 
contracts/agreements and others, as the GSIS may decide or determine from time to time.  
 
The GSIS may, subject to approval by the proper court, deputize any personnel of the 
Legal Services Group to act as special sheriff in the enforcement of writs and processes issued 
by the court, quasi-judicial agencies or administrative bodies in cases involving the GSIS.  
 
SEC. 59. Powers of the Insurance Commission. – The Insurance Commissioner or his/her 
authorized representatives shall make an examination of the financial condition of the GSIS 
at least once every three (3) years; Provided, however, That the GSIS shall pay the Office of 
the Insurance Commissioner an amount equal to the actual expenses incurred by said Office 
in the conduct of the examination, including the salaries of the examiners and the actuary of 
such examination for the actual time spent. 
The report of said examination shall be submitted to the Board furnishing the Office of 
the President and both Houses of Congress copies thereof within five (5) days after the close 
of examination.  
 
H.  GENERAL PROVISIONS 
 
SEC. 60. Dispensation of Social Insurance Benefits. – (a) The GSIS shall release the 
retirement benefits to the employee within twenty (20) working days from the actual date of 
retirement or date of filing of application, whichever comes later: Provided, That all 
requirements are submitted to the GSIS within a reasonable period prior to the effective date 
of retirement.  
 
(b) The GSIS shall not process or adjudicate retirement claims under R.A. No. 1616 
except refund of retirement premiums and R.A. No. 910. Instead all agencies concerned shall 
process and pay the gratuities of their employees. The Board shall adopt the proper rules and 
procedures for the implementation of this provision.  
 
SEC. 61. Development and Disposition of Acquired Assets. – The GSIS shall have the right 
to develop and dispose of its acquired assets obtained in the ordinary course of its business. 
To add value to, improve profitability of and/or enhance the marketability of an acquired asset, 
the GSIS may further develop/renovate its assets, either with its own capital or through a joint 
venture arrangement with private companies or individuals. 


The GSIS may sell its acquired assets in accordance with existing COA rules and 
regulations for an amount not lower than the current market value of the property. For this 
purpose, the GSIS shall conduct an annual appraisal of its properties or acquired assets to 
determine their current market value. All notices of sale shall be published in newspapers of 
general circulation.  
No injunction or restraining order issued by any court, commission, tribunal or office 
shall bar, impede or delay the sale and disposition by the GSIS of its acquired assets except 
on questions of ownership and national or public interest.  
 
SEC. 62.  Exemption from Land Reform Program. - The GSIS acquired assets shall be 
exempted or excluded from the coverage of the following: 
 
(a) Comprehensive Agrarian Reform Program (CARP) as provided under R.A. No. 
6657, as amended, in relation to Executive Order (E.O.) No. 407; 
(b) Land Reform as provided under P.D. No. 27; and  
(c) Other existing or future land and agrarian reform legislations.  
 
SEC. 63.  Expropriation.  No entity whether private or public may expropriate any GSIS 
property without the express consent or approval of the GSIS President and General 
Manager, the GSIS Board of Trustees, the Secretary of Finance and the President of the 
Philippines. 
 
SEC. 64. Government Assistance to the GSIS. – The GSIS may call upon any officer or 
employee of any department, bureau or office, subdivision, agency or instrumentality of the 
Government, including government-owned or controlled corporations and local governments 
for such assistance as may be necessary in the discharge of its duties and functions.  
  
I.  SANCTIONS 
 
Sec. 65. Penalty – (a) Heads of offices of the national government, its political subdivisions, 
branches, agencies and instrumentalities, including government-owned or controlled 
corporations and government financial institutions, and the personnel of such offices who are 
involved in the collection of premium contributions, loan amortization and other accounts due 
the GSIS who shall fail, refuse or delay the payment, turnover, remittance or delivery of such 
accounts to the GSIS, within thirty (30) days from the time that the same shall have become 
due and demandable, shall upon conviction by final judgment, suffer the penalties of 
imprisonment of not less than twenty (20) years but not  more than thirty (30) years and a fine 
of not less than Five Hundred Thousand Pesos (Php500,000.00) but not more than Five Million 
Pesos (Php5,000,000.00) and, in addition, shall suffer the penalty of absolute perpetual 
disqualification from holding public office and/or other accessory penalties as may be provided 
by law. 
 
(b) The treasurer, finance officer, cashier, disbursing officer, budget officer or other 
official or employee who fails to include in the annual budget the amount corresponding to the 
employer and employee contributions, or who fails or refuses or delays to remit to the GSIS 
by more than thirty (30) days from the time such amount becomes due and demandable, or 
fails to deduct the monthly contributions of the employee shall, upon conviction by final 
judgment, suffer the penalties of imprisonment of not less than twelve (12) years but not more 
than twenty (20) years, and a fine of not less than Five Hundred Thousand Pesos 
(Php500,000.00) but not more than Two Million Pesos (Php2,000,000.00) and, in addition, 
shall suffer absolute perpetual disqualification from holding public office. 
 
(c) Any employee, who after deducting the monthly contribution or loan amortization 
from a member’s compensation, fails to remit the same to the GSIS within thirty (30) days from 
the date they should have been remitted under Section 11(b) hereof shall be presumed to 
have misappropriated such contribution or loan amortization and shall, upon conviction by final 
judgment, suffer the penalties of imprisonment of not less  than twelve (12) years but not more 
than twenty (20) years and a fine of not less than Five Hundred Thousand Pesos 


(Php500,000.00) but not more than Two Million Pesos (Php2,000,000.00) and, in addition, 
shall suffer absolute perpetual disqualification from holding public office. 
 
(d) Any employee or member who receives or keeps fund or property belonging, 
payable or deliverable to the GSIS and appropriates the same, or takes or misappropriates or 
uses the same for any purpose other than that authorized by this Act, or permits another 
person to take, misappropriate or use said fund or property by expressly consenting thereto, 
or through abandonment or negligence, or is otherwise guilty of the misappropriation of said 
fund or property, in whole or in part shall, upon conviction by final judgment, suffer the 
penalties of imprisonment of not less than twelve (12) years but not more than twenty (20) 
years and a fine of not less than Five Hundred Thousand Pesos (Php500,000.00) but not more 
than Two Million Pesos (Php2,000,000.00) and, in addition, shall suffer absolute perpetual 
disqualification from holding public office.  
(e) Any person found to have participated directly or indirectly in the commission of 
fraud, collusion, falsification, or misrepresentation in any transaction with the GSIS whether 
for himself/herself or for some other persons shall, upon conviction and final judgment, suffer 
the penalties of imprisonment of not less than six (6) years but not more than twelve (12) years  
and a fine of not less than Five Hundred Thousand Pesos (Php500,000.00) but not more than 
Two Million Pesos (Php2,000,000.00) and, in addition, suffer absolute perpetual 
disqualification from holding public office.   
 
(f)  Any person who shall willfully, wrongfully and fraudulently obtain or receive any 
money or check invoking any provision of this Act or any agreement thereunder, without being 
entitled thereto, shall, upon final judgment, suffer the penalties of imprisonment of not less 
than six (6) years but not more than twelve (12) years and a fine of not less than Five Hundred 
Thousand Pesos (Php500,00.00) but not more than One Million Pesos (Php1,000,000.00) and 
such other accessory penalties as may be imposed by law.  
(g) Any person who fails or refuses to comply with the provisions of this Act or with the 
rules and regulations adopted by the GSIS shall, upon final judgment, suffer the penalties of 
imprisonment of not less than six (6) years but not more than twelve (12) years and a fine of 
not less than Five Hundred Thousand Pesos (Php500,000.00) but not more than One Million 
Pesos (Php1,000,000.00) and such accessory penalties as may be provided by law.     
 
(h) The officers and personnel referred to in paragraph (a) of this Section shall also be 
civilly liable to the GSIS or to the employee or member concerned in the form of damages, 
including surcharges and interests. 
 
 
(i) For the charges or complaints referred to in paragraph (a) of this Section, the 
penalties therein set forth shall be construed as an agreement to waive any claim to sovereign 
immunity from suit or legal proceedings. Thus, abovementioned officials and personnel may 
not invoke the defense of non-suability of the State. Waiver of the State of its immunity from 
suit, hence, the above-mentioned offices officials and/or personnel may not invoke the defense 
of non-suability of the State. 
 
Criminal and civil actions arising from violations of the provisions of this Act may be 
commenced by the GSIS or by the aggrieved member, either under this Act or, in appropriate 
cases, under the Revised Penal Code and other special laws.  
 
SEC. 66. Implementing Rules and Regulations. – Within ninety (120) days from the effectivity 
of this Act, the GSIS shall promulgate such rules and regulations as may be necessary to 
carry out the provisions of this Act.  
 
SEC. 67. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and 
Activities. – Nothing in this Act shall be construed to repeal, amend or limit any provision of 
existing laws, Presidential Decrees, Letters of Instructions, not otherwise specifically 
inconsistent with the provisions of this Act.  
 


SEC. 68. Exclusiveness of Benefits. — Whenever other laws provide similar benefits for the 
same contingencies covered by this Act, the member who qualifies to the benefits shall have 
the option to choose which benefits will be paid to him/her. However, if the benefits provided 
by the law chosen are less than the benefits provided under this Act, the GSIS shall pay only 
the difference.  
 
SEC. 69. Non-Conversion of Mode of Retirement.– No change in the mode of retirement 
chosen shall be allowed once the proceeds, or a portion thereof, of the member’s retirement 
claim under a particular law have been credited to the account of the member or received by 
the member.  
 
SEC. 70. Appropriations. – The amount necessary to carry out the provisions of this Act shall 
be included in the respective budgets of the agencies in the national government obligation 
program of the year following its enactment into law and thereafter.  
 
SEC. 71. Separability Clause. – Should any provision of this Act or any part thereof be 
declared invalid, the other provisions, so far as they are separable from the invalid ones, shall 
remain in force and effect.  
 
SEC. 72. Repealing Clause. – C.A. 186, P.D. No. 1146, as amended by R.A. No. 8291, P.D. 
No. 712, and Section 9 of R.A. No. 656, as amended by P.D. No. 245, Section 86 (r) of R.A. 
10963 [Tax Reform for Acceleration and Inclusion (TRAIN) Act], are hereby expressly 
repealed. The provisions of R.A. No. 9184 otherwise known as “Government Procurement 
Reform Act” and R.A. No. 10149 otherwise known as the “GOCC Governance Act of 2011” 
are hereby modified accordingly. All other laws, decrees, executive orders, rules and 
regulations or parts thereof which are contrary to or specifically inconsistent with the provisions 
of this Act are hereby repealed or amended 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 and is reemployed in the service shall be covered by the 
provisions of this Act.  
 
SEC. 73.  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.  
 
 
Approved,