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FOURTEENTH CONGRESS OF THE 
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APR 20 P5 4 6  
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
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SENATE 
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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 amendments 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. 
GSIS 
loan 
Documented reports on discourteous and grossly inefficient services by 
officials and employees resulting to un-updated records, premiums and 
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 distrust and dissatisfaction towards GSIS 
in the process. 
These complaints ranged from policies and rules enacted by the GSIS, 
which are unjust, vague, contrary to law or downright detrimental to the 
interests of not only DepEd (Department of Education) but all its members. 
r 
Proposals to amend certain sections in the present law include Sections 7, 
10 and 23 if only to recompense 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 bii1. 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. 
Lastly, this bill seeks to increase the representation of the DepEd in the 
Board of Trustees (board). 


From one (1) present member who is either the President of the Philippine 
Public School Teachers’ Association (PPSTA) 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 PPSTA, 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 long overdue 
considering that out of the present one million four hundred thousand (1.4 M) 
GSIS members, five hundred sixty three thousand six hundred fifty six (563,656), 
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 


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FOURTEENTH CONGRESS OF THE 
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9 
8PR 20 /‘? :46 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
) 
SENATE 
G 
S. No. 317 2 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
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 in 
Congress assembled: 
SECTION1. Sections 7, 10, 23, 30, 31, 42 and 52 of Republic Act No. 8291, 
otherwise known as the “Government Service Insurance System Act of 1997,” are 
hereby amended to read as follows: 
”Sec. 7. Interests on Delayed Remittances. Agencies which delay 
the remittance of any and all monies due the GSIS shall be charged 
interest as may be prescribed by the Board but not [less] MORE 
than two percent (2%) simple interest per month. Such interest 
shall be paid by the employers concerned.” 
“Sec. 10. Computation of Satice. - (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. 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,OOO.OO): 
Provided, That it shall be increased to at least Eighteen Thousand 
Pesos (P18,000.00)] THIRTY THOUSAND PESOS (P30,OOO.OO) 
after five (5) years and shall be paid upon the death of 
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 who 
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.” 
”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.” 
“Sec. 31. Appenls. - 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 take 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 perpefuu 
is impossible.” 
”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 SchooI Superintendents 
(PASS), THE SECRETARY OF THE DEPARTMENT OF 
EDUCATION 
(DEPED), 
THE 
PRESIDENT 
OF 
THE 
ADMINISTRATIVE OFFICERS 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, fiance, 
investment, and insurance sectors, and one (1) recognized member 
of the legal profession who at the t i e  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) 
years, without reappointment, or until 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 (P10,OOO) a 
month 
and 
reasonable 
transportation 
and 
representation 
allowances as may be fixed bjy the Board.” 
”Sec. 52. Penalty. - (a) /my person found to have participated 
directly or indirectly in the commission of fraud, collusion, 
falsification, or misrepresentation in any transaction with the GSIS 
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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 
invoking any provision of this Act or any agreement thereunder, 
without being 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 
imprisonment 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 Act is declared unconstitutional or invalid, 
other parts or provisions hereof not 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. 
Approved, 
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