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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SEN ATE 
S. B. No.--5.99 
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Introduced by Senator FRANCIS G. ESCUDERO 
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 arrtendments 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 d~strust and dissatisfaction towards GSIS in the process. I 
These complaints ranged from policies and rules enacted by the bSIS, which 
are unj~st, 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 recol]1pense 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 amendment 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. 
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Lastly, this bill seeks,to increase the representation of the DepEd in the Board 
of Trustees (board).' 
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From one (1) present member who is either the President of the Philippine 
Public School Teachers' Association (PPST A) 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 PPST A, 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 IOljlg overdue 
considering that dut of the present one million four hundred thousand (1.4 M) GSIS 
members, five hundred sixty three thousand six hundred fifty six (563,696), 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-elementary, 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. 
FRANCIS G. ESCUDERO 
I 


SIXTEENTH CONGRESS OF THE 
RE~UBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
S. B. No. 599 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
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'13 
JUL -8 P 1 :20 
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 iYf 
Congress assembled: 
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SECTION 1. Sections 7, 10, 23, 30, 31, 42 and 52 of Republic Act No. 8291, 
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otherwise known as the "Government Service Insurance System Act of 1997," are 
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hereby amended to read as follows: 
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."Sec: 7. Interests on Delayed Remittances. Agencies which del~y the 
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remittance of any and all monies due the GSIS shall be charged 
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interest as may be prescribed by the Board but not [less] MORE than 
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two percent (2%) simple interest per month. Such interest shall be 
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paid by the employers concerned. 
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Sec. 10. Computation of Service. - (a) The computation of service for the 
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purpose of determining the amount of benefits payable under this Act 
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shall be from the date of original appointment! election, AND NOT 
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FROM THE START OF PAYMENT OF PREMIUM, including 
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. periods of service at different times under one or more employers, 
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those performed overseas under the authority of the Republic of the 
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Philippines, and those that may be. prescribed by the GSIS in 
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coordination with the Civil Service Commission. 
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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: 
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a) an active member as defined under Section 2(e) of this Act; or 
b) a member who has been separated from the service, but whc/ may 
be entitled to future benefit pursuant to Section 4 of this Act; or . 
c) a pensioner, defined in Section 2(0) of this Act; or 
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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. 
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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. 
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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 ta~e 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. 
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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 [ 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) [or], the President of the 
Philippine Association of School Superintendents (PASS), THE 
SECRETARY OF THE DEPARTMENT OF EDUCATION (DEPED), 
THE 
P~ESID¥NT OF THE ADMINISTRATIVE 
OFF~CERS 
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) 
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years, without reappointment, or uritil 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 meeting actually by them, but 
not to exceed Ten thousand pesos (Pl0,OOO) a month and reasonable 
transportation and representation allowances as may be fixed by the 
Board. 
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Sec. 52. Penalty. - (a) Any person found to have participated directly 
or indirectly in the commission of fraud, collusion, falsification, or 
misrepresentation 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. 
(b) Whoever shall obtain or receive any money or check invokirlg any 
provision of this Act or any agreement thereunder, without Ibeing 
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,OOO.OO) nor more than Twenty 
Thousand Pesos (P20,OOO.OO) [or] AND by i.mprisonment of not less 
than six (6) years and one (1) day to twelve (12) years. 
(c) 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,OOO.OO) 
not more than Twenty Thousand Pesos (P20,OOO.OO) [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 Ad is declared unconstitutional or invalid, 
other parts or provisions hereofnot 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. 
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Approved, 
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