FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'11 
MAR 31 
P 5 :54 
SENATE 
Senate Bill No. 2785 
Introduced by SENATOR LACSON 
EXPLANATORY NOTE 
This bill seeks to propose amendments to Republic Act No.8291 otherwise 
known as the "Government Service Insurance System Act of 1997" 
The proposed amendments, as a whole is an effort to resolve the issues 
concerning the GSIS Premium-based policy that has long been haunted by complaints 
coming from its members more particularly those from the teaching sector who 
comprise 40% of GSIS membership. 
There had been numerous cases of teacher's getting much-diminished take-
home pay as a result of their supposed failure to pay member contributions and loan 
payments to the GSIS when in fact, payments for their contributions and loan accounts 
are religiously being deducted every month from their salaries by their employers. 
Under the GSIS Premium-based policy, GSIS deducts premium contributions 
that were not remitted to the GSIS from all GSIS social security benefits and loan 
proceeds due to a GSIS member. The GSIS also imposes a 2% interest per month, 
retroactive to the date 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. Thereby shortening the creditable period of service of an employee, which in 
effect reduces the benefits entitled to a member. 
These policies punishes the employee for the act, omission and offense of the 
employee's office or agency, who under Section 5(c) of Republic Act NO.8291 and 
Sections 3.2,3.3,3.4 and 3.7 of its Implementing Rules and Regulations, has the primary 
responsibility and duty to remit its employee's premium contributions to the GSIS. 
In this light, an appropriate legislation to address the problem of non-remittance 
of premium contributions is needed. It is the GSIS members, particularly our teachers 
who suffer from the flawed implementation of the law. Instead of giving them due 
recognition for their Significant contributions to the country, they are deemed as 
delinquent members and are further burdened with meager earnings and less 
privileges. 
This bill shall prohibit the deduction of 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 reduction of the GSIS member's creditable service 


record the periods for which his premium contributions were not remitted to the GSIS. 
The bill shall also fund the delinquent contributions of government employees. 
Non-remittance of contributions is not a fault done by the employees, thus they 
should not be punished twice for a responsibility or obligation that is not theirs. 
In view of the foregoing, the immediate enactment of this measure is earnestly 
sought. 
PA~r.:ACSON 
'\Jsenator 


\ 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'11 
liAR 31 
P5:54 
SENATE 
Senate Bill No. 2785 
Introduced by SENATOR LACSON 
"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. Sections 5, 7 and 10 of Republic Act 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 appropriations or otherwise fail to remit the 
accuratelexact amount of contributions on time, or delay the remittance of 
premium contributions 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. 
SECTION 
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 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 OR OFFICE. 
SECTION 3. 
NON-REMITTANCE OF CONTRIBUTIONS- (A) 
FAILURE BY THE 
EMPLOYER OR REMITTING OFFICER 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 DUE TO A GSIS MEMBER. 
(B) PERIODS COVERING DATES WHEN SAID PREMIUMS WERE NOT REMITTED 
BY THE EMPLOYER OR REMITTING OFFICER CONCERNED SHALL REMAIN TO 
BE A CREDITABLE PERIOD OF SERVICE FOR RETIREMENT PURPOSES. 
SECTION 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 NOR MORE THAN PHP 100,000 AND 
BY IMPRISONMENT OF NOT LESS THAN SIX (6) YEARS NOR MORE THAN 
TWELVE (12) YEARS. 
SECTION 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. 
SECTION 6. Repealing Clause. 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. 
SECTION 7. 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,