EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
iTREffifOl
r^O E-FILED ^ 
[ttl r>ATi=; AugJ.3 2020 
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TiMP»_J2:15 p.m.
SENATE
S.B. No. 1772
iMi>ex.
Introduced by Senator Richard J. Gordon
AN ACT AMENDING REPUBLIC ACT NO. 8291 ALSO KNOWN AS 
THE GOVERNMENT SERVICE INSURANCE ACT OF 1997, 
INSTITUTING VOLUNTARY CONTRIBUTION AMONG 
MEMBERS, REMOVING PRESCRIPTION ON BENEFITS, AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 18 of the 1987 Philippine Constitution provides that:
"SECTION 18. The State affirms labor as a primary social economic force. It 
shall protect the rights of workers and promote their welfare."
Since 1936, with the enactment of Commonwealth Act No. 186 (CA No. 186), 
the Government Service Insurance System (GSIS) has been the primary government 
corporation in-charge in promoting the welfare of government workers by protecting 
them and their families from the perils of old age, disability and death. Through time 
and the passage of laws amending CA No. 186, such as PD 1146, and then finally RA 
8291 in 1997, the Government Service Insurance System has improved Immensely in 
its service to government workers in terms of benefits.
This bill aims to further improve such service by allowing voluntary contribution 
which is not allowed under RA 8291 and removing prescription on benefits, which is 
expressly provided under Section 28 of the same law.
By allowing voluntary contribution of members within GSIS, government 
workers are empowered by providing them the choice to continue with their 
contributions capacitating them to plan and prepare for retirement and other life 
contingencies. As this measure proposes that member who will opt to pay voluntary 
contributions must pay both the member and employer share as well as the life 
insurance premiums, it will strengthen the financial stability of the GSIS by providing 
additional cash flow, thereby extending the life of the fund.
By removing the prescription on benefits under Section 28 of RA 8291, this 
measure seeks to correct the apparent error in policy under the same law. Benefits 
under RA 8291 are paid for by the members and the employer upon payment of the 
contribution. Upon payment of contribution, benefits become basic rights of the


members which must be given once the requirements are met. It is submitted that it 
wili be unjust enrichment on the part of the government to deprive the members of 
those basic rights by providing for prescription of benefits. To reiterate, the right to 
claim for benefits has been previously paid for with the payment of the contribution. 
Most importantly, it is by removing the provision on prescription of benefits thereby 
consequently granting more benefits to a greater number of government workers will 
the welfare of government workers be even more promoted, in adherence to Article 
II, Section 18 of the 1987 Philippine Constitution.
sought.
It Is for the reasons stated above that the passage of this measure is earnestly
RD J. GORDON
Senator


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. No. 1772
Introduced by Senator Richard J. Gordon
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AN ACT AMENDING REPUBLIC ACT NO. 8291 ALSO KNOWN AS 
THE GOVERNMENT SERVICE INSURANCE ACT OF 1997, 
INSTITUTING VOLUNTARY CONTRIBUTION AMONG 
MEMBERS, REMOVING PRESCRIPTION ON BENEFIT, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Phiiippines in
Congress assembied:
SECTION 1. Deciaration of Poiicy.- It is hereby the policy of the State to empower 
government employees to prepare for retirement and other life contingencies by 
providing them avenues for savings and Investment and removing obstacles for the 
enjoyment of benefits under the Government Service Insurance System.
SEC. 2. A new Section 8 is Inserted In RA 8291 to read as follows:
"SECTION 8. VOLUNTARY CONTRIBUTION OF MEMBERS.- A MEMBER WHO 
RESIGNS OR SEPARATES FROM THE SERVICE AFTER HE HAS RENDERED AT LEAST 
THREE (3) YEARS OF SERVICE MAY OPT TO CONTINUE PAYING THE MEMBER AND 
EMPLOYER MONTHLY CONTRIBUTIONS INCLUDING THE LIFE INSURANCE 
PREMIUMS PROVIDED FOR UNDER RA 8291, AND FOR WHICH HE SHALL BE 
ENTITLED TO ALL SUCH BENEFITS AS MAY GRANTED UPON HIM BY THE 
PROVISIONS OF RA 8291.
SEC. 3. Section 28 of RA 8291 is hereby deleted.
rSECnON 28. Prescription.- Claims for bcncfits-undGr this-Act except for life, 
and retirement shalTprcscribG-aftcr four (/l) ycars from the date of ■contingGncy."]
SEC. 4. All other sections of RA 8291 are hereby renumbered accordingly.
SEC. 5. Separabiiity Ciause - If any provision of this Act is declared unconstitutional, 
such sections or parts not affected thereby shall remain In full force and effect.


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SEC. 6. Repealing Clause - All laws, decrees, executive orders, rules and regulations
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or parts thereof inconsistent with the provisions of this Act are hereby repealed or
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modified accordingly.
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SEC. 7. Effectivity Clause - This Act shall take effect fifteen (15) days after Its
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publication In the Official Gazette or In at least two (2) national newspaper of general
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circulation.
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Approved,