Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16 CONGRESS
First Regular Session

107

HOUSE BILL NO.

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

This bill proposes amendments in RA No. 8291, otherwise known as the
"GSIS Act of 1997," 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.

The ever increasing distrust and dissatisfaction towards GSIS due 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
been reported to be the result of discourteous and grossly inefficient services of GSIS
officials and employees.

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 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 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 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.

Wen


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

HOUSE BILLNO. 4107

Introduced by REP. EVELINA 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
otherwise known as the
hereby amended to read

, 42 and 52 of Republic Act No. 8291,
“Government Service Insurance System Act of 1997,” are
s 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 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.

XXX

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 (P24,000.00): 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:


ul
12

1B

Is
16
"
18
19
20

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

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.

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; 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 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


1 appointed and qualified. Vacancy, other than through the expiration
2 of the term, shall be filled for the unexpired term only. The members
3 of the Board shall be entitled to a per diem of Two thousand five
4 hundred pesos (P2,500) for each board meeting actually by them, but
5 not to exceed Ten thousand pesos (P10,000) a month and reasonable
6 transportation and representation allowances as may be fixed by the
7 Board.

8
9 Xxx

10
mn Sec. 52, Penalty. - (a) Any person found to have participated directly
12 or indirectly in the commission of fraud, collusion, falsification, or
13 misrepresentation in any transaction with the GSIS whether for him
\4 or for some other persons, shall suffer the
15 penalties provided for in Article 172 of the Revised Penal Code.

16
7 (b) Whoever shall obtain or receive any money or check invoking any
18 provision of this Act or any agreement thereunder, without being
19 entitled thereto with the intent to defraud any member, any employer,

20 the GSIS or any third party, shall be punished by a fine of not less

2 than Five Thousand Pesos (P5,000.00) nor more than Twenty

2 Thousand Pesos (P20,000.00) [or] AND by imprisonment of not less

2B than six (6) years and one (1) day to twelve (12) years.

24

2s () Whoever fails or refuses to comply with the provisions of this Act

6 or with the rules and regulations adopted by the GSIS shall be

27 punished by a fine of not less than Five Thousand Pesos (P5,000.00)

28 not more than Twenty Thousand Pesos (P20,000.00) [or] AND by

29 imprisonment of not less than six (6) years and one (1) day to twelve
30 (12) years, for both, at the discretion of the court].”

3
32
33 SEC. 2. All laws, orders, issuances, circulars, rules and regulations or parts

34 thereof, which are inconsistent with the provisions of this Act, are hereby repealed
35. or modified accordingly

37 SEC. 3. If any provisions of this Act is declared unconstitutional or invalid,
38 _ other parts or provisions hereof not affected shall continue in full force and effect.

40 SEC. 4. This Act shall take effect fifteen days (15) days following its
41 publication in at least two (2) newspapers of general circulation or the Official
42 Gazette.

44 Approved,