© Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Second Regular Session

xe
House Bill No,__ 4968

Introduced by HON. LINABELLE RUTH R. VILLARICA
4TH DISTRICT, BULACAN

EXPLANATORY NOTE

The remittance of membership contributions or loan payments to the Government Service
Insurance System (GSIS) should be deducted regularly by the employers from the monthly salaries of
employees, as mandated by law.

Failure to do so would mean an imposition of 2% interest per month, retroactive to the date
when the supposed premium was supposed to have been remitted to the GSIS. In addition, the GSIS.
does not include as part of a retiree's creditable service record, for purposes of computing retirement
benefits, any period for which the employee's premium contributions were not remitted to the GSIS by
his office or agency. This shortens the creditable period of service of an employee, which in effect
reduces the benefits entitled to a member.

These policies punish the employees for the act, omission and offense of their employers or
agency, who under Section 5 (c) of R.A. No. 8291 and Section 3 (2), (3), (4) and (7) of the
Implementing Rules and Regulations have the primary responsibility and duty to remit its employees’
premium contributions to the GSIS.

This bill seeks to address the issue of non-remittance of premium contributions by prohibiting
the deduction of such premium contributions, which were not remitted to the GSIS from the social
security benefits and other social security benefits of GSIS members and to prohibit the deduction of
the GSIS members' creditable service records the periods for which his premium contributions were not
remitted to the GSIS. The bill also proposes to fund the delinquent contributions of government
employees.

Support for the enactment of this measure is earnestly requested.

Shvitlarnn

REP. LINABELLE RUTH R. VILLARICA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
‘Second Regular Session

are
House Bill No. 4365

~~ Introduced by HON. LINABELLE RUTH R. VILLARICA.
4TH DISTRICT, BULACAN

AN ACT AMENDING REPUBLIC ACT No. 8291, OTHERWISE KNOWN AS THE
“GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997” AND INSTITUTIONALIZING
REFORMS AND CORRECTIVE MEASURES IN THE COLLECTION AND REMITTANCE OF
CONTRIBUTIONS OF GSIS PREMIUMS

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

SECTION 1. Section 5, 7 and 10 of R.A. No. 8291, otherwise known as the “Government
Service Insurance System Act of 1997” are hereby amended to read as follows:

“SEC. 5. Contributions xxx. — (c) It shall be mandatory and
compulsory for all employers to include the payment of contributions in
their annual appropriations. Penal sanctions shall be imposed upon
employers AND HEADS OF OFFICES AND AGENCIES who fail to
include the payment of contributions in their annual appropriation or
otherwise fail to remit the accurate/exact amount of contributions on
time, or delay the remittance of premium contribution to the GSIS. The
heads of offices and agencies shall LIKEWISE be administratively liable
for non-remittance or delayed remittance of premium contributions to the
GSIS.”

“SEC. 7. Interest on Delayed Remittances. — Agencies which
delay the remittance of any and all monies due the 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
ONLY by the employers concerned.”

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 appointment/election,
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.

SEC. 2. PREMIUMS NOT PAID. - ALL OUTSTANDING PREMIUM CONTRIBUTIONS,
WHICH WERE NOT PAID BY ANY GOVERNMENT OFFICE OR AGENCY PRIOR TO THE.
PASSAGE OF THIS ACT, SHALL BE INCLUDED IN THE ANNUAL BUDGET AFTER THE
PASSAGE OF THIS ACT AND SHALL BE REMITTED AUTOMATICALLY BY THE
DEPARTMENT OF BUDGET AND MANAGEMENT (DBM) TO THE GSIS. AFTER THE
PAYMENT OF THE SAME, THE GSIS SHALL NOT DENY OR REDUCE ANY BENEFITS OF
ANY GSIS MEMBER FOR THE FAILURE TO REMIT THEIR CONTRIBUTIONS BY THEIR
AGENCY.

SEC. 3. NON-REMITTANCE OF CONTRIBUTIONS. — (A) FAILURE BY THE EMPLOYER
OR REMITTING OFFICE CONCERNED TO REMIT TO THE GSIS THE OUTSTANDING
PREMIUM CONTRIBUTIONS SHALL NOT BE A GROUND TO DENY OR REDUCE THE
RETIREMENT BENEFITS OR OTHER SOCIAL SECURITY BENEFITS DUF. TO A GSIS
MEMBER.

SEC. 4. PENALTY. FAILURE OF ANY EMPLOYER, REMITTING OFFICER OR
EMPLOYEE OF THE GOVERNMENT SERVICE INSURANCE SYSTEM DESIGNATED TO
FULFILL THE PROVISIONS OF THIS ACT SHALL BE PUNISHED BY A FINE OF NOT LESS
THAN PHP 50,000.00 NOR MORE THAN PHP 100,000.00 AND BY IMPRISONMENT OF NOT
LESS THAN SIX (6)YEARS NOR MORE THAN TWELVE (12) YEARS.

Sec. 5. Separability Clause. — Should any provisions of this Act or any part thereof be declared

unconstitutional or invalid, other parts or provisions hereof not affected shall remain in full force and
effect,

Sec. 6, Repealing Clause ~ All laws, issuances, circulars, rules and regulations or parts thereof,
which are inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.

See. 7. Hffectivity: ~ This Act shall take effect fifteen (15) days following its publication in at
least two (2) newspapers of general circulation or in the Official Gazette

Approved,