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Ra 8291 Gsis Law
Ra 8291 Gsis Law
Introduction
• 1987 Constitution has given constitutional
recognition to the obligation of the state to
retirees by providing that the state shall
from time to time review to upgrade the
pensions and other benefits due to retirees
of both government and private sector (Art.
XVI, Sec. 8)
• Another feature of 1987 Constitution is to the
effect that pensions or gratuities are not
considered as additional, double or indirect
compensation (Art. IX, B, The Civil Service
Commission, Sec. 8, par. 2).
• As a consequence, a retiree who is reappointed to
a government position shall receive the
compensation for the position without violating
the constitutional prohibition imposed on elective
or appointive public officers or employees against
receiving additional, double or indirect
compensation (id., par. 1).
Objectives and scope:
• Revised the 20-year old charter of GSIS (PD
1146)
• Aims to expand and increase the coverage
and benefits of GSIS;
• Introduce institutional reforms for GSIS to
have more flexibility and thus perform its
mission of providing social security
protection more effectively.
Effectivity
• June 24, 1997, 15 days after it was
published on June 9, 1997. It was approved
on May 30, 1997
SC:
Aside from having been rendered part-
time in said agencies, the said positions
were without compensation as defined in
Section 2 (i) of R.A. No. 8291.
Benefits
Contingencies compensable?
• Retirement
• Separation (NOT BENEFITS IN SSS)
• Unemployment (not in SSS)
• Disability
• Survivorship
• Death (Life Insurance and Funeral)
New benefits?
• Unemployment benefit
• Separation benefit
Conditions:
rendered at least 15 yrs. of service
at least 60 year old at time of retirement
not receiving monthly pension from permanent total
disability
Options:
- lump sum payment of basic monthly pension multiplied
by 60 plus basic monthly pension for life upon
expiration of 5 years period
- cash payment of 18 times the basic monthly pension
plus basic monthly pension for life payable
immediately upon retirement but without 5-year
guaranteed period.
Retirement –
If rendered at least 15 years service but is less
than 60 years at time of separation or resignation,
member will be entitled to cash payment
equivalent to 18 times his basic monthly pension
payable at the time of separation or resignation
and upon reaching the age of 60 years, he will be
entitled to basic monthly pension payable monthly
for life.
This is denominated as separation benefit but
in reality a combination of separation and
retirement benefits.
Retirement –
• Entitlement to retirement is premised on service
of at least 15 years.
• Member who is 60 years old upon retirement but
with less than 15 years of service is not entitled to
retirement. What he gets is a separation benefit
consisting of cash benefit equivalent to 100% of
his average monthly compensation for each year of
service he paid contributions but not less than
P12,000 provided he has at least 3 years but less
than 15 years of service.
Retirement –
• Member who has at least 15 years of service may
retire at 60 or may continue in the service until 65
(compulsory retirement age)
• If he has less than 15 years, he may be allowed to
continue in the service in accordance with existing
civil service rules and regulations. Extension of
service is no longer mandatory in contrast to PD
1146.
Notice by employer
It shall be the duty of the Employer to notify
its Employee at least Ninety (90) days in
advance of the date of his/her compulsory
retirement.
Separation
Separation benefit
Types:
- rendered at least 3years but less than 15 years
(cash payment equivalent to 100% of Average Monthly
Compensation for every year of service payable upon
reaching 60 or upon separation whichever comes later if
not receiving monthly pension from permanent total
disability)
Primary Beneficiaries
• The legitimate spouse, until he/she
remarries, and the dependent children.
Secondary Beneficiaries
(a) the dependent parents; and
(b) the legitimate descendants
Who are dependents?
(a) the legitimate spouse dependent for support;
(b) any legitimate, legitimated and/or legally
adopted child, including any illegitimate child, who
is unmarried, not gainfully employed, who has not
attained the age of majority, or being at the age of
majority but incapacitated and incapable of self-
support due to a mental or physical defect
acquired prior to age of majority; and
(c) the parents dependent upon the member for
support.
GSIS v. Montesclaros
Facts:
SB member Nicolas Montesclaros married Milagros Orbiso.
Nicolas was a 72-year old widower when he married
Milagros who was then 43 years old. Nicolas died. Milagros
then filed with the GSIS a claim for survivorship pension
under PD 1146. The GSIS denied the claim because under
Section 18 of PD 1146, the surviving spouse has no right to
survivorship pension if the surviving spouse contracted the
marriage with the pensioner within three years before the
pensioner qualified for the pension.
SC:
Section 18 of Presidential Decree No. 1146 void for being
violative of the constitutional guarantees of due process
and equal protection of the law. The proviso is unduly
oppressive in outrightly denying a dependent spouse's
claim for survivorship pension if the dependent spouse
contracted marriage to the pensioner within the three-year
prohibited period. There is outright confiscation of benefits
due the surviving spouse without giving the surviving
spouse an opportunity to be heard. The proviso also
violated the equal protection clause because it
discriminates the dependent spouse who contracts
marriage to the pensioner within three years before the
Funeral
Shall be paid upon the death of:
(a) an active member; or
(b) a member who has been separated from the service,
but who is entitled to future separation or retirement
benefit; or
(c) a member who is a pensioner (excluding survivorship
pensioners); or
(d) a retiree who at the time of his/her retirement is at
least 60 years old but opts to retire under RA 1616; or
(e) a member who retired under RA 1616 prior to the
effectivity of RA 8282 with at 20 years service regardless of
Funeral
Prescriptive Period ?
- 4 years from date of contingency except life &
retirement which do not prescribe.
Tax Exemption
RUBIA V. GSIS
- exemption of GSIS from execution
does not cover refund of amortization
payment
Facts:
GSIS seeks exemption from the payment of
legal fees imposed on government-owned or
controlled corporations under Section 22,
Rule 141 (Legal Fees) of the Rules of Court.
GSIS anchors its petition on Section 39 of its
Issue:
May the legislature exempt GSIS from legal
fees imposed by the Court on government-
owned and controlled corporations and
local government units?
SC:
Since the payment of legal fees is a vital component
of the rules promulgated by this Court concerning
pleading, practice and procedure, it cannot be
validly annulled, changed or modified by Congress.
As one of the safeguards of this Court's
institutional independence, the power to
promulgate rules of pleading, practice and
procedure is now the Court's exclusive domain.
That power is no longer shared by this Court with
Congress, much less with the Executive.
SC:
Congress could not have carved out an exemption for the GSIS
from the payment of legal fees without transgressing
another equally important institutional safeguard of the
Court's independence — fiscal autonomy. Any exemption
from the payment of legal fees granted by Congress to
government-owned or controlled corporations and local
government units will necessarily reduce the JDF and the
SAJF. Undoubtedly, such situation is constitutionally infirm
for it impairs the Court's guaranteed fiscal autonomy and
erodes its independence.
What is the effect of re-employment?