* .,.* 
Y‘ 
, 
,’ 
THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
i 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
EXPLANATORY NOTE 
This Bill seeks to amend paragraph b, Section 10 of Presidential Decree No. 1146, 
entitled “Revised Government Service Insurance Act of 1977,” as amended by Republic Act No. 
8291. The paragraph reads as follows: 
“(b) All service credited for retirement, resignation or separation for which 
corresponding benefits have been awarded under this Act or other laws shall be 
excluded in the computation of service in case of reinstatement in the service of 
an employer and subsequent retirement or separation which is compensable under 
this Act.” (underscoring supplied) 
The above-cited paragraph is prejudicial to the interests of civil service employees who, 
after many years of faithful and dedicated service are retire, resign or separated from the service 
but who are still qualified for re-employment. This also applies to govermnent employees who 
may have been separated involuntarily due to abolition of office or in government reorganization. 
Under the above-cited provision, in. these cases of reemployment in the government, service 
rendered to the government prior to the retirement, resignation or separation, abolition or 
reorganization are excluded in the computation of service for purposes of their subsequent 
retirement or separation benefits. 
Sec. 10 of PD 1146 prior to its amendment provided that all services rendered in the 
government by employees who were separated from office not for cause but due to government 
reorganization and subsequently reinstated in another office, shall be INCLUDED in the 
computation of their retirement benefits. 
Further, under Section 12 (d) of the same Act, it is provided that all retirement benefits 
previously paid by the Government Service Insurance System, and not by a government office or 
agency which has been abolished, to an employee who was separated from office not for cause 
but due to government reorganization and subsequently reinstated in another office shall be 
accumulated and deducted, without interest, fkom the retirement benefits to be received by the 
employed upon his retirement. 
Sec. 10, PD 1146, as amended by RA 8291, is an unfair law as it amounts to an unjust 
taking of property without compensation. It is also serves as a disincentive to Civil Service 
employees who are qualified for reemployment or reinstatement in the government, as they will 
have to start all over again. Although it is true that corresponding benefits are awarded for their 
previous employment, these are just token amounts to cushion the impact of their unemployment. 
Still, the basic injustice subsists. 
The prqposed amendatory measure is, thus, requested. 
MANU L B. V LLAR, JR. 


I 
J 
PI! 2 
THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
.
.
 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT FURTHER AMENDING REPUBLIC ACT NO. 
8291 
AMENDING 
PRESIDENTIAL DECREE NO. 1146, OTHERWISE KNOWN AS THE “REVISED 
GOVERNMENT SERVICE INSURANCE ACT OF 1977,” AS AMENDED 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 1 O(b) of Presidential Decree No. 1146, as amended, is hereby further 
amended to read as follows: 
“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 
appointineiit/election, 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 Government Service Insurance System (GSIS) in 
t 
coordination with the Civil Service Commission. 
“(b) All service credited for retirement, resignation or separation for which corresponding 
benefits have been awarded under this Act or other laws shall be [excluded] INCLUDED in the 
computation of service in case of reinstatement in the service of an employer and subsequent 
retirement or separation which is compensable under this Act[.]: PROVIDED, THAT AN 
EMPLOYEE WHO HAS BEEN PREVIOUSLY SEPARATED OR RETIRED FROM 
THE SERVICE SHALL BE GIVEN FULL CREDIT FOR SERVICES RENDERED BY 
HIM PRIOR TO HIS REINSTATEMENT FOR PURPOSES OF DETERMINING 
HIS/HER RETIREMENT OR SEPARATION BENEFITS. ANY PROVISION OF THE 
LAW, TO THE CONTRARY NOTWITHSTANDING, THE AMOUNT OF GRATUITY 


L
L
 
c 
PREVIOUSLY RECEIVED SHALL BE DEDUCTED FROM THE GRATUITY HE 
SHALL RECEIVE UPON HIS SUBSEQUENT SEPARATION OR RETIREMENT.” 
SEC. 2. 
14 to be denominated as Section 14-A to read as follows: 
The same decree is hereby further amended by adding a new section after Section 
“SEC. 14-A. RETIREMENT OPTION. - EMPLOYEES, INCLUDING THOSE WHO 
HAVE PREVIOUSLY RETIRED OR SEPARATED FROM THE SERVICE AND ARE 
IN THE GOVERNMENT SERVICE UPON THE EFFECTIVITY OF THIS ACT SHALL, 
AT THE TIME OF THEIR RETIREMENT, HAVE THE OPTION TO RETIRE UNDER 
THIS ACT OR UNDER COMMONWEALTH ACT NO. 186, AS AMENDED, AND 
THEIR BENEFITS AND ENTITLEMENT THERETO SHALL BE DETERMINED IN 
ACCORDANCE WITH THE PROVISIONS OF THE LAW SO OPTED.” 
SEC. 3. 
“All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed 
or modified accordingly: Provided, That the rights under existing laws, rules and regulations 
vested upon or acquired by an employee who is already in the service as of the effectivity of this 
Act shall remain in force and effect.: PROVIDD, FURTHER, THAT A NEW EMPLOYEE 
WHO HAS PREVIOUSLY RETIRED OR SEPARATED FROM THE SERVICE AND IS 
REEMPLOYED AFTER THE EFFECTIVITY OF THIS ACT, HIS SUBSEQUENT 
RETIIiEMENT SHALL BE COVERED BY THE PROVISION OF THIS ACT.” 
SEC. 4. 
Gazette or in at least two (2) newspapers of general circulation. 
The repealing clause is likewise amended, thus: 
This Act shall take effect fifteen (15) days after its publication in the Official 
Approved,