FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Firsl Regular Session 
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SENATE 
S. B. No. 2093 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
This is an amendatory bill, which seeks to propose changes in Republic Act 
No. 8291, the law which amende,d Presidential Decree No. 1146. 
The proposed amendments in I{A No. 8291, otherwise known as the "GSIS 
Act of 1997," as a whole is an effort to redress the said law's ineffective 
implementation, particularly in responding to the needs of teachers who comprise 
the largest 'group in terms of membership in the GSIS. 
Documented reports on discourteous and grossly inefficient services by GSIS 
officials and employees resulting to un-updated records, premiums and loan 
payments, missing submitted records, delayed release of loans/ pensions and 
billing statements, unreleased dividends, never issued policy contracts to the 
newly-hired and insufficient information dissemination have reached crisis 
proportions and to an ever increasing distrust and dissatisfaction towards GSIS in 
the process. 
These complaints ranged from policies and rules enacted by the GSIS, which 
are unjust, vague, contrary to law or downright detrimental to the interests of not 
only DepEd (Department of Education) but all its members. 
Proposals to amend certain sections in the present law include Sections 7, 10 
and 23 if only to recompense the improper computation of service including the 
charging of interests/ surcharges/ penalties on late remittances. Coverage of benefits 
by GSIS needs to be adjusted to make them at par with the costs of living 
compounded by the escalating inflation rate. Protecting teachers' claims is but one 
of the purpose of the bill. Another additional essential proposal is enhancement to 
the law's penalty clause to ensure that persons may be held accountable for 
prohibited acts committed. 
Second, with the proposed amendment of Sections 30 and 31, it likewise 
broadens the prerogative of concerned parties, especially members, in the 
settlement of disputes covered by the law by giving the ]{egional Trial Court (RTC) 
concurrent jurisdiction with the GSIS. 
Lastly, this bill seeks to increase the representation of the DepEe! in the Board 
of Trustees (board). 


From one (1) present member who is either the President of the Philippine 
Public School Teachers' Association (PI>5TA) or Philippine Association of School 
Superintei1dents (PASS), the membership of the DepEd in the GSIS board would be 
increase'd to five (5), consisting of the President of the PPSTA, President of the 
l' ASS, the DepEd Secretary, the President of the Association of DepEd Directors 
(ADD) and the President of the Administrative Officers Association of DepEd 
(ADADE). 
The increase in DepEd membership in the GSIS board is long overdue 
considering that out of the present one million four hundred thousand (1.4 M) GSIS 
members, five hundred sixty three thousand six hundred fifty six (563,656), the total 
number of DepEd teachers and personnel for SY 2007-08, or forty percent (40%) 
thereof, consists of DepEd teachers and personnel. Per DepEd data, this number of 
DepEd teachers and personnel is even projected to increase yearly with the 
projected increase in the establishment and/ or construction of pre-elementary, 
elementary and secondary schools and the hiring of much needed teachers. 
The DepEd should be amply represented in the GSIS board to fully protect 
the interests of its teachers and personnel. It is high time that teachers' voices be 
heard in the board. The GSIS has long been deluged with complaints from teachers, 
which were and are still not being addressed by the GSIS. 
In view of the foregoing, immediate approval of this bill is earnestly sought. 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First negular Session 
) 
SENATE 
Introduced by Senator FRANCIS G. ESCUDERO 
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. AN ACT 
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AMENDING SECTIONS 7,10,23,30,31,42 AND 52 OF REPUBLIC ACT NO. 
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8291, OTHERWlSE KNOWN AS THE GSIS ACT OF 1997 
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Be it enlle/ed by the Senllte lind the House of Representatives of the Philippines 111 
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Congress nsscmbled: 
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SECTION 1. Sections 7, 10, 23, 30, 31, 42 and 52 of Republic Act No. 8291, 
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otherwise known as the "Government Service Insurance System Act of 1997," are 
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hereby amended to read as follows: 
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"Sec. 7. Interests on Delayed Fi.e711illrlnces. Agencies which delay the 
remittance of any and all monies due the GSIS shall be charged 
interest as may be prescribed by the Board but not pess] MORE than 
two percent (2%) simple interest per month. Such interest shall be 
paid by the employers concerned. 
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Sec. 10. Computation of Service. - (a) The computation of service for the 
purpose of determining the amount of benefits payable under this Act 
shall be from the date of original appointment/ election, AND NOT 
FROM THE START OF PAYMENT OF PREMIUM, including 
periods of service at different times under one or more employers, 
those performed overseas under the authority of the Republic of the 
Philippines, and those' that may be prescribed by the GSIS in 
coordination with the Civil Service Commission. 
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Sec. 23. Funeral Benefit . • The amount of funeral benefit shall be 
determined and specified by the GSIS in the rules and regulations but 
shall not be less than [Twelve Thousand Pesos (P12,000.00)] TWENTY 
FOUR THOUSAND PESOS (P24,OOO.00): Provided, That it shall be 
increased to at least Eighteen Thousand Pesos (P18,OOO.OO)] THIRTY 
THOUSAND PESOS (P30,OOO.OO) after five (5) years and shall be 
paid upon the death of: 
a), an active member as defined under Section 2(e) of lhis Act; or 
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b) a member who has been separated from the service, but who may 
be entitled to future benefit pursuant to Section 4 of this Act; or 
c) a pensioner, defined in Section 2(0) of this Act; or 
eI) a retiree who at the time of his retirement was of pensionable age 
under this Act but opted to retire under Republic Act 1616, 
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Sec. 30. Settlement of Disputes. - The CSIS shall have original and 
[exclusive] CONCURRENT jurisdiction with the RTC to settle any 
dispute arising under this Act and any other laws administered by the 
CSIS. 
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Sec. 31. Appeilis. - Appeals from any decision or award of the Board 
OR RTC shall be governed by Rules 43 and 45 of the 1997 Rules of 
Civil Procedure adopted by the Supreme Court on April 8, 1997 
which will take effect on July 1, 1997: Provided, That pending cases 
and those filed prior to July 1, 1997 shall be governed by the 
applicable rules of procedures. Provide, further, that the appeal shall 
take precedence over all other cases except criminal cases when the 
penalty of life imprisonment or death Or reclusion perrellill is 
impossible. 
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Sec. 42. 
The Board' of Trustees; Its 
Composition; Tenure 
llI1r/ 
Compensation - The corporate powers and functions of the CSIS shall 
be vested in and exercised by the Board of Trustees composed of the 
President and General Manager of the GSIS and [eight] TWELVE (12) 
other members to be appointed by the President of the Philippines, 
one (J) of whom shall be [either] the President of the Philippine Public 
School Teachers Association (PPSTA) lori, the President of the 
Philippine Association of School Superintendents (PASS), THE 
SECRETARY OF THE DEPARTMENT OF EDUCATION (DEPED), 
THE 
PRESIDENT OF THE 
ADMINISTRATIVE 
OFFICERS 
ASSOCIATfON OF DEPED (ADADE), THE PRESIDENT OF THE 
ASSOCIATION OF DEPED DIRECTORS (ADD), another two (2) 
shall 
represent the leading organizations or associations of 
government employees/retirees, another four (4) from the banking, 
finance, investment, and insurance sectors, and one (1) recognized 
member of the legal profession who at the time of appointment is also 
a member of the GSIS. The trustees shall elect from among themselves 
a Chairman while the President and General Manager of the GSIS 
shall automatically be the vice-chairman. 
The trustees, except the President and General Manager who 
shall cease as trustee upon his separation, shall hold office for six (6) 
years, without reappointment, or until their successors are duly 
apPOinted and qualified. Vacancy, other than through the expiration 
o{ the term, shall be filled for the unexpired term only. The members 
of the Board shall be entitled to a per diem of Two thousand five 
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hundred pesos (P2,500) for each board meeting actually by them, but 
not to exceed Ten thousand pesos (PlO,OOO) a month and reasonable 
transportation and representation allowances as may be fixed by the 
Board. 
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Sec. 52. Penalty. - (a) 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 him 
or for some other persons, shall suffer the 
penalties provided for in Article 172 of the Revised Penal Code. 
(b) Whoever shall obtain or receive any money or check invoking any 
provision of this Act or any agreement thereunder, without being 
entitled thereto with the intent to defraud any member, any employer, 
the eSIS or any third party, shall be punished by a fine of not less 
than Five Thousand Pesos (PS,OOO.OO) nor more than Twenty 
Thousand Pesos (P20,OOO.OO) [or] AND by imprisonment of not less 
than six (6) years and one (1) day to twelve (12) years. 
(c) Whoever fails or refuses to comply with the provisions of this Act 
or with the rules and regulations adopted by the eSIS shail· be 
punished by a fine of not less than Five Thousand Pesos (P5,OOO.OO) 
not more than Twenty Thousand Pesos (P20,OOO.OO) lor] AND by 
imprisonment of not less than six (6) years and one (1) day to twelve 
(12) years, [or both, at the discretion of the court]." 
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SEC. 2. All laws, orders, issuances, circulars, rules and regulations or parts 
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thereof, which are inconsistent with the provisions of this Act, are hereby repealed 
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or modified accordingly. 
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SEC. 3. If any provisions of this Act is declared unconstitutional or invalid, 
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other parts or provisions hereof not affected shall continue in full force and effect. 
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SEC. 4. This Act shall take effect fifteen days (15) days following its 
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publication in at least two (2) newspapers of general circulation or the Official 
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Gazette. 
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Approved, 
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