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1Republic of the Philippines (o

HOUSE OF REPRESENTATIVES,

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onve: YAN 16 2017

SEVENTEENTH CONGRI
First Regular Session

HOUSE BILL No. 4746

Introduced by REP. EVELINA G. ESCUDERO.

EXPLANATORY NOTE

his 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.

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 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,

Proposals to amend certain sections in the present law inelude 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 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 GSI

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 personne! 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.

AMhuetiey,

EVELINA G. ESCUDERO

“a



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRE!
irst Regular Session

HOUSE BILL NO.

Introduced by RI ANA 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:

SECTION 1, 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.

XXX

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 appointmenvelection, 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.

XXX

See. 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)]_ TW TY 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:

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

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.

XXX

See, 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.

XXX

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 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 perpetua is impossible.

XXX

Sec. 42. The Board of Trustees; /ts 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 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, 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) 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 (P10,000) a month and reasonable transportation and
representation allowances as may be fixed by the Board.

XXX


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 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 (P5,000.00) nor more than
Twenty Thousand Pesos (P20,000.00) [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 (P5,000.00) not more than Twenty Thousand Pesos
(P20,000.00) [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,