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Sixteenth Congress of the 
Republic of the Philippines 
First Regular Session 
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SENATE 
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945 
S.B.No. __ _ 
Introduced by Senator Ramon Bong Revilla, Jr. 
Since its creation by virtue of Commonwealth Act 186 on November 14, 1936, the 
Government Service Insurance Service (GSIS) has ceaselessly served the employees 
of our government. This institution has continually looked out for the wellbeing of the 
backbone of our economy by providing compulsory and optional life insurance, 
retirement, separation, and employee's compensation benefits. 
It has now been 77 years since the inception of the GSIS and it is high time that we 
revisit their mandate and craft legislation that will empower the institution to be more 
responsive to the present times. This bill aims to provide greater representation of its 
members in policy making by providing additional representation in the GSIS Board as 
well as implementing various safeguards to ensure integrity and security of the funds in 
a more accountable and transparent manner. 
It is for these reasons that I urge my colleagues to join me in facilitating the urgent 
passage of this measure. 


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Sixteenth Congress of the 
Republic of the Philippines 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 945 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
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JUL 18 P5 :52 
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 Congress assembled: 
Section 1. Short Title. This Act shall be known as the "GSIS Members Rights 
and Benefits Act of 2013". 
Section 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 this 
workers. 
Furthermore, the State shall review and strengthen poliCies that advance and 
protect the welfare of workers in the public sector. 
Likewise, the Constitution guarantees 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: 
a. Ensure the adoption of policies beneficial to GSIS members paying the way for a 
responsible, integrated and transparent social security 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 
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e. Provide GSIS members and beneficiaries alternative venues in the settlement of 
disputes. 
Section 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: 
"xxx 
"(f) Dependents - Dependents shall be the following: 
a. the legitimate spouse dependent for support upon the member or 
pensioner' 
b. 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] HANDICAP acquired 
prior to the age of majority; and 
c. 
the parents dependent upon the member for support; 
" xxx 
Section 4. Members' Rights - In addition to their rights under existing laws, the 
members shall have the follbwing rights: 
a. Right to courteous and responsive service 
1. To be considered a GSIS member from the first day of government 
service; 
2. To be provided prompt and accurate service; 
3. To b accorded respect by the executives and employees of the GSIS; and 
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; 
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5. To have GSIS data and records protected from unauthorized, unlawful or 
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 similarly situated; and 
4. To receive benefits exempt from all taxes, fees, charges and duties of all 
kinds, 
d. Right to Expeditious Processing of Claims 
1. To claim and receive on time benefits provided under applicable laws; 
2. To exhaust all legal remedies under existing laws; and 
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 for a 
conducted by GSIS without fear of reprisal; 
3. To be consulted on the policies 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. 
Section 4-A. SpeCial Rights for the Elderly, Disabled and Seriously ill 
Members, Beneficiaries and Pensioners. - The following special rights are to be 
afforded to the elderly, disabled and seriously ill members, beneficiaries and 
pensioners, to wit; 
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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. 
Section 5. Agency'sl Employer's Responsibilities. The government agencies 
covered by the GSIS Act, as employers, shall have the following responsibilities: 
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1. To remit employees' and employers' contributions to the GSIS within the 
prescribed time mandated by the GSIS Act; 
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. 
Section 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. Interest on Delayed Remittances. -
Agencies which delay 
the remittances of any and all monies due to GSIS shall be charged 
interests as may be prescribed by the Board but not [less] MORE than two 
percent (2%) simple interest per month. Such interest shall be paid by the 
employers concerned. 
Section 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.] 
Section 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. 
"xxx 
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Section 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: 
"Section 31. Appeals - 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: 
Provided, further, that the appeal shall take precedence over all other cases 
except criminal cases when the penalty of life imprisonment or death or 
reclusion perpetua is imposable. 
"xxx 
Section 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: 
"Sec. 36. Investment of Funds. - xxx 
"xxx 
"0). In 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, That 
these instruments or assets are listed in bourses of respective countries 
where these instruments or assets 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. 
Section 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 the resident of the Philippines, one (1) 
of whom shall be either the President of the Philippine Public School 
Teachers Association (PPSTA) or the President 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. 
·xxx 
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Section 12. Section 43 of Republic Act NO. 8291, otherwise known as "The 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
"Sec. 43. Powers and Functions of the Board of Trustees. - xxx 
"xxx 
"(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 administrati.on 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. 
"xxx 
Section 13. Section 49 of Republic Act No. 8291, otherwise known as "The 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
"Sec. 49. Dispensation of Social Insurance Benefits. -
(a) The 
GSIS shall pay the retirement benefits to the employee on his last day of 
service in the government Provided, that all requirements are submitted 
to the GSIS SIXTY (60) DAYS [within a reasonable period] prior to the 
effective date of the retirement. 
"xxx 
Section 14. Section 52 of Republic Act No. 8291, otherwise known as "The 
Government Service Insurance Act of 1997" is hereby amended to read as follows: 
"Sec. 52. Penalty. - xxx 
"xxx 
"(j)Failure of the PRESIDENT AND GENERAL MANAGER AS WELL AS 
members of the GSIS Board, including the chairman and the vice-
chairman, to comply with the provisions of paragraphS (R) AND (w) of 
Section 41 AND SECTION 49 hereof, shall subject them to imprisonment 
of not less than six (6) months nor more than one (1) year or a fine of not 
less than [Five] TEN thousand pesos (P[5] 10,000.00) nor more than [Ten] 
TWENTY thousand pesos (P[10] 20,000.00) without prejudice to any civil 
or administrative liability which may also arise therefrom[.j: PROViDED, 
THAT IN CASE GSIS FAILS TO COMPLY WITHOUT VALID AND 
JUSTIFIABLE REASON WITH THE REQUIREMENTS REFERRED TO 
IN SECTION 49 OF THIS ACT, A PENALTY OF NOT MORE THAN 2% 
SIMPLE INTEREST SHALL BE CHARGED PER MONTH FROM GSIS: 
PROVIDED, HOWEVER, THAT IN CASE THE RELEASE OF THE 
RETIREMENT BENEFITS REFERRED TO IN SECTION 49 OF THIS 
ACT COULD NOT BE ACCOMPLISHED DUE TO FORCE MAJEURE 
AND 
OTHER 
INSURABLE 
CAUSES, 
THE 
PENAL TV 
OF 
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IMPRISONMENT AND FINE IMPOSED UNDER THIS PARAGRAPH 
SHALL NOT APPLY. 
"Criminal actions arising from violations of the provisions of this Act 
may be commenced by the GSI or by the aggrieved member, either under 
this Act or, in appropriate cases, under the Revised Penal Codel.} AND 
OTHER SPECIAL LAWS. 
Section 15. Implementing Rules and Regulations.. The implementiWil rules 
and regulations to carry out the provisions of this Act shall be adopted and pr.ulgated 
by the GSIS, in consultation with the Civil Service Commission (CSC) not later than 
ninety (90) days after the approval of this act. 
Section 16. Separability Clause - If any part or provision of this Act shall be 
held to be unconstitutional or invalid, other parts or provisions hereof which are not 
affected shall continue to be in full force and effect. 
Section 17. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, or parts thereof which are inconsistent with this Act are hereby repealed, 
amended or modified accordingly. 
Section 18. Effectivity. - This Act shall take effect fifteen (15) days following its 
publication in at Jeast two (2) newspapers of general circulation or the Official Gazette. 
Approved, 
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