Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

oC
e992

HOUSE BILL NO.
Authored by HON. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

The Government Service Insurance Systems (GSIS) is a government
financial institution in the country specifically tasked to ensure the
social security benefits for the workers in the public sector. Such is
the Herculean task played by the GSIS in the lives of government
employees.

It is alarming, to say the least, that there are alleged discrepancies in
the service records of GSIS members, contribution reports, the non-
payment of dividends, non-deductions of loan remittances, among
others, that threaten the government assurance for its members.

The GSIS authorities should undertake major endeavor to overhaul its
services, by bringing up to date its documentation. And while this is
being undertaken, there is an imperative need to provide remedial
measure to this situation.

This bill seeks to authorize the Land Bank of the Philippines to receive
payments of the monthly premium contributions from all government
employees under Republic Act 8291, or the Government Service
Insurance Systems Act, and to facilitate the payment of benefits,
proceeds and claims under the said law.

Under this measure, the authority given to Land Bank of the
Philippines shall be for a period of one year from its enactment.
However, this period may be extended for a reasonable duration, until
such time when the records of the GSIS service records, contribution
reports, records on loans and remittances, and other related
documents, are properly updated and organized. Thereafter, the
authority granted to the Land Bank of the Philippines under this Act
shall revert to the GSIS.

In view of the foregoing, immediate approval of this bill is earnestly

sought.
Ty

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

Sj

HOUSE BILL NO.
Authored by HON. JOSEPH VICTOR G. EJERCITO

AN ACT

GRANTING AD INTERIM AUTHORITY TO THE LAND BANK OF
THE PHILIPPINES TO RECEIVE PAYMENTS OF GOVERNMENT
SERVICE INSURANCE SYSTEM MONTHLY PREMIUM
CONTRIBUTIONS FROM THE EMPLOYEES OF THE GOVERNMENT,
AND TO FACILITATE PAYMENT OF BENEFITS, PROCEEDS, AND
CLAIMS UNDER REPUBLIC ACT 8291, OTHERWISE KNOWN AS
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

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

SECTION 1. The Land Bank of the Philippines (LBP) is hereby
authorized to receive payments of the monthly premium contributions
from all government employees under Republic Act 8291, or the
Government Service Insurance Systems (GSIS) Act, and to facilitate
the payment of benefits, proceeds and claims under the said law.

SEC 2. The powers and functions of GSIS to receive payments of the
monthly premium contributions and facilitate payment of benefits,
proceeds and claims shall be transferred to the Land Bank of the
Philippines for a period of one year from the enactment of this Act.
During the said one year period, the GSIS shall update government
employees’ service records, contribution reports, records on loans and
remittances, and other related documents. However, this period may
be extended for a reasonable duration, until such time when the
records of the GSIS are properly updated and organized. Thereafter,
the authority granted under this Act shall automatically cease and the
power granted to the LBP under this Act shall revert to the GSIS.

SEC 3. All contracts and agreements entered into by the GSIS prior to
the effectivity of this Act shall remain in full force and effect unless
otherwise terminated, modified or amended for lawful cause.


SEC 4. The GSIS and the LBP shall, within thirty (30) days from
effectivity of this Act, issue such rules and regulations necessary for
the proper implementation of the provisions of this law.

SEC 5. Any provision of RA 8291, RA 3844, as amended, and all laws,
executive orders, rules and regulations or any part thereof inconsistent
herewith are deemed repealed, modified or amended accordingly.

SEC 6. Separability Clause. - In case any provision of this Act is
declared unconstitutional or invalid, the other provisions hereof which
are not affected thereby shall continue in full force and effect.

SEC 7. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2) newspapers
of general circulation.

Approved,