SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
'14 
FEB 10 P 1 :40 
SENATE 
Senate Bill No. 
2111 
Introduced by SENATOR JOSEPH VICTOR G, EJERCITO 
EXPLANATORY NOTE 
", i 
This bill seeks to rationalize the change of status of a member of 
the Government Services Insurance System (GSIS) from active to special 
in order to safeguard, protect, secure, al1d guarantee the retirement 
benefits due to the said member under Republic Act No. 8291, otherwise 
known as "The Government Services Insurance System Act of 1997". 
Indeed, the passage into law of this measure will eliminate any attempt 
to reduce, diminish, and/ or lessen, if not to destroy, the retirement 
benefits due to the special member under the law, considering that "Ours 
is a Government of laws and not of men". Hence, it will uphold and give 
full meaning to the oft-repeated declarations and pronouncements of the 
Supreme Court in a long-line of decisions and resolutions that retirement 
laws are literally interpreted in favor of the retiree. As a matter of fact, in 
the recent case of Government Service Insurance System vs. Fernando P. 
De Leon, G.R. No. 186560. 17 November 2010, the Supreme Court, once 
, 
again, aptly held that: 
"The inflexible rule m our jurisdiction is that social legislation 
must be liberally construed in favour. of the beneficiaries. 
Retirement laws, in particular, are liberally construed in favour of 
the retiree's sustenance and, hopefully, even comfort. when he no 
longer has the capability to earn a livelihood. The liberal approach 
aims to achieve the humanitarian purposes of the law in order that 
efficiency, security. and well-being of the Government employees 
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may be enhanced. Indeed, retirement laws are liberally construed 
and administered in favour of the persons intended to be benefited, 
and all doubts are resolved in favour of the retiree to achieve their 
humanitarian purposes." (Underscoring supplied) 
In view of the foregoing, approval of this bill· is most respectfully 
requested to be given preferential consideration as a social legislation 
, 
JOSEPH VICTOR G. EJERCITO 
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SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS· 
First Regular Session 
I 
I 
) 
'14 FEB10Pl :40 
SENATE 
Senate Bill No. 
2111 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT RATIONALIZING THE CHANGE OF STATUS OF A MEMBER 
OF THE GOVERNMENT SERVICE INSURANCE SYSTEM FROM 
ACTIVE TO SPECIAL, AMENDING FOR THE PURPOSE SECTIONS 2 & 
55 OF REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS THE 
GOVERNMENT SERVICE INSURANCE S'l(STEM ACT OF1997, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
, 
SECTION 1. Section 2 of Republic Act No. 8291, otherwise known 
as the "Government Service Insurance System Act of 1997", is hereby 
amended to read as follows: 
"Sec. 2. Definition of Terms. -
Unless the context otherwise 
indicates, the following terms shall mean: 
(al 
(b) 
(c) 
(d) 
(e) 
(f) 
(g) 
(h) 
(i) 
(j) 
(k) 
(I) 
(m) 
XXX' , 
XXX 
XXX 
XXX 
XXX 
XXX 
XXX 
XXX 
XXX 
XXX 
XXX 
XXX 
XXX 
(n) 
xxx 
(0) 
xxx 
(p) 
xxx 
• 
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'I' 


(q) 
xxx 
(r) 
xxx 
(s) 
xxx 
(t) 
xxx 
(u) 
xxx 
(v) 
SPECIAL 
MEMBER 
-
AN 
ACTIVE 
MEMBER 
APPOINTED TO A NEW POSITION WITH BENEFITS 
UNDER A SPECIAL RETIREMENT LAW; 
(w) 
SPECIAL RETIREMENT LAW -
THE JUDICIARY 
RETIREMENT 
LAW, 
OTHERWISE 
KNOWN· AS 
REPUBLIC ACT NG. 910, AS AMENDED, AND WITH 
ADDITIONAL BENEFITS UBDER REPUBLIC ACT 
NO. 9946. 
SECTION 2. Section 55 of Republic Act No. 8291, otherwise known 
as the "Government Service Insurance System Act of 1997", is hereby 
amended to read as follows: 
. 
"SEC. 55. 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 wi,ll be paid to him. 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. 
ON THE OTHERHAND, WHENEVER THERE IS A CHANGE OF 
STATUS OF A MEMBER OF GSIS FROM ACTIVE TO SPECIAL, 
GSIS SHALL DETERMINE WHATEVER BENEFITS THE SAID 
SPECIAL MEMBER HAS QUALIFIED TO, BY VIRTUE OF HIS/HER 
CONTRIBUTION, WITHIN (1) MONTH FROM NOTICE OF SUCH 
CHANGE 
OF 
STATUS: 
PROVIDED, 
THAT 
GSIS 
SHALL 
IMMEDIATELY PAY THE BENEFITS DUE TO THE SPECIAL 
MEMBER WITHOUT DELAY: PROVIDED, FURTHER, THAT THE 
BENEFITS 
DUE 
TO 
THE 
SPECIAL 
MEMBER 
SHALL 
BE 
CONSIDERED SEPARATE AND DISTINCT FROM THE BENEFITS 
AUTHORIZED 
BY 
SPECIAL RETIREMENT LAW: 
PROVIDED, 
FINALLY, THAT THE BENEFITS MENTIONED HERIj:IN SHALL BE 
ENJOYED BY THOSE SPECIAL MEMBERS WHO HAVE RETIRED 
ALREADY." 
SECTION 3. Implementing Rules and Regulations. - The GSIS shall 
adopt and promulgate the necessary rules and regulations not later than 
thirty (30) days from the effectivity of this Act. 
SECTION 4. Retroactivity Clause. -
the benefits mentioned· in 
Section 2 hereof pertaining to a change of status Of a member: of GSIS 
from active to special shall be granted to all those special members who 
have retired prior to the effectivity of this Act. 
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SECTION 5. Repealing Clause. -
All laws, decrees, executive 
orders, circulars, and rules and regulations inconsistent herewith are 
hereby deemed repealed or modified accordingly. 
SECTION 6. Separability Clause - If any provlslOn of this Act is 
held invalid or declared unconstitutional, the other provisions which are 
not affected thereby shall remain valid and sUbsisting. 
SECTION 7. Penalty Clause. - the unjustified fai1;ure and/ or 
refusal to comply with any provision of this Act shall be a ground for the 
filling of administrative disciplinary action against the erring officer(s) 
and/or employee(s). Such erring officer(s) and/or employee(s) sl1all, after 
hearing and due proceedings, be penalized with suspension from service 
without pay from six (6) months to one (1) year, at the discretion of the 
disciplining authority. 
SECTION 8. Effectivity - This Act shall take effect fifteen (15) days 
following its publication in the Ofl'icial Gazette or in two (2) newspaper of 
general circulation in the coul!try. 
Approved, 
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