Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15" CONGRESS,
First Regular Session

HOUSE BILLNo._2975

Introduced by REP, SALVADOR H. ESCUDERO HII

EXPLANATORY NOTE

This is an amendatory bill, which seeks to propose changes in Republic Act No. 8291,
the law which amended Presidential Decree No. 1146.

The proposed amendments in RA 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 ainendment 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 Regional Trial Court (RTC) concurrent jurisdiction with the GSIS,



Lastly, this bill seeks to increase the representation of the DepEd in the Board of
Trustees (board).

From one (1) present member who is either the President of the Philippine Public
School Teachers’ Association (PPSTA) or Philippine Association of School Superintendents
(PASS), the membership of the DepEd in the GSIS board would be increased to five (5),
consisting of the President of the PPSTA, President of the PASS, 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-clementary, 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.

Waactire 77
SALVADOR H. ESCUDERO IL
Representative
1* Distri



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15™ CONGRESS
t Regular Session

HOUSE BILL NO. 2975

Introduced by REP. SALVADOR H. ESCUDERO III

AN ACT
AMENDING SECTIONS 7, 10, 23, 30, 31, 42 AND 52 OF REPUBLIC ACT NO. 8291,
OTHERWISE KNOWN AS THE GSIS ACT OF 1997 :

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Sections 7, 10, 23, 30, 31, 42 and 52 of Republic Act No. 8291,
otherwise known as the “Government Service Insurance System Act of 1997,” are 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 interest 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.

XXX

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 appointmenvelection, 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.

XXX

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 (P24,000.00): Provided, That it shall be increased to


at least Eighteen Thousand Pesos (P18,000.00)] THIRTY THOUSAND
PESOS (P30,000.00) after five (5) years and shall be paid upon the death of:

) an active member as defined under Section 2(e) of this Act; or

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

©) a pensioner, defined in Section 2(0) of this Act; or

d) a retiree who at the time of his retirement was of pensionable age under
this Act but opted to retire under Republic Act 1616.

XXX

Sec. 30. Settlement of Disputes. - The GSIS 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 GSIS.

XXX

Sec. 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. 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
perpetua is impossible.

XXX

Sec. 42. The Board of Trustees; is 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 [eight] TWELVE (12) other members to be
appointed by the President of the Philippines, one (1) of whom shall be
[either] the President of the Philippine Public School Teachers Association
(PPSTA) for}, the President of the Philippine Association of School
Superintendents (PASS), THE SECRETARY OF THE DEPARTMENT
OF EDUCATION (DEPED), THE PRESIDENT OF THE
ADMINISTRATIVE OFFICERS ASSOCIATION 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 of 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 hundred pesos (P2,500) for each board
mecting actually by them, but not to exceed Ten thousand pesos (P10,000) a
month and reasonable transportation and representation allowances as may be
fixed by the Board.

XXX

Sec. 52. Penalty. - (a) Any person found to have participated directly or
indirectly in the commission of fraud, collusion, falsification, or
isrepresentation 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,

(6) 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 GSIS or any
third party, shall be punished by a fine of not less than Five Thousand Pesos
(P5,000.00) nor more than Twenty Thousand Pesos (P20,000.00) for] AND
by imprisonment of not less than six (6) years and one (1) day to twelve (12)
years.

(©) Whoever fails or refuses to comply with the provisions of this Act or with
the rules and regulations adopted by the GSIS shall be punished by a fine of
not less than Five Thousand Pesos (P5,000.00) not more than Twenty
‘Thousand Pesos (P20,000.00) [or] 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].”

SEC. 2. All laws, orders, issuances, circulars, rules and regulations or parts thereof,

which are inconsistent with the provisions of this Act, are hereby repealed or modified

accordingly.

SEC. 3. If any provisions of this Act is declared unconstitutional or invalid, other
parts or provisions hereof not affected shall continue in full force and effect.

SEC. 4, This Act shall take effect fifteen days (15) days following its publication in at
least two (2) newspapers of general circulation or the Official Gazette.

Approved,