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. GSIS Act of 1997
Agrarian Reform and Social Legislation Definition of Terms
RULE I death of the member, under
DEFINITION OF TERMS conditions provided by law.
 CASH VALUE – Accumulated
Section 1. Unless the context otherwise amount earned based on premium
indicates, the following terms shall payment while the LEP is in force.
mean:  CLAIM – A request from the
member or his beneficiaries for
 ACT – Refers to Republic Act No. payment of benefits that may be
8291, otherwise known as the due as provided under this Act.
Government Service Insurance  CLIP – Refers to Claims and
System Act of 1997. Loans Interdependency Policy.
 AMC – Refers to Average Monthly This is a mechanism which
Compensation. This refers to the ensures the collection of unpaid
average salary received by the accounts from the proceeds of a
member during the last 36 months loan or claim of a member or his
of creditable service preceding his beneficiaries.
separation, retirement, disability, or  COMPENSATION - The fixed
death, or, if with less than 36 monthly salary received by an
months of creditable service, the employee excluding allowances,
actual number of months of the per diems, bonuses, overtime pay,
creditable service. honoraria and other emoluments
 APL - Refers to Automatic Policy not integrated into the fixed
Loan or Automatic Premium Loan. monthly salary.
This is the amount that will be  CONTINGENCIES – Events such
deducted from the Cash as separation from the service,
Value/Termination Value of a life retirement, disability or death
insurance policy to keep the policy which are payable under this Act.
in force.  CONTRIBUTION – The amount
 BENEFIT – The amount that GSIS payable to the GSIS by the
is obligated to pay the member member and government agency
upon the occurrence of a covered or employer to which he belongs.
contingency that is payable under  CSV – Refers to Cash Surrender
the GSIS. Value, which is the amount to be
 BILLING – The process of sending paid to the policyholder of Life
notices or statements to Endowment Policy (LEP) or
government agencies, members, optional life insurance policies
or borrowers to remind or demand when he is separated from the
payment for accounts that are service before maturity date of the
falling due or are past their due policy or when a policyholder is
dates. considered a case of Permanent
 BOARD – The Board of Trustees Total Disability (PTD).
of the GSIS.  CURRENT DAILY
 CASH DIVIDEND - The sum of COMPENSATION. — The actual
money paid to policyholders whose daily compensation or the fixed
life insurance policies have been in monthly compensation divided by
force for at least one year subject twenty-two (22) days.
to amount and conditions  DEPENDENTS – The (a)
recommended by Actuary and legitimate spouse dependent for
approved by the Board. support on the member or
 CASH PAYMENT – A benefit pensioner, (b)
payable to a member upon legitimate/legitimated legally
separation, disability or retirement, adopted child, including the
or to the beneficiaries upon the illegitimate child, who is unmarried,
not gainfully employed, not over

2
Aguirre, Miguel Joshua G. GSIS Act of 1997
Agrarian Reform and Social Legislation Definition of Terms
the age of majority, or is over the  MEMBER – A government
age of majority but incapacitated employee receiving compensation
and incapable of self-support due while in the service of a
to a mental or physical defect government agency by virtue of an
acquired prior to age of majority, appointment or election to public
and (c) the parents dependent office and irrespective of status of
upon the member for support. appointment.
 DISABILITY – Any loss or  ACTIVE MEMBER. — A member
impairment of the normal functions of GSIS, whether regular or
of the physical and/or mental special, who is in the government
faculties of a member, which service.
reduces or eliminates his capacity  INACTIVE MEMBER. – A member
to continue with his current gainful who is separated from the service,
occupation or engage in any other either by resignation, retirement,
gainful occupation resulting in the disability, dismissal, or
loss of income. retrenchment.
 ELP – Refers to Enhanced Life  REGULAR MEMBERS – Those
Policy. This is a compulsory life who, together with the government
insurance coverage issued by agency to which they belong, are
GSIS after July 31, 2003. required to remit life and retirement
 FUNERAL BENEFIT – Benefit premium contributions as
intended to help defray the mandated under Section 5 of RA
expenses incidental to the burial 8291.
and funeral of the deceased  SPECIAL MEMBERS – Those
member, pensioner or retiree. who, together with the government
 GAINFUL OCCUPATION – Any agency to which they belong, are
productive activity that provides required to remit life insurance
income of at least equal to the premiums only.
prevailing minimum compensation  PENSION – A monthly specified
of government employees. cash amount that a qualified
 GOVERNMENT AGENCY - Any member will receive upon
government office whether national retirement or when considered as
or local, legislative bodies, a case of permanent total
government-owned and controlled disability.
corporations (GOCC) with original  RCS – Refers to Record of
charters, government financial Creditable Service. The RCS
institutions (GFIs), constitutional includes service periods with
commissions, judiciary, Armed corresponding premium
Forces of the Philippines, the contributions and serves as basis
Philippine National Police, Bureau for computing benefits.
of Jail Management and Penology  TERMINATION VALUE –
(BJMP) and Bureau of Fire Accumulated amount earned
Protection (BFP). based on premium payment while
 INVESTMENTS – Amounts of the ELP is in force.
money or other resources
measured in terms of money RULE VI
placed on activities for the purpose FUNDS OF THE GSIS
of earning profits.
 LEP- Refers to Life Endowment Section 45 Funds
Policy. This is the life insurance
policy issued to regular members The Fund
prior to August 1, 2003 or to  Sourced through all contributions
special members after the made to the System
implementation of this Act.

3
Aguirre, Miguel Joshua G. GSIS Act of 1997
Agrarian Reform and Social Legislation Definition of Terms
 Used to pay for the following collaterals acceptable to the
benefits/fund: System;
o Source of benefits under R.A. f) Debt instruments and other
8291: securities traded in the secondary
o Separation benefits markets;
o Unemployment or involuntary g) Loans, bonds, debentures,
separation benefits promissory notes or other evidence
o Retirement benefits of indebtedness of any solvent
o Disability benefits corporation created under PH
laws;
o Survivorship benefits
h) Common and preferred stocks of
o Funeral benefits
any solvent corporation created
o Life Insurance benefit under PH laws;
o Such other benefits and protection i) Domestic mutual funds; and
as may be extended to them by the j) Foreign mutual funds
GSIS such as loans
o Compensation Fund (P.D. 626)  GSIS shall submit an annual report
o General Insurance Fund (Act No. on its investments to both Houses of
656) the Congress
o Other special funds  The GSIS, its assets, properties,
revenues including all accruals
Section 46 Deposits and
thereto, and benefits paid, are exempt
Disbursements
from all taxes, assessments, fees,
charges and duties of all kinds as
 Only 12% of yearly revenues can be
well as all legal proceedings.
disbursed for administrative and
operational expenses of the System
RULE VII
 XPN: Unless otherwise approved by ADMINISTRATION
the President of Philippines ND O
Section 50 The Board of Trustees; Its
Section 47 Investment of Funds Composition; Tenure and Compensation
FFICIALS
Investment and Exemption of the Fund Board of Trustees
 Requirements for investment to ensure
actuarial solvency of funds:  The corporate powers and functions of
o Liquidity the GSIS shall be vested in and
o Safety/security exercised by the Board of Trustees
o Yield composed of the President and
General Manager of the GSIS and
Example of investment vehicles:
Eight (8) other members to be
a) Interest-bearing bonds or
appointed by the President
securities of the Gov’t of the PH;
b) Interest-bearing deposits or
Composed of the following:
securities in any domestic bank
a) One (1) from either the President
doing business in the PH;
of the Philippine Public School
c) Direct housing loans and short-
Teachers Association (PPSTA) or
and-medium-term loans to
the President of the Philippine
members;
Association of School
d) Bonds, securities, promissory
Superintendent (PASS);
notes or other evidence of
b) Two (2) from leading organizations
indebtedness of educational or
or associations of government
medical institutions;
employees/retirees;
e) Real estate property including
shares of stock and other

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Aguirre, Miguel Joshua G. GSIS Act of 1997
Agrarian Reform and Social Legislation Definition of Terms
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

5
Aguirre, Miguel Joshua G. GSIS Act of 1997
Agrarian Reform and Social Legislation Administration
GSIS shall automatically be the Vice-
Chairman
 The Trustees, except the President Section 54 Auditor
and General Manager who shall cease  Chairman of COA as ex-officio
as trustee upon his separation, shall Auditor
hold office for six (6) years without  May appoint a representative as
reappointment, or until their Auditor on his behalf
successors are duly appointed and  Submits a yearly audited statement
qualified. showing the financial condition of the
System
Section 49 Powers and Functions of
the GSIS. Section 55 Legal Counsel

a) To formulate and promulgate the  Government Corporate Counsel as

policies, guidelines and program to Legal Counsel
effectively carry out the purposes  The System’s legal services group and
of RA 8291 Branch Attorneys as the System’s in-
b) To have the primary duty to house legal counsel
receive and hear appeals for  Acts as special sheriff in the
administrative remedies involving enforcement of writs and processes
disciplinary actions against GSIS involving the 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

6
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation General Provisions

RULE IX 2) Publish notices of sale in

GENERAL PROVISIONS newspapers of general circulation
Section 60. Dispensation of Social No injunction or restraining order issued
Insurance Benefit by any court, commission or tribunal or
Payment of Retirement Benefits office shall bar, impede or delay the sale
and disposition by the GSIS of its acquired
 The GSIS shall pay the retirement assets except on questions of ownership
benefits to the employee on his last and national or public interest.
day of service in the government.
 All requirements must be submitted to Section 62. Government Assistance to
the GSIS within a reasonable period the GSIS.
prior to the effective date of the
retirement.  The GSIS may call upon any
government agency for such
Processing and Adjudication of Retirement assistance as may be necessary in its
Claims discharge of its duties and functions.
 The GSIS shall discontinue the
processing and adjudication of Section 63. Non-impairment of
retirement claims under Republic Act Benefits, Powers, Jurisdiction, Rights,
910 and R.A. No. 1616. Privileges, Functions and Activities.
 Except refund of retirement premiums.
All agencies concerned shall process  Nothing in this IRR shall be construed
and pay the gratuities of their to repeal, amend or limit any provision
employees after securing the of RA 8291 nor of any existing laws,
appropriate clearance from the GSIS Presidential Decrees and Letters of
to clear any outstanding obligations to Instructions, not otherwise specifically
the System. inconsistent with the provisions of RA
8291.
Section 61. Development and
Disposition of Acquired Assets. Section 64. Exclusiveness of Benefits.

The GSIS shall have the right:  The member who qualifies to the
1) To develop and dispose of its benefits when other laws provide
acquired assets obtained in the similar benefits for the same
ordinary course of its business. contingencies covered by RA 8291,
2) To add value to, improve profitability shall have the option to choose which
on, and/or enhance the marketability benefits will be paid to him.
of an acquired asset  If the benefits provided by the other
3) To further develop/renovate the same law chosen are less than the benefits
either with its own capital or through a provided under RA 8291, the GSIS
joint venture arrangement with private shall pay only the difference.
companies or individuals.
4) To sell its acquired assets in Section 65. Appropriations.
accordance with existing COA rules
and regulations for an amount not  The amount necessary to carry out the
lower than the current market value of provisions of RA 8291 shall be
the property. included in the respective budgets of
the covered agencies in the national
The GSIS shall: government obligation program
1) Conduct an annual appraisal of its starting CY 1998.
properties or acquired assets to
determine its current market value.

7
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation General Provisions

Section 66. Separability Clause. 1) An elective official who at the time

of election to public office is below
 If any provision of RA 8291 or any part 65 years of age and will be 65
thereof be declared invalid, the years or more at the end of his
corresponding provisions in this IRR term of office, including the
shall be correspondingly stricken out, period/s of his re-election to public
amended, or qualified as appropriate. office thereafter without
 The other provisions are separable interruption.
from the invalid ones, thus, shall 2) Appointive officials who, before
remain in force and in effect. reaching the mandatory age of 65,
are appointed to government
Section 67. Repealing Clause position by the President of the
Republic of the Philippines and
 All provisions of existing implementing shall remain in government service
rules and regulations, circulars, and at age beyond 65.
other procedures corresponding to  Contractual employees including
laws and any other law or parts of law casuals and other employees with an
specifically inconsistent with RA 8291 employee-government agency
and with these IRR are hereby relationship are also compulsorily
repealed or modified accordingly. covered, provided they are receiving
 The rights under existing laws, rules fixed monthly compensation and
and regulations vested upon or rendering the required number of
acquired by an employee who is working hours for the month.
already in the service as of the
effectivity of RA 8291 shall remain in Classes of Membership in the GSIS:
force and in effect.
 A new employee or an employee 1) As to type
subsequent to the implementation of
this Act, who has previously retired or a) Regular Members
been separated and is re-employed in - Those employed by the
the service, shall be covered by the government of the Republic of the
provisions of this IRR. Philippines, national or local,
legislative bodies, government-
RULE II owned and controlled corporations
COMPULSORY MEMBERSHIP (GOCC) with original charters,
government financial institutions
Section 2. Compulsory Membership. (GFIs), who are required by law to
remit regular monthly contributions
Who are compulsorily covered? to the GSIS.

 All government personnel, whether b) Special Members

elective or appointive, irrespective of - Constitutional commissioners,
status of appointment. members of the judiciary, including
o Provided, they are receiving those with equivalent ranks to
compensation who have not answer for their life insurance
reached the compulsory benefits defined under RA 8291.
retirement age, and are
receiving fixed monthly 2) As to status of membership
compensation.
a) Active member
 Employees who have reached the
- A member of the GSIS, whether
retirement age of 65 or more are
regular or special, who is still in the
compulsorily covered, in the following
government service and together
situations:
with the government agency to

8
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation General Provisions

which he belongs, is required to 2) Government agencies where

pay the monthly contribution. the members are employed
have the legal obligation to
b) Inactive member remit on time the monthly
- A member who is separated from premium contributions due
the service either by resignation, from members concerned, both
retirement, disability, dismissal for personal and government
from the service, retrenchment or, shares.
who is deemed retired from the
service under this Act. In case of delay, they have the
legal obligation to pay interest
Section 3. Exclusion from Compulsory as may be prescribed by the
Coverage. Board but not less than two
percent (2%) simple interest
1) Uniformed personnel of the Armed per month.
Forces of the Philippines (AFP),
Philippine National Police (PNP), 3) For purposes of computing the
Bureau of Fire Protection (BFP) benefits under the social
and Bureau of Jail Management insurance laws administered by
and Penology (BJMP); the GSIS, a member’s period
2) Barangay and Sanggunian of service in government will
Officials who are not receiving only be recognized by GSIS as
fixed monthly compensation; creditable service if the
3) Contractual Employees who are monthly compulsory premiums
not receiving fixed monthly corresponding to said period
compensation; and have been paid and remitted,
4) Employees who do not have including the interests if there
monthly regular hours of work and are delays in their remittance.
are not receiving fixed monthly
compensation. 4) In case of underpayment of the
monthly premium contributions
Section 4. Policy Governing due, only such portion of the
Membership Administration. period of service
proportionately equivalent to
 The basic policy governing the amount actually received
membership administration shall shall be recognized as
be length of service with creditable service.
corresponding paid premiums.
 The basic principles under this 5) The amount of monthly
policy: contributions due from a
member is based on his fixed
1) Membership in the GSIS monthly compensation.
carries with it the legal
obligation to promptly remit the 6) The compulsory life insurance
required monthly premium coverage extended to the
contributions. members is dependent on the
timely remittance of the
The extent of the benefits to premiums due for the
which a member is entitled will coverage. The said coverage
depend upon the level of may lapse for failure to remit
compliance in the remittance of the required premiums
his premium contributions.

9
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation Membership

Section 5. Effectivity of Membership 41 years to 59

Endowment at
65
The effective date of membership shall be 60 years and Ordinary Life
the date of the member’s assumption to over
duty on his original appointment or
election to public office. - The amount of insurance is based
on the plan of insurance, the age
Section 6. Compulsory Life Insurance. of the member at the effectivity of
the plan, and the fixed monthly pay
Types of compulsory life insurance of the member.
programs for GSIS members. - An insurance factor based on the
age and type of insurance is
1) Life Endowment Policy (LEP) applied to the annual salary to get
2) Enhanced Life Policy (ELP). the amount of insurance.

Life Endowment Policy (LEP)  Provisions

- After the first year of coverage, the
 Coverage plan earns cash value and
- It provides coverage against death increases with the regular payment
whether due to natural or of premiums on the plan.
accidental causes, permanent total - In case of non-payment of the
disability, and cash benefits upon premiums, an APL will be applied
maturity or separation from the against the cash value provided
service. that the policy has enough cash
value, less policy loan, to cover the
 Effectivity of Coverage APL. Provided further, that such
- Effective date of coverage is the non-payment shall not extend to
date of appointment regardless of more than 12 months. In the case
the status thereof, or assumption non-payment extends to more than
to duty, whichever is later and 12 months, the policy shall be
applicable. lapsed and the remaining cash
value shall be the seed fund of the
 Members Covered under LEP reinstated policy.
1) Regular members whose
policies were issued before  Dividends
August 1, 2003 and who have - Based on the Accumulated
opted to continue with their Termination Value
endowment or ordinary life o Termination value
plans. represents the value
2) Special members earned by ELP, which
accumulates at a rate
 Insurance Coverage equivalent to 25% for every
- Type of insurance plans issued to monthly life insurance
members depend on the age premium due and paid in
nearest the member’s birth date at full.
the time of effectivity, as follows:
Enhanced Life Policy (ELP)
Age Bracket Plan of
 Coverage
Insurance
- It provides coverage against death
30 years and Endowment at
whether due to natural or
below 45
accidental causes, permanent total
31 years to 40 Endowment at
disability, and cash benefits upon
55

10
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation Membership

maturity or separation from the - It has termination value which can

service. be withdrawn upon separation or
retirement.
 Effectivity of Coverage  Amount of Insurance
- Based solely on annual
1) Newly appointed government compensation while in government
employee - the date of service, multiplied by a
appointment. predetermined amount of
2) Employee whose policy matured insurance (AOI) factor.
on or after August 1, 2003 - the o AOI Factor = Last Monthly
date of cover shall be the day Salary x (12 x 1.5)
following the date of maturity of - Age and length of service are no
your LEP. longer a factor in determining the
3) Employee who opts to convert amount of insurance coverage.
from LEP to ELP - the date of
cover shall be the GSIS’ approval  Provisions
of the conversion. - New employee must be receiving
- ELP of newly appointed employee fixed monthly compensation
shall be effective for a period of 90 - No supplemental policies will be
days from date of assumption to issued in case of adjustment in the
duty, even without receipt of the salary of the policyholder.
corresponding life insurance - ELP will earn a 25% termination
premiums due and even if GSIS
value, which can be withdrawn
has not received any formal notice
upon separation or retirement.
of his assumption to duty
- The termination value earned
under the policy shall be equivalent
 Members Covered under ELP
to 25% for every monthly life
1) Regular members who entered insurance premiums paid in full,
the service after July 31, 2003. either by direct remittance or
through an automatic premium
2) Regular members whose LEP loan (APL).
policies matured on or after - The accumulated termination value
July 31, 2003. shall increase at such rates as may
3) Regular members under LEP be computed by actuary.
who opted/will opt to convert
their existing LEP into ELP.  Causes and Effects:
1) In case the employee dies within
4) Regular members whose LEP 90 days from the date of
policy lapsed by reason of non- assumption to duty
payment of life insurance - The corresponding death benefit or
premiums but who, after July the proceeds of the life insurance
31, 2003, have started to remit shall be paid to the legal heirs,
the premiums due for subject to presentation of proof
compulsory life insurance that the employee was appointed
coverage. to the position and assumed office
within the said period. Premiums
 Insurance Coverage due the GSIS shall be deducted
- A yearly cover automatically issued from the proceeds of the life
to a new member of GSIS based insurance benefit.
on his fixed monthly compensation. 2) In case no payment of the monthly
- It does not have an endowment premium contributions for life
insurance is made after the 90-day
policy, but it provides a higher form
term
of death benefit for the family.

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

- The life insurance coverage issued

convert from
shall automatically lapse and the LEP to ELP -
legal heirs of the member shall not the date of
be entitled to life insurance cover shall be
benefits in case of his death. the GSIS’
approval of the
conversion.

3) In case of non-payment of the Members 1) Regular 1) Regular

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

12
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation Membership

of the factor.
member.
AOI Factor =
Last Monthly
Salary x (12 x
1.5)

Automatic APL will be APL will be

Policy Loan applied applied against
against the the termination
cash value, value of the
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

13
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Automatic Policy Loan
Section 7. Automatic Policy Loan Section 8. Policy Lapsation

Automatic Policy Loan (APL) A policy is considered lapsed when:

The APL is a feature of a GSIS life 1) The combined outstanding

insurance policy that keeps the policy in balances of its APL and Policy
force in case of non-payment of premiums Loan have exceeded the Cash
by taking out a loan amount against the Value or Termination Value, or
unrestricted portion of the policy’s 2) The policy has no payment for 12
accumulated Cash Value (CV) or months, or the total unpaid
Termination Value (TV). premiums is equal to 12 months.
3) After the automatic lapse of a
The APL shall only be applied if the policy compulsory life insurance policy,
has: a) If the member is still in service,
the CV/TV balance shall be
1) an unpaid premium after the grace used as seed fund of his new
period; and ELP policy or shall form part of
2) earned sufficient CV or TV to cover the termination value of his
the unpaid premiums or a fraction reinstated ELP.
thereof. If the member is already
separated from service, the
What if the premium contribution paid CV/TV balance shall be used
is not sufficient to cover the life to pay his/her other existing
insurance premium for a given month? loan obligations with the GSIS
and any excess shall be paid
The APL equivalent to the amount of the to the policyholder.
unpaid premium, or a fraction thereof, b) The monthly premium billing for
shall be applied. lapsed policies shall continue
in case the member is still in
How much is the interest rate of APL? the service.
The interest rate shall be the same as Basic rules on policy reinstatement and
the interest rate for policy loan. The conversion from LEP to ELP:
interest charged on the APL shall be
independent of the interest charged on the 1) The lapsed policy shall
agency for delayed remittances. automatically be reinstated on the
date the life insurance premiums
How much is the interest rate of the are paid for the account of the
policy loan? member effective on the beginning
of the due month covered by the
It has an interest rate of 8% compounded payment.
monthly (for ELP) and 8% compounded 2) Members with lapsed LEP shall be
annually (for LEP). issued an ELP upon receipt of first
premium under the new coverage,
What is the formula for computing the provided that they are still in the
APL Balance? office.
3) For members whose LEP has
APL Balance (current month) = APL lapsed and were issued new ELP,
Balance (previous month) + interest due all unposted life insurance
on APL Balance (previous month) + payments prior to policy lapse but
unpaid premium due for the current month posted after policy lapse shall be
added to the termination value of
the new ELP.

14
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Automatic Policy Loan
4) After conversion from LEP to ELP,
any excess payment, after
applying

15
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Other Policies
member became ineligible
the payment to the current month for compulsory
and the preceding unpaid months membership.
where the member was given a
grace period, shall be added to the (2) On the conversion or reclassification
termination value of the ELP. of a regular member to special
member
Section 9. Member’s Service Profile  The compulsory life policy of such
member shall be terminated upon
The Member’s Service Profile (MSP) separation from his/her old
contains the service profile of any position.
member, which includes, among others: o He/She shall be provided
LEP coverage upon
1) the date of first entry in assumption to duty to
government service his/her new position.
2) the periods of government service o At the time of his/her
3) the respective agencies and the termination as a regular
position the member has served member, he/she shall be
4) the salaries received entitled to whatever
5) Total Length of Service (TLS) benefits accruing to him/her
6) Record of Creditable Service at the time of his/her
(RCS) separation.
 A separated member with 15 years
What if a member has been separated
of service can claim for retirement
from the service by reason of
benefits at age 60 and may choose
resignation, retirement, disability,
to receive:
dismissal from the service,
o the five-year lump sum and
retrenchment, or in any manner of
pension after five years, or
separation from the government
the 18 months of the Basic
agency to which he/she is employed?
Monthly Pension (BMP)
They shall continue to be a member and pension immediately
although they are classified under inactive
status. Their membership shall also be (3) On the conversion of special member
maintained in the GSIS database. to regular member

Section 10. Other Policies Affecting  The member shall be covered

Membership Administration under ELP immediately after the
conversion of his membership
(1) In the case of members whose classification in the database has
premiums are remitted to GSIS but are been effected.
later found to be ineligible for  If such member had served
compulsory membership: previously as a regular member and
 The policies of these members has been paid separation or
shall be terminated. retirement benefits, he/she shall be
o All remitted payments shall considered as a new entrant when
be applied to the existing he/she is re-employed in the
obligations of the member.  government service.
o If the member has no
(4) On members holding multiple
personal obligation to the
positions
GSIS, he/she shall be
refunded the personal  In case a member is holding two or
share for life and more part-time positions in
retirement, without interest, government:
reckoned from the date the

16
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Other Policies
o He/She shall be issued only  For PSA-authenticated birth
one compulsory life certificate, the official watermark
insurance policy and shall of the PSA should be present.
only earn service credit in  Failure to comply with the said
the position that he/she requirements shall be a ground
selects as basis for for rejecting the request.
coverage.
 For members employed in two or RULE III
more government agencies:
o GSIS shall only recognize COLLECTION AND REMITTANCE OF
one remitting agency (RA). CONTRIBUTIONS AND OTHER
It shall be the RA corresponding to the AMOUNTS
position for which the member has been
covered by GSIS. Section 11. Amounts of Contribution

(5) In case of non-permanent employees (1) For Regular Members

who are daily wage earners
 The monthly equivalent of their Before January 1, 2003, the Average
salary shall be their daily wage rate Monthly Compensation (AMC) used as
multiplied by 22 days. basis for computing was the AMC limit
 Their salary record in their Member prevailing at the time the contingency or
Service Profile shall be the actual retirement or separation
correspondingly adjusted when occurred.
they are granted an increase in the
daily wage rate. Effective Date of AMC Limit
o However, if their daily wage Retirement or
rate is decreased, the Separation
original computation of their
monthly salary shall 24 June 1997 to 31 ₱10,000.00
remain. September 1998

(6) Change in date of birth 01 January 1999 to 31 ₱11,000.00

December 1999
Change of date of birth shall be given due
course under the following conditions: 01 January 2000 to 31 ₱12,000.00
December 2000
(a) The request for change is made
01 January 2001 to 31 ₱14,000.00
while the member is still in the
December 2001
government service; and
(b) The requesting member submits 01 January 2002 to 31 ₱16,000.00
the original copy of the court order December 2002
or birth certificate authenticated by
the Philippine Statistics Authority 01 January 2003 onwards No AMC
as a supporting document. limit
 When the member submits a
court order, he/she shall indicate
in the request for change of date Effective June 24, 2007 and up to
of birth the contact number of the December 21, 2002, the amount of
court who ordered the change of contributions shall be computed:
date of birth, including the branch
and province where the court is (a) If Monthly Compensation (MC) is equal
located. to or less than the prevailing Average
Monthly Compensation (AMC):

 Member – 9% share of the MC

17
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Other Policies
 Government Agency – 12% share of
the MC

(b) If MC is greater than the prevailing

AMC

 Member – 9% of the MC
 Government Agency – 12% share of
the MC
o subject to an increase of 2% in
excess of the AMC

However, effective January 1, 2003, the

rate of contribution payable by the
member and government agency shall be
9% and 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.

18
Ragonhan, Garnee Claudine M. GSIS Act of 1997
Agrarian Reform and Social Legislation Collection and Remittance of Contributions
The government agency shall be imposed
Section 13 Collection of Contributions interest for every month of delay, or a
portion thereof, in the remittance of the
It shall be compulsory upon the monthly premium contributions and other
government agency to deduct from the amounts due the GSIS, at the rate of 2%
fixed monthly compensation the personal per month simple interest. Such interest
share of the members and to promptly will begin to accrue at the end of the
remit the same to GSIS. month following the due month.

It is prohibited for a government agency to Section 16 Effects of Non-Remittance

delay the remittance to GSIS of the of Contributions and Other Amounts on
premium contributions deducted from the the Eligibility to Benefits of Members
compensation of the members and use it
for other purposes. All loan privileges of all the members of
the affected agencies will be suspended
Section 14 Remittance of Contributions and they shall be disqualified to receive
the yearly dividends.
Each government agency shall remit
directly to the GSIS the employees’ and Any unremitted premium contributions and
government agency’s contributions within loan amortizations and other amounts due
the first Ten (10) days of the calendar the GSIS shall be deducted from the
month following the month to which the proceeds of the loans and claims that will
contributions apply. The remittance by the be due the member.
government agency of the contributions to
the GSIS shall take priority over and Section 17 Reports on the Status of
above the payment of any and all Members
obligations, except salaries and wages of
its employees. The government agency shall report
changes in the member’s information, if
The government agency shall also deduct any, every month as they take place, in
from the fixed monthly compensation of the forms or formats prescribed by the
the employee the loan amortizations GSIS.
(consolidated loans, policy loan,
emergency loan, housing loan, and other COLLECTION and REMITTANCE OF
loans), premium payments (optional, pre- CONTRIBUTION
need and other non-life insurance) and
other amounts due the GSIS. Q: How are the contributions collected?
A: It shall be compulsory upon the
The said amounts shall be remitted to the government agency to deduct from the
GSIS within the first Ten (10) days of the fixed monthly compensation the personal
calendar month following the month when share of the members and to promptly
the deductions were effected, remit the same to GSIS.
accompanied by supporting lists in the
form prescribed by the GSIS. Q: Who shall remit the member’s
contribution?
The member has the corresponding A: The government agency (employer).
responsibility to ensure that the required
premium contributions and other amounts Q: When is the contribution remitted?
due the GSIS that were deducted from his A: Within the first ten (10) days of the
compensation are promptly remitted to calendar month following the month to
GSIS. which the contributions apply.
NOTE: The remittance by the employer of
Section 15 Interest on Delayed the contributions to the GSIS shall take
Remittance priority over and above the payment of

19
Ragonhan, Garnee Claudine M. GSIS Act of 1997
Agrarian Reform and Social Legislation Collection and Remittance of Contributions
any and all obligations, except salaries appropriate, under the Revised Penal
and wages of its employees. Code.

Q: What are those to be deducted from

the fixed monthly compensation of the
member?
A: Q: What are the offenses that may be
1. Loan amortizations filed and their corresponding
2. Premium payments penalties?
3. Other amounts due to GSIS A:
1. Fraud, collusion, falsification, or
NOTE: Said amounts shall be remitted to misrepresentation in any
the GSIS within the first Ten (10) days of transaction with GSIS.
the calendar month following the month
when the deductions were effected, Penalties: Those provided in
accompanied by supporting lists in the Article 172 of the RPC.
form prescribed by the GSIS.
2. Obtaining and receiving money or
Q: What happens when the employer checks without being entitled
delays the remittance of the contribution? thereto and using it to defraud
A: The agency responsible shall be another.
charged an interest of not less than 2%
per month which will begin to accrue at the Penalties: Imprisonment of 6
end of the month following the due month. years, 1 day to 12 years or a fine
of Php 5,000 to Php 20,000 or both
Q: What are the effects of non-remittance
of contributions on the eligibility to benefits 3. Failure or refusal to comply with
of the members? the provisions of GSIS law or its
A: IRR.
1. All loan privileges of all the members of Penalties: Imprisonment of 6
the affected agencies will be suspended years, 1 day to 12 years or a fine
and they will be disqualified to receive of Php 5,000 to Php 20,000 or
yearly dividends. both.
2. Any unremitted premium contributions
and loan amortizations and other amounts 4. Malversation of public funds.
due the GSIS shall be deducted from the
proceeds of the loans and claims that will Penalties: those provided in Article
be due the member. 217 RPC and shall suffer absolute
perpetual disqualification from
Q: Who shall report the status of the holding public office and from
members? practicing any profession or calling
A: The government agency shall report licensed by the government.
changes in the member’s information, if
any, every month as they take place, in 5. The Heads of Offices, Treasurer,
the forms or formats prescribed by the Finance Officer, Cashier,
GSIS. Disbursing Officer, Budget Officer
or other official or employee’s:
PENAL PROVISIONS
a. Refusal to include in the annual
Q: Who may file criminal actions? budget the amount
A: The aggrieved member may file corresponding to the
criminal actions arising from violations of government agency and
RA 8291 and its IRR either under the employee contributions.
provisions of RA 8291 itself or, as b. Failure or refusal or delay by
more than 30 days the time

20
Ragonhan, Garnee Claudine M. GSIS Act of 1997
Agrarian Reform and Social Legislation Collection and Remittance of Contributions
such amount becomes due and
demandable, or to deduct the NOTE: The officers and/or personnel
monthly contributions of the referred to above shall be liable not only
employee. criminally but also civilly to the GSIS or to
the employee or member concerned in the
Penalties: Imprisonment of 6 form of damages, including surcharges
months, 1 day to 6 years or a and interests.
fine of Php 3,000 to Php 6,000,
and shall suffer absolute Failure of the members of the board
perpetual disqualification from including the Chairman and Vice-
holding public office and from Chairman, to comply with the provisions
practicing any profession or on penalties above shall subject them to
calling licensed by the imprisonment of not less than 6 months
government. and 1 day, or a fine of Php 5,000 to Php
10,000 without prejudice to any civil or
6. Failure of an employee, who after administrative liability which may also
deducting the monthly contribution arise therefrom.
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.

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.

21
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
RULE IV
BENEFITS o Death Benefit
· Face value of the
BENEFITS UNDER THE GSIS LAW   policy, payable to the
  beneficiaries or heirs,
Section 18 Compulsory Life Insurance upon the death of the
Benefits under the Life Endowment member
Policy (LEP) o Accidental Death Benefit.
· Additional benefit
(1) Life Insurance equivalent to death
 The GSIS life insurance is benefit when the
compulsory and available to all member dies by
employees, except for Members of accident.
the Armed Forces of the · Proof that the death
Philippines and the Philippine was due to an
National Police (Ungos). accident must be
 Claims for GSIS benefits except for sufficiently shown.
life insurance and retirement must o Cash Dividend
be filed within 4 years from the · Not a guaranteed
date of contingency. Claims filed benefit
after 4 years will be barred by · Cash dividend
prescription (Ungos). subject to the
 2 types of compulsory life guidelines issued by
insurance: the GSIS Board.
1) Life Endowment Policy (LEP)
2) Enhanced Life Policy (ELP) Enhanced Life Policy
 
Life Endowment Policy  Compulsory life insurance coverage
issued to regular members starting
 It is the compulsory coverage prior to August 2003.
the LEP, provided to all members  Covers the following:
before August 2003. 1) Those regular members with
 Covers the members whose policy compulsory life insurance
was issued before August 2003 and coverage who have entered
have opted to continue with service after July 31, 2003.
endowment and ordinary life plans. 2) Those whose LEP policy has
 Insurance benefits: matured on or after July 31,
o Maturity Benefits 2003, this replacing their policy
· Face amount payable to ELP.
to the member upon 3) Regular members who opted to
maturity of the policy. convert their LEP to ELP.
4) Regular members whose LEP
o Cash Surrender Value has lapsed by reason of non-
· Earned value during payment.
the term of the
insurance, payable  Insurance benefits:
when: o Death Benefit
- Member is · Payable to the legal
separated from heirs, less all the
service before obligations of the
maturity of the member
policy. · Amount is equivalent
- Permanent total to the latest annual
disability. salary multiplied by

22
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
the amount of 1) R.A. No. 8291
insurance (AOI), 2) R.A. No. 660
where the AOI is the 3) R.A. No. 1616
current monthly 4) R.A. No. 1146
salary multiplied by 5) R.A. No. 7699
18.
o Termination Value  Wherein;
· During the life of the o Conversion to a different mode
policy, it earns a of retirement is not allowed
termination value o Those who become a member
which grows at such of GSIS prior to the
rate or determined by implementation of the IRR, can
the actuary. choose to retire under the
· Will be paid to the following: R.A. No. 1146, R.A.
member upon his No. 660, R.A. No. 1616,
separation of service subject to eligibility.
with the government.
· Equivalent to the  Under the GSIS Law, the retiree has 2
percentage of life options:
insurance premiums o 5 year lump sum payment and
as determined by monthly old age pension.
the GSIS. · 5 years or 60 months
o Cash Dividend of Basic Monthly
· Not a guaranteed Pension, given upon
benefit. retirement: BMP X 60.
· Cash dividend subject §  After the expiration of
to the guidelines the 5 year period,
issued by the GSIS old age pension
Board. benefit will be given,
  equal to the BMP,
Retirement Benefit payable for life.
 To be entitled, the GSIS member o Cash payment and monthly old
must: age pension.
o Render at least 15 years of · Cash payment to be
service. received upon
· If not reached, retirement: 1 and ½
member may continue years of BMP = BMP
service with the x 18
government based on · Old age pension
existing civil rules. payable on the first
o Has reached at least 60 years month of retirement.
of age at the time of retirement. o Computation of BMP
· The mandatory age of · If less than 15 years
retirement is 65, but of service: 37.3%
such is only (RAMC)
applicable when the · If more than 15 years
member has rendered of service: 37.5%
at least 15 years of (RAMC) + [(2.5%)
service. (RAMC)(PPP)]
o Is not receiving a monthly · Wherein;
pension benefit from - RAMC = AMC
Permanent Total Disability. +700
- AMC = Monthly
 5 types of retirement: Compensation

23
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
x 36, divided by o Members who resign or are
26 separated from service of more
- PPP = Period than 3 years but less than 15
with paid years, in the amount of 100%
premiums of the Average Monthly
Compensation for every year
· Remember: of service he paid
- BMP must not constitutions. Provided that it
be less than is not less than P12,000, and
P1,300. payable upon reaching the age
- For those who of 60 or upon separation from
rendered at work, which ever comes later.
least 20 years of o Members who resign or are
service, it must separated from service of at
not be less than least 15 years and is less than
P2,400. 60 years of age at the time of
resignation or separation.
 Effect of death of the member Provided that the cash amount
o If the retiree is entitled to the is equivalent to BMP x 18, and
5-year lump sum benefit, the the old age benefit is
retiree’s legal heirs are entitled equivalent to BMP, payable
to 5-year lump sum, equivalent for life upon reaching 60 years
to BMP x 60. Where in the of age.
survivorship pension shall be  
granted only after the 5 year Unemployment / Involuntary Separation
guaranteed period Benefit
o If the retiree is entitled to  Benefit available to permanent
immediate pension, the employees who are involuntarily
retiree’s legal heirs are entitled separated from service due to abolition
to cash payment benefit, of office. Provided that the employee
equivalent to BMP x 18 + must have at least made 1 year of
Accrued pension up to death contribution.
of the retiree.  Such benefit will be in the form of
o If the retiree failed to indicate monthly cash payments equivalent to
his retirement option, then such 50% of the AMC.
will be computed as if he opted  Those entitled to such benefit are the
for immediate pension. following:
o If the retiree is not qualified, o Permanent employees at the
then the GSIS will determine if time of the separation
he is qualified for other o Separation was involuntary,
applicable benefits under the due to abolition of office
GSIS Law or such other laws o Paying the required minimum
administered by GSIS. contributions at least 1 year
prior to the separation
 Periodic pension adjustment
o Such adjustment can be done  Payable for the following duration:
as recommended by the GSIS
Actuary, and approved by the
2 If contributions have been
GSIS Board.
Months made for 1 year but less
than 3 years
Separation Benefit

 Consists of:

24
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits

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

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

25
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
Disability Benefits  If separated from the service, have
paid at least 36 months contributions
Disability refers to any loss or impairment within the five year period immediately
of the normal functions of the physical preceding the disability; or have paid a
and/or mental faculties of a member, total of at least 180 months
which permanently or temporarily prevents contributions prior to the disability;
him to continue with his work or engage in  
any other gainful occupation resulting in Provided, however, that the following
the loss of income. conditions are met:

The corresponding disability benefits for ·   Gainfully employed prior to the

each kind of disability shall be granted to a commencement of disability
member based on the duration of resulting in loss of income;
incapacity to work and actual loss of ·   Not a registered member of any
income. social insurance institution; and
·   Not receiving any other pension
There are three (3) kinds of disability either from GSIS or another
which shall be determined by the GSIS local or foreign institution or
based on established medical standards: organization.

 Permanent Total Disability Benefits

 Permanent Partial Disability
 Temporary Total Disability 1. Member who was in the service at the
time of contingency and has paid a total of
Permanent Total Disability (PTD) – 180 monthly contributions:
disability due to injury or disease causing
complete, irreversible and permanent  Entitled to the monthly income benefits
incapacity that will permanently disable a for life equivalent to the basic monthly
member to work or to engage in any pension (BMP) effective from the date
gainful occupation resulting to loss of of disability.  In addition to the monthly
income. income benefits for life, a cash
payment equivalent to 18 times the
The following disabilities shall be deemed basic monthly pension (BMP)
total and permanent:
2. A separated member who has at least
a) complete loss of sight for both three (3) years of service but has not paid
eyes; a total of at least one hundred eighty (180)
b) loss of two limbs at or above the monthly contributions prior to his/her
ankle or wrists; disability:
c) permanent complete paralysis of
two limbs; and  Shall be entitled only to cash payment
d) brain injury resulting in incurable equivalent to one hundred percent
imbecility or insanity. (100%) of his/her average monthly
e) such other cases as may be compensation for each year of service
determined and approved by the with paid contributions but not less
GSIS than twelve thousand pesos
(P12,000.00).
Eligibility
  When Entitled
Members  who become permanently and
totally disabled are entitled to PTD Effective from the date of disability.
benefits when:
 In the service at the time of disability; Permanent Partial Disability (PPD) –
or arises due to the complete and permanent
loss of the use of any of the following

26
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
resulting to the disability to work for a  The amount of PPD benefit is 
limited period of time: computed by dividing the BMP by 30
days and multiplying the quotient by
a) any finger the number of compensable calendar
b) any toe days of leave of absence without pay
c) one arm; (LWOP).
d) one hand;  
e) one foot; Temporary Total Disability (TTD) –
f) one leg; accrues or arises when the impaired
g) one or both ears; physical and/or mental faculties can be
h) hearing of one or both ears; rehabilitated and/or restored to their
i) sight of one eye; normal functions, but such disability shall
j) such other cases as may be result in temporary incapacity to work or to
determined and approved by engage in any gainful occupation.
the GSIS
Eligibility
Eligibility
Members are entitled to the TTD benefit
Members whose disability are partial are when:
entitled to  PPD benefit when:  In the service at the time of disability;
 In the service at the time of disability; or
or  If separated from the service, have
 If separated from the service, have paid at least 36 months contributions
paid at least 36 months contributions within the five year  period immediately
within the five year period immediately preceding the disability; or have paid a
preceding the disability; or have paid a total of at least 180 months
total of at least 180 months contributions prior to the  disability;
contributions prior to the disability. Provided, however, that the following
conditions will be met:
Provided, however, that the following
conditions are met:  Gainfully employed prior to the
a) Gainfully employed prior to the commencement of disability
commencement of disability resulting in loss of income;
resulting in  loss of income as  Not a registered member of any
evidenced by any incontrovertible social insurance institution; and
proof thereof;  Not receiving any other pension
b) Not a registered member of any either from GSIS or another local
social insurance institution; and or foreign institution or
c) Not receiving any other pension organization.
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
Benefit 240 days, subject to medical evaluation.

 The period of entitlement to PPD Not Compensable

benefit is determined after due medical
evaluation; but such period of Disability or injury as a result of:
entitlement to the benefit will not
exceed 12 months for the same a) due to grave misconduct
contingency. Only the leave of b) participation in riots
absence/s without pay incurred during c) gross and inexcusable negligence
the period of entitlement, duly certified d) under the influence of drugs or
by the authorized officer of the agency alcohol
where members are employed,  is
compensable.

27
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
e) willful intention to injure or kill without pay incurred during the
himself or another period of entitlement is
compensable.
NOTE: Any leave of absence without pay  Entitlement starts from the fourth
incurred after the duration of entitlement to day of the disability. The amount of
the benefit shall not be compensable. TTD benefit is computed by
multiplying 75% of the daily salary
NOTE: If the member has two or more of members by the number of days
different contingencies during the same of disability based on the medical
period of benefit entitlement, he shall be evaluation but not to exceed 240
compensated only once for the days for the same contingency.
overlapping periods However, the computed daily
salary shall not be less than
NOTE: All injuries, disabilities, illnesses Php70.00 but not to exceed
and all other infirmities compensable Php340.00 per day.
under Employee's Compensation Law
shall not be compensable under this Act. Requirements

Causes for Suspension of Disability 1. Notice and Filing of Claims and

Benefits Other Documents Required. - A written
notice of sickness or injury shall be given
a) is re-employed; or by a member or anybody in his/her behalf
b) recovers from his/her disability as within one (1) month from the date of the
determined by the GSIS, whose occurrence of the contingency.
decision shall be final and binding;
or If the member is in the service, the notice
c) fails to present himself for medical shall be given to the GSIS;
examination when required by
GSIS; or If separated from the service, the member
d) is receiving any other pension shall notify the GSIS directly.
either from GSIS or another local
or foreign institution or 2. Periodic Medical Report - The
organization. disabled member, except those with
permanent partial disability, shall submit
Benefits annual medical reports on his/her
impairment, duly certified by his/her
 The period of entitlement to TTD attending physician, and/or submit
benefit is determined after due himself/herself to annual medical and
medical evaluation and proof of physical examination, failure to comply
actual loss of work resulting in loss shall result to forfeiture of the payment of
of income by way of the incurred benefit.
actual number of days of leave of
absence/s without pay duly However, it shall be resumed only upon
certified by the authorized officer of his/her compliance thereto provided that,
the agency where members are he/she is found still entitled to the benefits.
employed; but such period of The benefit corresponding to the period of
entitlement to the benefit should suspension shall also be paid.
not exceed 120 days in one
calendar year. Causes of Forfeiture of Disability Benefits
 However, if the disability requires
more extensive treatment that lasts Disability benefits shall automatically
beyond 120 days, the payment of forfeit his/her right to the continued
TTD may be extended by GSIS but enjoyment thereof if he/she refuses or
not to exceed a total of 240 days. deliberately fails to:
Only the leave of absence/s

28
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
a) have himself/herself medically Salary Grade 1 in the government
treated by a physician when compensation table. Those receiving other
required by the GSIS; or pensions, whether from GSIS or any other
b) take the prescribed medications ; local of foreign institutions or
or organizations, were likewise deemed
c) have himself/herself confined in a ineligible to receive the survivorship
hospital without justifiable reason, pension.
when such confinement is required
by the GSIS; or With the reversal of the old policy,
d) avail himself/herself of such surviving spouses and dependents of
rehabilitation facilities as may be GSIS members and pensioners can now
duly recommended by the GSIS receive their monthly pension benefits
and made available for him/her; or even if they are gainfully employed and
e) Observe such precautionary and receiving income or pension from other
/or preventive measures as institutions. More than 6,000 surviving
prescribed by a physician or spouses whose pensions have been
expressly required of him/her to stopped and disapproved since August
prevent the aggravation or 2009 benefited from the new survivorship
continuance of his/her disability. policy.

However, upon compliance with the Coverage

requirements, his/her benefits shall be
resumed if he/she is still qualified. The primary and secondary beneficiaries,
except dependent children, shall be
Enhanced Survivorship Benefits entitled to applicable survivorship benefits,
subject to the following:
Recognizing that pension is an earned
right and not a privilege, the Board of The following shall be covered by this new
Trustees restored the survivorship benefit policy:
of surviving spouses of members and
pensioners even if they are gainfully 1. All primary and secondary
employed and receiving other sources of beneficiaries residing in the Philippines
income or pension.  or abroad who are existing
survivorship pensioners or claiming for
Implemented in December 2010, the new survivorship benefit;
basic survivorship pension (BSP) payable
to the surviving spouse is equivalent to 2. Those who were receiving survivorship
50% of the basic minimum pension benefits but were suspended when the
received by the deceased member or policy on the same was amended and
pensioner.  implemented in August 2009; and
 
GSIS removed the stringent provisions 3. Those who applied for survivorship
that have prevented many survivorship benefits but were disapproved due to
pensioners from enjoying pensioners from the issuance/approval of Management
enjoying the survivorship benefit. Implementing Guidelines (MIG) 01-
2009 dated October 22, 2009 that took
Under the old survivorship policy, primary effect as early as August 2009, and
and secondary beneficiaries of GSIS MIG 04-2010 dated April 26, 2010.
members, except dependent children, may
only be entitled to the survivorship pension When a member or pensioner dies,
if they have no gainful occupation or are the beneficiaries shall be entitled to
not engaged in gainful business or the following survivorship benefits,
economic activity. The previous GSIS whichever is applicable.
management defined gainful employment
as earning at least P7,575 equivalent to Amount

29
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
a) the basic survivorship pension If at the time of death, the member was in
which is = fifty percent (50%) of the the service with less than fifteen (15)
BMP; and years of creditable service (4)
b) the dependent children’s pension
equivalent to 10% of the BMP for a) his primary beneficiaries shall
each child but not to exceed fifty receive the cash payment
percent (50%) of the BMP. equivalent to 100% of the AMC for
every year of creditable service.

1. basic 50% of the BMP

survivorship
Survivorship Benefits of Inactive Members
pension
a) Primary beneficiaries of inactive
members who have at least 15
2. dependent 10% of the BMP years of creditable service shall
children’s receive the survivorship pension
pension only(1).

b) Primary beneficiaries of inactive

members who have at least 3
3. Cash 18 x BMP years but less than 15 years of
payment (1st creditable service and were less
kind) than 60 years old at the time of
death shall receive(4):

Cash payment equivalent to 100%

4. Cash 100% of the AMC for of the AMC for every year of
payment (2nd every year of service creditable service, but not less
kind) with paid contributions than P12,000.00.
but not less than
Twelve Thousand c) Primary beneficiaries of inactive
Pesos (P12,000.00) members who have less than 15
years of creditable service but
were at least 60 years old at the
If at the time of death, a member was in time of separation and have
the service and has rendered at least received the corresponding
fifteen (15) years of creditable service: separation benefit, shall not be
entitled to survivorship benefits.
a) his primary beneficiaries(1&3)
shall receive the survivorship d) d. Primary beneficiaries of inactive
pension and cash payment members who have less than 15
equivalent to 18 x the BMP; or years of creditable service but
b) in the absence of primary were at least 60 years old at the
beneficiaries, his secondary time of separation and has not
beneficiaries(3) shall receive the received yet his separation benefit
cash payment equivalent to 18 x within four years after his/her
the BMP; OR separation, the primary
c) in the absence of secondary beneficiaries shall receive the cash
beneficiaries, the legal heirs(3) benefit equivalent to 100% of the
shall receive the cash payment inactive member’s AMC for every
equivalent to 18 x the BMP. year of creditable service, but not
less than P12,000.00.

Payment of Survivorship Benefits

30
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
a) When the dependent spouse(1) is he/she re-marries or
the only survivor, he/she shall cohabits/engages in common-law
receive the basic survivorship relationship.
pension; 2) The dependent children shall be
b) When only the dependent disqualified from receiving the
children are the survivors(2), survivorship pension once he/she
they shall be entitled only to the reaches the age of majority.
dependent children’s pension
equivalent to 10% of the BMP for What will happen to the pension being
every dependent child, not received by the surviving spouse and
exceeding five (5), counted from dependent children when any of them dies
the youngest and without or becomes disqualified from receiving the
substitution; survivorship pension?
c) When the survivors are the  
dependent spouse(1) and the When the surviving spouse and
dependent children(2), the dependent children are already receiving
dependent spouse shall receive the basic survivorship pension and
the basic survivorship pension for dependent children’s pension,
life or until he remarries or respectively, any subsequent death,
cohabits, and the dependent emancipation or disqualification of any one
children shall receive the of them shall not result in the accrual of
dependent children’s pension. that portion of benefits to the other
d) When the dependent spouse and beneficiaries.
dependent children are already  
receiving the basic survivorship How will the beneficiaries claim for
pension and dependent children’s survivorship benefits?
pension, respectively, any
subsequent death, emancipation or The application for survivorship benefits
disqualification of any one of them should be filed together with the
shall not entitle the other documentary requirements, including the
beneficiaries to the forfeited share. following affidavits:
e) In the absence of a natural
guardian, the guardian de facto of 1) Affidavit of Surviving Spouse;
dependent children, as well as the 2) Affidavit of Guardianship of
physically or mentally Incapacitated Dependent Child.
incapacitated dependent children, The Affidavit shall be supported by
must file a Petition for a court order. In the absence of a
Guardianship to be able to claim court order, the Affidavit shall be
the survivorship benefits on behalf supported by a Certification of
of the dependent children. Guardianship from the Barangay
f) When the pensioner dies within the Captain and the City/Municipal
5-year period after receiving the Social Welfare Head where the
five-year lump sum, the incapacitated dependent child is
survivorship pension shall be paid residing; and
only after the end of the said five- 3) Affidavit of Guardianship of Minor
year period. However, filing of Dependent Child. The Affidavit
claim for survivorship benefit shall be supported by a court
should be done before the end of order. In the absence of a court
the 4-year prescription period. order, the Affidavit shall be
supported by a Certification of
Modes of disqualification Guardianship from the Barangay
  Captain and the City/Municipal
1) The payment of survivorship Social Welfare Head where the
pension to the surviving dependent minor dependent child is residing.
spouse shall be discontinued when  

31
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
How can a child of MINOR AGE or WITH When will the survivors of a retiree who
PHYSICAL or MENTAL INCAPACITY availed and was paid the 5-year
claim for survivorship benefits? lumpsum benefit receive the
  survivorship pension?
The guardian of the minor child or child  
with physical or mental incapacity should When the old age pensioner dies within
secure a court order. In the absence of a the 5-year period after receiving the five-
court order, the Affidavit shall be year lump sum, the survivorship pension
supported by a Certification of shall be paid only after the end of the said
Guardianship from the Barangay Captain five-year period. However, the claim for
and the City/Municipal Social Welfare survivorship benefits should be filed
Head where the dependent child is together with the claim for funeral benefit,
residing. This should be submitted to the and this should be done within four (4)
GSIS as a supporting document to the years from the date of death of the retiree.
application for survivorship benefits and to
the Affidavit of Guardianship of Minor Funeral Benefits
Dependent Child or Incapacitated  
Dependent Child.  GSIS provides a Php30,000 funeral
  benefit  to the following:
What will happen if the survirvorship 1) An active member;
pensioners fail to execute the Affidavit of 2) A member who has been
Surviving Spouse/Children for that year? separated from the service but who
  is entitled to future separation or
Failure on the part of the survivorship retirement benefit;
pensioner/s to submit the required affidavit 3) An member who is an old age
shall be a ground for the suspension of the pensioner;
survivorship pension. 4) A retiree who at the time of his
retirement was of pensionable age
When will the secondary beneficiaries be under RA 8291 but who opted to
entitled to survivorship benefits? retire under RA 1616; and
  5) A member who retired under RA
The secondary beneficiaries shall be 1616 prior to the effectivity of RA
entitled to survivorship benefits only if 8291 with at least 20 years of
there are no primary beneficiaries and service, regardless of age.
shall be subject to limitations defined by  
GSIS.  The benefit is payable to the members of
  the family of the deceased, according to
Who will be entitled to receive the the following priorities:
survivorship benefits if there are no
primary and secondary beneficiaries? 1) Legitimate spouse
2) Legitimate child who spent for the
In the absence of primary and secondary funeral services, or
beneficiaries, the legal heirs, as defined 3) any other person who can show
under the Rules on Succession, New Civil unquestionable proof of his having
Code of the Philippines, shall receive the borne the funeral expenses of the
applicable cash benefit depending on the deceased.
eligibility of the deceased member or
pensioner. RULE V
  ADJUDICATION OF CLAIMS AND
How will the survivorship pension of the DISPUTES
dependent children be computed?
  Committee on Claims - The Committee
The survivorship pension of the dependent on Claims (CoC) shall evaluate and
children shall be computed at 10% of the resolve issues / complaints arising from
BMP.

32
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
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

33
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Adjudication of Claims and Disputes
Commission on Audit that are 3) Collection and payment of
disputable; contributions;
f) Implementation of and Order from 4) Housing loans and all its related
any Court, Quasi-judicial body or policies, procedures and guidelines;
duly authorized entity due to its 5) Optional Life Insurance and Pre-Need
being in conflict or inconsistent Benefits;
with existing GSIS laws, policies, 6) Criminal actions arising from this Act;
rules and regulations; and and
g) Any other matter related to any or 7) Any other matter related to any or all of
all of the foregoing which is the foregoing which is necessary for their
necessary for their determination determination.
 
The CoC shall report to the Board Prescription.- Claims for benefits under
on a regular basis the actions Republic Act No. 8291, except for life
taken on issues/complaints insurance and retirement, shall prescribe
elevated to the said Committee. after four (4) years from date of
contingency.
APPELATE POWER
Disputes on claims shall be appealed to Construction.- The provisions of these
the Committee on Claims within 60 days sections shall be liberally construed in
from date the member received the check order to promote their purpose and to
representing payment of claim benefit or assist the parties in obtaining just, speedy,
notice of disapproval. The Committee on and inexpensive determination of every
Claims shall evaluate the appeal and shall action and proceeding.
notify the claimant of Committee’s
decision. Who May File Petition.- The GSIS, in
Further appeal on the Committee’s appropriate cases, or any person whose
decision shall be filed to the Board within rights are or may be prejudiced by the
60 days from receipt of Committee’s operations or the enforcement of Republic
decision. Act No. 8291, Commonwealth Act No.
186, including its implementing rules and
Quasi-Judicial Functions of the GSIS. - regulations, policies and guidelines and
The quasi-judicial functions of the GSIS other laws administered by the GSIS on
shall be vested in its Board of Trustees. matters herein above specified, may file a
  petition before the GSIS either personally
The GSIS shall have original and or through counsel.
exclusive jurisdiction to settle any dispute
arising under Republic Act No. 8291, Contents of the Petition. - The petition
Commonwealth Act No. 186, including its shall state the following:
implementing rules and regulations, 1) The full name, address and legal
policies and guidelines, and other laws capacity of the petitioner;
administered by the GSIS with respect to: 2) The full name and address of the
respondent;
1) Coverage of government agencies and 3) A clear and concise statement of
employees; the petitioner’s cause or causes of
2) Entitlement of members to the action, specifying therein the
following benefits under these Rules: particular section/s of the law or
a) Separation benefits rule violated or sued upon. If the
b) Unemployment or involuntary basis of the action is a rule,
separation benefits c. Retirement regulation, resolution,
benefits memorandum or order of the
c) Disability benefits Board, the date of the
d) Survivorship benefits promulgation thereof shall be
e) Funeral benefits stated and a copy thereof
f) Life Insurance benefits attached; and

34
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Adjudication of Claims and Disputes
4) The relief sought.

Prohibited Pleading and Motions. - The

following pleadings, motions or petitions
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.

35
Aguirre, Miguel Joshua D. GSIS Act of 1997
Agrarian Reform and Social Legislation Administration
Case Digests Beronilla v. GSIS

Hilarion Beronilla vs. Government

Service Insurance System
G.R. No. 21723, 26 November 1970 ISSUE:

FACTS: Whether or not the GSIS Board of

Trustees acted within its powers when it
The petitioner was an auditor of the reversed the approval by the General
Philippine National Bank. Before that, he Manager of petitioner's request for the
had occupied many other positions in the change of his date of birth.
government and had been a member of
the GSIS. In his application for RULING:
employment, his applications for life and
retirement insurance as well as his The GSIS Board of Trustees has the
application to be allowed to take civil power to reverse the decisions of the
service examinations, petitioner uniformly General Manager.
indicated that his date of birth is January
14, 1898. He also indicated the same date By express statutory authority, the Board
of birth in his Member's Service Record of Trustees directly manages the System
which he submitted to the GSIS. On and the General Manager is only the chief
September 29, 1959, he requested the executive officer of the Board. It results,
Commissioner of Civil Service, thru the therefore, that any authority conferred
Auditor General, that his date of birth upon the General Manager by the Board
indicated in the records be changed to of Trustees notwithstanding, the said
January 14, 1900. According to the Board may in appropriate cases and in the
petition, it was only in 1955, before the exercise of its own sound discretion
demise of his mother that petitioner review the actions and decisions of the
discovered that his true date of birth is General Manager
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.

36
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation Membership
Case Digests GSIS v. CSC
member of the Sangguniang Bayan as
Government Service Insurance System creditable for retirement purposes instead
v. CSC and Belo, Baradero of allowing his petition for extension of
G.R. Nos. 98395-102449, 19 June 1995 service in order to complete the 15 year
period of service required for the purpose
FACTS: of qualifying for retirement benefits.

In G.R. No. 102449, private respondent ISSUE:

Matilde S. Belo held the position of Vice- Whether or not regular service in
Governor of Capiz continuously between government on a per diem basis, without
January 5, 1972 up to February 1, 1988. any other form of compensation or
From January 25, 1972 up to December emolument, is compensation within the
31, 1979, she held office by virtue of an contemplation of the term "service with
election and was paid a fixed salary. From compensation" under the Government
December 31, 1979 up to February 1, Service Insurance Act of 1987.
1988, she held the position of Vice
Governor of Capiz in a holdover capacity, RULING:
broken down into two periods:
1. A period in which she was paid on The Court initially ruled in favor of the
a per diem basis from December GSIS, but upon a review of the
31, 1976 to December 31, 1979; circumstances surrounding payment to
and respondent Belo of the per diem, it was
2. A period in which she was paid a found that what she received was actually
fixed salary — from January 1, paid for in performance of her duties as
1980 to February 1,1988. Vice-Governor of Capiz in a holdover
capacity not as the per diem referred to by
The Civil Service Commission (CSC) held section 1(c) of R.A. No 1573 which
that the services rendered for the first amended Section 1(c) of C.A. No. 186
holdover period between January 31, (Government Insurance Service Act). It is
1976 to January 1, 1979 was creditable for generally held that an allowance for
purposes of retirement. CSC noted that expenses incident to the discharge of an
during the entire holdover period, office is not a salary of office, it follows
respondent Belo actually served on a full that if the remuneration received by a
time basis as Vice Governor and was on public official in the performance of his
call 24 hours a day. On the other hand, duties does not constitute a mere
the GSIS disagreed with the CSC’s claims "allowance for expenses" but appears to
that the period in which respondent Belo be his actual base pay, then no amount of
was paid on a per diem basis should be categorizing the salary as base pay, a per
credited in computing the number of years diem would take the allowances received
of creditable service to the government. by petitioner from the term service with
compensation for the purpose of
In G.R. No. 98395, private respondent computing the number of years of service
Baradero as a member of the in government. What should be controlling
Sangguniang Bayan of the Municipality of in the cases at bar is the nature of the
La Castellana, Negros Occidental remuneration rather than the label
between January 1, 1976 to October 10, attached to it. While there is no dispute
1978 where he was likewise paid on a per that the law excepting per diems from the
diem basis. It is not disputed that during definition of compensation is clear and
this period, respondent Manuel S. requires no interpretation, however, since
Baradero rendered full services to the the term per diem may be construed either
government as a member of the as compensation or as allowance, it would
Sangguniang Bayan. The Civil Service be necessary for us to inquire whether the
Commission recognized the period in term per diem in the GSIS Law refers to
which respondent Baradero served as a one or the other signification

37
Espiritu, Namnama Chantal F. GSIS Act of 1997
Agrarian Reform and Social Legislation Membership
Case Digests GSIS v. CSC
a fixed salary. The contract made between
Under the circumstances in the case of the GSIS and the government employee is
Belo the per diems received by her during done on a take-it-or-leave-it basis, it is a
the period that she acted in holdover virtual contract of adhesion which gives
capacity obviously were in the nature of the employee no choice but to involuntarily
compensation or remuneration for her accede to the deductions made from their
services as Vice Governor of the Province oftentimes meager salaries. If the GSIS
of Capiz, rather than as a reimbursement did not deduct, it was by its own choice:
for incidental expenses incurred while contributions were exacted from petitioner
away from her home base. While before and after the disputed period.
respondent Belo was paid on a per diem
basis during her first holdover period as The situation as far as private respondents
Vice Governor she was subsequently paid and the GSIS are concerned could be
a fixed salary, which apparently rectified rectified by deducting a reasonable
an otherwise anomalous situation. The amount corresponding to the contributions
same could be said of the services which should have been deducted during
rendered by respondent Baradero, who, the period from the amount of retirement
before and after the period in question had benefits accruing to them. It would be
an unblemished record of service to the grossly inequitable to permanently
government as a member of the army and penalize both respondents Belo and
as a medical officer of the Philippine Baradero by ignoring the fact of actual
Medicare Commission. The disputed period of service to government with
period was served on a full-time basis compensation, and deny them the
regardless of the denomination given to retirement privileges that they, for their
the compensation received by him. unselfish service to the government justly
Baradero was even willing to serve two deserve. Under the peculiar
additional years of service to government circumstances of the case at bench, the
in order to complete the 15 year period demand for equity prompts us to regard
required by our retirement laws. The Civil spirit not letter, and intent, not form, in
Service Commission felt this was according substantial justice to both
unnecessary and denied the same on the respondents, where the law, through its
ground that, like the disputed period in the inflexible rules might prove inadequate.
Belo case, the period served on a per
diem basis is creditable.

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

38
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Member’s Service Profile
Case Digests GSIS v. Palmiery
Upon reaching the compulsory retirement
Government Service Insurance System age, Reynaldo retired. Consequently, he
v. Reynaldo P. Palmiery applied for retirement benefits under RA
G.R. No. 217949, 20 February 2019 No. 8291 and requested for full credit of
his government service starting on July 1,
FACTS: 1961 until his mandatory retirement on
May 28, 2005.
Reynaldo Palmiery began his government
service on May 2, 1961 as a laborer in the ISSUE:
Philippine Veterans Administration. After
more than 25 years of service, he retired Whether or not Reynaldo’s previous years
as a Manager of the Development Bank of in government service should be included
the Philippines (DBP). The DBP paid his in the computation for his retirement
gratuity benefit under Republic Act benefits
No.1616. He also received the refund of
his contributions. In total, Reynaldo RULING:
received ₱250,014.31.
The Court ruled in the affirmative. The
The next day after his retirement, GSIS should give full credit to Reynaldo’s
Reynaldo re-entered government service years of service in the government.
when he was appointed as Manager III in
the Social Security System. He continued (1) In computing the years of service, the
to work in the SSS until he retired as a present GSIS Law excludes only services
Deputy Administration on June 1, 1994. credited for retirement for which the
Then, he claimed retirement benefits corresponding benefits have been
under RA No. 660; pursuant to which, he awarded.
was granted a five-year lump sum
amounting to ₱532,491.28. From such Republic Act No. 8291 or “The
amount, the following were deducted: (a) Government Service Insurance Act of
the amount of benefits he received prior 1997” provides the following conditions
(i.e., ₱250,014.31); and his outstanding before a member may become qualified to
accountabilities (i.e., ₱57,774.64). Thus, receive the retirement benefit: (a) the
Reynaldo received the total amount of employee must have rendered at least 15
₱224,836.73 on July 4, 1994. years of service; (b) the employee must be
at least 60 years old at the time of
After four years, Reynaldo was appointed retirement; and (c) the employee must not
as a member of the Government Service be receiving a monthly pension as a result
Insurance System (GSIS) Board of of permanent total disability. Section 10 of
Trustees. During his tenure, he RA No 8291 provides that the
concurrently served as the GSIS computation of the service shall be
Executive Vice President after he was from the date of original appointment
appointed to such position on July 16, or election, including periods of service
1998. at different time under one or more
employers; and all service credited for
On July 11, 2001, Reynaldo refunded to retirement, resignation, or separation
GSIS the benefits he previously received for which corresponding benefits have
from his retirement. He also requested for been awarded under this law or other
the suspension of his monthly pension, laws shall be excluded in the
which took effect five years after the computation of service in case of
payment of his lump sum pension. reinstatement.
Likewise, he refunded the pension he
received on various dates. While Section 12(g) of CA No. 186, which
allows for the refund of previously
received benefits, is no longer found in RA

39
Martinez, Pia Aila D. GSIS Act of 1997
Agrarian Reform and Social Legislation Member’s Service Profile
Case Digests GSIS v. Palmiery
No. 8291, the absence of a similar may be credited as long as a refund of the
provision in the latter law does not previously received retirement benefits is
necessarily mean that the law has made. The Court made reference to the
abandoned this policy. GSIS Primer on RA No. 8291 wherein the
GSIS stated that the previous services of
Section 12(g) of CA No. 186 specifically an employee are credited upon his/her
makes reference to Section 12(f) which reinstatement to the office if he/she
disqualifies separated employees refunded all the retirement benefits he/she
receiving the annuity under Section 11 of received because “technically, the
CA No. 186 from being appointed to employee in this case has not received
another appointive position. Under the any retirement or separation benefits.”
same provision, the GSIS should give full
credit to the services rendered prior to the Here, the GSIS did not dispute Reynaldo’s
reinstatement, if such separated employee refund as they accepted the amount and
is not receiving the annuity in Section 11. even issued a receipt in his favor. In
Thus, taken from its proper context, accepting his refund, the GSIS cannot
Section 12(g) of CA No. 186 applies to a subsequently apply Policy and Procedural
specific category of employees (i.e., Guidelines (PPG) No. 183-06 which
separated employees who is/is not adopts a new policy prejudicial to the
receiving the annuity mentioned in Section retiree. Furthermore, there is no express
11); hence, the Court cannot interpret its prohibition under RA No. 8291 against
absence in RA No. 8291 as an express crediting the years of service upon the
prohibition against refunding previously refund of previously received retirement
received benefits for purposes of claiming benefits. In this case, Reynaldo refunded
retirement benefits under the law. his retirement pay and monthly pension
was suspended, he no longer received the
Most importantly, the Court stated that a benefits due him. Therefore, denying his
plain reading of Section 10(b) of RA No. claim would be tantamount to depriving
8291 reveals that employees who already Reynaldo of his compensation for the
received the retirement benefits under years of service he rendered to the
said law or other laws cannot credit their government, despite being eligible under
years of service prior to their re-entry in the law
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.

(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

40
Ragonhan, Garnee Claudine M. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits Under the GSIS Law
Case Digest GSIS v. De Leon

he already received retirement pensions

Government Service Insurance System under RA 660.
v. Fernando P. De Leon
G.R. No. 186560, 17 November 2010 ISSUE:

FACTS: Whether or not de Leon is entitled to

retirement benefits under RA 910
Fernando de Leon retired as Chief State
Prosecutor of DOJ in 1992 after 44 years HELD:
of service. He applied for retirement under
RA 910, invoking RA 3783 which provides Yes, entitled to retirement benefits under
that chief state prosecutors hold the same RA 910. Respondent’s disqualification
rank as judges, which the GSIS approved. from receiving retirement benefits under
For more than nine years, he continuously RA 910 does not mean that he is
received his retirement benefits, until 2001 disqualified from receiving any retirement
when he failed to receive his monthly benefit under any other existing retirement
pension. law.

He learned that GSIS cancelled his RA 8291 or GSIS law cannot apply to de
pension because the DBM informed GSIS Leon as he retired in 1992, and said law
that he was not qualified to retire under was not yet enacted that time. Prior to the
RA 910 because said law was meant only effectivity of RA 8291, retiring government
for justices and judges and having the employees who were not entitled to the
same rank and qualification as a judge did benefits under RA 910 had the option to
not entitle him to the retirement benefits retire under either of two laws: RA 660, or
provided thereunder. He wrote to GSIS PD1146. Under PD 1146, to be eligible for
several times but he only received one in retirement benefits, one must satisfy the
November 9, 2007, and it was contained following requisites:
therein that he is not covered under RA
910, but instead, he may seek to secure (a) Old-age pension shall be paid to a
benefits under RA 660 or Magic 87, or member who:
other applicable GSIS law.
(1) has at least fifteen years of service;
De Leon then filed a petition for
mandamus before the CA praying that (2) is at least sixty years of age; and
GSIS be compelled to continue paying his
monthly pension and other unpaid monthly (3) is separated from the service.
benefits. He also asked that GSIS and
DBM be ordered to pay him damages. To grant this to de Leon would not
constitute double retirement. Since he has
CA: GSIS was ordered to pay de Leon his been declared ineligible to retire under RA
monthly adjusted pension in accordance 910, GSIS should simply apply the proper
with other applicable law not under RA retirement law to respondent’s claim, in
910, together with his back pensions, on substitution of RA 910. GSIS’ argument
the ground that RA 910, following that respondent has already been
precedents, allowed non-judges to retire enormously benefited under RA 910
under said law. Also, under RA 660, RA misses the point.
8291, and PD 1146, he is entitled to
monthly pension for life. Retirement benefits are a form of reward
for an employee’s loyalty and service to
GSIS elevated it to the SC contending that the employer, and are intended to help the
de Leon cannot be entitled under PD 1146 employee enjoy the remaining years of his
as it would constitute double retirement as life, lessening the burden of having to

41
Ragonhan, Garnee Claudine M. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits Under the GSIS Law
Case Digest GSIS v. De Leon

worry about his financial support or

upkeep.

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

42
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
Case Digest Rabor v. CSC

Dionisio M. Rabor v. Civil Service President’s Memorandum Circular No. 65

Commission is inapplicable to the case of Cena. Rabor
G.R. No. 111812, 31 May 1995 sought for the same reliefs.

FACTS: On the other hand, the Civil Service

Commission stated that in the Cena case,
Dionisio Rabor (Rabor) is a Utility Worker it was ruled that the employer agency
in the office of the Mayor, Davao City. He concerned to grant the exertion has the
entered the government service in 1978, authority to grant or deny such extension.
at the age of 55. And in the case of Rabor, the Davao City
Government did exercise its discretion
In 1991, when he was 68 years or age, he when it chose to deny Rabor’s request.
applied for retirement benefits under the
GSIS Law. However, since he had only ISSUE:
been working for 13 years, he lacked 2
years in order to fill the 15 years of service Whether or not the case of Cena v. Civil
requirement for availing for full retirement Service Commission, can be applied to
benefits under the GSIS Law. the case at bar.

He then asked for an extension of 2 years RULING: No. The ruling of Cena v. Civil
for his appointment in government service. Service Commission is modified.
However, the Office of the Mayor denied
such. In his letter, Mayor Duterte stated According to the Supreme Court, the
that it is under the discretion of the City Court had erred in ruling that Civil Service
Mayor whether or not to grant the Memorandum No. 27 was void and
extension. Furthermore, the denial of such ineffective because the Civil Service
extension was due to Civil Service Commission had only made the existing
Memorandum No. 27, which states that law more specific. This is a valid exercise
the extension must be filed for three years of their powers. It did not alter or change
before the mandatory retirement age of the law.
65, and that such extension must not
exceed 6 months. Given that Rabor was Therefore, the relevant provisions of Civil
already 68 when he had filed for the Service Memorandum No. 27, which
extension and that the extension in states the following:
question is for 2 years, the Mayor decided
to deny such petition.  Any extension of service to reach the
mandatory 15 years of service
Rabor elevated the case with the Civil required for availing of retirement
Service Commission, which affirmed benefits under the GSIS law shall be
Mayor Duterte’s decision. granted for a period of 1 year;
 Such shall be filed not later than 3
Rabor then brought up the case with the years prior to the date of compulsory
Supreme Court, assailing that his case retirement;
was on all fours with the case of Cena v.  The extension may be granted for 6
Civil Service Commission, which grated months only, with no further extension
Cena’s extension in government service for those who have reached the
as the Civil Service Memorandum No. 27 minimum number of years are
was void and ineffective because it goes applicable in the case at bar.
beyond the vested powers of the Civil  The Court also held that the validly of
Service Commission to place additional The Office of the President’s
requirements for the availing of retirement Memorandum Circular No. 65 must be
benefits under the GSIS. The same case given a separate and more thorough
further ruled that The Office of the

43
Ramos, Dianne Nicole L. GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
Case Digest Rabor v. CSC

explanation. Wherefore, the petition of

Rabor is denied.

44
Consignado, Kevin GSIS Act of 1997
Agrarian Reform and Social Legislation Benefits
Case Digest Tancinco v. GSIS
death, SPO1 Tancinco was off-duty since
Vice-President Estrada was out of the
Rufina Tancinco v. Government Service country. In fact, he was at home; it is not
Insurance System even known if he was temporarily re-
G.R. No. 132916, 16 November 2001 assigned to another detail while the Vice-
President was away. Clearly, he was not
FACTS: at the place where his work required him
to be.
At around noon of July 17, 1995, while he
was repairing a service vehicle in front of Second requirement, it was not sufficiently
his house along the National Road in established that SPO1 Tancinco died
Barangay Palanas, Lemery, Batangas, while performing his official functions. In
SPO1 Eddie G. Tancinco was shot dead this regard, we held that policemen are
by five (5) unidentified armed men. SPO1 regarded as being on twenty-four (24)
Tancinco was a member of the NCR hour alert.
Security Protection Group of the Philippine
National Police, and at the time of his Eddie Tancinco was on leave when he
death, was assigned as part of the close- was killed. The 24-hour duty rule does not
in security detail of then Vice-President apply when the policeman is on vacation
Joseph E. Estrada. SPO1 Tancinco was leave.
off-duty at the time inasmuch as the
former Vice-President was in the United In the present case, Eddie Tancinco was
States for medical treatment. on leave when the incident happened;
thus, he was not at a place where his work
ISSUE: requires him to be. He was not performing
acts that are "basically police service in
Whether or not Tancinco’s death is character." As a policeman, SPO1
compensable? Tancinco is part of "an organized civil
force for maintaining order, preventing and
RULING: detecting crimes, and enforcing the laws.

NO. SECTION 1. Grounds — (a) For the Neither was the THIRD requirement
injury and the resulting disability or death satisfied. As the fatal incident occurred
to be compensable, the injury must be the when SPO1 Tancinco was at home, it was
result of an employment accident incumbent on petitioner to show that her
satisfying all of the following conditions: husband was discharging a task pursuant
to an order issued by his superiors. This
(1) The employee must have been injured also was not done.
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

45
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