THE

GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

REPUBLIC ACT NO. 8291

AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED,
EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE
GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS
THEREIN AND FOR OTHER PURPOSES.

SECTION 1. Presidential Decree No. 1146, as amended, otherwise known as
the "Revised Government Service Insurance Act of 1977", is hereby further
amended to read as follows:
"S!"#$N 1. Title. %"he title of this &ct shall be: "Te Government Service
Insurance S!stem Act of 1997."
"A. DEFINITIONS
"S!. '. "e#nition of terms.% (nless the conte)t otherwise indicates, the
followin* terms shall mean:
"+a, GSIS% "he -o.ernment Ser.ice #nsurance System created by
!ommonwealth &ct No. 1/60
"+b, $oard% "he 1oard of "rustees of the -o.ernment Ser.ice #nsurance
System0
"+c, Em%lo!er% "he national *o.ernment, its 2olitical subdi.isions, branches,
a*encies or instrumentalities, includin* *o.ernment%owned or controlled
cor2orations, and 3nancial institutions with ori*inal charters, the
constitutional commissions and the 4udiciary0
"+d, Em%lo!ee or &em'er% &ny 2erson recei.in* com2ensation while in the
ser.ice of an em2loyer as de3ned herein, whether by election or
a22ointment, irres2ecti.e of status of a22ointment, includin* baran*ay and
San**unian o5cials0
"+e, Active &em'er% & member who is not se2arated from the ser.ice0
"+f, "e%endents% De2endents shall be the followin*: +a, the le*itimate s2ouse
de2endent for su22ort u2on the member or 2ensioner0 +b, the le*itimate,
le*itimated, le*ally ado2ted child, includin* the ille*itimate child, who is
unmarried, not *ainfully em2loyed, not o.er the a*e of ma4ority, or is o.er
the a*e of ma4ority but inca2acitated and inca2able of self%su22ort due to a
mental or 2hysical defect ac6uired 2rior to a*e of ma4ority0 and +c, the
2arents de2endent u2on the member for su22ort0
"+*, (rimar! 'ene#ciaries% "he le*al de2endent s2ouse until he7she remarries
and the de2endent children0
"+h, Secondar! 'ene#ciaries% "he de2endent 2arents and, sub4ect to the
restrictions on de2endent children, the le*itimate descendants0
"+i, Com%ensation% "he basic 2ay or salary recei.ed by an em2loyee,
2ursuant to his election7a22ointment, e)cludin* 2er diems, bonuses,
o.ertime 2ay, honoraria, allowances and any other emoluments recei.ed in
addition to the basic 2ay which are not inte*rated into the basic 2ay under
e)istin* laws0
"+4, Contri'ution% "he amount 2ayable to the -S#S by the member and the
em2loyer in accordance with Section 8 of this &ct0
"+k, Current "ail! Com%ensation% "he actual daily com2ensation or the actual
monthly com2ensation di.ided by the number of workin* days in the month
of contin*ency but not to e)ceed twenty%two +'', days0
"+l, Avera)e &ontl! Com%ensation *A&C+% "he 6uotient arri.ed at after
di.idin* the a**re*ate com2ensation recei.ed by the member durin* his last
thirty%si) +96, months of ser.ice 2recedin* his se2aration7retirement7
disability7death by thirty%si) +96,, or by the number of months he recei.ed
such com2ensation if he has less than thirty%si) +96, months of ser.ice:
(rovided, "hat the a.era*e monthly com2ensation shall in no case e)ceed
the amount and rate as may be res2ecti.ely set by the 1oard under the rules
and re*ulations im2lementin* this &ct as determined by the actuary of the
-S#S: (rovided, furter, "hat initially the a.era*e monthly com2ensation shall
not e)ceed "en thousand 2esos +P1:,:::.::,, and 2remium shall be nine
2ercent +;<, and twel.e 2ercent +1'<, for em2loyee and em2loyer co.erin*
the &=! limit and below and two 2ercent +'<, and twel.e 2ercent +1'<, for
em2loyee and em2loyer co.erin* the com2ensation abo.e the &=! limit0
"+m, Revalued avera)e montl! com%ensation% &n amount e6ual to one
hundred se.enty 2ercent +1>:<, of the 3rst $ne thousand 2esos +P1,:::.::,
of the a.era*e monthly com2ensation 2lus one hundred 2ercent +1::<, of
the a.era*e monthly com2ensation in e)cess of $ne thousand 2esos
+P1,:::.::,0
"+n, -um% sum% "he basic monthly 2ension multi2lied by si)ty +6:,0
"+o, (ensioner% &ny 2erson recei.in* old%a*e 2ermanent total disability
2ension or any 2erson who has recei.ed the lum2 sum e)cludin* one
recei.in* sur.i.orshi2 2ension bene3ts as de3ned in Section ': of this &ct0
"+2, Gainful Occu%ation% &ny 2roducti.e acti.ity that 2ro.ided the member
with income at least e6ual to the minimum com2ensation of *o.ernment
em2loyees0
"+6, "isa'ilit!% &ny loss or im2airment of the normal functions of the 2hysical
and7or mental faculty of a member which reduces or eliminates his7her
ca2acity to continue with his7her current *ainful occu2ation or en*a*e in any
other *ainful occu2ation0
"+r, Total "isa'ilit!% !om2lete inca2acity to continue with his 2resent
em2loyment or en*a*e in any *ainful occu2ation due to the loss or
im2airment of the normal functions of the 2hysical and7or mental faculties of
the member0
"+s, (ermanent Total "isa'ilit!% &ccrues or arises when reco.ery from the
im2airment mentioned in Section ' +?, is medically remote0
"+t, Tem%orar! Total "isa'ilit!% &ccrues or arises when the im2aired 2hysical
and7or mental faculties can be rehabilitated and7or restored to their normal
functions0
"+u, (ermanent (artial "isa'ilit!% &ccrues or arises u2on the irre.ocable loss
or im2airment of certain 2ortion7s of the 2hysical faculties, des2ite which the
member is able to 2ursue a *ainful occu2ation.
"B. MEMBERSHIP IN THE GSIS
"S!. 9. Com%ulsor! &em'ersi%. . =embershi2 in the -S#S shall be
com2ulsory for all em2loyees recei.in* com2ensation who ha.e not reached
the com2ulsory retirement a*e, irres2ecti.e of em2loyment status, e)ce2t
members of the &rmed @orces of the Phili22ines and the Phili22ine National
Police, sub4ect to the condition that they must settle 3rst their 3nancial
obli*ation with the -S#S, and contractuals who ha.e no em2loyer and
em2loyee relationshi2 with the a*encies they ser.e.
")ce2t for the members of the 4udiciary and constitutional commissions who
shall ha.e life insurance only, all members of the -S#S shall ha.e life
insurance, retirement, and all other social security 2rotections such as
disability, sur.i.orshi2, se2aration, and unem2loyment bene3ts.
"S!. 4. E/ect of Se%aration from te Service. . & member se2arated from
the ser.ice shall continue to be a member, and shall be entitled to whate.er
bene3ts he has 6uali3ed to in the e.ent of any contin*ency com2ensable
under this &ct.
"C. SOURCES OF FUNDS
"S!. 8. Contri'utions. . +a, #t shall be mandatory for the member and
em2loyer to 2ay the monthly contributions s2eci3ed in the followin*
schedule:
"&ontl! Com%ensation (ercenta)e of
&ontl!

Com%ensation

(a!a'le '!

&em'er Em%lo!er
#. =a)imum &.era*e
=onthly !om2ensation
+&=!, Aimit and 1elow ;.:<
1'.:<
##. $.er the =a)imum
&=! Aimit
%(2 to the =a)imum
&=! Aimit ;.:<
1'.:<
%#n )cess of the
&=! Aimit '.:<
1'.:<
"=embers of the 4udiciary and constitutional commissioners shall 2ay three
2ercent +9<, of their monthly com2ensation as 2ersonal share and their
em2loyers a corres2ondin* three 2ercent +9<, share for their life insurance
co.era*e.
"+b, "he em2loyer shall include in its annual a22ro2riation the necessary
amounts for its share of the contributions indicated abo.e, 2lus any
additional 2remiums that may be re6uired on account of the haBards or risks
of its em2loyeeCs occu2ation.
"+c, #t shall be mandatory and com2ulsory for all em2loyers to include the
2ayment of contributions in their annual a22ro2riations. Penal sanctions shall
be im2osed u2on em2loyers who fail to include the 2ayment of contributions
in their annual a22ro2riations or otherwise fail to remit the accurate7e)act
amount of contributions on time, or delay the remittance of 2remium
contributions to the -S#S. "he heads of o5ces and a*encies shall be
administrati.ely liable for non%remittance or delayed remittance of 2remium
contributions to the -S#S.
"S!. 6. Collection and Remittance of Contri'utions. % +a, "he em2loyer shall
re2ort to the -S#S the names of all its em2loyees, their corres2ondin*
em2loyment status, 2ositions, salaries and such other 2ertinent information,
includin* subse6uent chan*es therein, if any, as may be re6uired by the
-S#S0 the em2loyer shall deduct each month from the monthly salary or
com2ensation of each em2loyee the contribution 2ayable by him in
accordance with the schedule 2rescribed in the rules and re*ulations
im2lementin* this &ct.
"+b, ach em2loyer shall remit directly to the -S#S the em2loyeeCs and
em2loyerCs contributions within the 3rst ten +1:, days of the calendar month
followin* the month to which the contributions a22ly. "he remittance by the
em2loyer of the contribution to the -S#S shall take 2riority o.er and abo.e
the 2ayment of any and all obli*ations, e)ce2t salaries and wa*es of its
em2loyees.
"S!. >. Interest on "ela!ed Remittances. % &*encies which delay the
remittance of any and all monies due the -S#S shall be char*ed interests as
may be 2rescribed by the 1oard but not less than two 2ercent +'<, sim2le
interest 2er month. Such interest shall be 2aid by the em2loyers concerned.
"S!. /. Government Guarantee. % "he *o.ernment of the De2ublic of the
Phili22ines hereby *uarantees the ful3llment of the obli*ations of the -S#S to
its members as and when they fall due.
"D. BENEFITS
"S!. ;. Com%utation of te $asic &ontl! (ension. % +a, "he basic monthly
2ension is e6ual to:
"1, thirty%se.en and one%half 2ercent +9>.8<, of the re.alued a.era*e
monthly com2ensation0 2lus
"', two and one%half 2ercent +'.8<, of said re.alued a.era*e monthly
com2ensation for each year of ser.ice in e)cess of +18, years: (rovided, "hat
the basic monthly 2ension shall not e)ceed ninety 2ercent +;:<, of the
a.era*e monthly com2ensation.
"+b, "he basic monthly 2ension may be ad4usted u2on the recommendation
of the President and -eneral =ana*er of the -S#S and a22ro.ed by the
President of the Phili22ines in accordance with the rules and re*ulations
2rescribed by the -S#S: (rovided, o0ever, that the basic monthly 2ension
shall not be less than $ne thousand and three hundred 2esos +P1,9::.::,:
(rovided, furter, that the basic monthly 2ension for those who ha.e
rendered at least twenty +':, years of ser.ice after the eEecti.ity of this &ct
shall not be less than "wo thousand four hundred 2esos +P',4::.::, a month.
"S!. 1:. Com%utation of Service. % +a, "he com2utation of ser.ice for the
2ur2ose of determinin* the amount of bene3ts 2ayable under this &ct shall
be from the date of ori*inal a22ointment7election, includin* 2eriods of
ser.ice at diEerent times under one or more em2loyers, those 2erformed
o.erseas under the authority of the De2ublic of the Phili22ines, and those
that may be 2rescribed by the -S#S in coordination with the !i.il Ser.ice
!ommission.
"+b, &ll ser.ice credited for retirement, resi*nation or se2aration for which
corres2ondin* bene3ts ha.e been awarded under this &ct or other laws shall
be e)cluded in the com2utation of ser.ice in case of reinstatement in the
ser.ice of an em2loyer and subse6uent retirement or se2aration which is
com2ensable under this &ct.
"@or the 2ur2ose of this section, the term ser.ice shall include full%time
ser.ice with com2ensation: (rovided, that 2art%time and other ser.ices with
com2ensation may be included under such rules and re*ulations as may be
2rescribed by the -S#S.
"SEPARATION BENEFITS
"S!. 11. Se%aration $ene#ts. % "he se2aration bene3ts shall consist of: +a, a
cash 2ayment e6ui.alent to one hundred 2ercent +1::<, of his a.era*e
monthly com2ensation for each year of ser.ice he 2aid contributions, but not
less than "wel.e thousand 2esos +P1',:::, 2ayable u2on reachin* si)ty +6:,
years of a*e u2on se2aration, whiche.er comes later: (rovided, that the
member resi*ns or se2arates from the ser.ice after he has rendered at least
three +9, years of ser.ice but less than 3fteen +18, years0 or
"+b, a cash 2ayment e6ui.alent to ei*hteen +1/, times his basic monthly
2ension at the time of resi*nation or se2aration, 2lus an old%a*e 2ension
bene3t e6ual to the basic monthly 2ension 2ayable monthly for life u2on
reachin* the a*e of si)ty +6:,: (rovided, that the member resi*ns or
se2arates from the ser.ice after he has rendered at least 3fteen +18, years of
ser.ice and is below si)ty +6:, years of a*e at the time of resi*nation or
se2aration.
"S!. 1'. 1nem%lo!ment or Involuntar! Se%aration $ene#ts. %
(nem2loyment bene3ts in the form of monthly cash 2ayments e6ui.alent to
3fty 2ercent +8:<, of the a.era*e monthly com2ensation shall be 2aid to a
2ermanent em2loyee who is in.oluntarily se2arated from the ser.ice due to
the abolition of his o5ce or 2osition usually resultin* from reor*aniBation:
(rovided, "hat he has been 2ayin* inte*rated contributions for at least one
+1, year 2rior to se2aration. (nem2loyment bene3ts shall be 2aid in
accordance with the followin* schedules:
"Contri'utions &ade $ene#t "uration
1 year but less than 9 years ' months
9 or more years but less than 6 years 9 months
6 or more years but less than ; years 4 months
; or more years but less than 11 years 8 months
11 or more years but less than 18 years 6 months
""he 3rst 2ayment shall be e6ui.alent to two +', monthly bene3ts. & se.en%
day +>, waitin* 2eriod shall be im2osed on succeedin* monthly 2ayments.
"&ll accumulated unem2loyment bene3ts 2aid to the em2loyee durin* his
entire membershi2 with the -S#S shall be deducted from .oluntary
se2aration bene3ts.
""he -S#S shall 2rescribe the detailed *uidelines in the o2erationaliBation of
this section in the rules and re*ulations im2lementin* this &ct.
"RETIREMENT BENEFITS
"S!. 19. Retirement $ene#ts. % +a, Detirement bene3ts shall be:
"+1, the lum2 sum 2ayment as de3ned in this &ct 2ayable at the time of
retirement 2lus an old%a*e 2ension bene3t e6ual to the basic monthly
2ension 2ayable monthly for life, startin* u2on e)2iration of the 3.e%year +8,
*uaranteed 2eriod co.ered by the lum2 sum0 or
"+', cash 2ayment e6ui.alent to ei*hteen +1/, months of his basic monthly
2ension 2lus monthly 2ension for life 2ayable immediately with no 3.e%year
+8, *uarantee.
"+b, (nless the ser.ice is e)tended by a22ro2riate authorities, retirement
shall be com2ulsory for an em2loyee of si)ty%3.e +68, years of a*e with at
least 3fteen +18, years of ser.ice: (rovided, "hat if he has less than 3fteen
+18, years of ser.ice, he may be allowed to continue in the ser.ice in
accordance with e)istin* ci.il ser.ice rules and re*ulations.
"S!. 19%&. Conditions for Entitlement. . & member who retires from the
ser.ice shall be entitled to the retirement bene3ts enumerated in 2ara*ra2h
+a, of Section 19 hereof: (rovided, "hat:
+1, he has rendered at least 3fteen years of ser.ice0
+', he is at least si)ty +6:, years of a*e at the time of retirement0 and
+9, he is not recei.in* a monthly 2ension bene3t from 2ermanent total
disability.
"S!. 14. (eriodic (ension Ad2ustment. . "he monthly 2ension of all
2ensioners includin* all those recei.in* sur.i.orshi2 2ension bene3ts shall be
2eriodically ad4usted as may be recommended by the -S#S actuary and
a22ro.ed by the 1oard in accordance with the rules and re*ulations
2rescribed by the -S#S.
"PERMANENT DISABILITY BENEFITS
"S!. 18. General Conditions for Entitlement. . & member who suEers
2ermanent disability for reasons not due to his *ra.e misconduct, notorious
ne*li*ence, habitual into)ication, or willful intention to kill himself or another,
shall be entitled to the bene3ts 2ro.ided for under Sections 16 and 1>
immediately followin*, sub4ect to the corres2ondin* conditions thereof.
"S!. 16. (ermanent Total "isa'ilit! $ene#ts. . +a, #f the 2ermanent disability
is total, he shall recei.e a monthly income bene3t for life e6ual to the basic
monthly 2ension eEecti.e from the date of disability: (rovided, "hat:
+1, he is in the ser.ice at the time of disability0 or
+', if se2arated from the ser.ice, he has 2aid at least thirty%si) +96, monthly
contributions within the 3.e +8, year 2eriod immediately 2recedin* disability,
or has 2aid a total of at least one hundred ei*hty +1/:, monthly
contributions, 2rior to his disability: (rovided, furter, "hat if at the time of
disability, he was in the ser.ice and has 2aid a total of at least one hundred
ei*hty +1/:, monthly contributions, in addition to the monthly income
bene3t, he shall recei.e a cash 2ayment e6ui.alent to ei*hteen +1/, times
his basic monthly 2ension: (rovided, #nall!, "hat a member cannot en4oy the
monthly income bene3t for 2ermanent disability and the old%a*e retirement
simultaneously.
"+b, #f a member who suEers 2ermanent total disability does not satisfy
conditions +1, and +', in 2ara*ra2h +a, of this section but has rendered at
least three +9, years of ser.ice at the time of his disability, he shall be
ad.anced the cash 2ayment e6ui.alent to one hundred 2ercent +1::<, of his
a.era*e monthly com2ensation for each year of ser.ice he 2aid
contributions, but not less than "wel.e thousand 2esos +P1',:::.::, which
should ha.e been his se2aration bene3t.
"+c, (nless the member has reached the minimum retirement a*e, disability
bene3t shall be sus2ended when:
"+1, he is reem2loyed0 or
"+', he reco.ers from his disability as determined by the -S#S, whose
decision shall be 3nal and bindin*0 or
"+9, he fails to 2resent himself for medical e)amination when re6uired
by the -S#S.
"+d, "he followin* disabilities shall be deemed total and 2ermanent:

"+1, com2lete loss of si*ht of both eyes0
"+', loss of two +', limbs at or abo.e the ankle or wrist0
"+9, 2ermanent com2lete 2aralysis of two +', limbs0
"+4, brain in4ury resultin* in incurable imbecility or insanity0 and
"+8, such other cases as may be determined by the -S#S.
"S!. 1>. (ermanent (artial "isa'ilit! $ene#ts. . +a, #f the disability is 2artial,
he shall recei.e a cash 2ayment in accordance with a schedule of disabilities
to be 2rescribed by the -S#S: (rovided, "hat he satis3es either conditions +1,
or +', of Section 16 +a,0
"+b, "he followin* disabilities shall be deemed 2ermanent 2artial:
"+1, com2lete and 2ermanent loss of the use of:
+i, any 3n*er
+ii, any toe
+iii, one arm
+i., one hand
+., one foot
+.i, one le*
+.ii, one or both ears
+.iii, hearin* of one or both ears
+i), si*ht of both eyes

"+', such other cases as my be determined by the -S#S.
"TEMPORARY DISABILITY BENEFITS
"S!. 1/. Tem%orar! Total "isa'ilit! $ene#ts. . +a, & member who suEers
tem2orary total disability for reasons not due to any of the conditions
enumerated in Section 18 hereof shall be entitled to se.enty%3.e 2ercent
+>8<, of his current daily com2ensation for each day or fraction thereof of
tem2orary disability bene3t not e)ceedin* one hundred twenty +1':, days in
one calendar year after e)haustin* all his sick lea.e credits and collecti.e
bar*ainin* a*reement sick lea.e bene3ts, if any, but not earlier than the
fourth day of his tem2orary total disability: (rovided, "hat:
"+1, he is in the ser.ice at the time of his disability0 or
"+', if se2arated, he has rendered at least three +9, years of ser.ice
and has 2aid at least si) +6, monthly contributions in the twel.e%
month 2eriod immediately 2recedin* his disability.
"(rovided, o0ever, "hat a member cannot en4oy the tem2orary total
disability bene3t and sick lea.e 2ay simultaneously: (rovided, furter, "hat if
the disability re6uires more e)tensi.e treatment that lasts beyond one
hundred twenty +1':, days, the 2ayment of the tem2orary total disability
bene3t may be e)tended by the -S#S but not to e)ceed a total of two
hundred forty +'4:, days.
"+b, "he tem2orary total disability bene3t shall in no case be less than
Se.enty 2esos +P>:.::, a day.
"+c, "he notices re6uired of the member and the em2loyer, the mode of
2ayment, and the other re6uirements for entitlement to tem2orary total
disability bene3ts shall be 2ro.ided in the rules and re*ulations to be
2rescribed by the -S#S.
"S!. 1;. Non.sceduled "isa'ilit!. . @or in4uries or illnesses resultin* in a
disability not listed in the schedule of 2artial7total disability 2ro.ided herein,
the -S#S shall determined the nature of the disability and the corres2ondin*
bene3ts therefor.
"SURVIVORSHIP BENEFITS
"S!. ':. Survivorsi% $ene#ts. . Fhen a member or 2ensioner dies, the
bene3ciaries shall be entitled to sur.i.orshi2 bene3ts 2ro.ided in Sections '1
and '' hereunder sub4ect to the conditions therein 2ro.ided for. "he
sur.i.orshi2 2ension shall consist of:
+1, the basic sur.i.orshi2 2ension which is 3fty 2ercent +8:<, of the
basic monthly 2ension0 and
+', the de2endent childrenCs 2ension not e)ceedin* 3fty 2ercent
+8:<, of the basic monthly 2ension
.
"S!. '1. "eat of a &em'er. . +a, (2on the death of a member, the 2rimary
bene3ciaries shall be entitled to:
+1, sur.i.orshi2 2ension: (rovided, "hat the deceased:
+i, was in the ser.ice at the time of his death0 or
+ii, if se2arated from the ser.ice, has at least three +9, years of
ser.ice at the time of his death and has 2aid thirty%si) +96,
monthly contributions within the 3.e%year 2eriod immediately
2recedin* his death0 or has 2aid a total of at least one hundred
ei*hty +1/:, monthly contributions 2rior to his death0 or
+', the sur.i.orshi2 2ension 2lus a cash 2ayment e6ui.alent to one
hundred 2ercent +1::<, of his a.era*e monthly com2ensation for
e.ery year of ser.ice: (rovided, "hat the deceased was in the ser.ice
at the time of his death with at least three +9, years of ser.ice0 or
+9, a cash 2ayment e6ui.alent to one hundred 2ercent +1::<, of his
a.era*e monthly com2ensation for each year of ser.ice he 2aid
contributions, but not less than "wel.e thousand 2esos +P1',:::.::,:
(rovided, "hat the deceased has rendered at least three +9, years of
ser.ice 2rior to his death but does not 6ualify for the bene3ts under
item +1, or +', of this 2ara*ra2h.
+b, "he sur.i.orshi2 2ension shall be 2aid as follows:
+1, when the de2endent s2ouse is the only sur.i.or, he7she shall
recei.e the basic sur.i.orshi2 2ension for life or until he7she
remarries0
+', when only de2endent children are the sur.i.ors, they shall be
entitled to the basic sur.i.orshi2 2ension for as lon* as they are
6uali3ed, 2lus the de2endent childrenCs 2ension e6ui.alent to ten
2ercent +1:<, of the basic monthly 2ension for e.ery de2endent child
not e)ceedin* 3.e +8,, counted from the youn*est and without
substitution0
+9, when the sur.i.ors are the de2endent s2ouse and the de2endent
children, the de2endent s2ouse shall recei.e the basic sur.i.orshi2
2ension for life or until he7she remarries, and the de2endent children
shall recei.e the de2endent childrenCs 2ension mentioned in the
immediately 2recedin* 2ara*ra2h +', hereof.
+c, #n the absence of 2rimary bene3ciaries, the secondary bene3ciaries shall
be entitled to:
+1, the cash 2ayment e6ui.alent to one hundred 2ercent +1::<, of his
a.era*e monthly com2ensation for each year of ser.ice he 2aid
contributions, but not less than "wel.e thousand 2esos +P1',:::.::,:
(rovided, "hat the member is in the ser.ice at the time of his death
and has at least three +9, years of ser.ice0 or
+', in the absence of secondary bene3ciaries, the bene3ts under this
2ara*ra2h shall be 2aid to his le*al heirs.
+d, @or 2ur2oses of the sur.i.orshi2 bene3ts, le*itimate children shall include
le*ally ado2ted and le*itimated children.
"S!. ''. "eat of a (ensioner. . (2on the death of an old%a*e 2ensioner or a
member recei.in* the monthly income bene3t for 2ermanent disability, the
6uali3ed bene3ciaries shall be entitled to the sur.i.orshi2 2ension de3ned in
Section ': of this &ct, sub4ect to the 2ro.isions of 2ara*ra2h +b, of Section '1
hereof. Fhen the 2ensioner dies within the 2eriod co.ered by the lum2 sum,
the sur.i.orshi2 2ension shall be 2aid only after the e)2iration of the said
2eriod.
"FUNERAL BENEFITS
"S!. '9. 3uneral $ene#ts. . "he amount of the funeral bene3ts shall be
determined and s2eci3ed by the -S#S in the rules and re*ulations but shall
not be less than "wel.e thousand 2esos +P1',:::.::,: (rovided, "hat it shall
be increased to at least i*hteen thousand 2esos +P1/,:::.::, after 3.e +8,
years and shall be 2aid u2on the death of:
+a, an acti.e member as de3ned under Section ' +e, of this &ct0 or
+b, a member who has been se2arated from the ser.ice, but who may
be entitled to future bene3t 2ursuant to Section 4 of this &ct0 or
+c, a 2ensioner, as de3ned in Section ' +o, of this &ct0 or
+d, a retiree who at the time of his retirement was of 2ensionable a*e
under this &ct but who o2ted to retire under De2ublic &ct No. 1616.
"LIFE INSURANCE BENEFITS
"S!. '4. Com%ulsor! -ife Insurance. . &ll em2loyees e)ce2t for =embers of
the &rmed @orces of the Phili22ines +&@P, and the Phili22ine National Police
+PNP, shall, under such terms and conditions as may be 2romul*ated by the
-S#S, be com2ulsorily co.ered with life insurance, which shall automatically
take eEect as follows:
+1, for those em2loyed after the eEecti.ity of this &ct, their insurance
shall take eEect on the date of their em2loyment0
+', for those whose insurance will mature after the eEecti.ity of this
&ct, their insurance shall be deemed renewed on the day followin* the
maturity or e)2iry date of their insurance0
+9, for those without any life insurance as of the eEecti.ity of this &ct,
their insurance shall take eEect followin* said eEecti.ity.
"S!. '8. "ividends. . &n annual di.idend may be *ranted to all members of
the -S#S whose life insurance is in force for at least one +1, year in
accordance with a di.idends allocation formula to be determined by the -S#S.
"S!. '6. O%tional Insurance. . Sub4ect to the rules and re*ulations
2rescribed by the -S#S, a member may a22ly for insurance and7or 2re%need
co.era*e embracin* life, health, hos2italiBation, education, memorial 2lans,
and such other 2lans as may be desi*ned by the -S#S, for himself and7or his
de2endents. &ny em2loyer may likewise a22ly for *rou2 insurance co.era*e
for its em2loyees. "he 2ayment of the 2remiums7installments for o2tional
insurance and 2re%need 2roducts may be made by the insured or his
em2loyer and7or any 2erson acce2table to the -S#S.
"S!. '>. Reinsurance. . "he -S#S may reinsure any of its interests or 2art
thereof with any 2ri.ate com2any or reinsurer whether domestic of forei*n:
(rovided, "hat the -S#S shall submit an annual re2ort on its reinsurance
o2erations to the #nsurance !ommission.
"E. ADJUDICATION OF CLAIMS AND DISPUTES
"S!. '/. (rescri%tion. . !laims for bene3ts under this &ct e)ce2t for life and
retirement shall 2rescribe after four +4, years from the date of contin*ency.
"S!. ';. 3acilit! of (a!ment. . "he -S#S shall 2rescribe rules and re*ulations
to facilitate 2ayment of bene3ts, 2roceeds, and claims under this &ct and any
other laws administered by the -S#S. Payments made by the -S#S 2rior to its
recei2t of an ad.erse claim, to a bene3ciary or claimant subse6uently found
not entitled thereto, shall not bar the le*al and eli*ible reci2ient to his ri*ht
to demand the 2ayment of bene3ts, 2roceeds, and claims from the -S#S, who
shall, howe.er, ha.e a ri*ht to institute the a22ro2riate action in a court of
law a*ainst the ineli*ible reci2ient.
"S!. 9:. Settlement of "is%utes. . "he -S#S shall ha.e ori*inal and e)clusi.e
4urisdiction to settle any dis2utes arisin* under this &ct and any other laws
administered by the -S#S.
"he 1oard may desi*nate any member of the 1oard, or o5cial of the -S#S
who is a lawyer, to act as hearin* o5cer to recei.e e.idence, make 3ndin*s
of fact and submit recommendations, to*ether with all documentary and
testimonial e.idence to the 1oard within thirty +9:, workin* days from the
time the 2arties ha.e closed their res2ecti.e e.idence and 3led their last
2leadin*. "he 1oard shall decide the case within thirty +9:, days from the
recei2t of the hearin* o5cerCs 3ndin*s and recommendations. "he cases
heard directly by the 1oard shall be decided within thirty +9:, workin* days
from the time they are submitted by the 2arties for decision.
"S!. 91. A%%eals. . &22eals from any decision or award of the 1oard shall be
*o.erned by Dules 49 and 48 of the 1;;> Dules of !i.il Procedure ado2ted by
the Su2reme !ourt on &2ril /, 1;;> which will take eEect on Guly 1, 1;;>:
(rovided, "hat 2endin* cases and those 3led 2rior to Guly 1, 1;;> shall be
*o.erned by the a22licable rules of 2rocedure: (rovided, furter, "hat the
a22eal shall take 2recedence o.er all other cases e)ce2t criminal cases when
the 2enalty of life im2risonment or death or reclusion %er%etua is im2osable.
"he a22eal shall not stay the e)ecution of the order or award unless ordered
by the 1oard, by the !ourt of &22eals or by the Su2reme !ourt and the
a22eal shall be without 2re4udice to the s2ecial ci.il action of certiorari when
2ro2er.
"S!. 9'. E4ecution of "ecision. . Fhen no a22eal is 2erfected and there is
no order to stay by the 1oard, by the !ourt of &22eals or by the Su2reme
!ourt, any decision or award of the 1oard shall be enforced and e)ecuted in
the same manner as decisions of the De*ional "rial !ourt. @or this 2ur2ose,
the 1oard shall ha.e the 2ower to issue to the city or 2ro.incial sheriE or its
a22ointed sheriE such writs of e)ecution as may be necessary for the
enforcement of such decision or award, and any 2erson who shall fail or
refuse to com2ly with such decision, award, writ or 2rocess after bein*
re6uired to do so shall, u2on a22lication by the -S#S, be 2unished for
contem2t.
"S!. 99. Oats, 5itnesses, and (roduction of Records. . Fhen authoriBed by
the 1oard, an o5cial or em2loyee of the -S#S shall ha.e the 2ower to
administer oath and a5rmation, take de2osition, certify to o5cial acts, and
issue su'%oena ad testi#candum and su'%oena duces tecum to com2el the
attendance of witnesses and the 2roduction of books, 2a2ers,
corres2ondences, and other records deemed necessary as e.idence in
connection with any 6uestion arisin* under this &ct. &ny case of contumacy
shall be dealt with in accordance with the 2ro.isions of Section 8/: of the
De.ised &dministrati.e !ode.
"F. FUNDS OF THE GSIS
"S!. 94. 3unds. . &ll contributions 2ayable under Section 8 of this &ct
to*ether with the earnin*s and accruals thereon shall constitute the -S#S
Social #nsurance @und. "he said fund shall be used to 3nance the bene3ts
administered by the -S#S under this &ct. #n addition, the -S#S shall
administer the o2tional insurance fund for the insurance co.era*e described
in Section '6 hereof, the m2loyeesC !om2ensation #nsurance @und created
under P.D. 6'6, as amended, -eneral #nsurance @und created under &ct No.
686, as amended, and such other s2ecial funds e)istin* or that may be
created for s2ecial *rou2s or 2ersons renderin* ser.ices to the *o.ernment.
"he -S#S shall maintain the re6uired reser.es to *uarantee the ful3llment of
its obli*ations under this &ct.
"he funds of the -S#S shall not be used for 2ur2oses other than what are
2ro.ided for under this &ct. =oreo.er, no 2ortion of the funds of the -S#S or
income thereof shall accrue to the -eneral @und of the national *o.ernment
and its 2olitical subdi.isions, instrumentalities and other a*encies includin*
*o.ernment%owned and controlled cor2orations e)ce2t as may be allowed
under this &ct.
"S!. 98. "e%osits and "is'ursements. . &ll re.enues collected and all
accruals thereto shall be de2osited, administered and disbursed in
accordance with the law. & ma)imum e)2ense loadin* of twel.e 2ercent
+1'<, of the yearly re.enues from all sources may be disbursed for
administrati.e and o2erational e)2enses e)ce2t as may be otherwise
a22ro.ed by the President of the Phili22ines on the basis of actuarial and
mana*ement studies.
"S!. 96. Investment of 3unds. . "he funds of the -S#S which are not needed
to meet the current obli*ations may be in.ested under such terms and
conditions and rules and re*ulations as may be 2rescribed by the 1oard:
(rovided, "hat in.estments shall satisfy the re6uirements of li6uidity,
safety7security and yield in order to ensure the actuarial sol.ency of the
funds of the -S#S: (rovided, furter, "hat the -S#S shall submit an annual
re2ort on all in.estments made to both Houses of !on*ress of the Phili22ines,
to wit:
+a, in interest%bearin* bonds or securities or other e.idence of
indebtedness of the -o.ernment of the Phili22ines0
+b, in interest%bearin* de2osits or securities in any domestic bank
doin* business in the Phili22ines: (rovided, "hat in the case of such
de2osits, there shall not e)ceed at any time the unim2aired ca2ital
and sur2lus or total 2ri.ate de2osits of the de2ository bank,
whiche.er is smaller: (rovided, furter, "hat the said bank has 2rior
desi*nation as a de2ository for the 2ur2ose by the =onetary 1oard of
the !entral =onetary &uthority0
+c, in direct housin* loans to members and *rou2 housin* 2ro4ects
secured by 3rst mort*a*e, *i.in* 2riority to the low income *rou2s
and in short and medium term loans to members such as salary,
2olicy, educational, emer*ency stock 2urchase 2lan and other similar
loans: (rovided, "hat no less than forty 2ercent +4:<, of the in.estible
fund of the -S#S Social #nsurance @und shall be in.ested for these
2ur2oses0
+d, in bonds, securities, 2romissory notes or other e.idence of
indebtedness of educational or medical institutions to 3nance the
construction, im2ro.ement and maintenance of schools and hos2itals0
+e, in real estate 2ro2erty includin* shares of stocks in.ol.in* real
state 2ro2erty and in.estments secured by 3rst mort*a*es on real
estate or other collaterals acce2table to the -S#S: (rovided, "hat such
in.estment shall, in the determination of the 1oard, redound to the
bene3t of the -S#S, its members as well as the *eneral 2ublic0
+f, in debt instruments and other securities traded in the secondary
markets0
+*, in loans to, or in bonds, debentures, 2romissory notes or other
e.idence of indebtedness of any sol.ent cor2oration created or
e)istin* under the laws of the Phili22ines0
+h, in common and 2referred stocks of any sol.ent cor2oration or
3nancial institution created or e)istin* under the laws of the
Phili22ines listed in the stock e)chan*e with 2ro.en track record of
2ro3tability o.er the last three +9, years and 2ayment of di.idends at
least once o.er the same 2eriod0
+i, in domestic mutual funds includin* in.estments related to the
o2erations of mutual funds0 and
+4, in forei*n mutual funds and in forei*n currency de2osits or forei*n
currency%denominated debts, non%s2eculati.e e6uities and other
3nancial instruments or other assets issued in accordance with
e)istin* laws of the countries where such 3nancial instruments are
issued: (rovided, "hat these instruments or assets are listed in
bourses of the res2ecti.e countries where these instruments or assets
are issued: (rovided, furter, "hat the issuin* com2any has 2ro.en
track record of 2ro3tability o.er the last three +9, years and 2ayment
of di.idends at least once o.er the same 2eriod.
"S!. 9>. Records and Re%orts. % "he -S#S shall kee2 and cause to kee2 such
records as may be necessary for the 2ur2ose of makin* actuarial studies,
calculations and .aluations of the funds of the -S#S includin* such data
needed in the com2utation of rates of disability, mortality, morbidity,
se2aration and retirement amon* the members and any other information
useful for the ad4ustment of the bene3ts of the members. "he -S#S shall
maintain a22ro2riate books of accounts to record its assets, liabilities,
income, e)2enses, recei2ts and disbursement of funds and other 3nancial
transactions and o2erations.
"S!. 9/. E4amination and 6aluation of te 3unds. . "he -S#S shall make a
2eriodic actuarial e)amination and .aluation of its funds in accordance with
acce2ted actuarial 2rinci2les.
"S!. 9;. E4em%tion from Ta4, -e)al (rocess and -ien. . #t is hereby declared
to be the 2olicy of the State that the actuarial sol.ency of the funds of the
-S#S shall be 2reser.ed and maintained at all times and that contribution
rates necessary to sustain the bene3ts under this &ct shall be ke2t as low as
2ossible in order not to burden the members of the -S#S and their em2loyers.
"a)es im2osed on the -S#S tend to im2air the actuarial sol.ency of its funds
and increase the contribution rate necessary to sustain the bene3ts of this
&ct. &ccordin*ly, notwithstandin* any laws to the contrary, the -S#S, its
assets, re.enues includin* all accruals thereto, and bene3ts 2aid, shall be
e)em2t from all ta)es, assessments, fees, char*es, or duties of all kinds.
"hese e)em2tions shall continue unless e)2ressly and s2eci3cally re.oked
and any assessment a*ainst the -S#S as of the a22ro.al of this &ct are
hereby considered 2aid. !onse6uently, all laws, ordinances, re*ulations,
issuances, o2inions or 4uris2rudence contrary to or in dero*ation of this
2ro.ision are hereby deemed re2ealed, su2erseded and rendered ineEecti.e
and without le*al force and eEect.
"=oreo.er, these e)em2tions shall not be aEected by subse6uent laws to the
contrary unless this section is e)2ressly, s2eci3cally and cate*orically
re.oked or re2ealed by law and a 2ro.ision is enacted to substitute or re2lace
the e)em2tion referred to herein as an essential factor to maintain or 2rotect
the sol.ency of the fund, notwithstandin* and inde2endently of the *uaranty
of the national *o.ernment to secure such sol.ency or liability.
""he funds and7or the 2ro2erties referred to herein as well as the bene3ts,
sums or monies corres2ondin* to the bene3ts under this &ct shall be e)em2t
from attachment, *arnishment, e)ecution, le.y or other 2rocesses issued by
the courts, 6uasi%4udicial a*encies or administrati.e bodies includin*
!ommission on &udit +!$&, disallowances and from all 3nancial obli*ations of
the members, includin* his 2ecuniary accountability arisin* from or caused
or occasioned by his e)ercise or 2erformance of his o5cial functions or
duties, or incurred relati.e to or in connection with his 2osition or work
e)ce2t when his monetary liability, contractual or otherwise, is in fa.or of the
-S#S.
"G. ADMINISTRATION
"S!. 4:. Im%lementin) $od!. % "he -o.ernment Ser.ice #nsurance System
as created under !ommonwealth &ct No. 1/6 shall im2lement the 2ro.isions
of this &ct.
"S!. 41. (o0ers and 3unctions of te GSIS. . "he -S#S shall e)ercise the
followin* 2owers and functions:
+a, to formulate, ado2t, amend and7or rescind such rules and
re*ulations as may be necessary to carry out the 2ro.isions and
2ur2oses of this &ct, as well as the eEecti.e e)ercise of the 2owers
and functions, and the dischar*e of duties and res2onsibilities of the
-S#S, its o5cers and em2loyees0
+b, to ado2t or a22ro.e the annual and su22lemental bud*et of
recei2ts and e)2enditures includin* salaries and allowances of the
-S#S 2ersonnel0 to authoriBe such ca2ital and o2eratin* e)2enditures
and disbursements of the -S#S as may be necessary and 2ro2er for
the eEecti.e mana*ement and o2eration of the -S#S0
+c, to in.est the funds of the -S#S, directly or indirectly, in accordance
with the 2ro.isions of this &ct0
+d, to ac6uire, utiliBe or dis2ose of, in any manner reco*niBed by law,
real or 2ersonal 2ro2erty in the Phili22ines or elsewhere necessary to
carry out the 2ur2oses of this &ct0
+e, to conduct continuin* actuarial and statistical studies and
.aluations to determine the 3nancial Icondition of the -S#S and
takin* into consideration such studies and .aluations and the
limitations herein 2ro.ided, re%ad4ust the bene3ts, contributions,
2remium rates, interest rates or the allocation or re%allocation of the
funds to the contin*encies co.ered0
+f, to ha.e the 2ower of succession0
+*, to sue and be sued0
+h, to enter into, make, 2erform and carry out contracts of e.ery kind
and descri2tion with any 2erson, 3rm or association or cor2oration,
domestic or forei*n0
+i, to carry on any other lawful business whatsoe.er in 2ursuance of,
or in connection with the 2ro.isions of this &ct0
+4, to ha.e one or more o5ces in and outside of the Phili22ines, and to
conduct its business and e)ercise its 2owers throu*hout and in any
2art of the De2ublic of the Phili22ines and7or in any or all forei*n
countries, states and territories: (rovided, "hat the -S#S shall
maintain a branch o5ce in e.ery 2ro.ince where there e)ists a
minimum of 3fteen thousand +18,:::, membershi20
+k, to borrow funds from any source, 2ri.ate or *o.ernment, forei*n or
domestic, only as an incident in the securitiBation of housin*
mort*a*es of the -S#S and on account of its recei.ables from any
*o.ernment or 2ri.ate entity0
+l, to in.est, own or otherwise 2artici2ate in e6uity in any
establishment, 3rm or entity0
+m, to a22ro.e a22ointments in the -S#S e)ce2t a22ointments to
2ositions which are 2olicy determinin*, 2rimarily con3dential or hi*hly
technical in nature accordin* to the !i.il Ser.ice rules and
re*ulations: (rovided, "hat all 2ositions in the -S#S shall be *o.erned
by the com2ensation and 2osition classi3cation system and
6uali3cations standards a22ro.ed by the -S#S 1oard of "rustees based
on a com2rehensi.e 4ob analysis and audit of actual duties and
res2onsibilities: (rovided, furter, "hat the com2ensation 2lan shall be
com2arable with the 2re.ailin* com2ensation 2lans in the 2ri.ate
sector and shall be sub4ect to the 2eriodic re.iew by the 1oard no
more than once e.ery four +4, years without 2re4udice to yearly merit
re.iews or increases based on 2roducti.ity and 2ro3tability0
+n, to desi*n and ado2t an arly Detirement #ncenti.es Plan +D#P,
and7or 3nancial assistance for the 2ur2ose of retirement for its own
2ersonnel0
+o, to 3) and 2eriodically re.iew and ad4ust the rates of interest and
other terms and conditions for loans and credits e)tended to members
or other 2ersons, whether natural or 4uridical0
+2, to enter into a*reement with the Social Security System or any
other entity, enter2rise, cor2oration or 2artnershi2 for the bene3t of
members transferrin* from one system to another sub4ect to the
2ro.isions of De2ublic &ct No. >6;;, otherwise known as the
Portability Aaw0
+6, to be able to Joat 2ro2er instrument to li6uefy lon*%term maturity
by 2oolin* funds for short%term secondary market0
+r, to submit annually, not later than Gune 9:, a 2ublic re2ort to the
President of the Phili22ines and the
!on*ress of the Phili22ines re*ardin* its acti.ities in the
administration and enforcement of this &ct durin* the 2recedin* year
includin* information and recommendations on board 2olicies for the
de.elo2ment and 2erfection of the 2ro*rams of the -S#S0
+s, to maintain a 2ro.ident fund, which consists of contributions made
by both the -S#S and its o5cials and em2loyees and their earnin*s,
for the 2ayments of bene3ts to such o5cials and em2loyees or their
heirs under such terms and conditions as it may 2rescribe0
+t, to a22ro.e and ado2t *uidelines aEectin* in.estments, insurance
co.era*e of *o.ernment 2ro2erties, settlement of claims, dis2osition
of ac6uired assets, 2ri.atiBation or e)2ansion of subsidiaries,
de.elo2ment of housin* 2ro4ects, increased bene3t and loan 2acka*es
to members, and the enforcement of the 2ro.ision of this &ct0
+u, any 2ro.ision of law to the contrary notwithstandin*, to authoriBe
the 2ayment of e)tra remuneration to the o5cials and em2loyees
directly in.ol.ed in the collection and7or remittances of contributions,
loan re2ayments, and other monies due to the -S#S at such rates and
under such conditions as it may ado2t: (rovided, "hat the best
interest of the -S#S shall be obser.ed thereby0
+., to determine, 3) and im2ose interest u2on un2aid 2remiums due
from em2loyers and em2loyees0
+w, to ensure the collection or reco.ery of all indebtedness, liabilities
and7or accountabilities, includin* un2aid 2remiums or contributions in
fa.or of the -S#S arisin* from any cause or source whatsoe.er, due
from obli*ors, whether 2ublic or 2ri.ate. "he 1oard shall demand
2ayment or settlement of the obli*ations referred to herein within
thirty +9:, days from the date the obli*ation becomes due, and in the
e.ent of failure or refusal of the obli*or or debtor to com2ly with the
demand, to initiate or institute the necessary or 2ro2er actions or
suits, criminal, ci.il or administrati.e or otherwise, before the courts,
tribunals, commissions, boards, or bodies of 2ro2er 4urisdiction within
thirty +9:, days reckoned from the e)2iry date of the 2eriod 3)ed in
the demand within which to 2ay or settle the account0
+), to desi*n and im2lement 2ro*rams that will 2romote and mobiliBe
sa.in*s and 2ro.ide additional resources for social security e)2ansion
and at the same time aEord indi.idual members a22ro2riate returns
on their sa.in*s7in.estments. "he 2ro*rams shall be so desi*ned as to
s2ur socio%economic take%oE and maintain continued *rowth0 and
+y, to e)ercise such 2owers and 2erform such other acts as may be
necessary, useful, incidental or au)iliary to carry out the 2ro.isions of
this &ct, or to attain the 2ur2oses and ob4ecti.es of this &ct.
"S!. 4'. Te $oard of Trustees7 its Com%osition7 Tenure and Com%ensation.
. "he cor2orate 2owers and functions of the -S#S shall be .ested in and
e)ercised by the 1oard of "rustees com2osed of the President and -eneral
=ana*er of the -S#S and ei*ht +/, other members to be a22ointed by the
President of the Phili22ines, one +1, of whom shall be either the President of
the Phili22ine Public School "eachers &ssociation +PPS"&, or the President of
the Phili22ine &ssociation of School Su2erintendents +P&SS,, another two +',
shall re2resent the leadin* or*aniBations or associations of *o.ernment
em2loyees7retirees, another four +4, from the bankin*, 3nance, in.estment,
and insurance sectors, and one +1, reco*niBed member of the le*al
2rofession who at the time of a22ointment is also a member of the -S#S. "he
"rustees shall elect from amon* themsel.es a !hairman while the President
and -eneral =ana*er of the -S#S shall automatically be the .ice%chairman.
"he "rustees, e)ce2t the President and -eneral =ana*er who shall cease as
trustee u2on his se2aration, shall hold o5ce for si) +6, years without
rea22ointment, or until their successors are duly a22ointed and 6uali3ed.
Kacancy, other than throu*h the e)2iration of the term, shall be 3lled for the
une)2ired term only. "he members of the 1oard shall be entitled to a 2er
diem of "wo thousand 3.e hundred 2esos +P',8::.::, for each board meetin*
actually attended by them, but not to e)ceed "en thousand 2esos
+P1:,:::.::, a month and reasonable trans2ortation and re2resentation
allowances as may be 3)ed by the 1oard.
"S!. 49. (o0ers and 3unctions of te $oard of Trustees. % "he 1oard of
"rustees shall ha.e the followin* 2owers and functions:
"+a, to formulate the 2olicies, *uidelines and 2ro*rams to eEecti.ely
carry out the 2ur2oses of this &ct0
"+b, to 2romul*ate such rules and re*ulations as may be necessary or
2ro2er for the eEecti.e e)ercise of the 2owers and functions as well
as the dischar*e of the duties and res2onsibilities of the -S#S, its
o5cers and em2loyees0
"+c, u2on the recommendation of the President and -eneral =ana*er,
to a22ro.e the annual and su22lemental bud*et of recei2ts and
e)2enditures of the -S#S, and to authoriBe such o2eratin* and ca2ital
e)2enditures and disbursements of the -S#S as may be necessary or
2ro2er for the eEecti.e mana*ement, o2eration and administration of
the -S#S0
"+d, u2on the recommendation of the President and -eneral =ana*er,
to a22ro.e the -S#S or*aniBational and administrati.e structure and
sta5n* 2attern, and to establish, 3), re.iew, re.ise and ad4ust the
a22ro2riate com2ensation 2acka*es for the o5cers and em2loyees of
the -S#S and reasonable allowances, incenti.es, bonuses, 2ri.ile*es
and other bene3ts as may be necessary or 2ro2er for the eEecti.e
mana*ement, o2eration and administration of the -S#S, which shall
be e)em2t from De2ublic &ct No. 6>8/, otherwise known as the
&ttrition Aaw0
"+e, to 3) and 2eriodically re.iew and ad4ust the rates of interest and
other terms and conditions for loans and credits e)tended to its
members or other 2ersons, whether natural or 4uridical0
"+f, the 2ro.ision of any law to the contrary notwithstandin*, to
com2romise or release, in whole or in 2art, any claim or settle liability
to the -S#S, re*ardless of the amount in.ol.ed, under such terms and
conditions as it may im2ose for the best interest of the -S#S0
"+*, to a22ro.e and ado2t *uidelines aEectin* in.estments, insurance
co.era*e of *o.ernment 2ro2erties, settlement of claims, dis2osition
of ac6uired assets, de.elo2ment of housin* 2ro4ects, increased
bene3t and loan 2acka*es to members, and the enforcement of the
2ro.isions of this &ct0
"+h, to determine, 3), and im2ose interest u2on un2aid or unremitted
2remiums and7or contributions0 and
"+i, to do and 2erform any and all acts necessary, 2ro2er or incidental
to the attainment of the 2ur2oses and ob4ecti.es of this &ct.
"S!. 44. A%%ointment, 8uali#cations, and Com%ensation of te (resident
and General &ana)er and of oter (ersonnel. . "he President and -eneral
=ana*er of the -S#S shall be its !hief )ecuti.e $5cer and shall be
a22ointed by the President of the Phili22ines. He shall be a 2erson with
mana*ement and in.estments e)2ertise necessary for the eEecti.e
2erformance of his duties and functions under this &ct.
""he -S#S President and -eneral =ana*er shall be assisted by one or more
e)ecuti.e .ice%2residents, senior .ice%2residents and mana*ers in addition to
the usual su2er.isory and rank%and%3le 2ositions who shall be a22ointed and
remo.ed by the President and -eneral =ana*er with the a22ro.al of the
1oard, in accordance with the e)istin* !i.il Ser.ice rules and re*ulations.
"S!. 48. (o0ers and "uties of te (resident and General &ana)er. . "he
President and -eneral =ana*er of the -S#S shall, amon* others, e)ecute and
administer the 2olicies and resolutions a22ro.ed by the 1oard and direct and
su2er.ise the administration and o2erations of the -S#S. "he President and
-eneral =ana*er, sub4ect to the a22ro.al of the 1oard, shall a22oint the
2ersonnel of the -S#S, remo.e, sus2end or otherwise disci2line them for
cause, in accordance with the e)istin* !i.il Ser.ice rules and re*ulations, and
2rescribe their duties and 6uali3cations to the end that only com2etent
2ersons may be em2loyed.
"S!. 46. Auditor. . +a, "he !hairman of the !ommission on &udit shall be the
e4 o9cio auditor of the -S#S, and the necessary 2ersonnel to assist said
re2resentati.e in the 2erformance of his duties.
"+b, "he !hairman of the !ommission on &udit or his authoriBed
re2resentati.es, shall submit to the 1oard soon after the close of each
calendar year, an audited statement showin* the 3nancial condition and
2ro*ress of the -S#S for the calendar year 4ust ended.
"S!. 4>. -e)al Counsel. . "he -o.ernment !or2orate !ounsel shall be the
le*al ad.iser and consultant of the -S#S, but the -S#S may assi*n to the
$5ce of the -o.ernment !or2orate !ounsel +$-!!, cases for le*al action or
trial, issues for le*al o2inions, 2re2aration and re.iew of
contracts7a*reements and others, as the -S#S may decide or determine from
time to time: (rovided, o0ever, "hat the 2resent le*al ser.ices *rou2 in the
-S#S shall ser.e as its in%house le*al counsel.
""he -S#S may, sub4ect to a22ro.al by the 2ro2er court, de2utiBe any
2ersonnel of the le*al ser.ice *rou2 to act as s2ecial sheriE in the
enforcement of writs and 2rocesses issued by the court, 6uasi%4udicial
a*encies or administrati.e bodies in cases in.ol.in* the -S#S.
"S!. 4/. (o0ers of te Insurance Commission. . "he #nsurance
!ommissioner or his authoriBed re2resentati.es shall make an e)amination of
3nancial condition and methods of transactin* business of the -S#S at least
once e.ery three +9, years and the re2ort of said e)amination shall be
submitted to the 1oard of "rustees and co2ies thereof be furnished the $5ce
of the President of the Phili22ines and the two houses of the !on*ress of the
Phili22ines within 3.e +8, days after the close of e)amination: (rovided,
o0ever, "hat for each e)amination, the -S#S shall 2ay the o5ce of the
#nsurance !ommissioner an amount e6ual to the actual e)2enses incurred by
the said o5ce in the conduct of e)amination, includin* the salaries of the
e)aminers and of the actuary of such e)amination for the actual time s2ent.
"H. GENERAL PROVISION
"S!. 4;. "is%ensation of Social Insurance $ene#ts. . +a, "he -S#S shall 2ay
the retirement bene3ts to the em2loyee on his last day of ser.ice in the
*o.ernment: (rovided, "hat all re6uirements are submitted to the -S#S
within a reasonable 2eriod 2rior to the eEecti.e date of the retirement0
"+b, "he -S#S shall discontinue the 2rocessin* and ad4udication of retirement
claims under D.&. No. 1616 e)ce2t refund of retirement 2remium under D. &.
No. ;1:. #nstead, all a*encies concerned shall 2rocess and 2ay the *ratuities
of their em2loyees. "he 1oard shall ado2t the 2ro2er rules and 2rocedures
for the im2lementation of this 2ro.ision.
"S!. 8:. "evelo%ment and "is%osition of Ac:uired Assets. . "he -S#S shall
ha.e the ri*ht to de.elo2 and dis2ose of its ac6uired assets obtained in the
ordinary course of its business. "o add .alue to, im2ro.e 2ro3tability on,
and7or enhance the marketability of an ac6uired asset, the -S#S may further
de.elo27reno.ate the same either with its own ca2ital or throu*h a 4oint
.enture arran*ement with 2ri.ate com2anies or indi.iduals.
""he -S#S may sell its ac6uired assets in accordance with e)istin*
!ommission on &udit +!$&, rules and re*ulations for an amount not lower
than the current market .alue of the 2ro2erty. @or this 2ur2ose, the -S#S shall
conduct an annual a22raisal of its 2ro2erty or ac6uired assets to determine
its current market .alue. &ll notices of sale shall be 2ublished in news2a2ers
of *eneral circulation.
"No in4unction or restrainin* order issued by any court, commission, tribunal
or o5ce shall bar, im2ede or delay the sale and dis2osition by the -S#S of its
ac6uired assets e)ce2t on 6uestions of ownershi2 and national or 2ublic
interest.
"S!. 81. Government Assistance to te GSIS. . "he -S#S may call u2on any
em2loyer for such assistance as may be necessary in the dischar*e of its
duties and functions.
"I. PENAL PROVISIONS
"S!. 8'. (enalt!. . +a, &ny 2erson found to ha.e 2artici2ated directly or
indirectly in the commission of fraud, collusion, falsi3cation, or
misre2resentation in any transaction with the -S#S, whether for him or for
some other 2ersons, shall suEer the 2enalties 2ro.ided for in &rticle 1>' of
the De.ised Penal !ode.
"+b, Fhoe.er shall obtain or recei.e any money or check in.okin* any
2ro.ision of this &ct or any a*reement thereunder, without bein* entitled
thereto with the intent to defraud any member, any em2loyer, the -S#S, or
any third 2arty, shall be 2unished by a 3ne of not less than @i.e thousand
2esos +P8,:::.::, nor more than "wenty thousand 2esos +P':,:::.::, or by
im2risonment of not less than si) +6, years and one +1, day to twel.e +1',
years, or both, at the discretion of the court.
"+c, Fhoe.er fails or refuses to com2ly with the 2ro.isions of this &ct or with
the rules and re*ulations ado2ted by the -S#S, shall be 2unished by a 3ne of
not less than @i.e thousand 2esos +P8,:::.::, nor more than "wenty
thousand 2esos +P':,:::.::, or im2risonment of not less than si) +6, years
and one +1, day to twel.e +1', years, or both, at the discretion of the court.
"+d, "he treasurer, 3nance o5cer, cashier, disbursin* o5cer, bud*et o5cer
or other o5cial or em2loyee who fails to include in the annual bud*et the
amount corres2ondin* to the em2loyer and em2loyee contributions, or who
fails or refuses or delays by more than thirty +9:, days from the time such
amount becomes due and demandable, or to deduct the monthly
contributions of the em2loyee shall, u2on con.iction by 3nal 4ud*ment, suEer
the 2enalties of im2risonment from si) +6, months and one +1, day to si) +6,
years, and a 3ne of not less than "hree thousand 2esos +P9,:::.::, but not
more than Si) thousand 2esos +P6,:::.::,, and in addition, shall suEer
absolute 2er2etual dis6uali3cation from holdin* 2ublic o5ce and from
2racticin* any 2rofession or callin* licensed by the *o.ernment.
"+e, &ny em2loyee or member who recei.es or kee2s fund or 2ro2erty
belon*in*, 2ayable or deli.erable to the -S#S and a22ro2riates the same, or
takes or misa22ro2riates or uses the same for any 2ur2ose other than
authoriBed by this &ct, or 2ermits another 2erson to take, misa22ro2riate or
use said fund or 2ro2erty by e)2ressly consentin* thereto, or throu*h
abandonment or ne*li*ence, or is otherwise *uilty of the misa22ro2riation of
said fund or 2ro2erty, in whole or in 2art, shall suEer the 2enalties 2ro.ided
in &rticle '1> of the De.ised Penal !ode, and in addition, shall suEer absolute
2er2etual dis6uali3cation from holdin* 2ublic o5ce and from 2racticin* any
2rofession or callin* licensed by the *o.ernment.
"+f, &ny em2loyee who, after deductin* the monthly contribution or loan
amortiBation from a memberCs com2ensation, fails to remit the same to the
-S#S within thirty +9:, days from the date they should ha.e been remitted
under Section 6+a,, shall be 2resumed to ha.e misa22ro2riated such
contribution or loan amortiBation and shall suEer the 2enalties 2ro.ided in
&rticle 918 of the De.ised Penal !ode, and in addition, shall suEer absolute
2er2etual dis6uali3cation from holdin* 2ublic o5ce and from 2racticin* any
2rofession or callin* licensed by the *o.ernment.
"+*, "he heads of the o5ces of the national *o.ernment, its 2olitical
subdi.isions, branches, a*encies and instrumentalities, includin*
*o.ernment%owned or controlled cor2orations and *o.ernment 3nancial
institutions, and the 2ersonnel of such o5ces who are in.ol.ed in the
collection of 2remium contributions, loan amortiBation and other accounts
due the -S#S who shall fail, refuse or delay the 2ayment, turno.er,
remittance or deli.ery of such accounts to the -S#S within thirty +9:, days
from the time that the same shall ha.e been due and demandable shall,
u2on con.iction by 3nal 4ud*ment, suEer the 2enalties of im2risonment of
not less than one +1, year nor more than 3.e +8, years and a 3ne of not less
than "en thousand 2esos +P1:,:::.::, nor more than "wenty thousand 2esos
+P':,:::.::,, and in addition, shall suEer absolute 2er2etual dis6uali3cation
from holdin* 2ublic o5ce and from 2racticin* any 2rofession or callin*
licensed by the *o.ernment.
"+h, "he o5cers and7or 2ersonnel referred to in 2ara*ra2h +*, of this section
shall be liable not only criminally but also ci.illy to the -S#S or to the
em2loyee or member concerned in the form of dama*es, includin*
surchar*es and interests.
"+i, @or the char*es or com2laints referred to in 2ara*ra2h +*, of this section,
the liabilities therein set forth shall be construed as wai.er of the State of its
immunity from suit, hence, the abo.e%mentioned o5cials and7or 2ersonnel
may not in.oke the defense of non%suability of the State.
"+4, @ailure of the =embers of the -S#S 1oard, includin* the chairman and the
.ice%chairman, to com2ly with the 2ro.isions of 2ara*ra2h +w, of Section 41
hereof, shall sub4ect them to im2risonment of not less than si) +6, months
nor more than one +1, year or a 3ne of not less than @i.e thousand 2esos
+P8,:::.::, nor more than "en thousand 2esos +P1:,:::.::, without
2re4udice to any ci.il or administrati.e liability which may also arise
therefrom.
"+k, !riminal actions arisin* from .iolations of the 2ro.isions of this &ct may
be commenced by the -S#S or by the a**rie.ed member, either under this
&ct or, in a22ro2riate cases, under the De.ised Penal !ode.
"S!. 89. Im%lementin) Rules and Re)ulations. . "he im2lementin* rules and
re*ulations to carry out the 2ro.isions of this &ct shall be ado2ted and
2romul*ated by the -S#S not later than ninety +;:, days after the a22ro.al of
this &ct.
"S!. 84. Non.im%airment of $ene#ts, (o0ers, ;urisdiction, Ri)ts, (rivile)es,
3unctions and Activities. . Nothin* in this &ct shall be construed to re2eal,
amend or limit any 2ro.ision of e)istin* laws, Presidential Decrees and
Aetters of #nstructions, not otherwise s2eci3cally inconsistent with the
2ro.isions of this &ct.
"S!. 88. E4clusiveness of $ene#ts. . Fhene.er other laws 2ro.ide similar
bene3ts for the same contin*encies co.ered by this &ct, the member who
6uali3es to the bene3ts shall ha.e the o2tion to choose which bene3ts will be
2aid to him. Howe.er, if the bene3ts 2ro.ided by the law chosen are less
than the bene3ts 2ro.ided under this &ct, the -S#S shall 2ay only the
diEerence.
"S!. 86. A%%ro%riations. . "he amount necessary to carry out the 2ro.isions
of this &ct shall be included in the res2ecti.e bud*ets of the a*encies in the
national *o.ernment obli*ation 2ro*ram of the year followin* its enactment
into law and thereafter."
SEC. <. Se%ara'ilit! Clause. . Should any 2ro.ision of this &ct or any 2art
thereof be declared in.alid, the other 2ro.isions, so far as they are se2arable
from the in.alid ones, shall remain in force and eEect.
SEC. =. Re%ealin) Clause. . &ll laws and any other law or 2arts of law
s2eci3cally inconsistent herewith are hereby re2ealed or modi3ed
accordin*ly: (rovided, "hat the ri*hts under the e)istin* laws, rules and
re*ulations .ested u2on or ac6uired by an em2loyee who is already in the
ser.ice as of the eEecti.ity of this &ct shall remain in force and eEect:
(rovided, furter, "hat subse6uent to the eEecti.ity of this &ct, a new
em2loyee or an em2loyee who has 2re.iously retired or se2arated and is
reem2loyed in the ser.ice shall be co.ered by the 2ro.isions of this &ct.
SEC. >. E/ectivit!. . "his &ct shall take eEect 3fteen +18, days after its
2ublication in the $5cial -aBette or in at least two +', news2a2ers of *eneral
circulation.
"his &ct, which is a consolidation of Senate 1ill No. ':19 and House 1ill No.
/861, was 3nally 2assed by the Senate and the House of De2resentati.es on
=ay ';, 1;;> and =ay '/, 1;;>, res2ecti.ely.
&22ro.ed: =ay 9:, 1;;>
*S)d.+ @#DA K. D&=$S
(resident of te (ili%%ines