Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4346

Introduced by Honorable Tomas V. Apacible

EXPLANATORY NOTE

Republic Act 8291 otherwise known as “The Government Service Insurance Act of
1997” is the most recent amendment to Presidential Decree No. 1146, as amended,
otherwise known as the “Revised Government Service Insurance Act of 1977". RA 8291
amended the definitions and amended provisions on membership; sources of funds,
benefits including those on separation, retirement, permanent and temporary disability,
survivorship and funeral; life insurance; adjudication of claims and disputes; funds;
administration, and penal provisions.

The use of funds has always been a contentious issue. This issue has been further
complicated by the seeming lack of transparency and consultation between the fund
managers and the public sector workers who have contributed to the fund The present
bill will lay down into law the recognition that policies pertaining to the social security
funds must be periodically reviewed and amended, when necessary, for the purpose of
advancing and protecting the welfare of our public servants.

Section 2 of the bill provides for the over arching declaration of policy. It lists down the
mandates to be followed by relevant stakeholders. On the other hand, Section 4 clearly
identifies the rights of the members, including the elderly and persons with disabilities
while Section 5 lays down the responsibilities of the agencies/employers. Section 8 will
now open the rights to settlement of disputes not only through the GSIS itself but also
through the Judicial branch of government.

The bill also limits the five per cent the amount of funds which can be invested outside
the country. It also explicitly includes the President and General Manager as one of the
officials who can be penalized for violation of the law.

The immediate enactment of this bill is requested for this will be one avenue to boost the
seemingly flagging morale of our public servants.

MAS V. APACIBLE



10

Sty

Republic of the Philippines
HOUSE OF REPRWSENTATIVES
Constitution Hills, Quezon City

FIFTEENTH CONGRESS
First Reoular Seccian

HOUSE BILL NO. 4845

Sanne
INTRODUCED BY HON. TOMAS V, APACIBLE

SS

“AN ACT
INSTITUTIONALIZING THE RIGHTS OF GOVERNMENT SERVICE
INSURANCE SYSTEM (GSIS) MEMBERS, PROVIDING THEM ADDITIONAL
REPRESENTATION IN THE GSIS BOARD, ENSURING PROMPT PAYMENT
OF ALL THEIR BENEFITS AND FOR OTHER PURPOSES”

Be it enacted by the Senate and the House of Representatives of the Philippines in
Coneress acvem! a

SECTION 1. Short Title. This Act shall be known as the “GSIS Members’
Rights and Benefits Act of 2011."

SEC. 2. Declaration of Policy, — It is a declared policy of the State to provide,
develop and promote a sound social security system responsive to the needs of its
workers and to pursue the Constitutional guarantee on the right of all workers to
participate in policy and decision-making processes affecting their rights and benefits as
may be provided by law.

. Towards this end, the State shall proactively ensure the periodic review of
relevant policies pertaining to the workers in the public sector with the purpose of
strengthening these policies to advance and protect their welfare. Therefore, the State
shall:



10

1

8

BS Re RR UR

(A) Ensure the adoption of policies beneficial to GSIS members paving the
way for a responsible, integrated and transparent social secunty system;

(B) Provide greater representation for members at the highest policy-
making level of the GSIS;

{C) Insulate the Social Insurance Fund (SIF) from dissipation due to the
volatility of the global economy:

{D) Ensure that top-level officials of the GSIS are held accountable for
mismanagement and inefficiencies in the delivery of services to
members and beneficiaries; and

(©) Provide GSIS members and beneficiaries alternative venues in the
settlement of disputes.

SEC. 3. Section 2 of Republic Act No. 8291, otherwise known as “The
Government Service insurance 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:
oor
“(6) Dependents — Dependents shail be the following:
{(a)] i, the legitimate spouse dependent for support upon the member or
Pensioner, [(b)] ii, legitimate, legitimated legally adopted child, including the
illegitimate child, who is unmarried, [not gainfully employed] not over the age of
majority, or is over the age of majority but incapacitated and incapable of self-
support due to mental or physical {defect] DISABILITIES acquired prior to the
age of majority; and [(0)] iti. the parents dependent upon the member for support;
“x
SEC. 4. Members’ Rights, — In addition to their rights under existing laws, the
members shall have the following rights:
(A)Right to Courteous and Responsive Service
1, Tobe considered a GSIS member from the first day of government service;


10

1

123

14

2. To be provided prompt and accurate service;
3. To be accorded respect by the executives and emptoyees of ine UdL9; ana
4. To be afforded comfortable and customer-friendly facilities when
‘transacting with the GSIS.
(B) Right to Information
1, To be informed of the laws, regulations, policies or programs affecting the
members’ rights, benefits, obligations, and privileges, including
amendments or changes thereto;
2. To be provided with copies of GSIS policies and regulations pertaining to
benefits and claims administration;
3. To be informed of the various modes and options in availing benefits;
4, To receive accurate and updated membership data, records and information,
including records of premium remittances and loan payments,
. To have GSIS data and records protected from unauthorized, unlawful or

a

improper disclosure; and

6. To be informed in advance of documents required to facilitate transaction,

Processing period and updated status of claims or loan applications.
(C) Right to GSIS Benefits

1. To receive on time the benefits the member has qualified to even after
separation from the service;

2. To avail the mode of retirement, among the different applicable retirement
laws and be allowed to change the preferred mode: Provided, That the
retirement pension package has not yet been received;

3, To be protected against discrimination and thus receive the same benefits and
privileges granted other members similarty situated; and

4, To receive benefits exempt from all taxes, fees, charges and duties of all
kinds.

(D ) Right to Expeditious Processing of Claims


10

1

Sk fw Fk BR

1. To claim and receive on time benefits provided under applicable laws;
2, To exhaust all legal remedies under existing taws; ang
3. To be protected from diminution of benefits that may arise with the passage
of a subsequent law or regulation.
{E) Right to be Heard
1. To be represented in the GSIS governing Board;
2. To participate in meaningful exchange of views in dialogues and fora
conducted by GSIS without fear of reprisal;
3. To be consulted on the poticies and programs to be implemented by the
system,
4. To convey grievances and be accorded immediate response; and
5. To transact business with the GSIS in person or through electronic access
points.
SEC. 4-A. Special Rights for the Elderly, Persons with Disabilities and Seriously-
il Members, Beneficiaries and Pensioners. - The following special rights are to be
afforded to the elderly, persons with disabilities and seriously-ill members, beneficiaries
and pensioners, to wit:
1, To be provided special access lanes;
2. To be prioritized in the processing and releasing of claims and benefits;
3. To be given preference in the dissemination of information pertaining to
policies; and
4. To be accorded leniency in the submission of documents: Provided, That
there is substantial compliance with the requirements prescribed by GSIS.
SEC. 5. Agency's’ Employer's Responsibilities. — The government agencies
covered by the GSIS Act, as employers, shall have the following responsibilities:
1. To remit employees’ and employers’ contributions to the GSIS within the

prescribed time mandated by the GSIS Act;


mn

12

14

16

v

2.

2

23

2s

26

ru

2. To provide promptly documents required to facilitate the processing of
documents and claims;

3. To provide additional documents as necessary to reconcile the records of
accounts; and

4. To inform GSIS, through their agency authorized officers, of any update
pertaining to personal or service records that may affect the processing of
claims and benefits.

SEC. 6. Section 7 of Republic Act No. 8291, otherwise known as “The

Government Service Insurance Act of 1997" is hereby amended to read as follows:

“Sec. 7. Interests on Delayed Remittances. — Agencies which delay the
remittance of any and all monies due the GSIS shall be charged interests as may
be prescribed by the Board but notfless] MORE than two percent (2%) simple
interest per month. Such interest shall be paid by the employers concerned.

SEC, 7. Section 28 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 28. Prescription. — Claims for benefits under this Act [except for life
and retirement] shall NOT prescribe. [after four (4) years from the date of
contingency.)

SEC. 8. Section 30 of Republic Act No. 8291, otherwise known as “The
Government Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 30. Settlement of Disputes. — The GSIS AND THE REGIONAL
TRIAL COURT (RTC) shall have original and [exclusive] CONCURRENT
jurisdiction to settle any dispute arising under this Act and any other laws
administered by the GSIS.

“ox
SEC. 9. Section 31 of Republic Act No. 8291, otherwise known as “The

Government Service Insurance Act of 1997” is hereby amended to read as follows:


9

uu

15

16

v7

21

23

24

26

27

“Sec. 31. Appeals. - Appeals from any decision or award of the Board OR
RIC shall be governed by Rules 43 and 45 ot the 1¥¥/ Kules of Civil rroceaure
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 procedure: Provided, further, That the appeal
shalt take precedence over all other cases except criminal cases when the penalty
of life imprisonment or death ot reclusion perpetua is imposable.

Soo
SEC. 10. Section 36 of Republic Act No. 8291, otherwise known as “The

Government Service Insurance Act of 1997” is hereby amended to read as follows:

“Soc. 36. Investment of Funds. — xxx

Sox

“@) In foreign mutual funds and in foreign currency deposits or forcign
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 arc issued: Provided, That these
instruments or assets are listed in bourses of respective countries where these
instruments or asscts are issued: Provided, further, That the issuing company has
proven track record of profitability over the last three (3) years and payment of
dividends at least once over the same period: PROVIDED, FINALLY, THAT
NOT MORE THAN FIVE PERCENT (5%) OF THE ABOVE-
MENTIONED FUNDS SHALL BE INVESTED ABROAD,
SEC. 11. Section 42 of Republic Act No. 8291, otherwise known as “The

Government Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 42. The Board of Trustees: Its Composition; Tenure and
Compensation. — The corporate powers and functions of the GSIS shall be vested
in and exercised by the Board of Trustees composed of the President and General
Manager of the GSIS and TEN (10) [eight (8)] other members to be appointed by


1a

2

13

14

15

16

7

18

19

a

8

x

26

the President of the Philippines, one (1) of whom shall be either the President of
the Philippine Public School Teachers Association (PHS1A) or the Hresidemt of
the Philippine Association of School Superintendents (PASS), THE
SECRETARY OF THE DEPARTMENT OF EDUCATION (DepEd), THE
CHAIRMAN OF THE CIVIL SERVICE COMMISSION (CSC), another two
(2) shall represent the leading organizations or associations of government
employees/retirees, AND 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.
“00K

SEC. 12. Section 43 of Republic Act No. 8291, otherwise known as “The

Goverment Service Insurance Act of 1997” is hereby amended to read as follows:

“Sec. 43. Powers and Functions of the Board of Trustees. ~ 0%

“px

“(d) upon the recommendation of the President and General Manager, to approve
the GSIS’ organizational and administrative structures and staffing pattern|,]
SUBJECT TO EXISTING CIVIL SERVICE LAWS, RULES AND
REGULATIONS and to establish, fix, review, revise and adjust the appropriate
compensation package for the 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 Republic Act No. 6758,
otherwise known as the Salary Standardization Law and Republic Act No. 7430,
otherwise known as the Attrition Law.

ox


a SEC. 13. Section 49 of Republic Act No. 8291, otherwise known as “The

2 Goverment Service Insurance Act of 1997” 1s hereby amended Lo read as Tollows:

3 “Sec. 49. Dispensation of Social Insurance Benefits. — (a) The GSIS shall
4 Pay the retirement benefits to the employee on his last day of service in the
5 government; Provided, That all requirements are submitted to the GSIS SIXTY
6 (60) DAYS [within a reasonable period) prior to the effective date of the
7 retirement;

8B “oor

9 SEC. 14. Section 52 of Republic Act No. 8291, otherwise known as “The

10 Government Service Insurance Act of 1997” is hereby amended to read as follows:

u “Sec, 52. Penalty. — xxx
12 “x

B “G) Failure of the PRESIDENT AND GENERAL MANAGER AS
“4 WELL AS Members of the GSIS Board, including the chairman and the vice-
15 chairman, to comply with the provisions of paragraphS (R) AND (w) of Section
16 41 AND SECTION 49 hereof, shall subject them to imprisonment of not less
v7 than six (6) months nor more than one (1) year or a fine of not less than [Five]
18 ‘TEN thousand pesos (P[S] 10,000.00) nor more than |TenJTWENTY thousand
19 pesos (P[10]20,000.00) without prejudice to any civil or administrative liability
20 which may also arise therefrom|.|: PROVIDED, THAT IN CASE GSIS FAILS
a TO COMPLY WITHOUT VALID AND JUSTIFIABLE REASON WITH
2 THE REQUIREMENTS REFERRED TO IN SECTION 49 OF THIS ACT,
23 A PENALTY OF NOT MORE THAN 2% SIMPLE INTEREST SHALL BE
24 CHARGED PER MONTH FROM GSIS: PROVIDED, HOWEVER, THAT
25 IN CASE THE RELEASE OF THE RETIREMENT BENEFITS
26 REFERRED TO IN SECTION 49 OF THIS ACT COULD NOT BE

2 ACCOMPLISHED DUE TO FORCE MAJEURE AND OTHER


10

oy

13

14

15

16

7

18

10

INSUPERABLE CAUSES, THE PENALTY OF IMPRISONMENT AND
FINE IMPOSED UNDER THIS PARAGRAPH SHALL NUL APPLY.

“Criminal 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. 15. Implementing Rules and Regulations. - The implementing rules and
regulations to carry out the provisions of this Act shall be adopted and promulgated by
the GSIS, in consultation with the Civil Service Commission (CSC), not later than ninety
(90) days after the approval of this act.

SEC. 16. Separability Clause. — Uf any part or provision of this Act shall be held to
be unconstitutional or invalid, other pans or provisions hereof which are not affected
shall continue to be in full force and effect.

SEC. 17. Repealing Clause. ~All laws, dectees, executive orders, rules and
regulations, or parts thereof which are inconsistent with this Act are hereby repealed,
amended or modified accordingly.

SEC. 18. Affectivity. — This Act shall take effect fifteen (15) days following its
Publication in at least two (2) newspapers of general circulation or the Official Gazette.

Approved,