Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session
4283

HOUSE BILL NO.__

Introduced by BAYAN MUNA.
Reps. NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE,

AN ACT
REINSTITUTING THE “TAKE ALL” GRATUITY BENEFIT OPTION
FOR ELIGIBLE GOVERNMENT EMPLOYEES FOR RETIREMENT,
AMENDING RA 8291 OTHERWISE KNOWN AS THE “REVISED GOVERNMENT
SERVICE INSURANCE ACT OF 1997” FOR THAT PURPOSE

EXPLANATORY NOTE

Article XVI, Section 8 of the Constitution states that, “The State shal from time to time, review fo
upgrade the pension and other benefits to retires of both government and private sectors.”

The current GSIS law provides two options for those who are to claim their retirement benefits,
‘namely: “5-Year Lump Sum and Old Age Pension and Cash payment” and “Basie Monthly

Pension

‘The bill secks to grant the previous “take-all” lump-sum pension to government retirees which
was previously available in RA 1616 before it was repealed by PD 1146 which was passed on
May 31, 1977 which rendered the “take-all” option unavailable to those who have entered
government service in June 1, 1977 while remaining available to those who entered service until
May 30, 1977. There are also numerous cases of retirees while eligible for the take-all gratuity
payment under RA 1616, cannot avail of the same as they are continuously snubbed by the GSIS
offices claiming that the take all option is not available to them anymore. Furthermore, it gives
mote freedom for the retirees to choose on how to manage or invest their pension.

We ask for your support and immediate approval and that this Bill be immediately referred to the
Committee on Government Enterprises and Privatization for appropriate action.

Rep. CARLOS mS 3285 ZARATE,

Bayan Muna Party-Lit



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session
4283

HOUSE BILL NO.

Introduced by BAYAN MUNA
Reps. NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE

AN ACT
REINSTITUTING THE “TAKE ALL” GRATUITY BENEFIT OPTION
FOR ELIGIBLE GOVERNMENT EMPLOYEES FOR RETIREMENT,
AMENDING RA 8291 OTHERWISE KNOWN AS THE “REVISED GOVERNMENT
SERVICE INSURANCE ACT OF 1997” FOR THAT PURPOSE

Be it enacted by the Senate and the Hlouse of Representatives of the Philippines in Congress assemble:

Section 1, — Section 13 of RA 8291 othenwise known as the "Revised Government Service
Insurance Act of 1997", is hereby further amended to read as follows:

"SEC. 13. Retirement Benefits. - (a) Retirement benefits shall be:

"(1) [the lump sum payment as defined in this Act payable at the time of retirement plus an old-
age pension benefit equal to the basic monthly pension payable monthly for life, starting upon
expiration of the five-year (5) guaranteed period covered by the lump sum; ot] A FULL LUMP
SUM PAYMENT WHICH IS A GRATUITY EQUIVALENT TO ONE MONTH
SALARY FOR EVERY YEAR OF SERVICE, BASED ON THE HIGHEST RATE
RECEIVED, BUT NOT TO EXCEED TWENTY-FOUR MONTHS. THIS
GRATUITY IS PAYABLE BY THE EMPLOYER OR OFFICE CONCERNED
WHICH I$ HEREBY AUTHORIZED TO PROVIDE THE NECESSARY
APPROPRIATION OR PAY THE SAME FROM SAVINGS IN ITS
APPROPRIATIONS. IN ADDITION TO THE RETURN OF THE BENEFICIARY’S
PERSONAL CONTRIBUTIONS PLUS INTEREST

(2) A PARTIAL LUMP SUM PAYMENT WHICH IS PAYABLE AT THE TIME OF
RETIREMENT PLUS AN OLD-AGE PENSION BENEFIT EQUAL TO THE BASIC
MONTHLY PENSION PAYABLE MONTHLY FOR LIFE, STARTING UPON
EXPIRATION OF THE FIVE-YEAR (5) GUARANTEED PERIOD COVERED BY
‘THE LUMP SUM; OR

"[2)] @) cash payment equivalent to eighteen (18) months of his basic monthly pension plus
monthly pension for life payable immediately with no five-year (5) guarantee.

Section 2, Repealing Clause- All other laws, decrees, rules and regulations contrary ot
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.


Section 3. Effectivity, - This Act shall take effect 15 days after its complete publication in at
least two (2) newspapers of national circulation.

Approved,