e11'l fl' 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
tOtl!tl' nf tIll: 
(f~tlH~ 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
JAN 26 
A11 :14 
SENATE 
Senate Bill No. 
2587 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
GRANTING AD INTERIM AUTHORITY TO THE LAND BANK OF THE 
PHILIPPINES TO RECEIVE PAYMENTS OF GOVERNMENT SERVICE 
INSURANCE SYSTEM MONTHLY PREMIUM CONTRIBUTIONS FROM THE 
EMPLOYEES OF THE GOVERNMENT, AND TO FACILITATE PAYMENT OF 
BENEFITS, PROCEEDS, AND CLAIMS UNDER REPUBLIC ACT 8291, 
OTHERWISE KNOWN AS THE GOVERNMENT SERVICE INSURANCE 
SYSTEM ACT OF 1997 
EXPLANATORY NOTE 
The Government Service Insurance Systems (GSIS) is a government financial 
institution in the country specifically tasked to ensure the social security benefits 
for the workers in the public sector. Such is the Herculean task played by the 
GSIS in the lives of government employees.lt is alarming, to say the least, that 
there are alleged discrepancies in the service records of GSIS members, 
contribution reports, the non-payment of dividends, non-deductions of loan 
remittances, among others, that threaten the government assurance for its 
members.The GSIS authorities should undertake major endeavor to overhaul its 
services, by bringing up to date its documentation. 
And while this is being 
undertaken, there is an imperative need to provide remedial measure to this 
situation. 
This bill seeks to authorize the Land Bank of the Philippines to receive payments 
of the monthly premium contributions from all government employees under 
Republic Act 8291, or the Government Service Insurance Systems Act, and to 
facilitate the payment of benefits, proceeds and claims under the said law. 
Under this measure, the authority given to Land Bank of the Philippines shall be 
for a period of one year from its enactment. 
However, this period may be 
extended for a reasonable duration, until such time when the records of the GSIS 
service records, contribution reports, records on loans and remittances, and 
other related documents, are properly updated and organized. Thereafter, the 
authority granted to the Land Bank of the Philippines under this Act shall revert to 
the GSIS. In view of the foregoing, immediate approval of this bill is earnestly 
sought. 
GOY EJERCITO ESTRADA 
Senator 


rn,'\ P 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
(/l)!llfl' I\f 
~t'(rrt,/U¥ 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
Senate Bill No. 2587 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
'15 
JAN 26 All :14 
GRANTING AD INTERIM AUTHORITY TO THE LAND BANK OF THE 
PHILIPPINES TO RECEIVE PAYMENTS OF GOVERNMENT SERVICE 
INSURANCE SYSTEM MONTHLY PREMIUM CONTRIBUTIONS FROM THE 
EMPLOYEES OF THE GOVERNMENT, AND TO FACILITATE PAYMENT OF 
BENEFITS, PROCEEDS. AND CLAIMS UNDER REPUBLIC ACT 8291, 
OTHERWISE KNOWN AS THE GOVERNMENT SERVICE INSURANCE 
SYSTEM ACT OF 1997 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
1 
SECTION 1. The Land Bank of the Philippines (LBP) is hereby authorized to 
2 
receive payments of the monthly premium contributions from all government 
3 
employees under Republic Act 8291, or the Government Service Insurance 
4 
Systems (GSIS) Act, and to facilitate the payment of benefits, proceeds and 
5 
claims under the said law. 
6 
7 
8 
SEC 2. The powers and functions of GSIS to receive payments of the monthly 
9 
premium contributions and facilitate payment of benefits, proceeds and claims 
10 shall be transferred to the Land Bank of the Philippines for a periOd of one year 
11 from the enactment of this Act. During the said one year period, the GSIS shall 
12 update government employees' service records, contribution reports, records on 
13 loans and remittances, and other related documents. However, this periOd may 
14 be extended for a reasonable duration, until such time when the records of the 
15 GSIS are properly updated and organized. 
Thereafter, the authority granted 
16 under this Act shall automatically cease and the power granted to the LBP under 
17 this Act shall revert to the GSIS. 
18 
19 
20 SEC 3. All contracts and agreements entered into by the GSIS prior to the 
21 effectivity of this Act shall remain in full force and effect unless otherwise 
22 terminated, modified or amended for lawful cause. 
23 
24 
25 SEC 4. The GSIS and the LBP shall, within thirty (30) days from effectivity of this 
26 Act, issue such rules and regulations necessary for the proper implementation of 
27 the provisions of this law. 


1 
SEC 5. 
Any provision of RA 8291, RA 3844, as amended, and all laws, 
2 
executive orders, rules and regulations or any part thereof inconsistent herewith 
3 
are deemed repealed, modified or amended accordingly. 
4 
5 
6 
SEC 6. 
Separability Clause. - In case any provision of this Act is declared 
7 
unconstitutional or Invalid, the other provisions hereof which are not affected 
8 
thereby shall continue in full force and effect. 
9 
10 
11 SEC 7. 
Effectivity. -
This Act shall take effect fifteen (15) days after its 
12 publication in the Official Gazette or in at least two (2) newspapers of general 
13 circulation. 
14 
15 
16 
17 
18 
19 Approved,