GOVERNMENT SERVICE INSURANCE ACT OF 1997

(RA 8291)
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED,
EXPANDING ANDINCREASING THE COVERAGE AND BENEFITS OF THE
GOVERNMENT SERVICE INSURANCESYSTEM, INSTITUTING REFORMS
THEREIN AND FOR OTHER PURPOSES

1.

Purpose
Originally created by Commonwealth Act No. 186 which was passed on
November 14, 1936
To provide and administer the following social security benefits for
government employees; compulsory life insurance, optional life
insurance, life benefits, disability benefits for work-related contingencies
and death benefits.
Entrusted with the administration of the General Insurance Fund by
virtue of RA 656 of the Property Insurance Law.
To provides insurance coverage to assets and properties which have
government insurable interests.

2.

Who are Covered?

3.

Legal spouse entitled for support;

Child, whether legitimate, legitimated, legally adopted or illegitimate; and
Parents dependent for support.

When will a Child be Considered Dependent?

a.
b.
c.
d.
e.

5.

Employee or Member
Any person receiving compensation while in service of an employer as
defined herein, whether by election or appointment, irrespective of
status appointment.

Who are the Dependents?

a.
b.
c.

4.

Employer
The national government, its political subdivisions, branches, agencies
or instrumentalities, including Government Owned and Controlled
Corporations (GOCC) and financial institutions with original charters,
the constitutional commissions and judiciary

Unmarried;
Not gainfully employed;
Below 21 years of age;
Not over age of majority; or
Incapable of supporting himself either physically or mentally prior to 21
years of age or age of majority, as the case may be.

Who are the Beneficiaries?

Primary
a. Legal Dependent spouse until remarriage; and
b. Dependent Children

Secondary
a. Dependent parents; and
b. Legitimate descendants subject to restrictions on dependent children

6.

7.

What are the Benefits?

For All Members

a. Life Insurance;
b. Retirement;
c. Disability;
d. Survivorship;
e. Separation; and
f. Unemployment or Involuntary Separation.

For Judiciary
a. Life Insurance ONLY All Tax Exempt

What is the Coverage for the Membership?

8.

What are the Exceptions from the Coverage of the Membership?

Members of the Armed Forces of the Philippines;
Members of the Philippine National Police;
Contractual employees, who have no employer-employee relationship
with the agency to serve;
Members of judiciary and constitutional commissions: covered by
life insurance only.

a.
b.
c.
d.

9.

Compulsory Membership
Compulsory for all employees receiving compensation who have not
reached the compulsory retirement age, irrespective of employment
status.

What is Compensation?
The basic pay or salary received by an employee, pursuant to his
election/appointment, excluding per diems, bonuses, overtime pay,
honoraria, allowances and any other emoluments received in addition to
the basic pay.

10. What can be the Members Basis of Claim?

Work-connected exempt from liability where permanent disability due to
his grave misconduct, habitual intoxication, or wilful intention to kill
himself or another.

11. What can be the Effect of Separation from Employment?

A member separated from the service shall continue to be a member,
and shall be entitled to whatever benefits he has qualified to in the event
of any contingency compensable under this Act

12. What are the Reporting Requirements Needed?

Employer
Report to GSIS the names, employment status, positions, salaries of
the employee and such other matter as determined by the GSIS.

13. What are the Sources of their Funds?

a.
b.

Employers contributions; and

Employees/members contributions.

14. How to Compute the Service Rendered?

For the purpose of determining the amount of benefits payable shall be

from the date of original appointment/election including periods of
service at different times 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.

All service credited for retirement, resignation or separation for which

corresponding benefits have been awarded shall be excluded in the
computation of service in case of reinstatement in the service of an
employer and subsequent retirement or separation which is
compensable.

15. What can be the exemption from Tax/Legal Process/Lien?

Property, assets, and revenues of GSIS are all exempt from taxes, and
all benefits paid by GSIS shall likewise be exempt from taxes,
assessment, fees, charges, and duties of all kind

16. What is the Procedure for Dispute Settlement?

Any dispute arising under this Act and other laws administered by GSIS.

Jurisdiction: GSIS

When decision is made: 30 days from receipt of the hearing officers

findings and recommendations or 30 days after submission for decision.

Appeal:
- Court of Appeals (Rule 43, Section 31)
- Supreme Court (Rule 45)

17. What is the Prescriptive Period?

4 years from the date of contingency