University of Santo Tomas

Faculty of Civil Law

Agrarian Reform and Social Legislation

Academic Year 2020-2021, Term 1

Submitted to:
Atty. Irvin Joseph Fabella

Submitted by:
Miguel Joshua G. Aguirre
Kevin Consignado
Namnama Chantal F. Espiritu
Pia Aila D. Martinez
Garnee Claudine M. Ragonhan
Dianne Nicole L. Ramos

1
Aguirre, Miguel Joshua G.
Agrarian Reform and Social Legislation
RULE I
DEFINITION OF TERMS
Section 1. Unless the context otherwise
indicates, the following terms shall
mean:
 ACT – Refers to Republic Act No.
8291, otherwise known as the
Government Service Insurance
System Act of 1997.
 AMC – Refers to Average Monthly
Compensation. This refers to the
average salary received by the
member during the last 36 months
of creditable service preceding his
separation, retirement, disability, or
death, or, if with less than 36
months of creditable service, the
actual number of months of the
creditable service.
 APL - Refers to Automatic Policy
Loan or Automatic Premium Loan.
This is the amount that will be
deducted from the Cash
Value/Termination Value of a life
insurance policy to keep the policy
in force.
 BENEFIT – The amount that GSIS
is obligated to pay the member
upon the occurrence of a covered
contingency that is payable under
the GSIS.
 BILLING – The process of sending
notices or statements to
government agencies, members, or
borrowers to remind or demand
payment for accounts that are
falling due or are past their due
dates.
 BOARD – The Board of Trustees of
the GSIS.
 CASH DIVIDEND - The sum of
money paid to policyholders whose
life insurance policies have been in
force for at least one year subject to
amount and conditions
recommended by Actuary and
approved by the Board.
 CASH PAYMENT – A benefit
payable to a member upon
separation, disability or retirement,
or to the beneficiaries upon the
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GSIS Act of 1997
Definition of Terms
death of the member, under
conditions provided by law.
 CASH VALUE – Accumulated
amount earned based on premium
payment while the LEP is in force.
 CLAIM – A request from the
member or his beneficiaries for
payment of benefits that may be
due as provided under this Act.
 CLIP – Refers to Claims and Loans
Interdependency Policy. This is a
mechanism which ensures the
collection of unpaid accounts from
the proceeds of a loan or claim of a
member or his beneficiaries.
 COMPENSATION - The fixed
monthly salary received by an
employee excluding allowances,
per diems, bonuses, overtime pay,
honoraria and other emoluments
not integrated into the fixed monthly
salary.
 CONTINGENCIES – Events such
as separation from the service,
retirement, disability or death which
are payable under this Act.
 CONTRIBUTION – The amount
payable to the GSIS by the member
and government agency or
employer to which he belongs.
 CSV – Refers to Cash Surrender
Value, which is the amount to be
paid to the policyholder of Life
Endowment Policy (LEP) or
optional life insurance policies
when he is separated from the
service before maturity date of the
policy or when a policyholder is
considered a case of Permanent
Total Disability (PTD).
 CURRENT DAILY
COMPENSATION. — The actual
daily compensation or the fixed
monthly compensation divided by
twenty-two (22) days.
 DEPENDENTS – The (a) legitimate
spouse dependent for support on
the member or pensioner, (b)
legitimate/legitimated legally
adopted child, including the
illegitimate child, who is unmarried,
not gainfully employed, not over the
age of majority, or is over the age of
majority but incapacitated and
Aguirre, Miguel Joshua G. GSIS Act of 1997
Agrarian Reform and Social Legislation Definition of Terms
incapable of self-support due to a while in the service of a government
mental or physical defect acquired agency by virtue of an appointment
prior to age of majority, and (c) the or election to public office and
parents dependent upon the irrespective of status of
member for support. appointment.
 DISABILITY – Any loss or  ACTIVE MEMBER. — A member of
impairment of the normal functions GSIS, whether regular or special,
of the physical and/or mental who is in the government service.
faculties of a member, which  INACTIVE MEMBER. – A member
reduces or eliminates his capacity who is separated from the service,
to continue with his current gainful either by resignation, retirement,
occupation or engage in any other disability, dismissal, or
gainful occupation resulting in the retrenchment.
loss of income.  REGULAR MEMBERS – Those
 ELP – Refers to Enhanced Life who, together with the government
Policy. This is a compulsory life agency to which they belong, are
insurance coverage issued by GSIS required to remit life and retirement
after July 31, 2003. premium contributions as
 FUNERAL BENEFIT – Benefit mandated under Section 5 of RA
intended to help defray the 8291.
expenses incidental to the burial  SPECIAL MEMBERS – Those who,
and funeral of the deceased together with the government
member, pensioner or retiree. agency to which they belong, are
 GAINFUL OCCUPATION – Any required to remit life insurance
productive activity that provides premiums only.
income of at least equal to the  PENSION – A monthly specified
prevailing minimum compensation cash amount that a qualified
of government employees. member will receive upon
 GOVERNMENT AGENCY - Any retirement or when considered as a
government office whether national case of permanent total disability.
or local, legislative bodies,  RCS – Refers to Record of
government-owned and controlled Creditable Service. The RCS
corporations (GOCC) with original includes service periods with
charters, government financial corresponding premium
institutions (GFIs), constitutional contributions and serves as basis
commissions, judiciary, Armed for computing benefits.
Forces of the Philippines, the  TERMINATION VALUE –
Philippine National Police, Bureau Accumulated amount earned based
of Jail Management and Penology on premium payment while the ELP
(BJMP) and Bureau of Fire is in force.
Protection (BFP).
 INVESTMENTS – Amounts of RULE VI
money or other resources FUNDS OF THE GSIS
measured in terms of money placed
on activities for the purpose of Section 45 Funds
earning profits.
 LEP- Refers to Life Endowment The Fund
Policy. This is the life insurance  Sourced through all contributions made
policy issued to regular members to the System
prior to August 1, 2003 or to special  Used to pay for the following
members after the implementation benefits/fund:
of this Act. o Source of benefits under R.A. 8291:
 MEMBER – A government o Separation benefits
employee receiving compensation

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Aguirre, Miguel Joshua G.
Agrarian Reform and Social Legislation
o Unemployment or involuntary
separation benefits
o Retirement benefits
o Disability benefits
o Survivorship benefits
o Funeral benefits
o Life Insurance benefit
o Such other benefits and protection
as may be extended to them by the
GSIS such as loans
o Compensation Fund (P.D. 626)
o General Insurance Fund (Act No.
656)
o Other special funds
Section 46 Deposits and Disbursements
 Only 12% of yearly revenues can be
disbursed for administrative and
operational expenses of the System
 XPN: Unless otherwise approved by
the President of Philippines
Section 47 Investment of Funds
Investment and Exemption of the Fund
 Requirements for investment to ensure
actuarial solvency of funds:
o Liquidity
o Safety/security
o Yield
Example of investment vehicles:
a) Interest-bearing bonds or securities
of the Gov’t of the PH;
b) Interest-bearing deposits or
securities in any domestic bank
doing business in the PH;
c) Direct housing loans and short-and-
medium-term loans to members;
d) Bonds, securities, promissory notes
or other evidence of indebtedness
of educational or medical
institutions;
e) Real estate property including
shares of stock and other
collaterals acceptable to the
System;
f) Debt instruments and other
securities traded in the secondary
markets;
g) Loans, bonds, debentures,
promissory notes or other evidence
of indebtedness of any solvent
corporation created under PH laws;
4
GSIS Act of 1997
Definition of Terms
h) Common and preferred stocks of
any solvent corporation created
under PH laws;
i) Domestic mutual funds; and
j) Foreign mutual funds
 GSIS shall submit an annual report
on its investments to both Houses of
the Congress
 The GSIS, its assets, properties,
revenues including all accruals thereto,
and benefits paid, are exempt from all
taxes, assessments, fees, charges
and duties of all kinds as well as all
legal proceedings.
RULE VII
ADMINISTRATION
ND O
Section 50 The Board of Trustees; Its
Composition; Tenure and Compensation
FFICIALS
Board of Trustees
 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 (8) other members to be
appointed by the President
Composed of the following:
a) One (1) from either the President of
the Philippine Public School
Teachers Association (PPSTA) or
the President of the Philippine
Association of School
Superintendent (PASS);
b) Two (2) from leading organizations
or associations of government
employees/retirees;
c) Four (4) from the banking, finance,
investment, and insurance sectors;
and
d) A 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
Aguirre, Miguel Joshua G. GSIS Act of 1997
Agrarian Reform and Social Legislation Administration
GSIS shall automatically be the Vice- Section 54 Auditor
Chairman
 The Trustees, except the President and  Chairman of COA as ex-officio Auditor
General Manager who shall cease as  May appoint a representative as
trustee upon his separation, shall hold Auditor on his behalf
office for six (6) years without  Submits a yearly audited statement
reappointment, or until their showing the financial condition of the
successors are duly appointed and System
qualified. Section 55 Legal Counsel
Section 49 Powers and Functions of the  Government Corporate Counsel as
GSIS. Legal Counsel
 The System’s legal services group and
a) To formulate and promulgate the Branch Attorneys as the System’s in-
policies, guidelines and program to house legal counsel
effectively carry out the purposes of  Acts as special sheriff in the
RA 8291 enforcement of writs and processes
b) To have the primary duty to receive involving the GSIS.
and hear appeals for administrative
remedies involving disciplinary
actions against GSIS employee,
before such appeals are referred to
the courts as formal complaints;
c) To approve and adopt guidelines
affecting investments, insurance
coverage of government properties,
settlement of claims, disposition of
acquired assets, development of
housing projects; increased benefit
and loan packages to members,
and the enforcement of the
provisions of this Act;
d) To do and perform any and all acts
necessary, proper or incidental to
the attainment of the purpose and
objectives of this Act
Section 52 Appointment, Qualifications,
and Compensation of the President and
General Manager of Other Personnel
President and General Manager
 Appointed by the President
 Also serves as CEO of the System
 Can appoint executive vice-presidents,
senior vice-presidents, vice presidents,
and managers subject to the approval
of the Board of Trustees
 Executes and administers the policies
and resolutions approved by the Board
and direct and supervise the
administration and operations of the
GSIS

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Espiritu, Namnama Chantal F.
Agrarian Reform and Social Legislation
RULE IX
GENERAL PROVISIONS
Section 60. Dispensation of Social
Insurance Benefit
Payment of Retirement Benefits
 The GSIS shall pay the retirement
benefits to the employee on his last day
of service in the government.
 All requirements must be submitted to
the GSIS within a reasonable period
prior to the effective date of the
retirement.
Processing and Adjudication of Retirement
Claims
 The GSIS shall discontinue the
processing and adjudication of
retirement claims under Republic Act
910 and R.A. No. 1616.
 Except refund of retirement premiums.
All agencies concerned shall process
and pay the gratuities of their
employees after securing the
appropriate clearance from the GSIS to
clear any outstanding obligations to the
System.
Section 61. Development and
Disposition of Acquired Assets.
The GSIS shall have the right:
1) To develop and dispose of its acquired
assets obtained in the ordinary course
of its business.
2) To add value to, improve profitability on,
and/or enhance the marketability of an
acquired asset
3) To further develop/renovate the same
either with its own capital or through a
joint venture arrangement with private
companies or individuals.
4) To sell its acquired assets in
accordance with existing COA rules
and regulations for an amount not lower
than the current market value of the
property.
The GSIS shall:
1) Conduct an annual appraisal of its
properties or acquired assets to
determine its current market value.
6
GSIS Act of 1997
General Provisions
2) Publish notices of sale in
newspapers of general circulation
No injunction or restraining order issued by
any court, commission or tribunal or office
shall bar, impede or delay the sale and
disposition by the GSIS of its acquired
assets except on questions of ownership
and national or public interest.
Section 62. Government Assistance to
the GSIS.
 The GSIS may call upon any
government agency for such
assistance as may be necessary in its
discharge of its duties and functions.
Section 63. Non-impairment of Benefits,
Powers, Jurisdiction, Rights, Privileges,
Functions and Activities.
 Nothing in this IRR shall be construed
to repeal, amend or limit any provision
of RA 8291 nor of any existing laws,
Presidential Decrees and Letters of
Instructions, not otherwise specifically
inconsistent with the provisions of RA
8291.
Section 64. Exclusiveness of Benefits.
 The member who qualifies to the
benefits when other laws provide
similar benefits for the same
contingencies covered by RA 8291,
shall have the option to choose which
benefits will be paid to him.
 If the benefits provided by the other law
chosen are less than the benefits
provided under RA 8291, the GSIS
shall pay only the difference.
Section 65. Appropriations.
 The amount necessary to carry out the
provisions of RA 8291 shall be included
in the respective budgets of the
covered agencies in the national
government obligation program starting
CY 1998.
Espiritu, Namnama Chantal F.
Agrarian Reform and Social Legislation
Section 66. Separability Clause.
 If any provision of RA 8291 or any part
thereof be declared invalid, the
corresponding provisions in this IRR
shall be correspondingly stricken out,
amended, or qualified as appropriate.
 The other provisions are separable
from the invalid ones, thus, shall remain
in force and in effect.
Section 67. Repealing Clause
 All provisions of existing implementing
rules and regulations, circulars, and
other procedures corresponding to
laws and any other law or parts of law
specifically inconsistent with RA 8291
and with these IRR are hereby repealed
or modified accordingly.
 The rights under existing laws, rules
and regulations vested upon or
acquired by an employee who is
already in the service as of the
effectivity of RA 8291 shall remain in
force and in effect.
 A new employee or an employee
subsequent to the implementation of
this Act, who has previously retired or
been separated and is re-employed in
the service, shall be covered by the
provisions of this IRR.
RULE II
COMPULSORY MEMBERSHIP
Section 2. Compulsory Membership.
Who are compulsorily covered?
 All government personnel, whether
elective or appointive, irrespective of
status of appointment.
o Provided, they are receiving
compensation who have not
reached the compulsory
retirement age, and are
receiving fixed monthly
compensation.
 Employees who have reached the
retirement age of 65 or more are
compulsorily covered, in the following
situations:
7
GSIS Act of 1997
General Provisions
1) An elective official who at the time
of election to public office is below
65 years of age and will be 65 years
or more at the end of his term of
office, including the period/s of his
re-election to public office thereafter
without interruption.
2) Appointive officials who, before
reaching the mandatory age of 65,
are appointed to government
position by the President of the
Republic of the Philippines and
shall remain in government service
at age beyond 65.
 Contractual employees including
casuals and other employees with an
employee-government agency
relationship are also compulsorily
covered, provided they are receiving
fixed monthly compensation and
rendering the required number of
working hours for the month.
Classes of Membership in the GSIS:
1) As to type
a) Regular Members
- Those employed by the
government of the Republic of the
Philippines, national or local,
legislative bodies, government-
owned and controlled corporations
(GOCC) with original charters,
government financial institutions
(GFIs), who are required by law to
remit regular monthly contributions
to the GSIS.
b) Special Members
- Constitutional commissioners,
members of the judiciary, including
those with equivalent ranks to
answer for their life insurance
benefits defined under RA 8291.
2) As to status of membership
a) Active member
- A member of the GSIS, whether
regular or special, who is still in the
government service and together
with the government agency to
Espiritu, Namnama Chantal F.
Agrarian Reform and Social Legislation
which he belongs, is required to pay
the monthly contribution.
b) Inactive member
- A member who is separated from
the service either by resignation,
retirement, disability, dismissal from
the service, retrenchment or, who is
deemed retired from the service
under this Act.
Section 3. Exclusion from Compulsory
Coverage.
1) Uniformed personnel of the Armed
Forces of the Philippines (AFP),
Philippine National Police (PNP),
Bureau of Fire Protection (BFP) and
Bureau of Jail Management and
Penology (BJMP);
2) Barangay and Sanggunian Officials
who are not receiving fixed monthly
compensation;
3) Contractual Employees who are not
receiving fixed monthly
compensation; and
4) Employees who do not have
monthly regular hours of work and
are not receiving fixed monthly
compensation.
Section 4. Policy Governing
Membership Administration.
 The basic policy governing
membership administration shall be
length of service with
corresponding paid premiums.
 The basic principles under this
policy:
1) Membership in the GSIS carries
with it the legal obligation to
promptly remit the required
monthly premium contributions.
The extent of the benefits to
which a member is entitled will
depend upon the level of
compliance in the remittance of
his premium contributions.
2) Government agencies where
the members are employed
8
GSIS Act of 1997
General Provisions
have the legal obligation to
remit on time the monthly
premium contributions due from
members concerned, both for
personal and government
shares.
In case of delay, they have the
legal obligation to pay interest
as may be prescribed by the
Board but not less than two
percent (2%) simple interest per
month.
3) For purposes of computing the
benefits under the social
insurance laws administered by
the GSIS, a member’s period of
service in government will only
be recognized by GSIS as
creditable service if the monthly
compulsory premiums
corresponding to said period
have been paid and remitted,
including the interests if there
are delays in their remittance.
4) In case of underpayment of the
monthly premium contributions
due, only such portion of the
period of service
proportionately equivalent to
the amount actually received
shall be recognized as
creditable service.
5) The amount of monthly
contributions due from a
member is based on his fixed
monthly compensation.
6) The compulsory life insurance
coverage extended to the
members is dependent on the
timely remittance of the
premiums due for the coverage.
The said coverage may lapse
for failure to remit the required
premiums
Espiritu, Namnama Chantal F.
Agrarian Reform and Social Legislation
Section 5. Effectivity of Membership
The effective date of membership shall be
the date of the member’s assumption to
duty on his original appointment or election
to public office.
Section 6. Compulsory Life Insurance.
Types of compulsory life insurance
programs for GSIS members.
1) Life Endowment Policy (LEP)
2) Enhanced Life Policy (ELP).
Life Endowment Policy (LEP)
 Coverage
- It provides coverage against death
whether due to natural or accidental
causes, permanent total disability,
and cash benefits upon maturity or
separation from the service.
 Effectivity of Coverage
- Effective date of coverage is the
date of appointment regardless of
the status thereof, or assumption to
duty, whichever is later and
applicable.
 Members Covered under LEP
1) Regular members whose
policies were issued before
August 1, 2003 and who have
opted to continue with their
endowment or ordinary life
plans.
2) Special members
 Insurance Coverage
- Type of insurance plans issued to
members depend on the age
nearest the member’s birth date at
the time of effectivity, as follows:
Enhanced Life Policy (ELP)
Age Bracket Plan of
Insurance
30 years and Endowment at
below 45
31 years to 40 Endowment at
55
9
GSIS Act of 1997
Membership
41 years to 59
Endowment at
65
60 years and Ordinary Life
over
- The amount of insurance is based
on the plan of insurance, the age of
the member at the effectivity of the
plan, and the fixed monthly pay of
the member.
- An insurance factor based on the
age and type of insurance is applied
to the annual salary to get the
amount of insurance.
 Provisions
- After the first year of coverage, the
plan earns cash value and
increases with the regular payment
of premiums on the plan.
- In case of non-payment of the
premiums, an APL will be applied
against the cash value provided
that the policy has enough cash
value, less policy loan, to cover the
APL. Provided further, that such
non-payment shall not extend to
more than 12 months. In the case
non-payment extends to more than
12 months, the policy shall be
lapsed and the remaining cash
value shall be the seed fund of the
reinstated policy.
 Dividends
- Based on the Accumulated
Termination Value
o Termination value
represents the value earned
by ELP, which accumulates
at a rate equivalent to 25%
for every monthly life
insurance premium due and
paid in full.
 Coverage
- It provides coverage against death
whether due to natural or accidental
causes, permanent total disability,
and cash benefits upon maturity or
separation from the service.
Espiritu, Namnama Chantal F.
Agrarian Reform and Social Legislation
 Effectivity of Coverage
1) Newly appointed government
employee - the date of appointment.
2) Employee whose policy matured on
or after August 1, 2003 - the date of
cover shall be the day following the
date of maturity of your LEP.
3) Employee who opts to convert from
LEP to ELP - the date of cover shall
be the GSIS’ approval of the
conversion.
- ELP of newly appointed employee
shall be effective for a period of 90
days from date of assumption to
duty, even without receipt of the
corresponding life insurance
premiums due and even if GSIS
has not received any formal notice
of his assumption to duty
 Members Covered under ELP
1) Regular members who entered
the service after July 31, 2003.
2) Regular members whose LEP
policies matured on or after July
31, 2003.
3) Regular members under LEP
who opted/will opt to convert
their existing LEP into ELP.
4) Regular members whose LEP
policy lapsed by reason of non-
payment of life insurance
premiums but who, after July 31,
2003, have started to remit the
premiums due for compulsory
life insurance coverage.
 Insurance Coverage
- A yearly cover automatically issued
to a new member of GSIS based on
his fixed monthly compensation.
- It does not have an endowment
policy, but it provides a higher form
of death benefit for the family.
- It has termination value which can
be withdrawn upon separation or
retirement.
 Amount of Insurance
- Based solely on annual
compensation while in government
10
GSIS Act of 1997
Membership
service, multiplied by a
predetermined amount of insurance
(AOI) factor.
o AOI Factor = Last Monthly
Salary x (12 x 1.5)
- Age and length of service are no
longer a factor in determining the
amount of insurance coverage.
 Provisions
- New employee must be receiving
fixed monthly compensation
- No supplemental policies will be
issued in case of adjustment in the
salary of the policyholder.
- ELP will earn a 25% termination
value, which can be withdrawn
upon separation or retirement.
- The termination value earned under
the policy shall be equivalent to 25%
for every monthly life insurance
premiums paid in full, either by
direct remittance or through an
automatic premium loan (APL).
- The accumulated termination value
shall increase at such rates as may
be computed by actuary.
 Causes and Effects:
1) In case the employee dies within 90
days from the date of assumption to
duty
- The corresponding death benefit or
the proceeds of the life insurance
shall be paid to the legal heirs,
subject to presentation of proof that
the employee was appointed to the
position and assumed office within
the said period. Premiums due the
GSIS shall be deducted from the
proceeds of the life insurance
benefit.
2) In case no payment of the monthly
premium contributions for life
insurance is made after the 90-day
term
- The life insurance coverage issued
shall automatically lapse and the
legal heirs of the member shall not
be entitled to life insurance benefits
in case of his death.
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation Membership

3) In case of non-payment of the whose entered the

premiums policies were service after
issued before July 31, 2003.
- An APL will be applied against the August 1,
termination value of the policy, 2003 and 2) Regular
provided that the said policy has who have members
opted to whose LEP
enough termination value, less policies
continue with
policy loan, to cover the premiums their matured on or
due for the life insurance coverage. endowment / after July 31,
- Provided that such non-payment ordinary life 2003.
shall not be more than 12 months. plans.
3) Regular
4) In case non-payment is more than 2) Special members under
12 months members LEP who
- The policy shall be lapsed and the opted/will opt to
convert their
remaining termination value shall existing LEP
be the seed fund of the reinstated into ELP.
policy.
4) Regular
members
 Dividends whose LEP
- Based on Policy Reserves policy lapsed by
o Reserves represent the reason of non-
ideal amount that must be payment of life
insurance
set aside for the policy to premiums but
provide the promised who, after July
benefits. 31, 2003, have
started to remit
LEP vs. ELP the premiums
due for
compulsory life
Life Enhanced Life insurance
Endowment Policy coverage.
Policy
Date of Endowment Endowment No Endowment
Date of appointment 1) Newly Policy depends on Policy
Effectivity regardless of appointed the age
the status government nearest the
thereof, or employee - the member’s
assumption to date of birth date at
duty, appointment. the time of
whichever is effectivity.
2) Employee
later and
whose policy Amount of 1) Plan of Based solely on
applicable.
matured on or Insurance insurance; annual
after August 1, compensation
2003 - the date 2) The age of while in
of cover shall the member government
be the day at the service,
following the effectivity of multiplied by a
date of maturity the plan; and predetermined
of your LEP. amount of
3) The fixed
insurance (AOI)
3) Employee monthly pay
factor.
who opts to of the
convert from member. AOI Factor =
LEP to ELP - Last Monthly
the date of Salary x (12 x
cover shall be 1.5)
the GSIS’
approval of the Automatic APL will be APL will be
conversion. Policy Loan applied applied against
against the the termination
Members 1) Regular 1) Regular cash value, value of the
Covered members members who

11
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation Membership

to cover the policy, to cover

APL. the premiums
due for the life
insurance
cover.

Dividends Based on the Based on

Policy Accumulated
Reserves Termination
Value

12
Martinez, Pia Aila D.
Agrarian Reform and Social Legislation
Section 7. Automatic Policy Loan
Automatic Policy Loan (APL)
The APL is a feature of a GSIS life
insurance policy that keeps the policy in
force in case of non-payment of premiums
by taking out a loan amount against the
unrestricted portion of the policy’s
accumulated Cash Value (CV) or
Termination Value (TV).
The APL shall only be applied if the policy
has:
1) an unpaid premium after the grace
period; and
2) earned sufficient CV or TV to cover
the unpaid premiums or a fraction
thereof.
What if the premium contribution paid is
not sufficient to cover the life insurance
premium for a given month?
The APL equivalent to the amount of the
unpaid premium, or a fraction thereof, shall
be applied.
How much is the interest rate of APL?
The interest rate shall be the same as
the interest rate for policy loan. The
interest charged on the APL shall be
independent of the interest charged on the
agency for delayed remittances.
How much is the interest rate of the
policy loan?
It has an interest rate of 8% compounded
monthly (for ELP) and 8% compounded
annually (for LEP).
What is the formula for computing the
APL Balance?
APL Balance (current month) = APL
Balance (previous month) + interest due on
APL Balance (previous month) + unpaid
premium due for the current month
13
GSIS Act of 1997
Automatic Policy Loan
Section 8. Policy Lapsation
A policy is considered lapsed when:
1) The combined outstanding
balances of its APL and Policy Loan
have exceeded the Cash Value or
Termination Value, or
2) The policy has no payment for 12
months, or the total unpaid
premiums is equal to 12 months.
3) After the automatic lapse of a
compulsory life insurance policy,
a) If the member is still in service,
the CV/TV balance shall be
used as seed fund of his new
ELP policy or shall form part of
the termination value of his
reinstated ELP.
If the member is already
separated from service, the
CV/TV balance shall be used to
pay his/her other existing loan
obligations with the GSIS and
any excess shall be paid to the
policyholder.
b) The monthly premium billing for
lapsed policies shall continue in
case the member is still in the
service.
Basic rules on policy reinstatement and
conversion from LEP to ELP:
1) The lapsed policy shall
automatically be reinstated on the
date the life insurance premiums
are paid for the account of the
member effective on the beginning
of the due month covered by the
payment.
2) Members with lapsed LEP shall be
issued an ELP upon receipt of first
premium under the new coverage,
provided that they are still in the
office.
3) For members whose LEP has
lapsed and were issued new ELP,
all unposted life insurance
payments prior to policy lapse but
posted after policy lapse shall be
added to the termination value of
the new ELP.
4) After conversion from LEP to ELP,
any excess payment, after applying
Martinez, Pia Aila D.
Agrarian Reform and Social Legislation
the payment to the current month
and the preceding unpaid months
where the member was given a
grace period, shall be added to the
termination value of the ELP.
Section 9. Member’s Service Profile
The Member’s Service Profile (MSP)
contains the service profile of any member,
which includes, among others:
1) the date of first entry in government
service
2) the periods of government service
3) the respective agencies and the
position the member has served
4) the salaries received
5) Total Length of Service (TLS)
6) Record of Creditable Service (RCS)
What if a member has been separated
from the service by reason of
resignation, retirement, disability,
dismissal from the service,
retrenchment, or in any manner of
separation from the government agency
to which he/she is employed?
They shall continue to be a member
although they are classified under inactive
status. Their membership shall also be
maintained in the GSIS database.
Section 10. Other Policies Affecting
Membership Administration
(1) In the case of members whose
premiums are remitted to GSIS but are
later found to be ineligible for
compulsory membership:
 The policies of these members shall
be terminated.
o All remitted payments shall
be applied to the existing
obligations of the member.
o If the member has no
personal obligation to the
GSIS, he/she shall be
refunded the personal share
for life and retirement,
without interest, reckoned
from the date the member
became ineligible for
compulsory membership.
14
GSIS Act of 1997
Other Policies
(2) On the conversion or reclassification of
a regular member to special member
 The compulsory life policy of such
member shall be terminated upon
separation from his/her old position.
o He/She shall be provided
LEP coverage upon
assumption to duty to
his/her new position.
o At the time of his/her
termination as a regular
member, he/she shall be
entitled to whatever benefits
accruing to him/her at the
time of his/her separation.
 A separated member with 15 years
of service can claim for retirement
benefits at age 60 and may choose
to receive:
o the five-year lump sum and
pension after five years, or
the 18 months of the Basic
Monthly Pension (BMP) and
pension immediately
(3) On the conversion of special member to
regular member
 The member shall be covered under
ELP immediately after the conversion
of his membership classification in the
database has been effected.
 If such member had served previously
as a regular member and has been
paid separation or retirement benefits,
he/she shall be considered as a new
entrant when he/she is re-employed in
the government service.
(4) On members holding multiple positions
 In case a member is holding two or
more part-time positions in
government:
o He/She shall be issued only
one compulsory life
insurance policy and shall
only earn service credit in
the position that he/she
selects as basis for
coverage.
 For members employed in two or
more government agencies:
o GSIS shall only recognize
one remitting agency (RA).
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Other Policies
It shall be the RA corresponding to the Before January 1, 2003, the Average
position for which the member has been Monthly Compensation (AMC) used as
covered by GSIS. basis for computing was the AMC limit
prevailing at the time the contingency or the
(5) In case of non-permanent employees actual retirement or separation occurred.
who are daily wage earners
 The monthly equivalent of their
Effective Date of AMC Limit
salary shall be their daily wage rate
Retirement or
multiplied by 22 days.
Separation
 Their salary record in their Member
Service Profile shall be 24 June 1997 to 31 ₱10,000.00
correspondingly adjusted when September 1998
they are granted an increase in the
daily wage rate.
o However, if their daily wage 01 January 1999 to 31 ₱11,000.00
rate is decreased, the December 1999
original computation of their
monthly salary shall remain. 01 January 2000 to 31 ₱12,000.00
December 2000
(6) Change in date of birth

Change of date of birth shall be given due 01 January 2001 to 31 ₱14,000.00

course under the following conditions: December 2001

(a) The request for change is made

while the member is still in the
government service; and
(b) The requesting member submits
the original copy of the court order
or birth certificate authenticated by
the Philippine Statistics Authority as
a supporting document.
 When the member submits a court
order, he/she shall indicate in the
request for change of date of birth
the contact number of the court
who ordered the change of date of
birth, including the branch and
province where the court is located.
 For PSA-authenticated birth
certificate, the official watermark of
the PSA should be present.
 Failure to comply with the said
requirements shall be a ground for
rejecting the request.
01 January 2002 to 31 ₱16,000.00
December 2002
01 January 2003 onwards No AMC
limit
Effective June 24, 2007 and up to
December 21, 2002, the amount of
contributions shall be computed:
(a) If Monthly Compensation (MC) is equal
to or less than the prevailing Average
Monthly Compensation (AMC):
 Member – 9% share of the MC
 Government Agency – 12% share of
the MC
(b) If MC is greater than the prevailing AMC

RULE III  Member – 9% of the MC

 Government Agency – 12% share of
COLLECTION AND REMITTANCE OF the MC
CONTRIBUTIONS AND OTHER o subject to an increase of 2% in
AMOUNTS excess of the AMC

Section 11. Amounts of Contribution However, effective January 1, 2003, the

rate of contribution payable by the member
(1) For Regular Members and government agency shall be 9% and

15
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Other Policies
12% respectively, based on the actual
monthly salary of the member.

(2) For Special Members

The Special Member shall pay the required

life insurance premiums of 3% of the fixed
monthly compensation for both employees’
and government agency’s share.

Section 12. Budgetary Appropriations

to Cover Government Agencies’
Contributions

The government agency shall insure that

the necessary amounts for contributions for
government share shall be included in their
respective annual budgets.

16
Ragonhan, Garnee Claudine M.
Agrarian Reform and Social Legislation
Section 13 Collection of Contributions
It shall be compulsory upon the
government agency to deduct from the
fixed monthly compensation the personal
share of the members and to promptly
remit the same to GSIS.
It is prohibited for a government agency to
delay the remittance to GSIS of the
premium contributions deducted from the
compensation of the members and use it
for other purposes.
Section 14 Remittance of Contributions
Each government agency shall remit
directly to the GSIS the employees’ and
government agency’s contributions within
the first Ten (10) days of the calendar
month following the month to which the
contributions apply. The remittance by the
government agency of the contributions to
the GSIS shall take priority over and above
the payment of any and all obligations,
except salaries and wages of its employees.
The government agency shall also deduct
from the fixed monthly compensation of the
employee the loan amortizations
(consolidated loans, policy loan,
emergency loan, housing loan, and other
loans), premium payments (optional, pre-
need and other non-life insurance) and
other amounts due the GSIS.
The said amounts shall be remitted to the
GSIS within the first Ten (10) days of the
calendar month following the month when
the deductions were effected,
accompanied by supporting lists in the form
prescribed by the GSIS.
The member has the corresponding
responsibility to ensure that the required
premium contributions and other amounts
due the GSIS that were deducted from his
compensation are promptly remitted to
GSIS.
Section 15 Interest on Delayed
Remittance
The government agency shall be imposed
interest for every month of delay, or a
17
GSIS Act of 1997
Collection and Remittance of Contributions
portion thereof, in the remittance of the
monthly premium contributions and other
amounts due the GSIS, at the rate of 2%
per month simple interest. Such interest will
begin to accrue at the end of the month
following the due month.
Section 16 Effects of Non-Remittance of
Contributions and Other Amounts on
the Eligibility to Benefits of Members
All loan privileges of all the members of the
affected agencies will be suspended and
they shall be disqualified to receive the
yearly dividends.
Any unremitted premium contributions and
loan amortizations and other amounts due
the GSIS shall be deducted from the
proceeds of the loans and claims that will
be due the member.
Section 17 Reports on the Status of
Members
The government agency shall report
changes in the member’s information, if
any, every month as they take place, in the
forms or formats prescribed by the GSIS.
COLLECTION and REMITTANCE OF
CONTRIBUTION
Q: How are the contributions collected?
A: It shall be compulsory upon the
government agency to deduct from the
fixed monthly compensation the personal
share of the members and to promptly
remit the same to GSIS.
Q: Who shall remit the member’s
contribution?
A: The government agency (employer).
Q: When is the contribution remitted?
A: Within the first ten (10) days of the
calendar month following the month to
which the contributions apply.
NOTE: The remittance by the employer of
the contributions to the GSIS shall take
priority over and above the payment of any
and all obligations, except salaries and
wages of its employees.
Ragonhan, Garnee Claudine M. GSIS Act of 1997
Agrarian Reform and Social Legislation Collection and Remittance of Contributions
Q: What are those to be deducted from the Q: What are the offenses that may be
fixed monthly compensation of the member? filed and their corresponding penalties?
A: A:
1. Loan amortizations 1. Fraud, collusion, falsification, or
2. Premium payments misrepresentation in any
3. Other amounts due to GSIS transaction with GSIS.
NOTE: Said amounts shall be remitted to Penalties: Those provided in
the GSIS within the first Ten (10) days of Article 172 of the RPC.
the calendar month following the month
when the deductions were effected, 2. Obtaining and receiving money or
accompanied by supporting lists in the form checks without being entitled
prescribed by the GSIS. thereto and using it to defraud
another.
Q: What happens when the employer
delays the remittance of the contribution? Penalties: Imprisonment of 6 years,
A: The agency responsible shall be 1 day to 12 years or a fine of Php
charged an interest of not less than 2% per 5,000 to Php 20,000 or both
month which will begin to accrue at the end
of the month following the due month. 3. Failure or refusal to comply with the
provisions of GSIS law or its IRR.
Q: What are the effects of non-remittance Penalties: Imprisonment of 6
of contributions on the eligibility to benefits years, 1 day to 12 years or a fine of
of the members? Php 5,000 to Php 20,000 or both.
A:
1. All loan privileges of all the members of 4. Malversation of public funds.
the affected agencies will be suspended
and they will be disqualified to receive Penalties: those provided in Article
yearly dividends. 217 RPC and shall suffer absolute
2. Any unremitted premium contributions perpetual disqualification from
and loan amortizations and other amounts holding public office and from
due the GSIS shall be deducted from the practicing any profession or calling
proceeds of the loans and claims that will licensed by the government.
be due the member.
5. The Heads of Offices, Treasurer,
Q: Who shall report the status of the Finance Officer, Cashier,
members? Disbursing Officer, Budget Officer
A: The government agency shall report or other official or employee’s:
changes in the member’s information, if
any, every month as they take place, in the a. Refusal to include in the annual
forms or formats prescribed by the GSIS. budget the amount
corresponding to the
PENAL PROVISIONS government agency and
employee contributions.
Q: Who may file criminal actions? b. Failure or refusal or delay by
A: The aggrieved member may file criminal more than 30 days the time
actions arising from violations of RA 8291 such amount becomes due and
and its IRR either under the provisions of demandable, or to deduct the
RA 8291 itself or, as appropriate, under the monthly contributions of the
Revised Penal Code. employee.

Penalties: Imprisonment of 6
months, 1 day to 6 years or a
fine of Php 3,000 to Php 6,000,
and shall suffer absolute

18
Ragonhan, Garnee Claudine M.
Agrarian Reform and Social Legislation
perpetual disqualification from
holding public office and from
practicing any profession or
calling licensed by the
government.
6. Failure of an employee, who after
deducting the monthly contribution
or loan amortization from a member
's compensation, to remit the same
to the GSIS within 30 days from the
date they should have been
remitted.
GSIS Act of 1997
Collection and Remittance of Contributions
Failure of the members of the board
including the Chairman and Vice-
Chairman, to comply with the provisions on
penalties above shall subject them to
imprisonment of not less than 6 months
and 1 day, or a fine of Php 5,000 to Php
10,000 without prejudice to any civil or
administrative liability which may also arise
therefrom.

Penalties: those provided in Article

315 of the RPC and shall suffer
absolute perpetual disqualification
from holding public office and from
practicing any profession or calling
licensed by the government.

7. The heads of the offices of the

national government its political
subdivisions, branches, agencies
and instrumentalities, including
GOCCs and government financial
institutions, and the personnel of
such offices who are involved in the
collection of premium contributions,
loan amortization and other
accounts due the GSIS who shall
fail, refuse or delay the payment,
turnover, remittance or delivery of
such accounts to the GSIS within
30 days from the time that the same
shall have been due and
demandable.

Penalties: imprisonment of 1 year

to 5 years and a fine of Php 10,000
to Php 20, and in addition shall
suffer absolute perpetual
disqualification from holding public
office and from practicing any
profession or calling licensed by the
government.

NOTE: The officers and/or personnel

referred to above shall be liable not only
criminally but also civilly to the GSIS or to
the employee or member concerned in the
form of damages, including surcharges and
interests.

19
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
RULE IV o Death Benefit
BENEFITS · Face value of the
policy, payable to the
BENEFITS UNDER THE GSIS LAW beneficiaries or heirs,
upon the death of the
Section 18 Compulsory Life Insurance member
Benefits under the Life Endowment o Accidental Death Benefit.
Policy (LEP) · Additional benefit
equivalent to death
(1) Life Insurance benefit when the
 The GSIS life insurance is member dies by
compulsory and available to all accident.
employees, except for Members of · Proof that the death
the Armed Forces of the Philippines was due to an
and the Philippine National Police accident must be
(Ungos). sufficiently shown.
 Claims for GSIS benefits except for o Cash Dividend
life insurance and retirement must · Not a guaranteed
be filed within 4 years from the date benefit
of contingency. Claims filed after 4 · Cash dividend
years will be barred by prescription subject to the
(Ungos). guidelines issued by
 2 types of compulsory life insurance: the GSIS Board.
1) Life Endowment Policy (LEP)
2) Enhanced Life Policy (ELP) Enhanced Life Policy

Life Endowment Policy  Compulsory life insurance coverage

 It is the compulsory coverage prior to
the LEP, provided to all members
before August 2003.
 Covers the members whose policy was
issued before August 2003 and have
opted to continue with endowment and
ordinary life plans.
 Insurance benefits:
o Maturity Benefits
· Face amount payable
to the member upon
maturity of the policy.
o Cash Surrender Value
· Earned value during
the term of the
insurance, payable
when:
- Member is
separated from
service before
maturity of the
policy.
- Permanent total
disability.
issued to regular members starting
August 2003.
 Covers the following:
1) Those regular members with
compulsory life insurance
coverage who have entered
service after July 31, 2003.
2) Those whose LEP policy has
matured on or after July 31,
2003, this replacing their policy
to ELP.
3) Regular members who opted to
convert their LEP to ELP.
4) Regular members whose LEP
has lapsed by reason of non-
payment.
 Insurance benefits:
o Death Benefit
· Payable to the legal
heirs, less all the
obligations of the
member
· Amount is equivalent
to the latest annual
salary multiplied by
the amount of

20
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
insurance (AOI), 5) R.A. No. 7699
where the AOI is the
current monthly  Wherein;
salary multiplied by o Conversion to a different mode
18. of retirement is not allowed
o Termination Value o Those who become a member
· During the life of the of GSIS prior to the
policy, it earns a implementation of the IRR, can
termination value choose to retire under the
which grows at such following: R.A. No. 1146, R.A.
rate or determined by No. 660, R.A. No. 1616, subject
the actuary. to eligibility.
· Will be paid to the
member upon his  Under the GSIS Law, the retiree has 2
separation of service options:
with the government. o 5 year lump sum payment and
· Equivalent to the monthly old age pension.
percentage of life · 5 years or 60 months
insurance premiums of Basic Monthly
as determined by the Pension, given upon
GSIS. retirement: BMP X 60.
o Cash Dividend § After the expiration of
· Not a guaranteed the 5 year period,
benefit. old age pension
· Cash dividend subject benefit will be given,
to the guidelines equal to the BMP,
issued by the GSIS payable for life.
Board. o Cash payment and monthly old
age pension.
Retirement Benefit · Cash payment to be
 To be entitled, the GSIS member must: received upon
o Render at least 15 years of retirement: 1 and ½
service. years of BMP = BMP
· If not reached, x 18
member may continue · Old age pension
service with the payable on the first
government based on month of retirement.
existing civil rules. o Computation of BMP
o Has reached at least 60 years of · If less than 15 years of
age at the time of retirement. service: 37.3%
· The mandatory age of (RAMC)
retirement is 65, but · If more than 15 years
such is only applicable of service: 37.5%
when the member has (RAMC) +
rendered at least 15 [(2.5%)(RAMC)(PPP)]
years of service. · Wherein;
o Is not receiving a monthly - RAMC = AMC
pension benefit from +700
Permanent Total Disability. - AMC = Monthly
Compensation
 5 types of retirement: x 36, divided by
1) R.A. No. 8291 26
2) R.A. No. 660 - PPP = Period
3) R.A. No. 1616 with paid
4) R.A. No. 1146 premiums

21
Ramos, Dianne Nicole L.
Agrarian Reform and Social Legislation
· Remember:
- BMP must not
be less than
P1,300.
- For those who
rendered at least
20 years of
service, it must
not be less than
P2,400.
 Effect of death of the member
o If the retiree is entitled to the 5-
year lump sum benefit, the
retiree’s legal heirs are entitled
to 5-year lump sum, equivalent
to BMP x 60. Where in the
survivorship pension shall be
granted only after the 5 year
guaranteed period
o If the retiree is entitled to
immediate pension, the retiree’s
legal heirs are entitled to cash
payment benefit, equivalent to
BMP x 18 + Accrued pension
up to death of the retiree.
o If the retiree failed to indicate his
retirement option, then such will
be computed as if he opted for
immediate pension.
o If the retiree is not qualified,
then the GSIS will determine if
he is qualified for other
applicable benefits under the
GSIS Law or such other laws
administered by GSIS.
 Periodic pension adjustment
o Such adjustment can be done
as recommended by the GSIS
Actuary, and approved by the
GSIS Board.
Separation Benefit
 Consists of:
o Members who resign or are
separated from service of more
than 3 years but less than 15
years, in the amount of 100% of
the Average Monthly
Compensation for every year
of service he paid
22
GSIS Act of 1997
Benefits
constitutions. Provided that it
is not less than P12,000, and
payable upon reaching the age
of 60 or upon separation from
work, which ever comes later.
o Members who resign or are
separated from service of at
least 15 years and is less than
60 years of age at the time of
resignation or separation.
Provided that the cash amount
is equivalent to BMP x 18, and
the old age benefit is equivalent
to BMP, payable for life upon
reaching 60 years of age.
Unemployment / Involuntary Separation
Benefit
 Benefit available to permanent
employees who are involuntarily
separated from service due to abolition
of office. Provided that the employee
must have at least made 1 year of
contribution.
 Such benefit will be in the form of
monthly cash payments equivalent to
50% of the AMC.
 Those entitled to such benefit are the
following:
o Permanent employees at the
time of the separation
o Separation was involuntary,
due to abolition of office
o Paying the required minimum
contributions at least 1 year
prior to the separation
 Payable for the following duration:
2 If contributions have been
Months made for 1 year but less
than 3 years
3 If contributions have been
Months made for 3 years but less
than 6 years
4 If contributions have been
Months made for 6 years but less
than 9 years
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits

5 If contributions have been

Months made for 9 years but less
than 11 years

6 If contributions have been

Months made for 11 years but less
than 15 years

23
Consignado, Kevin
Agrarian Reform and Social Legislation
Disability Benefits
Disability refers to any loss or impairment
of the normal functions of the physical
and/or mental faculties of a member, which
permanently or temporarily prevents him to
continue with his work or engage in any
other gainful occupation resulting in the
loss of income.
The corresponding disability benefits for
each kind of disability shall be granted to a
member based on the duration of
incapacity to work and actual loss of
income.
There are three (3) kinds of disability which
shall be determined by the GSIS based on
established medical standards:
 Permanent Total Disability
 Permanent Partial Disability
 Temporary Total Disability
Permanent Total Disability (PTD) –
disability due to injury or disease causing
complete, irreversible and permanent
incapacity that will permanently disable a
member to work or to engage in any gainful
occupation resulting to loss of income.
The following disabilities shall be deemed
total and permanent:
a) complete loss of sight for both eyes;
b) loss of two limbs at or above the
ankle or wrists;
c) permanent complete paralysis of
two limbs; and
d) brain injury resulting in incurable
imbecility or insanity.
e) such other cases as may be
determined and approved by the
GSIS
Eligibility
Members who become permanently and
totally disabled are entitled to PTD benefits
when:
 In the service at the time of disability; or
 If separated from the service, have paid
at least 36 months contributions within
the five year period immediately
preceding the disability; or have paid a
24
GSIS Act of 1997
Benefits
total of at least 180 months
contributions prior to the disability;
Provided, however, that the following
conditions are met:
· Gainfully employed prior to the
commencement of disability
resulting in loss of income;
· Not a registered member of any
social insurance institution; and
· Not receiving any other pension
either from GSIS or another
local or foreign institution or
organization.
Benefits
1. Member who was in the service at the
time of contingency and has paid a total of
180 monthly contributions:
 Entitled to the monthly income benefits
for life equivalent to the basic monthly
pension (BMP) effective from the date
of disability. In addition to the monthly
income benefits for life, a cash payment
equivalent to 18 times the basic
monthly pension (BMP)
2. A separated member who has at least
three (3) years of service but has not paid
a total of at least one hundred eighty (180)
monthly contributions prior to his/her
disability:
 Shall be entitled only to cash payment
equivalent to one hundred percent
(100%) of his/her average monthly
compensation for each year of service
with paid contributions but not less than
twelve thousand pesos (P12,000.00).
When Entitled
Effective from the date of disability.
Permanent Partial Disability (PPD) –
arises due to the complete and permanent
loss of the use of any of the following
resulting to the disability to work for a
limited period of time:
a) any finger
b) any toe
Consignado, Kevin
Agrarian Reform and Social Legislation
c) one arm;
d) one hand;
e) one foot;
f) one leg;
g) one or both ears;
h) hearing of one or both ears;
i) sight of one eye;
j) such other cases as may be
determined and approved by
the GSIS
Eligibility
Members whose disability are partial are
entitled to PPD benefit when:
 In the service at the time of disability; or
 If separated from the service, have paid
at least 36 months contributions within
the five year period immediately
preceding the disability; or have paid a
total of at least 180 months
contributions prior to the disability.
Provided, however, that the following
conditions are met:
a) Gainfully employed prior to the
commencement of disability
resulting in loss of income as
evidenced by any incontrovertible
proof thereof;
b) Not a registered member of any
social insurance institution; and
c) Not receiving any other pension
either from GSIS or another local or
foreign institution or organization
Benefit
 The period of entitlement to PPD
benefit is determined after due medical
evaluation; but such period of
entitlement to the benefit will not
exceed 12 months for the same
contingency. Only the leave of
absence/s without pay incurred during
the period of entitlement, duly certified
by the authorized officer of the agency
where members are employed, is
compensable.
 The amount of PPD benefit
is computed by dividing the BMP by 30
days and multiplying the quotient by the
number of compensable calendar days
25
GSIS Act of 1997
Benefits
of leave of absence without pay
(LWOP).
Temporary Total Disability (TTD) –
accrues or arises when the impaired
physical and/or mental faculties can be
rehabilitated and/or restored to their normal
functions, but such disability shall result in
temporary incapacity to work or to engage
in any gainful occupation.
Eligibility
Members are entitled to the TTD benefit
when:
 In the service at the time of disability; or
 If separated from the service, have paid
at least 36 months contributions within
the five year period immediately
preceding the disability; or have paid a
total of at least 180 months
contributions prior to the disability;
Provided, however, that the following
conditions will be met:
 Gainfully employed prior to the
commencement of disability
resulting in loss of income;
 Not a registered member of any
social insurance institution; and
 Not receiving any other pension
either from GSIS or another local or
foreign institution or organization.
The payment of TTD benefit may be
extended by GSIS up to a maximum of 240
days, subject to medical evaluation.
Not Compensable
Disability or injury as a result of:
a) due to grave misconduct
b) participation in riots
c) gross and inexcusable negligence
d) under the influence of drugs or
alcohol
e) willful intention to injure or kill
himself or another
NOTE: Any leave of absence without pay
incurred after the duration of entitlement to
the benefit shall not be compensable.
Consignado, Kevin
Agrarian Reform and Social Legislation
NOTE: If the member has two or more
different contingencies during the same
period of benefit entitlement, he shall be
compensated only once for the overlapping
periods
NOTE: All injuries, disabilities, illnesses
and all other infirmities compensable under
Employee's Compensation Law shall not
be compensable under this Act.
Causes for Suspension of Disability
Benefits
a) is re-employed; or
b) recovers from his/her disability as
determined by the GSIS, whose
decision shall be final and binding;
or
c) fails to present himself for medical
examination when required by
GSIS; or
d) is receiving any other pension
either from GSIS or another local or
foreign institution or organization.
Benefits
 The period of entitlement to TTD
benefit is determined after due
medical evaluation and proof of
actual loss of work resulting in loss
of income by way of the incurred
actual number of days of leave of
absence/s without pay duly certified
by the authorized officer of the
agency where members are
employed; but such period of
entitlement to the benefit should not
exceed 120 days in one calendar
year.
 However, if the disability requires
more extensive treatment that lasts
beyond 120 days, the payment of
TTD may be extended by GSIS but
not to exceed a total of 240 days.
Only the leave of absence/s without
pay incurred during the period of
entitlement is compensable.
 Entitlement starts from the fourth
day of the disability. The amount of
TTD benefit is computed by
multiplying 75% of the daily salary
of members by the number of days
of disability based on the medical
26
GSIS Act of 1997
Benefits
evaluation but not to exceed 240
days for the same contingency.
However, the computed daily salary
shall not be less than Php70.00 but
not to exceed Php340.00 per day.
Requirements
1. Notice and Filing of Claims and Other
Documents Required. - A written notice of
sickness or injury shall be given by a
member or anybody in his/her behalf within
one (1) month from the date of the
occurrence of the contingency.
If the member is in the service, the notice
shall be given to the GSIS;
If separated from the service, the member
shall notify the GSIS directly.
2. Periodic Medical Report - The disabled
member, except those with permanent
partial disability, shall submit annual
medical reports on his/her impairment, duly
certified by his/her attending physician,
and/or submit himself/herself to annual
medical and physical examination, failure
to comply shall result to forfeiture of the
payment of benefit.
However, it shall be resumed only upon
his/her compliance thereto provided that,
he/she is found still entitled to the benefits.
The benefit corresponding to the period of
suspension shall also be paid.
Causes of Forfeiture of Disability Benefits
Disability benefits shall automatically forfeit
his/her right to the continued enjoyment
thereof if he/she refuses or deliberately
fails to:
a) have himself/herself medically
treated by a physician when
required by the GSIS; or
b) take the prescribed medications ; or
c) have himself/herself confined in a
hospital without justifiable reason,
when such confinement is required
by the GSIS; or
d) avail himself/herself of such
rehabilitation facilities as may be
Consignado, Kevin
Agrarian Reform and Social Legislation
duly recommended by the GSIS
and made available for him/her; or
e) Observe such precautionary and /or
preventive measures as prescribed
by a physician or expressly required
of him/her to prevent the
aggravation or continuance of
his/her disability.
However, upon compliance with the
requirements, his/her benefits shall be
resumed if he/she is still qualified.
Enhanced Survivorship Benefits
Recognizing that pension is an earned right
and not a privilege, the Board of Trustees
restored the survivorship benefit of
surviving spouses of members and
pensioners even if they are gainfully
employed and receiving other sources of
income or pension.
Implemented in December 2010, the new
basic survivorship pension (BSP) payable
to the surviving spouse is equivalent to 50%
of the basic minimum pension received by
the deceased member or pensioner.
GSIS removed the stringent provisions that
have prevented many survivorship
pensioners from enjoying pensioners from
enjoying the survivorship benefit.
Under the old survivorship policy, primary
and secondary beneficiaries of GSIS
members, except dependent children, may
only be entitled to the survivorship pension
if they have no gainful occupation or are not
engaged in gainful business or economic
activity. The previous GSIS management
defined gainful employment as earning at
least P7,575 equivalent to Salary Grade 1
in the government compensation table.
Those receiving other pensions, whether
from GSIS or any other local of foreign
institutions or organizations, were likewise
deemed ineligible to receive the
survivorship pension.
With the reversal of the old policy, surviving
spouses and dependents of GSIS
members and pensioners can now receive
their monthly pension benefits even if they
are gainfully employed and receiving
27
GSIS Act of 1997
Benefits
income or pension from other institutions.
More than 6,000 surviving spouses whose
pensions have been stopped and
disapproved since August 2009 benefited
from the new survivorship policy.
Coverage
The primary and secondary beneficiaries,
except dependent children, shall be entitled
to applicable survivorship benefits, subject
to the following:
The following shall be covered by this new
policy:
1. All primary and secondary beneficiaries
residing in the Philippines or abroad
who are existing survivorship
pensioners or claiming for survivorship
benefit;
2. Those who were receiving survivorship
benefits but were suspended when the
policy on the same was amended and
implemented in August 2009; and
3. Those who applied for survivorship
benefits but were disapproved due to
the issuance/approval of Management
Implementing Guidelines (MIG) 01-
2009 dated October 22, 2009 that took
effect as early as August 2009, and
MIG 04-2010 dated April 26, 2010.
When a member or pensioner dies, the
beneficiaries shall be entitled to the
following survivorship benefits,
whichever is applicable.
Amount
a) the basic survivorship pension
which is = fifty percent (50%) of the
BMP; and
b) the dependent children’s pension
equivalent to 10% of the BMP for
each child but not to exceed fifty
percent (50%) of the BMP.
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
Survivorship Benefits of Inactive Members
1. basic 50% of the BMP
a) Primary beneficiaries of inactive
survivorship
members who have at least 15
pension
years of creditable service shall
receive the survivorship pension
only(1).
2. dependent 10% of the BMP
children’s b) Primary beneficiaries of inactive
pension members who have at least 3 years
but less than 15 years of creditable
service and were less than 60 years
old at the time of death shall
3. Cash 18 x BMP receive(4):
payment (1st
kind) Cash payment equivalent to 100%
of the AMC for every year of
creditable service, but not less than
P12,000.00.
4. Cash 100% of the AMC for
payment (2nd every year of service c) Primary beneficiaries of inactive
kind) with paid contributions members who have less than 15
but not less than Twelve years of creditable service but were
Thousand Pesos at least 60 years old at the time of
(P12,000.00) separation and have received the
corresponding separation benefit,
shall not be entitled to survivorship
If at the time of death, a member was in the benefits.
service and has rendered at least fifteen
(15) years of creditable service: d) d. Primary beneficiaries of inactive
members who have less than 15
a) his primary beneficiaries(1&3) years of creditable service but were
shall receive the survivorship at least 60 years old at the time of
pension and cash payment separation and has not received yet
equivalent to 18 x the BMP; or his separation benefit within four
b) in the absence of primary years after his/her separation, the
beneficiaries, his secondary primary beneficiaries shall receive
beneficiaries(3) shall receive the the cash benefit equivalent to 100%
cash payment equivalent to 18 x the of the inactive member’s AMC for
BMP; OR every year of creditable service, but
c) in the absence of secondary not less than P12,000.00.
beneficiaries, the legal heirs(3)
shall receive the cash payment Payment of Survivorship Benefits
equivalent to 18 x the BMP.
a) When the dependent spouse(1) is
If at the time of death, the member was in the only survivor, he/she shall
the service with less than fifteen (15) years receive the basic survivorship
of creditable service (4) pension;
b) When only the dependent
a) his primary beneficiaries shall children are the survivors(2), they
receive the cash payment shall be entitled only to the
equivalent to 100% of the AMC for dependent children’s pension
every year of creditable service. equivalent to 10% of the BMP for
every dependent child, not

28
Consignado, Kevin
Agrarian Reform and Social Legislation
exceeding five (5), counted from the
youngest and without substitution;
c) When the survivors are the
dependent spouse(1) and the
dependent children(2), the
dependent spouse shall receive the
basic survivorship pension for life or
until he remarries or cohabits, and
the dependent children shall
receive the dependent children’s
pension.
d) When the dependent spouse and
dependent children are already
receiving the basic survivorship
pension and dependent children’s
pension, respectively, any
subsequent death, emancipation or
disqualification of any one of them
shall not entitle the other
beneficiaries to the forfeited share.
e) In the absence of a natural guardian,
the guardian de facto of dependent
children, as well as the physically or
mentally incapacitated dependent
children, must file a Petition for
Guardianship to be able to claim the
survivorship benefits on behalf of
the dependent children.
f) When the pensioner dies within the
5-year period after receiving the
five-year lump sum, the
survivorship pension shall be paid
only after the end of the said five-
year period. However, filing of claim
for survivorship benefit should be
done before the end of the 4-year
prescription period.
Modes of disqualification
1) The payment of survivorship
pension to the surviving dependent
spouse shall be discontinued when
he/she re-marries or
cohabits/engages in common-law
relationship.
2) The dependent children shall be
disqualified from receiving the
survivorship pension once he/she
reaches the age of majority.
What will happen to the pension being
received by the surviving spouse and
dependent children when any of them dies
29
GSIS Act of 1997
Benefits
or becomes disqualified from receiving the
survivorship pension?
When the surviving spouse and dependent
children are already receiving the basic
survivorship pension and dependent
children’s pension, respectively, any
subsequent death, emancipation or
disqualification of any one of them shall not
result in the accrual of that portion of
benefits to the other beneficiaries.
How will the beneficiaries claim for
survivorship benefits?
The application for survivorship benefits
should be filed together with the
documentary requirements, including the
following affidavits:
1) Affidavit of Surviving Spouse;
2) Affidavit of Guardianship of
Incapacitated Dependent Child.
The Affidavit shall be supported by
a court order. In the absence of a
court order, the Affidavit shall be
supported by a Certification of
Guardianship from the Barangay
Captain and the City/Municipal
Social Welfare Head where the
incapacitated dependent child is
residing; and
3) Affidavit of Guardianship of Minor
Dependent Child. The Affidavit shall
be supported by a court order. In
the absence of a court order, the
Affidavit shall be supported by a
Certification of Guardianship from
the Barangay Captain and the
City/Municipal Social Welfare Head
where the minor dependent child is
residing.
How can a child of MINOR AGE or WITH
PHYSICAL or MENTAL INCAPACITY
claim for survivorship benefits?
The guardian of the minor child or child with
physical or mental incapacity should
secure a court order. In the absence of a
court order, the Affidavit shall be supported
by a Certification of Guardianship from the
Barangay Captain and the City/Municipal
Social Welfare Head where the dependent
child is residing. This should be submitted
Consignado, Kevin
Agrarian Reform and Social Legislation
to the GSIS as a supporting document to
the application for survivorship benefits and
to the Affidavit of Guardianship of Minor
Dependent Child or Incapacitated
Dependent Child.
What will happen if the survirvorship
pensioners fail to execute the Affidavit of
Surviving Spouse/Children for that year?
Failure on the part of the survivorship
pensioner/s to submit the required affidavit
shall be a ground for the suspension of the
survivorship pension.
When will the secondary beneficiaries be
entitled to survivorship benefits?
The secondary beneficiaries shall be
entitled to survivorship benefits only if there
are no primary beneficiaries and shall be
subject to limitations defined by GSIS.
Who will be entitled to receive the
survivorship benefits if there are no primary
and secondary beneficiaries?
In the absence of primary and secondary
beneficiaries, the legal heirs, as defined
under the Rules on Succession, New Civil
Code of the Philippines, shall receive the
applicable cash benefit depending on the
eligibility of the deceased member or
pensioner.
How will the survivorship pension of the
dependent children be computed?
The survivorship pension of the dependent
children shall be computed at 10% of the
BMP.
When will the survivors of a retiree who
availed and was paid the 5-year
lumpsum benefit receive the
survivorship pension?
When the old age pensioner dies within the
5-year period after receiving the five-year
lump sum, the survivorship pension shall
be paid only after the end of the said five-
year period. However, the claim for
survivorship benefits should be filed
together with the claim for funeral benefit,
30
GSIS Act of 1997
Benefits
and this should be done within four (4)
years from the date of death of the retiree.
Funeral Benefits
GSIS provides a Php30,000 funeral
benefit to the following:
1) An active member;
2) A member who has been separated
from the service but who is entitled
to future separation or retirement
benefit;
3) An member who is an old age
pensioner;
4) A retiree who at the time of his
retirement was of pensionable age
under RA 8291 but who opted to
retire under RA 1616; and
5) A member who retired under RA
1616 prior to the effectivity of RA
8291 with at least 20 years of
service, regardless of age.
The benefit is payable to the members of
the family of the deceased, according to the
following priorities:
1) Legitimate spouse
2) Legitimate child who spent for the
funeral services, or
3) any other person who can show
unquestionable proof of his having
borne the funeral expenses of the
deceased.
RULE V
ADJUDICATION OF CLAIMS AND
DISPUTES
Committee on Claims - The Committee
on Claims (CoC) shall evaluate and resolve
issues / complaints arising from any
dispute in the settlement of claims, such as,
but not limited to the following:
a) interpretation of an existing policy
or procedure;
b) no existing program or system to
process a claim;
c) no existing policy as basis to
process a claim;
d) appeal from an aggrieved party to a
settled claim;
e) findings from either the Internal
Audit Services Office of the
Consignado, Kevin
Agrarian Reform and Social Legislation
Commission on Audit that are
disputable;
f) Implementation of and Order from
any Court, Quasi-judicial body or
duly authorized entity due to its
being in conflict or inconsistent with
existing GSIS laws, policies, rules
and regulations; and
g) Any other matter related to any or
all of the foregoing which is
necessary for their determination
The CoC shall report to the Board
on a regular basis the actions taken
on issues/complaints elevated to
the said Committee.
APPELATE POWER
Disputes on claims shall be appealed to the
Committee on Claims within 60 days from
date the member received the check
representing payment of claim benefit or
notice of disapproval. The Committee on
Claims shall evaluate the appeal and shall
notify the claimant of Committee’s decision.
Further appeal on the Committee’s
decision shall be filed to the Board within
60 days from receipt of Committee’s
decision.
Quasi-Judicial Functions of the GSIS. -
The quasi-judicial functions of the GSIS
shall be vested in its Board of Trustees.
The GSIS shall have original and exclusive
jurisdiction to settle any dispute arising
under Republic Act No. 8291,
Commonwealth Act No. 186, including its
implementing rules and regulations,
policies and guidelines, and other laws
administered by the GSIS with respect to:
1) Coverage of government agencies and
employees;
2) Entitlement of members to the following
benefits under these Rules:
a) Separation benefits
b) Unemployment or involuntary
separation benefits c. Retirement
benefits
c) Disability benefits
d) Survivorship benefits
e) Funeral benefits
f) Life Insurance benefits
3) Collection and payment of contributions;
31
GSIS Act of 1997
Adjudication of Claims and Disputes
4) Housing loans and all its related policies,
procedures and guidelines;
5) Optional Life Insurance and Pre-Need
Benefits;
6) Criminal actions arising from this Act;
and
7) Any other matter related to any or all of
the foregoing which is necessary for their
determination.
Prescription.- Claims for benefits under
Republic Act No. 8291, except for life
insurance and retirement, shall prescribe
after four (4) years from date of
contingency.
Construction.- The provisions of these
sections shall be liberally construed in
order to promote their purpose and to
assist the parties in obtaining just, speedy,
and inexpensive determination of every
action and proceeding.
Who May File Petition.- The GSIS, in
appropriate cases, or any person whose
rights are or may be prejudiced by the
operations or the enforcement of Republic
Act No. 8291, Commonwealth Act No. 186,
including its implementing rules and
regulations, policies and guidelines and
other laws administered by the GSIS on
matters herein above specified, may file a
petition before the GSIS either personally
or through counsel.
Contents of the Petition. - The petition
shall state the following:
1) The full name, address and legal
capacity of the petitioner;
2) The full name and address of the
respondent;
3) A clear and concise statement of
the petitioner’s cause or causes of
action, specifying therein the
particular section/s of the law or rule
violated or sued upon. If the basis
of the action is a rule, regulation,
resolution, memorandum or order
of the Board, the date of the
promulgation thereof shall be stated
and a copy thereof attached; and
4) The relief sought.
Prohibited Pleading and Motions. - The
following pleadings, motions or petitions
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Adjudication of Claims and Disputes
shall not be allowed in the cases covered
by this Rule:

1) Motions to dismiss
2) Motions for a bill of particulars
3) Motions for new trial, or for
reopening of trial
4) Petitions for relief from judgment
5) Motions for extension of time to file
pleading, affidavits or any other
paper
6) Memoranda
7) Petition for certiorari, mandamus
prohibitions against any
interlocutory order issued by the
Board or Hearing Officer
8) Motion to declare the defendant in
default
9) Dilatory motions for postponement
10) Replies
11) Third party complaints Intervention.

32
Aguirre, Miguel Joshua D. GSIS Act of 1997
Agrarian Reform and Social Legislation Administration
Case Digests Beronilla v. GSIS

Hilarion Beronilla vs. Government ISSUE:

Service Insurance System
G.R. No. 21723, 26 November 1970 Whether or not the GSIS Board of Trustees
acted within its powers when it reversed the
FACTS: approval by the General Manager of
petitioner's request for the change of his
The petitioner was an auditor of the date of birth.
Philippine National Bank. Before that, he
had occupied many other positions in the RULING:
government and had been a member of the
GSIS. In his application for employment, The GSIS Board of Trustees has the
his applications for life and retirement power to reverse the decisions of the
insurance as well as his application to be General Manager.
allowed to take civil service examinations,
petitioner uniformly indicated that his date By express statutory authority, the Board of
of birth is January 14, 1898. He also Trustees directly manages the System and
indicated the same date of birth in his the General Manager is only the chief
Member's Service Record which he executive officer of the Board. It results,
submitted to the GSIS. On September 29, therefore, that any authority conferred upon
1959, he requested the Commissioner of the General Manager by the Board of
Civil Service, thru the Auditor General, that Trustees notwithstanding, the said Board
his date of birth indicated in the records be may in appropriate cases and in the
changed to January 14, 1900. According to exercise of its own sound discretion review
the petition, it was only in 1955, before the the actions and decisions of the General
demise of his mother that petitioner Manager
discovered that his true date of birth is
January 14, 1900. The petitioner’s letter
was initially denied by the legal counsel but
was later on approved upon appeal to the
General Manager. Three years after the
approval of the change, the Auditor of the
Central Bank wrote the Board of Trustees
of the GSIS about the service of petitioner
and stated that " it was found that Mr.
Hilarion Beronilla has been continuously
paid since January 15, 1963, his salary
allowances and other fringe benefits as
Auditor of said Bank notwithstanding the
fact that Mr. Beronilla has attained his sixty-
fifth (65th) birthday last January 14, 1963,
the date of his automatic and compulsory
retirement from the government service as
fixed under Republic Act No. 3096
approved June 16, 1961." The Board
adopted a resolution stating that Mr.
Beronilla be considered as compulsorily
retired from service effective January 14,
1963 without notifying and giving the
petitioner any opportunity to be heard.

33
Espiritu, Namnama Chantal F.
Agrarian Reform and Social Legislation
Case Digests
Government Service Insurance System
v. CSC and Belo, Baradero
G.R. Nos. 98395-102449, 19 June 1995
FACTS:
In G.R. No. 102449, private respondent
Matilde S. Belo held the position of Vice-
Governor of Capiz continuously between
January 5, 1972 up to February 1, 1988.
From January 25, 1972 up to December 31,
1979, she held office by virtue of an
election and was paid a fixed salary. From
December 31, 1979 up to February 1, 1988,
she held the position of Vice Governor of
Capiz in a holdover capacity, broken down
into two periods:
1. A period in which she was paid on
a per diem basis from December
31, 1976 to December 31, 1979;
and
2. A period in which she was paid a
fixed salary — from January 1,
1980 to February 1,1988.
The Civil Service Commission (CSC) held
that the services rendered for the first
holdover period between January 31, 1976
to January 1, 1979 was creditable for
purposes of retirement. CSC noted that
during the entire holdover period,
respondent Belo actually served on a full
time basis as Vice Governor and was on
call 24 hours a day. On the other hand, the
GSIS disagreed with the CSC’s claims that
the period in which respondent Belo was
paid on a per diem basis should be credited
in computing the number of years of
creditable service to the government.
In G.R. No. 98395, private respondent
Baradero as a member of the Sangguniang
Bayan of the Municipality of La Castellana,
Negros Occidental between January 1,
1976 to October 10, 1978 where he was
likewise paid on a per diem basis. It is not
disputed that during this period, respondent
Manuel S. Baradero rendered full services
to the government as a member of the
Sangguniang Bayan. The Civil Service
Commission recognized the period in
which respondent Baradero served as a
member of the Sangguniang Bayan as
34
GSIS Act of 1997
Membership
GSIS v. CSC
creditable for retirement purposes instead
of allowing his petition for extension of
service in order to complete the 15 year
period of service required for the purpose
of qualifying for retirement benefits.
ISSUE:
Whether or not regular service in
government on a per diem basis, without
any other form of compensation or
emolument, is compensation within the
contemplation of the term "service with
compensation" under the Government
Service Insurance Act of 1987.
RULING:
The Court initially ruled in favor of the GSIS,
but upon a review of the circumstances
surrounding payment to respondent Belo of
the per diem, it was found that what she
received was actually paid for in
performance of her duties as Vice-
Governor of Capiz in a holdover capacity
not as the per diem referred to by section
1(c) of R.A. No 1573 which amended
Section 1(c) of C.A. No. 186 (Government
Insurance Service Act). It is generally held
that an allowance for expenses incident to
the discharge of an office is not a salary of
office, it follows that if the remuneration
received by a public official in the
performance of his duties does not
constitute a mere "allowance for expenses"
but appears to be his actual base pay, then
no amount of categorizing the salary as
base pay, a per diem would take the
allowances received by petitioner from the
term service with compensation for the
purpose of computing the number of years
of service in government. What should be
controlling in the cases at bar is the nature
of the remuneration rather than the label
attached to it. While there is no dispute that
the law excepting per diems from the
definition of compensation is clear and
requires no interpretation, however, since
the term per diem may be construed either
as compensation or as allowance, it would
be necessary for us to inquire whether the
term per diem in the GSIS Law refers to
one or the other signification
Espiritu, Namnama Chantal F.
Agrarian Reform and Social Legislation
Case Digests
Under the circumstances in the case of
Belo the per diems received by her during
the period that she acted in holdover
capacity obviously were in the nature of
compensation or remuneration for her
services as Vice Governor of the Province
of Capiz, rather than as a reimbursement
for incidental expenses incurred while
away from her home base. While
respondent Belo was paid on a per diem
basis during her first holdover period as
Vice Governor she was subsequently paid
a fixed salary, which apparently rectified an
otherwise anomalous situation. The same
could be said of the services rendered by
respondent Baradero, who, before and
after the period in question had an
unblemished record of service to the
government as a member of the army and
as a medical officer of the Philippine
Medicare Commission. The disputed
period was served on a full-time basis
regardless of the denomination given to the
compensation received by him. Baradero
was even willing to serve two additional
years of service to government in order to
complete the 15 year period required by
our retirement laws. The Civil Service
Commission felt this was unnecessary and
denied the same on the ground that, like
the disputed period in the Belo case, the
period served on a per diem basis is
creditable.
GSIS Act of 1997
Membership
GSIS v. CSC
done on a take-it-or-leave-it basis, it is a
virtual contract of adhesion which gives the
employee no choice but to involuntarily
accede to the deductions made from their
oftentimes meager salaries. If the GSIS did
not deduct, it was by its own choice:
contributions were exacted from petitioner
before and after the disputed period.
The situation as far as private respondents
and the GSIS are concerned could be
rectified by deducting a reasonable amount
corresponding to the contributions which
should have been deducted during the
period from the amount of retirement
benefits accruing to them. It would be
grossly inequitable to permanently penalize
both respondents Belo and Baradero by
ignoring the fact of actual period of service
to government with compensation, and
deny them the retirement privileges that
they, for their unselfish service to the
government justly deserve. Under the
peculiar circumstances of the case at
bench, the demand for equity prompts us to
regard spirit not letter, and intent, not form,
in according substantial justice to both
respondents, where the law, through its
inflexible rules might prove inadequate.

Retirement benefits given to government

employees in effect reward them for giving
the best years of their lives to the service of
their country. In exchange for their selfless
dedication to government service, they
enjoy security of tenure and are ensured of
a reasonable amount of support after they
leave the government. The basis for the
provision of retirement benefits is, therefore,
service to government

It cannot be asserted that petitioners could

not avail themselves of the benefits of the
policy because no deductions were made
from their salaries during the disputed
periods when they were paid on a per diem
basis. In Belo's case, before and after that
short interregnum, she was paid a fixed
salary. The contract made between the
GSIS and the government employee is

35
Martinez, Pia Aila D.
Agrarian Reform and Social Legislation
Case Digests
Government Service Insurance System
v. Reynaldo P. Palmiery
G.R. No. 217949, 20 February 2019
FACTS:
Reynaldo Palmiery began his government
service on May 2, 1961 as a laborer in the
Philippine Veterans Administration. After
more than 25 years of service, he retired as
a Manager of the Development Bank of the
Philippines (DBP). The DBP paid his
gratuity benefit under Republic Act
No.1616. He also received the refund of his
contributions. In total, Reynaldo received
₱250,014.31.
The next day after his retirement, Reynaldo
re-entered government service when he
was appointed as Manager III in the Social
Security System. He continued to work in
the SSS until he retired as a Deputy
Administration on June 1, 1994. Then, he
claimed retirement benefits under RA No.
660; pursuant to which, he was granted a
five-year lump sum amounting to
₱532,491.28. From such amount, the
following were deducted: (a) the amount of
benefits he received prior (i.e.,
₱250,014.31); and his outstanding
accountabilities (i.e., ₱57,774.64). Thus,
Reynaldo received the total amount of
₱224,836.73 on July 4, 1994.
After four years, Reynaldo was appointed
as a member of the Government Service
Insurance System (GSIS) Board of
Trustees. During his tenure, he
concurrently served as the GSIS Executive
Vice President after he was appointed to
such position on July 16, 1998.
On July 11, 2001, Reynaldo refunded to
GSIS the benefits he previously received
from his retirement. He also requested for
the suspension of his monthly pension,
which took effect five years after the
payment of his lump sum pension. Likewise,
he refunded the pension he received on
various dates.
Upon reaching the compulsory retirement
age, Reynaldo retired. Consequently, he
36
GSIS Act of 1997
Member’s Service Profile
GSIS v. Palmiery
applied for retirement benefits under RA No.
8291 and requested for full credit of his
government service starting on July 1,
1961 until his mandatory retirement on May
28, 2005.
ISSUE:
Whether or not Reynaldo’s previous years
in government service should be included
in the computation for his retirement
benefits
RULING:
The Court ruled in the affirmative. The
GSIS should give full credit to Reynaldo’s
years of service in the government.
(1) In computing the years of service, the
present GSIS Law excludes only services
credited for retirement for which the
corresponding benefits have been awarded.
Republic Act No. 8291 or “The Government
Service Insurance Act of 1997” provides
the following conditions before a member
may become qualified to receive the
retirement benefit: (a) the employee must
have rendered at least 15 years of service;
(b) the employee must be at least 60 years
old at the time of retirement; and (c) the
employee must not be receiving a monthly
pension as a result of permanent total
disability. Section 10 of RA No 8291
provides that the computation of the
service shall be from the date of original
appointment or election, including
periods of service at different time
under one or more employers; and all
service credited for retirement,
resignation, or separation for which
corresponding benefits have been
awarded under this law or other laws
shall be excluded in the computation of
service in case of reinstatement.
While Section 12(g) of CA No. 186, which
allows for the refund of previously received
benefits, is no longer found in RA No. 8291,
the absence of a similar provision in the
latter law does not necessarily mean that
the law has abandoned this policy.
Martinez, Pia Aila D.
Agrarian Reform and Social Legislation
Case Digests
Section 12(g) of CA No. 186 specifically
makes reference to Section 12(f) which
disqualifies separated employees receiving
the annuity under Section 11 of CA No. 186
from being appointed to another appointive
position. Under the same provision, the
GSIS should give full credit to the services
rendered prior to the reinstatement, if such
separated employee is not receiving the
annuity in Section 11. Thus, taken from its
proper context, Section 12(g) of CA No.
186 applies to a specific category of
employees (i.e., separated employees who
is/is not receiving the annuity mentioned in
Section 11); hence, the Court cannot
interpret its absence in RA No. 8291 as an
express prohibition against refunding
previously received benefits for purposes
of claiming retirement benefits under the
law.
Most importantly, the Court stated that a
plain reading of Section 10(b) of RA No.
8291 reveals that employees who already
received the retirement benefits under said
law or other laws cannot credit their years
of service prior to their re-entry in the
government. Conversely, this means that
employees who have not received their
retirement benefits are entitled to full credit
of their service. In this regard, those who
refunded their retirement benefits to the
GSIS after they re-entered government
service should be allowed to include
their prior years of service in the
computation of their eligibility and
retirement benefits. Thus, if the employee
has returned his/her retirement benefits to
the GSIS, the prohibition against double
retirement benefits cannot apply.
GSIS Act of 1997
Member’s Service Profile
GSIS v. Palmiery
reinstatement to the office if he/she
refunded all the retirement benefits he/she
received because “technically, the
employee in this case has not received any
retirement or separation benefits.”
Here, the GSIS did not dispute Reynaldo’s
refund as they accepted the amount and
even issued a receipt in his favor. In
accepting his refund, the GSIS cannot
subsequently apply Policy and Procedural
Guidelines (PPG) No. 183-06 which adopts
a new policy prejudicial to the retiree.
Furthermore, there is no express
prohibition under RA No. 8291 against
crediting the years of service upon the
refund of previously received retirement
benefits. In this case, Reynaldo refunded
his retirement pay and monthly pension
was suspended, he no longer received the
benefits due him. Therefore, denying his
claim would be tantamount to depriving
Reynaldo of his compensation for the years
of service he rendered to the government,
despite being eligible under the law

(2) The claim for retirement benefits in this

case cannot be jeopardized by GSIS’ new
interpretation of RA No. 8291.

When Reynaldo refunded his benefits, the

GSIS subscribed to the policy that the prior
services reinstated in the government may
be credited as long as a refund of the
previously received retirement benefits is
made. The Court made reference to the
GSIS Primer on RA No. 8291 wherein the
GSIS stated that the previous services of
an employee are credited upon his/her

37
Ragonhan, Garnee Claudine M.
Agrarian Reform and Social Legislation
Case Digest
Government Service Insurance System
v. Fernando P. De Leon
G.R. No. 186560, 17 November 2010
FACTS:
Fernando de Leon retired as Chief State
Prosecutor of DOJ in 1992 after 44 years of
service. He applied for retirement under RA
910, invoking RA 3783 which provides that
chief state prosecutors hold the same rank
as judges, which the GSIS approved. For
more than nine years, he continuously
received his retirement benefits, until 2001
when he failed to receive his monthly
pension.
He learned that GSIS cancelled his
pension because the DBM informed GSIS
that he was not qualified to retire under RA
910 because said law was meant only for
justices and judges and having the same
rank and qualification as a judge did not
entitle him to the retirement benefits
provided thereunder. He wrote to GSIS
several times but he only received one in
November 9, 2007, and it was contained
therein that he is not covered under RA 910,
but instead, he may seek to secure benefits
under RA 660 or Magic 87, or other
applicable GSIS law.
De Leon then filed a petition for mandamus
before the CA praying that GSIS be
compelled to continue paying his monthly
pension and other unpaid monthly benefits.
He also asked that GSIS and DBM be
ordered to pay him damages.
CA: GSIS was ordered to pay de Leon his
monthly adjusted pension in accordance
with other applicable law not under RA 910,
together with his back pensions, on the
ground that RA 910, following precedents,
allowed non-judges to retire under said law.
Also, under RA 660, RA 8291, and PD
1146, he is entitled to monthly pension for
life.
GSIS elevated it to the SC contending that
de Leon cannot be entitled under PD 1146
as it would constitute double retirement as
38
GSIS Act of 1997
Benefits Under the GSIS Law
GSIS v. De Leon
he already received retirement pensions
under RA 660.
ISSUE:
Whether or not de Leon is entitled to
retirement benefits under RA 910
HELD:
Yes, entitled to retirement benefits under
RA 910. Respondent’s disqualification from
receiving retirement benefits under RA 910
does not mean that he is disqualified from
receiving any retirement benefit under any
other existing retirement law.
RA 8291 or GSIS law cannot apply to de
Leon as he retired in 1992, and said law
was not yet enacted that time. Prior to the
effectivity of RA 8291, retiring government
employees who were not entitled to the
benefits under RA 910 had the option to
retire under either of two laws: RA 660, or
PD1146. Under PD 1146, to be eligible for
retirement benefits, one must satisfy the
following requisites:
(a) Old-age pension shall be paid to a
member who:
(1) has at least fifteen years of service;
(2) is at least sixty years of age; and
(3) is separated from the service.
To grant this to de Leon would not
constitute double retirement. Since he has
been declared ineligible to retire under RA
910, GSIS should simply apply the proper
retirement law to respondent’s claim, in
substitution of RA 910. GSIS’ argument
that respondent has already been
enormously benefited under RA 910
misses the point.
Retirement benefits are a form of reward
for an employee’s loyalty and service to the
employer, and are intended to help the
employee enjoy the remaining years of his
life, lessening the burden of having to worry
about his financial support or upkeep.
Ragonhan, Garnee Claudine M. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits Under the GSIS Law
Case Digest GSIS v. De Leon

A pension partakes of the nature of

“retained wages” of the retiree for a dual
purpose: to entice competent people to
enter the government service; and to
permit them to retire from the service with
relative security, not only for those who
have retained their vigor, but more so for
those who have been incapacitated by
illness or accident.

Also, what made him entitled to the benefits

of RA 910 is that while this was pending,
the Congress passed RA 10071
(Prosecution Service Act) which provides
that the benefits mentioned in said law shall
apply to those prosecutors who retired prior
to its effectivity and that he should enjoy the
same retirement benefits as the Presiding
Justice of the CA, pursuant to said law.
Hence, from the time of the effectivity of RA
10071, respondent should be entitled to
receive retirement benefits granted under
RA 910.

GSIS should compute respondent’s

retirement benefits from the time the same
were withheld until April 7, 2010 in
accordance with PD 1146; and his
retirement benefits from April 8, 2010
onwards in accordance with RA 910

39
Ramos, Dianne Nicole L.
Agrarian Reform and Social Legislation
Case Digest
Dionisio M. Rabor v. Civil Service
Commission
G.R. No. 111812, 31 May 1995
FACTS:
Dionisio Rabor (Rabor) is a Utility Worker
in the office of the Mayor, Davao City. He
entered the government service in 1978, at
the age of 55.
In 1991, when he was 68 years or age, he
applied for retirement benefits under the
GSIS Law. However, since he had only
been working for 13 years, he lacked 2
years in order to fill the 15 years of service
requirement for availing for full retirement
benefits under the GSIS Law.
He then asked for an extension of 2 years
for his appointment in government service.
However, the Office of the Mayor denied
such. In his letter, Mayor Duterte stated
that it is under the discretion of the City
Mayor whether or not to grant the extension.
Furthermore, the denial of such extension
was due to Civil Service Memorandum No.
27, which states that the extension must be
filed for three years before the mandatory
retirement age of 65, and that such
extension must not exceed 6 months.
Given that Rabor was already 68 when he
had filed for the extension and that the
extension in question is for 2 years, the
Mayor decided to deny such petition.
Rabor elevated the case with the Civil
Service Commission, which affirmed Mayor
Duterte’s decision.
Rabor then brought up the case with the
Supreme Court, assailing that his case was
on all fours with the case of Cena v. Civil
Service Commission, which grated Cena’s
extension in government service as the
Civil Service Memorandum No. 27 was
void and ineffective because it goes
beyond the vested powers of the Civil
Service Commission to place additional
requirements for the availing of retirement
benefits under the GSIS. The same case
further ruled that The Office of the
President’s Memorandum Circular No. 65
40
GSIS Act of 1997
Benefits
Rabor v. CSC
is inapplicable to the case of Cena. Rabor
sought for the same reliefs.
On the other hand, the Civil Service
Commission stated that in the Cena case,
it was ruled that the employer agency
concerned to grant the exertion has the
authority to grant or deny such extension.
And in the case of Rabor, the Davao City
Government did exercise its discretion
when it chose to deny Rabor’s request.
ISSUE:
Whether or not the case of Cena v. Civil
Service Commission, can be applied to the
case at bar.
RULING: No. The ruling of Cena v. Civil
Service Commission is modified.
According to the Supreme Court, the Court
had erred in ruling that Civil Service
Memorandum No. 27 was void and
ineffective because the Civil Service
Commission had only made the existing
law more specific. This is a valid exercise
of their powers. It did not alter or change
the law.
Therefore, the relevant provisions of Civil
Service Memorandum No. 27, which states
the following:
 Any extension of service to reach the
mandatory 15 years of service required
for availing of retirement benefits under
the GSIS law shall be granted for a
period of 1 year;
 Such shall be filed not later than 3 years
prior to the date of compulsory
retirement;
 The extension may be granted for 6
months only, with no further extension
for those who have reached the
minimum number of years are
applicable in the case at bar.
 The Court also held that the validly of
The Office of the President’s
Memorandum Circular No. 65 must be
given a separate and more thorough
explanation. Wherefore, the petition of
Rabor is denied.
Consignado, Kevin
Agrarian Reform and Social Legislation
Case Digest
Rufina Tancinco v. Government Service
Insurance System
G.R. No. 132916, 16 November 2001
FACTS:
At around noon of July 17, 1995, while he
was repairing a service vehicle in front of
his house along the National Road in
Barangay Palanas, Lemery, Batangas,
SPO1 Eddie G. Tancinco was shot dead by
five (5) unidentified armed men. SPO1
Tancinco was a member of the NCR
Security Protection Group of the Philippine
National Police, and at the time of his death,
was assigned as part of the close-in
security detail of then Vice-President
Joseph E. Estrada. SPO1 Tancinco was
off-duty at the time inasmuch as the former
Vice-President was in the United States for
medical treatment.
ISSUE:
Whether or not Tancinco’s death is
compensable?
RULING:
NO. SECTION 1. Grounds — (a) For the
injury and the resulting disability or death to
be compensable, the injury must be the
result of an employment accident satisfying
all of the following conditions:
(1) The employee must have been injured
at the place where his work requires him to
be;
(2) The employee must have been
performing his official functions; and
(3) If the injury is sustained elsewhere, the
employee must have been executing an
order for the employer.
First requirement, as part of the former
Vice-President’s security detail, the
decedent was required to guard the person
of the former; hence, his presence was
officially required wherever the Vice-
President would go. At the time of his death,
SPO1 Tancinco was off-duty since Vice-
41
GSIS Act of 1997
Benefits
Tancinco v. GSIS
President Estrada was out of the country.
In fact, he was at home; it is not even
known if he was temporarily re-assigned to
another detail while the Vice-President was
away. Clearly, he was not at the place
where his work required him to be.
Second requirement, it was not sufficiently
established that SPO1 Tancinco died while
performing his official functions. In this
regard, we held that policemen are
regarded as being on twenty-four (24) hour
alert.
Eddie Tancinco was on leave when he was
killed. The 24-hour duty rule does not apply
when the policeman is on vacation leave.
In the present case, Eddie Tancinco was
on leave when the incident happened; thus,
he was not at a place where his work
requires him to be. He was not performing
acts that are "basically police service in
character." As a policeman, SPO1
Tancinco is part of "an organized civil force
for maintaining order, preventing and
detecting crimes, and enforcing the laws.
Neither was the THIRD requirement
satisfied. As the fatal incident occurred
when SPO1 Tancinco was at home, it was
incumbent on petitioner to show that her
husband was discharging a task pursuant
to an order issued by his superiors. This
also was not done.
42