REPUBLIC ACT NO.

8291 "(h) Secondary beneficiaries — The dependent parents
and, subject to the restrictions on dependent children, the
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, legitimate descendants;
AS AMENDED, EXPANDING AND INCREASING THE
COVERAGE AND BENEFITS OF THE GOVERNMENT "(i) Compensation — The basic pay or salary received by
SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS an employee, pursuant to his election/appointment,
THEREIN AND FOR OTHER PURPOSES excluding per diems, bonuses, overtime pay, honoraria,
allowances and any other emoluments received in addition
SECTION 1. Presidential Decree No. 1146, as amended, to the basic pay which are not integrated into the basic pay
otherwise known as the "Revised Government Service under existing laws;
Insurance Act of 1977", is hereby further amended to read
as follows: "(j) Contribution — The amount payable to the GSIS by the
member and the employer in accordance with Section 5 of
"SECTION 1. Title. — The short title of this Act shall be: this Act;
'The Government Service Insurance System Act of 1997.'
"(k) Current Daily Compensation — The actual daily
"A. DEFINITIONS compensation or the actual monthly compensation divided
by the number of working days in the month of
"SECTION 2. Definition of Terms. — Unless the context contingency but not to exceed twenty-two (22) days;
otherwise indicates, the following terms shall mean:
"(l) Average Monthly Compensation (AMC) — The
"(a) GSIS — The Government Service Insurance System quotient arrived at after dividing the aggregate
created by Commonwealth Act No. 186; compensation received by the member during his last
thirty-six (36) months of service preceding his
separation/retirement/disability/death by thirty-six (36),
"(b) Board — The Board of Trustees of the Government or by the number of months he received such
Service Insurance System; compensation if he has less than thirty-six (36) months of
service: Provided, That the average monthly compensation
"(c) Employer — The national government, its political shall in no case exceed the amount and rate as may be
subdivisions, branches, agencies or instrumentalities, respectively set by the Board under the rules and
including government-owned or controlled corporations, regulations implementing this Act as determined by the
and financial institutions with original charters, the actuary of the GSIS: Provided, further, That initially the
constitutional commissions and the judiciary; average monthly compensation shall not exceed Ten
thousand pesos (P10,000.00), and premium shall be nine
"(d) Employee or Member — Any person, receiving percent (9%) and twelve percent (12%) for employee and
compensation while in the service of an employer as employer covering the AMC limit and below; and two
defined herein, whether by election or appointment, percent (2%) and twelve percent (12%) for employee and
irrespective of status of appointment, including barangay employer covering the compensation above the AMC limit;
and sanggunian officials;
"(m) Revalued average monthly compensation — An
"(e) Active Member — A member who is not separated amount equal to one hundred seventy percent (170%) of
from the service; the first One thousand pesos (P1,000) of the average
monthly compensation plus one hundred percent (100%)
"(f) Dependents — Dependents shall be the following: (a) of the average monthly compensation in excess of One
the legitimate spouse dependent for support upon the thousand pesos (P1,000);
member or pensioner; (b) the legitimate, legitimated,
legally adopted child, including the illegitimate child, who "(n) Lump sum — The basic monthly pension multiplied
is unmarried, not gainfully employed, not over the age of by sixty (60);
majority, or is over the age of majority but incapacitated
and incapable of self-support due to a mental or physical "(o) Pensioner — Any person receiving old-age or
defect acquired prior to age of majority; and (c) the permanent total disability pension or any person who has
parents dependent upon the member for support; received the lump sum excluding one receiving
survivorship pension benefits as defined in Section 20 of
"(g) Primary beneficiaries — The legal dependent spouse this Act;
until he/she
"(p) Gainful Occupation — Any productive activity that
remarries and the dependent children; provided the member with income at least equal to the
minimum compensation of government employees;

Compensation Payable by . "SECTION 4. commissioners shall pay three percent (3%) of their monthly compensation as personal share.0% 12. Maximum Average continue with his/her current gainful occupation or engage in any other gainful occupation. and contractuals who have no employer and fail to remit the accurate/exact amount of contributions on employee relationship with the agencies they serve. — In Excess of the AMC Limit 2. disability. "(s) Permanent Total Disability — Accrues or arises when recovery from the impairment mentioned in Section 2(Q) — Up to the Maximum AMC Limit 9. "(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions "B. except salaries and wages of its employees. all members of the GSIS shall have life insurance.0% 12. as may be member separated from the service shall continue to be a required by the GSIS. and unemployment — (a) The employer shall report to the GSIS the names of benefits.0% "(t) Temporary Total Disability — Accrues or arises when the impaired physical and/or mental faculties can be "Members of the judiciary and constitutional rehabilitated and/or restored to their normal functions. the physical faculties. their corresponding employment status. Penal sanctions shall be imposed Philippine National Police. time. The heads of offices and agencies shall be "Except for the members of the judiciary and administratively liable for non-remittance or delayed constitutional commissions who shall have life insurance remittance of premium contributions to the GSIS. — (a) It shall be mandatory for ten (10) days of the calendar month following the month the member and the employer to pay the monthly to which the contributions apply. the employer shall deduct each member. only. retirement. and their "(u) Permanent Partial Disability — Accrues or arises upon employers a corresponding three percent (3%) share for the irrevocable loss or impairment of certain portion/s of their life insurance coverage. The remittance by the contributions specified in the following schedule: employer of the contributions to the GSIS shall take priority over and above the payment of any and all "Monthly Compensation Percentage of Monthly obligations. despite which the member is able to pursue a gainful occupation.0% is medically remote.0% with his present employment or engage in any gainful occupation due to the loss or impairment of the normal functions of the physical and/or mental faculties of the II. survivorship.0% 12. MEMBERSHIP IN THE GSIS indicated above. Compulsory Membership. the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory "(c) It shall be mandatory and compulsory for all retirement age. Contributions. and all other social security protection such as "SECTION 6. all its employees. if any. III. salaries and such other pertinent information. SOURCES OF FUNDS "(b) Each employer shall remit directly to the GSIS the employees' and employers' contributions within the first "SECTION 5. Effect of Separation from the Service. irrespective of employment status. — Membership in employees' occupation. with the schedule prescribed in the rules and regulations implementing this Act. except employers to include the payment of contributions in their members of the Armed Forces of the Philippines and the annual appropriations. Monthly Compensation "(r) Total Disability — Complete incapacity to continue (AMC) Limit and Below 9. and shall be entitled to whatever benefits he has month from the monthly salary or compensation of each qualified to in the event of any contingency compensable employee the contribution payable by him in accordance under this Act. Over the Maximum AMC Limit member. — A including subsequent changes therein."(q) Disability — Any loss or impairment of the normal Member Employer functions of the physical and/or mental faculty of a member which reduces or eliminates his/her capacity to I. positions. subject to the condition that upon employers who fail to include the payment of they must settle first their financial obligation with the contributions in their annual appropriations or otherwise GSIS. plus any additional premiums that may be required on account of the hazards or risks of its "SECTION 3. separation. "C. or delay the remittance of premium contributions to the GSIS. Collection and Remittance of Contributions.

Government Guarantee.400. — be included under such rules and regulations as may be Agencies which delay the remittance of any and all monies prescribed by the GSIS. That the member average monthly compensation for each year of service in resigns or separates from the service after he has rendered excess of fifteen (15) years: Provided. "Contributions Made Benefit Duration "SECTION 10.300. whichever comes later: Provided. Computation of the Basic Monthly Pension. "All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS "For the purpose of this section the term service shall shall be deducted from voluntary separation benefits. Unemployment or Involuntary Separation "(b) The basic monthly pension may be adjusted upon the Benefits. That the basic at least fifteen (15) years of service and is below sixty (60) monthly pension shall not exceed ninety percent (90%) of years of age at the time of resignation or separation. plus or separation. the average monthly compensation. — (a) The 1 year but less than 3 years 2 months computation of service for the purpose of determining the amount of benefits payable under this Act shall be from the 3 or more years but less than 6 years 3 months date of original appointment/election. That part time and other services with compensation may . That the has been paying integrated contributions for at least one basic monthly pension for those who have rendered at (1) year prior to separation. however. Interests on Delayed Remittances. — Unemployment benefits in the form of recommendation of the President and General Manager of monthly cash payments equivalent to fifty percent (50%) the GSIS and approved by the President of the Philippines of the average monthly compensation shall be paid to a in accordance with the rules and regulations prescribed by permanent employee who is involuntarily separated from the GSIS: Provided. plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon "2) two and one-half percent (2. or (a) the basic monthly pension is equal to: "(b) A cash payment equivalent to eighteen (18) times his "1) thirty-seven and one-half percent (37. including periods of service at different times under one or more employers. 11 or more years but less than 15 years 6 months "(b) All service credited for retirement. — The separation benefit shall consist of: (a) a cash payment equivalent to "SECTION 8. Separation Benefits. "SECTION 11. That he hundred pesos (P1.00): Provided. BENEFITS the member resigns or separates from the service after he has rendered at least three (3) years of service but less "SECTION 9. Unemployment benefits shall least twenty (20) years of service after the effectivity of be paid in accordance with the following schedule: this Act shall not be less than Two thousand four hundred pesos (P2. service of an employer and subsequent retirement or separation which is compensable under this Act. — The government one hundred percent (100%) of his average monthly of the Republic of the Philippines hereby guarantees the compensation for each year of service he paid fulfillment of the obligations of the GSIS to its members as contributions."SECTION 7. (P12.000) payable upon reaching sixty (60) years of age or upon separation. — than fifteen (15) years. Such interest shall be paid by the employers concerned. due the GSIS shall be charged interests as may be prescribed by the Board but not less than two percent "SEPARATION BENEFITS (2%) simple interest per month.5%) of said revalued reaching the age of sixty (60): Provided. and those that may be 9 or more years but less than 11 years 5 months prescribed by the GSIS in coordination with the Civil Service Commission. further. That the basic monthly the service due to the abolition of his office or position pension shall not be less than One thousand and three usually resulting from reorganization: Provided. Computation of Service. resignation or separation for which corresponding benefits have been "The first payment shall be equivalent to two (2) monthly awarded under this Act or other laws shall be excluded in benefits. "SECTION 12.00) a month. That "D. include full time service with compensation: Provided. but not less than Twelve thousand pesos and when they fall due. A seven-day (7) waiting period shall be imposed the computation of service in case of reinstatement in the on succeeding monthly payments.5%) of the basic monthly pension payable at the time of resignation revalued average monthly compensation. 6 or more years but less than 9 years 4 months those performed overseas under the authority of the Republic of the Philippines.

(1) he has rendered at least fifteen (15) years of service. he shall be advanced "SECTION 13-A. periodically adjusted as may be recommended by the GSIS' actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS. or "SECTION 14. starting upon expiration of the five-year (5) contributions. he may be allowed to continue in the service in accordance with existing civil service rules "(b) If a member who suffers permanent total disability and regulations. guaranteed period covered by the lump sum. "SECTION 15. he shall receive a monthly regulations implementing this Act. disability benefit shall be suspended when: retirement. That if at the time of disability. habitual intoxication.000) which should have been his separation benefit. subject limbs. retirement shall be compulsory for an benefit for permanent disability and the old- employee at sixty-five (65) years of age with at least fifteen age retirement simultaneously. "(c) Unless the member has reached the minimum (2) he is at least sixty (60) years of age at the time of retirement age. That: "RETIREMENT BENEFITS (1) he is in the service at the time of disability. Permanent Total Disability Benefits. to the corresponding conditions therefor. Periodic Pension Adjustment. he shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided. and "(1) he is reemployed or (3) he is not receiving a monthly pension benefit from permanent total disability. he has paid at least thirty-six (36) monthly contributions within "(1) the lump sum payment as defined in this Act payable the five (5) year period immediately at the time of retirement plus an old-age pension benefit preceding his disability. That "(b) Unless the service is extended by appropriate a member cannot enjoy the monthly income authorities. — (a) Retirement benefit shall be: (2) if separated from the service. in addition to the monthly payable immediately with no five-year (5) guarantee. "(4) brain injury resulting in incurable imbecility or insanity. or willful intention to kill himself or another. or further. notorious negligence. — (a) If operationalization of this section in the rules and the permanent disability is total. or has paid a total of equal to the basic monthly pension payable monthly for at least one hundred eighty (180) monthly life. whose decision shall be final and binding. wrist."The GSIS shall prescribe the detailed guidelines in the "SECTION 16. That: Twelve Thousand pesos (P12. — The monthly pension of all pensioners including all those "(3) he fails to present himself for medical receiving survivorship pension benefits shall be examination when required by the GSIS. "(d) The following disabilities shall be deemed total and permanent: "PERMANENT DISABILITY BENEFITS "(1) complete loss of sight of both eyes. — A member who suffers permanent disability for reasons not "(2) loss of two (2) limbs at or above the ankle or due to his grave misconduct. income benefit for life equal to the basic monthly pension effective from the date of disability: Provided. — A member the cash payment equivalent to one hundred percent who retires from the service shall be entitled to the (100%) of his average monthly compensation for each retirement benefits in paragraph (a) of Section 13 hereof: year of service he paid contributions. he was in the service and has paid a total of at least "(2) cash payment equivalent to eighteen (18) months of one hundred eighty (180) monthly his basic monthly pension plus monthly pension for life contributions. "(2) he recovers from disability as determined by the GSIS. Conditions for Entitlement. prior to his disability: Provided. and . does not satisfy conditions (1) and (2) in paragraph (a) of this section but has rendered at least three (3) years service at the time of his disability. but not less than Provided. shall be entitled to the benefits provided for "(3) permanent complete paralysis of two(2) under Sections 16 and 17 immediately following. That if he has less than fifteen (15) years of service. finally. Retirement Benefits. income benefit. or "SECTION 13. General Conditions for Entitlement. (15) years of service: Provided.

he has rendered at least three (3) years of service and has paid at least six (6) monthly (2) the survivorship pension plus a cash payment contributions in the twelve-month period immediately equivalent to one hundred percent (100%) of his average preceding his disability. — (a) total disability benefit may be extended by the GSIS but not If the disability is partial. and the other requirements for entitlement to temporary total disability benefits shall be "(1) complete and permanent loss of the use of: provided in the rules and regulations to be prescribed by the GSIS. (iv) one hand "SURVIVORSHIP BENEFITS (v) one foot "SECTION 20. "(5) such other cases as may be determined by the simultaneously: Provided. if any. Temporary Total Disability Benefit. That a member cannot enjoy the death with at least three (3) years of service. — For injuries or (ii) any toe illnesses resulting in a disability not listed in the schedule of partial/total disability. but not (ii) if separated from the service. Permanent Partial Disability Benefits. (i) any finger "SECTION 19. or of at least one hundred eighty (180) monthly contributions prior to his death. and partial: the mode of payment. be less than Seventy pesos (P70. as provided herein. — (a) Upon the death of not due to any of the conditions enumerated in Section 15 a member. he shall receive a cash payment to exceed a total of two hundred forty (240) days. in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided. or temporary total disability benefit and sick leave pay . That the deceased: thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after (i) was in the service at the time of his death. the GSIS shall determine the nature of the disability and the (iii) one arm corresponding benefits therefor. Survivorship Benefits. requires more extensive treatment that lasts beyond one hundred twenty (120) days. further. and (ix) sight of one eye (2) the dependent children's pension not exceeding "(2) such other cases as may be determined by the GSIS. monthly compensation for every year of service: Provided.00) a day. "TEMPORARY DISABILITY BENEFITS (3) "SECTION 18. That he satisfies either "(b) The temporary total disability benefit shall in no case conditions (1) or (2) of Section 16(a). — (a) A member who suffers temporary total disability for reasons "SECTION 21. or exhausting all his sick leave credits and collective bargaining agreement sick leave benefits. the primary beneficiaries shall be entitled to: hereof shall be entitled to seventy-five percent (75%) of his current daily compensation for each day or fraction (1) survivorship pension: Provided. — When a member or pensioner dies. That the deceased was in the service at the time of his Provided. however. "(b) The following disabilities shall be deemed permanent "(c) The notices required of the member and the employer. or has paid a total "(1) he is in the service at the time of his disability. the payment of the temporary "SECTION 17. or "(2) if separated. the beneficiaries shall be entitled to (vi) one leg survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. (vii) one or both ears The survivorship pension shall consist of: (viii) hearing of one or both ears (1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension. has at least three earlier than the fourth day of his temporary total (3) years of service at the time of his death and has paid disability: Provided. Non-scheduled Disability. fifty percent (50%) of the basic monthly pension. Death of a Member. That if the disability GSIS. That: thirty-six (36) monthly contributions within the five-year period immediately preceding his death.

Dividends. (d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No. but not less than Twelve thousand pesos (P12. 1616. which secondary beneficiaries shall be entitled to: shall automatically take effect as follows: (1) the cash payment equivalent to one (1) for those employed after the effectivity of this Act. benefit shall be determined and specified by the GSIS in the rules and regulations but shall not be less than Twelve (b) The survivorship pension shall be paid as thousand pesos (P12. the benefits under this paragraph (3) for those without any life insurance as of the effectivity shall be paid to his legal heirs. plus the dependent children's pension equivalent to ten percent (10%) of the basic (c) a pensioner. (3) when the survivors are the dependent spouse and the dependent children. be compulsorily covered with life insurance. contributions. That it shall be follows: increased to at least Eighteen thousand pesos (P18.000. year of service he paid contributions. of this Act. memorial plans. or qualified. but not less than Twelve thousand pesos (P12. the GSIS. the such other plans as may be designed by the GSIS. for . legitimate children shall include legally adopted and "SECTION 25. (d) For purposes of the survivorship benefits. or renewed on the day following the maturity or expiry date of their insurance. as defined in Section 2(o) of this Act. granted to all members of the GSIS whose life insurance is in force for at least one (1) year in accordance with a "SECTION 22. — Subject to the rules beneficiaries shall be entitled to the survivorship pension and regulations prescribed by the GSIS. — An annual dividend may be legitimate children. education.00) after five (5) years and shall be paid upon the (1) when the dependent spouse is the death of: only survivor. or monthly pension for every dependent child not exceeding five (5). and dies within the period covered by the lump sum. an old-age pensioner or a member receiving the monthly income benefit for permanent disability. under such terms and conditions as may be promulgated by the (c) In the absence of primary beneficiaries. the dependent spouse shall receive the basic survivorship "LIFE INSURANCE BENEFITS pension for life or until he/she remarries. Compulsory Life Insurance.000.00): Provided. hospitalization. and the dependent children shall receive the dependent "SECTION 24. or (2) when only dependent children are the (b) a member who has been separated from the service. survivors. (2) in the absence of secondary beneficiaries. When the pensioner life. health.000): Provided. they shall be entitled to the basic but who may be entitled to future benefit pursuant to survivorship pension for as long as they are Section 4 of this Act. he/she shall receive the basic survivorship pension for life or until he/she (a) an active member as defined under Section 2(e) of this remarries. subject to the provisions apply for insurance and/or pre-need coverage embracing of paragraph (b) of Section 21 hereof. Act. — Upon the death of dividend allocation formula to be determined by the GSIS. That the member is in (2) for those whose insurance will mature after the the service at the time of his death and has at least effectivity of this Act. Optional Insurance. — All employees children's pension mentioned in the immediately except for Members of the Armed Forces of the Philippines preceding paragraph (2) hereof. Death of a Pensioner. Funeral Benefit. the qualified "SECTION 26.000.00): Provided. That the "FUNERAL BENEFITS deceased has rendered at least three (3) years of service prior to his death but does not qualify for the benefits "SECTION 23. their insurance shall take effect following said effectivity. counted from the youngest and without substitution. their insurance shall be deemed three (3) years of service.(3) a cash payment equivalent to one hundred percent survivorship pension shall be paid only after the (100%) of his average monthly compensation for each expiration of the said period. a member may defined in Section 20 of this Act. — The amount of funeral under the item (1) or (2) of this paragraph. their hundred percent (100%) of his average monthly insurance shall take effect on the date of their compensation for each year of service he paid employment. (AFP) and the Philippine National Police (PNP) shall.

by the operations to the Insurance Commission. That the appeal shall agencies including government-owned and controlled take precedence over all other cases except criminal cases corporations except as may be allowed under this Act. The hearing officer shall accruals thereon shall constitute the GSIS Social Insurance submit his findings and recommendations. Facility of Payment. any decision or award of the Board shall be enforced and executed in the "E. make findings of fact and submit Section 5 of this Act together with the earnings and recommendations thereon. . correspondences. Funds. That pending cases and those filed accrue to the General Fund of the national government and prior to July 1. the within thirty (30) working days from the time the parties GSIS shall administer the optional insurance fund for the have closed their respective evidence and filed their last insurance coverage described in Section 26 hereof. 626. and such other special Board shall be decided within thirty (30) working days funds existing or that may be created for special groups or from the time they are submitted by the parties for persons rendering services to the government. "SECTION 31. certify to official the payment of benefits. papers. — The GSIS may reinsure any when proper. together with Fund. prescribe rules and regulations to facilitate payment of upon application by the GSIS. "F. or official of the GSIS who is a lawyer. the General Insurance Fund created and recommendations. by the Court of to the GSIS. who shall. The cases heard directly by the under Act No.D. — Claims for benefits under the city or provincial sheriff or its appointed sheriff such this Act except for life and retirement shall prescribe after writs of execution as may be necessary for the four (4) years from the date of contingency. as amended. the Board shall have the power to issue to "SECTION 28. — When authorized by the Board. and claims under this Act and any other laws administered by the GSIS. shall not employee of the GSIS shall have the power to administer bar the legal and eligible recipient to his right to demand oath and affirmation. Reinsurance. writ or process after being required to do so. and any person who shall fail or refuse to comply with such decision. to a beneficiary or Records. 1997 which will take effect on portion of the funds of the GSIS or income thereof shall July 1. employees. — Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 "The funds of the GSIS shall not be used for purposes other of the 1997 Rules of Civil Procedure adopted by the than what are provided for under this Act. other records deemed necessary as evidence in connection with any question arising under this Act. Settlement of Disputes. The said Fund shall be used to finance the benefits all the documentary and testimonial evidence to the Board administered by the GSIS under this Act. "SECTION 29. and recipient. of its interests or part thereof with any private company or reinsurer whether domestic or foreign: Provided. administered by the GSIS. — When no appeal is GSIS shall submit an annual report on its reinsurance perfected and there is no order to stay by the Board. 1997: Provided. Appeals or by the Supreme Court and the appeal shall be without prejudice to the special civil action of certiorari "SECTION 27. as amended. have a right to institute the duces tecum to compel the attendance of witnesses and appropriate action in a court of law against the ineligible the production of books. — The GSIS shall contumacy shall be dealt with in accordance with the have original and exclusive jurisdiction to settle any provisions of Section 580 of the Revised Administrative dispute arising under this Act and any other laws Code. enforcement of such decision or award. Payments made by the GSIS "SECTION 33. For this purpose. 1997 shall be governed by the applicable its political subdivisions. to act as hearing officer "SECTION 34. and issue subpoena ad testificandum and subpoena GSIS. and Production of prior to its receipt of an adverse claim. an official or claimant subsequently found not entitled thereto. Appeals. proceeds. proceeds. ADJUDICATION OF CLAIMS AND DISPUTES same manner as decisions of the Regional Trial Court. Moreover. Court of Appeals or by the Supreme Court. The payment of the premiums/installments for optional insurance and pre-need products may be made by The appeal shall not stay the execution of the order or the insured or his employer and/or any person acceptable award unless ordered by the Board. and claims from the acts. — The GSIS shall award. The GSIS decision. Any employer may when the penalty of life imprisonment or death or likewise apply for group insurance coverage for its reclusion perpetua is imposable. — All contributions payable under to receive evidence. In addition. shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act.himself and/or his dependents. That the "SECTION 32. further. no Supreme Court on April 8. the pleading. be punished for contempt. take depositions. Execution of Decision. Prescription. however. Oaths. benefit. instrumentalities and other rules of procedure: Provided. Witnesses. Any case of "SECTION 30. 656. shall. The Board shall decide the case within thirty employees' Compensation Insurance Fund created under (30) days from the receipt of the hearing officer's findings P. FUNDS OF THE GSIS The Board may designate any member of the Board.

fees. Legal Process and Lien. policy. promissory notes or other actuarial principles. dividends at least once over the same period. necessary to sustain the benefits of this Act. Accordingly. — It is hereby declared to be the policy of the State that the actuarial solvency of the funds of the GSIS shall be (e) in real estate property including shares of stocks preserved and maintained at all times and that involving real estate property and investments secured by contribution rates necessary to sustain the benefits under first mortgages on real estate or other collaterals this Act shall be kept as low as possible in order not to acceptable to the GSIS: Provided. expenses. under the laws of the Philippines listed in the stock exchange with proven track record or profitability over the "SECTION 36. shall be exempt from all taxes. these shall not exceed at any time the unimpaired capital and surplus or total "SECTION 37. safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided. whichever is and cause to keep such records as may be necessary for smaller: Provided. paid. giving priority to the benefits of the members. yearly revenues from all sources may be disbursed for administrative and operational expenses except as may be (h) In common and preferred stocks of any solvent otherwise approved by the President of the Philippines on corporation or financial institution created or existing the basis of actuarial and management studies. instruments or assets are issued: Provided. That the GSIS shall submit an annual report on all deposits or foreign currency-denominated debts. That in the case of such deposits. may be invested under such terms and conditions and rules and regulations as may be prescribed by the Board: (i) In domestic mutual funds including investments related Provided. — All revenues (g) In loans to. That these instruments or assets are listed in evidence of indebtedness of the Government of the bourses of the respective countries where these Philippines. non- investments made to both Houses of Congress of the speculative equities and other financial instruments or Philippines. Records and Reports. funds and other financial transactions and operations. and of liquidity. to members such as salary. to wit: other assets issued in accordance with existing laws of the countries where such financial instruments are issued: (a) in interest-bearing bonds or securities or other Provided. Investment of Funds. That the issuing company has proven track record of (b) In interest-bearing deposits or securities in any profitability over the last three (3) years and payment of domestic bank doing business in the Philippines: Provided. The GSIS shall make a periodic actuarial examination and valuation of its funds in accordance with accepted (d) in bonds. revenues including all accruals thereto. That such investments burden the members of the GSIS and their employers. The GSIS shall maintain low income groups and in short-and-medium-term loans appropriate books of accounts to record its assets. the GSIS. Exemption from Tax. (j) In foreign mutual funds and in foreign currency further. or in bonds. That no less than forty percent (40%) of the investable fund of the GSIS Social Insurance Fund shall be invested "SECTION 38. further. separation and retirement among the members (c) in direct housing loans to members and group housing and any other information useful for the adjustment of the projects secured by first mortgage. securities. assessments. That investments shall satisfy the requirements to the operations of mutual funds. educational. shall. as well as the general solvency of its funds and increase the contribution rate public. That said bank has prior the purpose of making actuarial studies. notwithstanding any laws to the contrary. receipts and disbursements of stock purchase plan and other similar loans: Provided. in the determination of the Board."SECTION 35. and benefits secondary markets. further. Deposits and Disbursements. — The GSIS shall keep private deposits of the depository bank. promissory notes collected and all accruals thereto shall be deposited. evidence of indebtedness of educational or medical institutions to finance the construction. Examination and Valuation of the Funds. These exemptions shall continue unless expressly and specifically revoked and any assessment against the GSIS as of the approval of this Act . maintenance of schools and hospitals. — for these purposes. income. mortality. its (f) In debt instruments and other securities traded in the assets. improvement and "SECTION 39. calculations and designation as a depository for the purpose by the valuations of the funds of the GSIS including such data Monetary Board of the Central Monetary Authority. A corporation created or existing under the laws of the maximum expense loading of twelve percent (12%) of the Philippines. or other evidence of indebtedness of any solvent administered and disbursed in accordance with the law. morbidity. its members. debentures. emergency. — The funds of the last three (3) years and payment of dividends at least once GSIS which are not needed to meet the current obligations over the same period. liabilities. redound to the Taxes imposed on the GSIS tend to impair the actuarial benefit of the GSIS. charges or duties of all kinds. needed in the computation of rates of disability.

interest rates or the allocation or re-allocation of the funds to the "Moreover. further. real or personal property in the Philippines or elsewhere necessary to carry out the (o) to fix and periodically review and adjust the rates of purposes of this Act. firm or association or corporation. pursuance of. opinions or and valuations to determine the financial condition of the jurisprudence contrary to or in derogation of this GSIS and taking into consideration such studies and provision are hereby deemed repealed. and regulations as may be necessary to carry out the primarily confidential or highly technical in nature provisions and purposes of this Act. domestic or foreign. superseded and valuations and the limitations herein provided. and to conduct its business and exercise its occasioned by his exercise or performance of his official powers throughout and in any part of the Republic of the functions or duties. qualifications standards approved by the GSIS Board of Trustees based on a comprehensive job analysis and audit (b) to adopt or approve the annual and supplemental of actual duties and responsibilities: Provided. GSIS shall exercise the following powers and functions: (m) to approve appointments in the GSIS except (a) to formulate. yearly merit reviews or increases based on productivity and profitability. (n) to design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial assistance for the purpose of (d) to acquire. quasi-judicial agencies or administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members. — The Government securitization of housing mortgages of the GSIS and on Service Insurance System as created under account of its receivables from any government or private Commonwealth Act No. recognized by law. the courts. execution. premium rates. Implementing Body. levy or other processes issued by Act. contributions. firm or entity. "The funds and/or the properties referred to herein as well as the benefits. interest and other terms and conditions for loans and .000) membership. or in connection with the provisions of this garnishment. these exemptions shall not be affected by contingencies covered. in any manner retirement for its own personnel. utilize or dispose of. its officers and by a compensation and position classification system and employees. factor to maintain or protect the solvency of the fund. all laws. (e) to conduct continuing actuarial and statistical studies ordinances. amend and/or rescind such rules appointments to positions which are policy determining. the benefits.are hereby considered paid. branch office in every province where there exists a minimum of fifteen thousand (15. is in favor of the GSIS. "G. private or government. provisions of this Act. subsequent laws to the contrary unless this section is expressly. specifically and categorically revoked or (f) to have the power of succession. adopt. issuances. That all positions in the GSIS shall be governed duties and responsibilities of the GSIS. — The establishment. re-adjust rendered ineffective and without legal force and effect. 186 shall implement the entity. perform and carry out contracts of national government to secure such solvency or liability. repealed by law and a provision is enacted to substitute or replace the exemption referred to herein as an essential (g) to sue and be sued. sums or monies corresponding to the (i) to carry on any other lawful business whatsoever in benefits under this Act shall be exempt from attachment. or incurred relative to or in connection Philippines and/or in any or all foreign countries. only as an incident in the "SECTION 40. in accordance with the provisions of this Act. Powers and Functions of the GSIS. including his (j) to have one or more offices in and outside of the pecuniary accountability arising from or caused or Philippines. notwithstanding and independently of the guaranty of the (h) to enter into. make. ADMINISTRATION (k) to borrow funds from any source. every kind and description with any person. (l) to invest. (c) to invest the funds of the GSIS. as well as the effective according to the Civil Service rules and regulations: exercise of the powers and functions. to authorize such capital prevailing compensation plans in the private sector and and operating expenditures and disbursements of the GSIS shall be subject to the periodic review by the Board no as may be necessary and proper for the effective more than once every four (4) years without prejudice to management and operation of the GSIS. foreign or domestic. directly or indirectly. states with his position or work except when his monetary and territories: Provided. Consequently. That the GSIS shall maintain a liability. and the discharge of Provided. contractual or otherwise. own or otherwise participate in equity in any "SECTION 41. budget of receipts and expenditures including salaries and That the compensation plan shall be comparable with the allowances of the GSIS personnel. regulations.

preceding year including information and Tenure and Compensation.500) for each board meeting actually (v) to determine. and in the event of failure or effectively carry out the purposes of this Act. Its Composition. That the best interest other than through the expiration of the term. Vacancy. — The corporate powers and recommendations on broad policies for the development functions of the GSIS shall be vested in and exercised by and perfection of the programs of the GSIS. to initiate or institute the necessary or proper "(b) to promulgate such rules and regulations as may be actions or suits. commissions. refusal of the obligor or debtor to comply with the demand. employees/retirees. criminal. The Board of Trustees. enterprise. investment. disposition of acquired assets. the demand within which to pay or settle the account. growth. and term maturity by pooling funds for short-term secondary market. (y) to exercise such powers and perform such other acts as may be necessary. whether public or private. of the Philippines regarding its activities in the administration and enforcement of this Act during the "SECTION 42. and office for six (6) years without reappointment. — The Board of Trustees shall have the following arising from any cause or source whatsoever.000) a month and reasonable transportation and representation allowances as may be fixed by the Board. insurance coverage of government properties. liabilities and/or accountabilities. The programs shall be so designed as to spur socio-economic take-off and maintain continued (q) to be able to float proper instrument to liquefy long. and one (1) of claims. filled for the unexpired term only. shall elect from among themselves a Chairman while the and the enforcement of the provisions of this Act. and insurance sectors. Provided. before the courts. useful. development of housing of appointment is also a member of the GSIS. tribunals. Superintendents (PASS). (w) to ensure the collection or recovery of all indebtedness. one (1) contributions made by both the GSIS and its officials and of whom shall be either the President of the Philippine employees and their earnings. whether days reckoned from the expiry date of the period fixed in natural or juridical. which consists of to be appointed by the President of the Philippines. The members of the Board shall be entitled to a per diem of Two thousand five hundred pesos (P2. or bodies of proper jurisdiction within thirty (30) and responsibilities of the GSIS. not later than June 30. incidental or auxiliary to carry (r) to submit annually. or to attain the purposes and report to the President of the Philippines and the Congress objectives of this Act. due from all powers and functions: obligors. The Trustees projects. powers and functions as well as the discharge of the duties boards. Powers and Functions of the Board of unpaid premiums or contributions in favor of the GSIS Trustees. a public out the provisions of this Act. President and General Manager of the GSIS shall automatically be the vice-chairman. civil or administrative or necessary or proper for the effective exercise of the otherwise. (P10. but not to exceed Ten thousand pesos premiums due from employers and employees. the Board of Trustees composed of the President and General Manager of the GSIS and eight (8) other members (s) to maintain a provident fund. . settlement finance. including "SECTION 43. (p) to enter into agreement with the Social Security System (x) to design and implement programs that will promote or any other entity. guidelines and programs to obligation becomes due. savings/investments. or until other monies due to the GSIS at such rates and under such their successors are duly appointed and qualified. shall hold and/or remittance of contributions. increased benefit and loan packages to members.credits extended to members or other persons. (u) any provision of law to the contrary notwithstanding. corporation or partnership and mobilize savings and provide additional resources for for the benefit of members transferring from one system to social security expansion and at the same time afford another subject to the provision of Republic Act No. privatization or recognized member of the legal profession who at the time expansion of subsidiaries. fix and impose interest upon unpaid attended by them. for the payment of benefits Public School Teachers Association (PPSTA) or the to such officials and employees or their heirs under such President of the Philippine Association of School terms and conditions as it may prescribe. except the President and General Manager officials and employees directly involved in the collection who shall cease as trustee upon his separation. shall be of the GSIS shall be observed thereby. to authorize the payment of extra remuneration to the The Trustees. The Board shall demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the "(a) to formulate the policies. conditions as it may adopt. 7699. individual members appropriate returns on their otherwise known as the Portability Law. another four (4) from the banking. another two (2) shall represent the leading organizations or associations of government (t) to approve and adopt guidelines affecting investments. loan repayments. its officers and employees.

— The President and General Manager administration of the GSIS. to approve the annual and supplemental Manager with the approval of the Board. execute and administer the policies and resolutions approved by the board and direct "(d) upon the recommendation of the President and and supervise the administration and operations of the General Manager. he may appoint a representative known as the Attrition Law. Legal Counsel. quasi-judicial agencies or incidental to the attainment of the purposes and objectives administrative bodies in cases involving the GSIS. regulations. 6758. — The President and General Manager methods of transacting business of the GSIS at least once of the GSIS shall be its Chief Executive Officer and shall be every three (3) years and the report of said examination appointed by the President of the Philippines. That for each "The GSIS President and General Manager shall be assisted examination the GSIS shall pay the office of the Insurance by one or more executive vice-presidents. including the salaries of the examiners and of the actuary of such examination for the actual time spent. Commissioner an amount equal to the actual expenses presidents. and to with the existing Civil Service rules and regulations. The President and General Manager. — The Government it may impose for the best interest of the GSIS."(c) upon the recommendation of the President and be appointed and removed by the President and General General Manager. For this purpose. operation and General Manager. fix. Powers and Duties of the President and for the effective management. however. any claim or settle liability to the GSIS. "(h) to determine. authorize such operating and capital expenditures and disbursements of the GSIS as may be necessary or proper "SECTION 45. proper or issued by the court. bonuses. Appointment. and the necessary personnel to assist said representative in the performance "(e) to fix and periodically review and adjust the rates of of his duties. He shall be a shall be submitted to the Board of Trustees and copies person with management and investments expertise thereof be furnished the Office of the President of the necessary for the effective performance of his duties and Philippines and the two Houses of the Congress of the functions under this Act. who shall be the Auditor of the GSIS. which shall be exempt from "SECTION 46. in whole or in for the calendar year just ended. to approve the GSIS' organizational and GSIS. — The "SECTION 44. issues for legal opinions. suspend or otherwise discipline them for compensation package for the officers and employees of cause. and prescribe their duties and qualifications privileges and other benefits as may be necessary or to the end that only competent persons may be employed. but the GSIS may assign to the Office of the "(g) to approve and adopt guidelines affecting investments. senior vice. regardless of the amount involved. . as the GSIS housing projects. review. revise and adjust the appropriate GSIS. 7430. otherwise GSIS. shall submit to the Board soon after the close of each calendar year. That the present legal services group in the GSIS Act. — (a) The Chairman of the Republic Act No. vice-presidents and managers in addition to incurred by the said office in the conduct of the the usual supervisory and rank and file positions who shall examination. shall serve as its in-house legal counsel. part. and the enforcement of the provisions of this however. of this Act. Corporate Counsel shall be the legal adviser and consultant of the GSIS. and to approval of the Board. remove. interest and other terms and conditions for loans and credits extended to its members or other persons. "SECTION 48. members. Qualifications. to compromise or release. of the GSIS shall among others. otherwise known as the Salary Commission on Audit shall be the ex officio auditor of the Standardization Law and Republic Act No. Powers of the Insurance Commission. unremitted premiums and/or contributions. disposition of acquired assets. authorized representative. in accordance with existing Civil Service rules and the GSIS with reasonable allowances. and deputize any personnel of the legal service group to act as special sheriff in the enforcement of writs and processes "(i) to do and perform any and all acts necessary. increased benefit and loan packages to may decide or determine from time to time: Provided. incentives. subject to approval by the proper court. operation and administration of the GSIS. proper for the effective management. settlement action or trial. development of review of contracts/agreements and others. and Insurance Commissioner or his authorized representatives Compensation of the President and General Manager and shall make an examination of the financial condition and of Other Personnel. Philippines within five (5) days after the close of examination: Provided. fix and impose interest upon unpaid or "The GSIS may. Government Corporate Counsel (OGCC) cases for legal insurance coverage of government properties. an audited statement "(f) the provision of any law to the contrary showing the financial condition and progress of the GSIS notwithstanding. subject to the administrative structures and staffing pattern. shall appoint the personnel of the establish. Auditor. whether "(b) The Chairman of the Commission on Audit or his natural or juridical. preparation and of claims. in accordance budget of receipts and expenditures of the GSIS. under such terms and conditions as "SECTION 47.

disbursing proper rules and procedures for the implementation of officer.00) nor more than Twenty thousand pesos (P20. PENAL PROVISIONS compensation. and/or enhance the marketability of an final judgment. who after deducting the monthly contribution or loan amortization from a member's "L. Government Assistance to the GSIS. fails to include in the annual budget the amount corresponding to the employer and employee "SECTION 50. Development and disposition of Acquired contributions. — The GSIS shall have the right to develop and than thirty (30) days from the time such amount becomes dispose of its acquired assets obtained in the ordinary due and demandable. misappropriate or use said fund or property by expressly commission."H. branches. employee on his last day of service in the government: Provided. Instead.000.A. upon conviction by profitability on. falsification.00) or by imprisonment of not "SECTION 49. — (a) Any person found to have remitted under Section 6(a) shall be presumed to have participated directly or indirectly in the commission of misappropriated such contribution or loan amortization fraud. "No injunction or restraining order issued by any court. or any instrumentalities. including government-owned or third party. or who fails or refuses or delays by more Assets.000. tribunal or office shall bar. GSIS shall be punished by a fine of not less than Five thousand pesos (P5. its thereunder.00). years. more than Six thousand pesos (P6. in whole or in part. without being entitled thereto with the intent political subdivisions. budget officer or other official or employee who this provision.00) but not arrangement with private companies or individuals.000. — less than six (6) years and one (1) day to twelve (12) (a) The GSIS shall pay the retirement benefits to the years. any employer. or is otherwise guilty of the misappropriation except on questions of ownership and national or public of said fund or property. shall be punished by a fine of not less than Five controlled corporations and government financial . No. Penalty. For this purpose. cashier. finance officer. shall suffer interest. may be necessary in the discharge of its duties and functions. or both. and in addition shall suffer absolute other persons. agencies and to defraud any member. all agencies concerned shall process and pay the gratuities of their employees. uses the same to any purpose other than that authorized by this Act. payable or deliverable to the GSIS determine its current market value.000. the GSIS. the GSIS shall conduct an "(e) Any employee or member who receives or keeps fund annual appraisal of its property or acquired assets to or property belonging. "(f) Any employee. impede or delay consenting thereto. from practicing any profession or calling licensed by the government. That all requirements are submitted to the GSIS "(c) Whoever fails or refuses to comply with the provisions within a reasonable period prior to the effective date of the of this Act or with the rules and regulations adopted by the retirement. Dispensation of Social Insurance Benefits. the penalties provided in Article 217 of the Revised Penal Code. "(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement "(g) The heads of the offices of the national government. GENERAL PROVISIONS thousand pesos (P5. for an amount not lower than the current market value of the property.000.000.A. at the discretion of the court. or misrepresentation in any and shall suffer the penalties provided in Article 315 of the transaction with the GSIS whether for him or for some Revised Penal Code. 910. the GSIS may further develop/renovate the six (6) months and one (1) day to six (6) years. To add value to. 1616 less than six (6) years and one (1) day to twelve (12) except refund of retirement premium and R. at the discretion of the court. fails to remit the same to the GSIS within thirty (30) days from the date they should have been "SECTION 52. and in addition shall suffer absolute perpetual disqualification from "The GSIS may sell its acquired assets in accordance with holding public office and from practicing any profession or existing Commission on Audit (COA) rules and regulations calling licensed by the government.00) nor more than Twenty "(b) The GSIS shall discontinue the processing and thousand pesos (P20. and a fine same either with its own capital or through a joint venture of not less than Three thousand pesos (P3. improve contributions of the employee shall. collusion. or both. suffer the penalties of imprisonment from acquired asset. or to deduct the monthly course of its business. No. and in addition shall suffer absolute perpetual disqualification from holding public office and from "SECTION 51. shall suffer the penalties provided for in perpetual disqualification from holding public office and Article 172 of the Revised Penal Code. The Board shall adopt the "(d) The treasurer.00). or through abandonment or the sale and disposition by the GSIS of its acquired assets negligence. or by imprisonment of not adjudication of retirement claims under R. or permits another person to take. — The practicing any profession or calling licensed by the GSIS may call upon any employer for such assistance as government. or takes or misappropriates or be published in newspapers of general circulation. All notices of sale shall and appropriates the same.

SECTION 3. Powers. including the at least two (2) newspapers of general circulation. aggrieved member. Appropriations. shall Approved: May 30. "SECTION 54.00). 1997. Presidential Decrees and Letters of Instructions. That criminally but also civilly to the GSIS or to the employee or the rights under existing laws. shall remain in force and effect. However. either under this Act or. refuse or delay the payment. licensed by the government. government obligation program of the year following its suffer the penalties of imprisonment of not less than one enactment into law and thereafter. not otherwise specifically inconsistent with the provisions of this Act. 29 page 4360 of this Act may be commenced by the GSIS or by the on July 21. — All laws and any other "(h) The officers and/or personnel referred to in law or parts of law specifically inconsistent herewith are paragraph (g) of this section shall be liable not only hereby repealed or modified accordingly: Provided. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in "(j) Failure of the Members of the GSIS Board. and the personnel of such offices who are provided under this Act. 1997 subject them to imprisonment of not less than six (6) months nor more than one (1) year or a fine of not less than Five thousand pesos (P5. Separability Clause. the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. and in addition shall this Act or any part thereof be declared invalid.000. The Philippine Star. 1997. and the Manila Bulletin on June 9. Exclusiveness of Benefits. 93 No. — Should any provision of Twenty thousand pesos (P20. or administrative liability which may also arise therefrom. Implementing Rules and Regulations. including upon or acquired by an employee who is already in the surcharges and interests. "SECTION 55.00) nor more than Ten Published in Malaya. a new employee or an employee who (g) of this Section. 1997. service as of the effectivity of this Act shall remain in force and effect: Provided. amend or limit any provision of existing laws. — The amount necessary to delivery of such accounts to the GSIS within thirty (30) carry out the provisions of this Act shall be included in the days from the time that the same shall have been due and respective budgets of the agencies in the national demandable shall. SECTION 4. Repealing Clause. loan difference. in appropriate cases. if the benefits provided by the law chosen are less than the benefits . Functions and Activities.000. further. so far as they are separable from the invalid public office and from practicing any profession or calling ones. Privileges. "SECTION 53. Jurisdiction. hence. amortization and other accounts due the GSIS who shall fail. — The implementing rules and regulations to carry out the provisions of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act.00) nor more than SECTION 2. upon conviction by final judgment.000. remittance or "SECTION 56. chairman and the vice-chairman. Philippine Daily thousand pesos (P10. the other suffer absolute perpetual disqualification from holding provisions. — Nothing in this Act shall be construed to repeal. July 28. the GSIS shall pay only the involved in the collection of premium contributions. to comply with the provisions of paragraph (w) of Section 41 hereof." (1) year nor more than five (5) years and a fine of not less than Ten thousand pesos (P10.00) without prejudice to any civil Inquirer.000. Vol. rules and regulations vested member concerned in the form of damages. the liabilities therein set forth shall be has previously retired or separated and is reemployed in construed as waiver of the State of its immunity from suit.institutions. turnover. Non-impairment of Benefits. under the Revised Penal Code. Effectivity. Rights. That subsequent to the "(i) For the charges or complaints referred to in paragraph effectivity of this Act. the service shall be covered by the provisions of this Act. the above-mentioned officials and/or personnel may not invoke the defense of non-suability of the State. — Whenever other laws provide similar benefits for the same contingencies covered by this Act. "Criminal actions arising from violations of the provisions Published in the Official Gazette.