Republic Act No.

8291             May 30, 1997 "(k) Current Daily Compensation- The actual daily compensation
or the actual monthly compensation divided by the number of
working days in the month of contingency but not to exceed
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS
twenty-two (22) days;
AMENDED, EXPANDING AND INCREASING THE COVERAGE
AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE
SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER "(l) Average Monthly Compensation (AMC)- The quotient arrived
PURPOSES at after dividing the aggregate compensation received by the
member during his last thirty-six (36) months of service preceding
his separation/retirement/ disability/death by thirty-six (36), or by
Be it enacted by the Senate and House of Representatives of the Philippines in
the number of months he received such compensation if he has less
Congress assembled:
than thirty-six (36) months of service: Provided, That the average
monthly compensation shall in no case exceed the amount and rate
Section 1. Presidential Decree No. 1146, as amended, otherwise known as as may be respectively set by the Board under the rules and
the "Revised Government Service Insurance Act of 1977", is hereby further regulations implementing this Act as determined by the actuary of
amended to read as follows: the GSIS: Provided, further,  That initially the average monthly
compensation shall not exceed Ten thousand pesos (P10,000.00),
and premium shall be nine percent (9%) and twelve percent (12%)
"SECTION 1. Title. - The title of this Act shall be: "The for employee and employer covering the AMC limit and below and
Government Service Insurance System Act of 1997." two percent (2%) and twelve percent (12%) for employee and
employer covering the compensation above the AMC limit;
"A. DEFINITIONS
"(m) Revalued average monthly compensation- An amount equal
"SEC. 2. Definition of terms.- Unless the context otherwise to one hundred seventy percent (170%) of the first One thousand
indicates, the following terms shall mean: pesos (P1,000.00) of the average monthly compensation plus one
hundred percent (100%) of the average monthly compensation in
excess of One thousand pesos (P1,000.00);
"(a) GSIS- The Government Service Insurance System created by
Commonwealth Act No. 186;
"(n) Lump sum- The basic monthly pension multiplied by sixty
(60);
"(b) Board- The Board of Trustees of the Government Service
Insurance System;
"(o) Pensioner- Any person receiving old-age permanent total
disability pension or any person who has received the lump sum
"(c) Employer- The national government, its political subdivisions, excluding one receiving survivorship pension benefits as defined in
branches, agencies or instrumentalities, including government- Section 20 of this Act;
owned or controlled corporations, and financial institutions with
original charters, the constitutional commissions and the judiciary;
"(p) Gainful Occupation- Any productive activity that provided the
member with income at least equal to the minimum compensation
"(d) Employee or Member- Any person receiving compensation of government employees;
while in the service of an employer as defined herein, whether by
election or appointment, irrespective of status of appointment,
including barangay and Sanggunian officials; "(q) Disability- Any loss or impairment of the normal functions of
the physical and/or mental faculty of a member which reduces or
eliminates his/her capacity to continue with his/her current gainful
"(e) Active Member- A member who is not separated from the occupation or engage in any other gainful occupation;
service;

"(r) Total Disability- Complete incapacity to continue with his

"(f) Dependents- Dependents shall be the following: (a) the present employment or engage in any gainful occupation due to the
legitimate spouse dependent for support upon the member or loss or impairment of the normal functions of the physical and/or
pensioner; (b) the legitimate, legitimated, legally adopted child, mental faculties of the member;
including the illegitimate child, who is unmarried, not gainfully
employed, not over the age of majority, or is over the age of
majority but incapacitated and incapable of self-support due to a "(s) Permanent Total Disability- Accrues or arises when recovery
mental or physical defect acquired prior to age of majority; and (c) from the impairment mentioned in Section 2 (Q) is medically
the parents dependent upon the member for support; remote;

"(g) Primary beneficiaries- The legal dependent spouse until "(t) Temporary Total Disability- Accrues or arises when the
he/she remarries and the dependent children; impaired physical and/or mental faculties can be rehabilitated
and/or restored to their normal functions;
"(h) Secondary beneficiaries- The dependent parents and, subject
to the restrictions on dependent children, the legitimate "(u) Permanent Partial Disability- Accrues or arises upon the
descendants; irrevocable loss or impairment of certain portion/s of the physical
faculties, despite which the member is able to pursue a gainful
occupation.
"(i) Compensation- The basic pay or salary received by an
employee, pursuant to his election/appointment, excluding per
diems, bonuses, overtime pay, honoraria, allowances and any other "B. MEMBERSHIP IN THE GSIS
emoluments received in addition to the basic pay which are not
integrated into the basic pay under existing laws;

"(j) Contribution- The amount payable to the GSIS by the member

and the employer in accordance with Section 5 of this Act;

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"SEC. 3. Compulsory Membership. - Membership in the GSIS apply. The remittance by the employer of the contribution to the
shall be compulsory for all employees receiving compensation who GSIS shall take priority over and above the payment of any and all
have not reached the compulsory retirement age, irrespective of obligations, except salaries and wages of its employees.
employment status, except members of the Armed Forces of the
Philippines and the Philippine National Police, subject to the
"SEC. 7. Interest on Delayed Remittances. - Agencies which delay
condition that they must settle first their financial obligation with
the remittance of any and all monies due the GSIS shall be charged
the GSIS, and contractuals who have no employer and employee
interests as may be prescribed by the Board but not less than two
relationship with the agencies they serve.
percent (2%) simple interest per month. Such interest shall be paid
by the employers concerned.
"Except for the members of the judiciary and constitutional
commissions who shall have life insurance only, all members of
"SEC. 8. Government Guarantee.  - The government of the
the GSIS shall have life insurance, retirement, and all other social
Republic of the Philippines hereby guarantees the fulfillment of the
security protections such as disability, survivorship, separation,
obligations of the GSIS to its members as and when they fall due.
and unemployment benefits.

"D. BENEFITS
"SEC. 4. Effect of Separation from the Service. - A member
separated from the service shall continue to be a member, and shall
be entitled to whatever benefits he has qualified to in the event of "SEC. 9. Computation of the Basic Monthly Pension. - (a) The
any contingency compensable under this Act. basic monthly pension is equal to:

"C. SOURCES OF FUNDS "1) thirty-seven and one-half percent (37.5%) of the revalued
average monthly compensation; plus
"SEC. 5. Contributions. - (a) It shall be mandatory for the member
and employer to pay the monthly contributions specified in the "2) two and one-half percent (2.5%) of said revalued average
following schedule: monthly compensation for each year of service in excess of (15)
years: Provided, That the basic monthly pension shall not exceed
ninety percent (90%) of the average monthly compensation.
"Monthly Compensation

"(b) The basic monthly pension may be adjusted upon the

recommendation of the President and General Manager of the
I. Maximum Average GSIS and approved by the President of the Philippines in
Monthly Compensation accordance with the rules and regulations prescribed by the
(AMC) Limit and Below GSIS: Provided, however, that the basic monthly pension shall not
II. Over the Maximum AMC Limit be less than One thousand and three hundred pesos
-Up to the Maximum AMC Limit (P1,300.00): Provided, further, that the basic monthly pension for
those who have rendered at least twenty (20) years of service after
-In Excess of the AMC Limit the effectivity of this Act shall not be less than Two thousand four
hundred pesos (P2,400.00) a month.
"Members of the judiciary and constitutional commissioners shall
pay three percent (3%) of their monthly compensation as personal "SEC. 10. Computation of Service. - (a) The computation of
share and their employers a corresponding three percent (3%) service for the purpose of determining the amount of benefits
share for their life insurance coverage. payable under this Act shall be from the date of original
appointment/election, including periods of service at different
times under one or more employers, those performed overseas
"(b) The employer shall include in its annual appropriation the
under the authority of the Republic of the Philippines, and those
necessary amounts for its share of the contributions indicated
that may be prescribed by the GSIS in coordination with the Civil
above, plus any additional premiums that may be required on
Service Commission.
account of the hazards or risks of its employee’s occupation.

"(b) All service credited for retirement, resignation or separation

"(c) It shall be mandatory and compulsory for all employers to
for which corresponding benefits have been awarded under this
include the payment of contributions in their annual
Act or other laws shall be excluded in the computation of service
appropriations. Penal sanctions shall be imposed upon employers
in case of reinstatement in the service of an employer and
who fail to include the payment of contributions in their annual
subsequent retirement or separation which is compensable under
appropriations or otherwise fail to remit the accurate/exact amount
this Act.
of contributions on time, or delay the remittance of premium
contributions to the GSIS. The heads of offices and agencies shall
be administratively liable for non-remittance or delayed remittance "For the purpose of this section, the term service shall include full-
of premium contributions to the GSIS. time service with compensation: Provided, that part-time and other
services with compensation may be included under such rules and
regulations as may be prescribed by the GSIS.
"SEC. 6. Collection and Remittance of Contributions. - (a) The
employer shall report to the GSIS the names of all its employees,
their corresponding employment status, positions, salaries and such "SEPARATION BENEFITS
other pertinent information, including subsequent changes therein,
if any, as may be required by the GSIS; the employer shall deduct
each month from the monthly salary or compensation of each "SEC. 11. Separation Benefits. - The separation benefits shall
employee the contribution payable by him in accordance with the consist of: (a) a cash payment equivalent to one hundred percent
schedule prescribed in the rules and regulations implementing this (100%) of his average monthly compensation for each year of
Act. service he paid contributions, but not less than Twelve thousand
pesos (P12,000) payable upon reaching sixty (60) years of age
upon separation, whichever comes later: Provided, that the
"(b) Each employer shall remit directly to the GSIS the employee’s member resigns or separates from the service after he has rendered
and employer’s contributions within the first ten (10) days of the at least three (3) years of service but less than fifteen (15) years; or
calendar month following the month to which the contributions

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"(b) a cash payment equivalent to eighteen (18) times his basic "SEC. 13-A.  Conditions for Entitlement. - A member who retires
monthly pension at the time of resignation or separation, plus an from the service shall be entitled to the retirement benefits
old-age pension benefit equal to the basic monthly pension payable enumerated in paragraph (a) of Section 13 hereof: Provided, That:
monthly for life upon reaching the age of sixty (60): Provided, that
the member resigns or separates from the service after he has
(1) he has rendered at least fifteen years of service;
rendered at least fifteen (15) years of service and is below sixty
(60) years of age at the time of resignation or separation.
(2) he is at least sixty (60) years of age at the time of
retirement; and
"SEC. 12. Unemployment or Involuntary Separation Benefits. -
Unemployment benefits in the form of monthly cash payments
equivalent to fifty percent (50%) of the average monthly (3) he is not receiving a monthly pension benefit from
compensation shall be paid to a permanent employee who is permanent total disability.
involuntarily separated from the service due to the abolition of his
office or position usually resulting from
"SEC. 14.  Periodic Pension Adjustment. - The monthly pension of
reorganization: Provided, That he has been paying integrated
all pensioners including all those receiving survivorship pension
contributions for at least one (1) year prior to separation.
benefits shall be periodically adjusted as may be recommended by
Unemployment benefits shall be paid in accordance with the
the GSIS actuary and approved by the Board in accordance with
following schedules:
the rules and regulations prescribed by the GSIS.

"Contributions Made Benefit Duration

"PERMANENT DISABILITY BENEFITS

1 year but less than 3 years 2 months

"SEC. 15. General Conditions for Entitlement. - A member who
suffers permanent disability for reasons not due to his grave
3 or more years but less than 6 years 3 months misconduct, notorious negligence, habitual intoxication, or willful
intention to kill himself or another, shall be entitled to the benefits
provided for under Sections 16 and 17 immediately following,
6 or more years but less than 9 years 4 months
subject to the corresponding conditions thereof.

9 or more years but less than 11 years 5 months

"SEC. 16.  Permanent Total Disability Benefits. - (a) If the
permanent disability is total, he shall receive a monthly income
11 or more years but less than 15 years 6 months benefit for life equal to the basic monthly pension effective from
the date of disability:  Provided,  That:
"The first payment shall be equivalent to two (2) monthly benefits.
A seven-day (7) waiting period shall be imposed on succeeding (1) he is in the service at the time of disability; or
monthly payments.
(2) if separated from the service, he has paid at least
"All accumulated unemployment benefits paid to the employee thirty-six (36) monthly contributions within the five (5)
during his entire membership with the GSIS shall be deducted year period immediately preceding disability, or has
from voluntary separation benefits. paid a total of at least one hundred eighty (180)
monthly contributions, prior to his disability: Provided,
further, That if at the time of disability, he was in the
"The GSIS shall prescribe the detailed guidelines in the
service and has paid a total of at least one hundred
operationalization of this section in the rules and regulations
eighty (180) monthly contributions, in addition to the
implementing this Act.
monthly income benefit, he shall receive a cash
payment equivalent to eighteen (18) times his basic
"RETIREMENT BENEFITS monthly pension: Provided, finally,  That a member
cannot enjoy the monthly income benefit for permanent
disability and the old-age retirement simultaneously.
"SEC. 13. Retirement Benefits. - (a) Retirement benefits shall be:

"(b) If a member who suffers permanent total disability does not

"(1) the lump sum payment as defined in this Act satisfy conditions (1) and (2) in paragraph (a) of this section but
payable at the time of retirement plus an old-age has rendered at least three (3) years of service at the time of his
pension benefit equal to the basic monthly pension disability, he shall be advanced the cash payment equivalent to one
payable monthly for life, starting upon expiration of the hundred percent (100%) of his average monthly compensation for
five-year (5) guaranteed period covered by the lump each year of service he paid contributions, but not less than Twelve
sum; or thousand pesos (P12,000.00) which should have been his
separation benefit.
"(2) cash payment equivalent to eighteen (18) months
of his basic monthly pension plus monthly pension for "(c) Unless the member has reached the minimum retirement age,
life payable immediately with no five-year (5) disability benefit shall be suspended when:
guarantee.

"(1) he is reemployed; or
"(b) Unless the service is extended by appropriate authorities,
retirement shall be compulsory for an employee of sixty-five (65)
years of age with at least fifteen (15) years of "(2) he recovers from his disability as determined by
service: Provided, That if he has less than fifteen (15) years of the GSIS, whose decision shall be final and binding; or
service, he may be allowed to continue in the service in accordance
with existing civil service rules and regulations.
"(3) he fails to present himself for medical examination
when required by the GSIS.

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"(d) The following disabilities shall be deemed total and "Provided, however,  That a member cannot enjoy the temporary
permanent: total disability benefit and sick leave pay
simultaneously: Provided, further, That if the disability requires
more extensive treatment that lasts beyond one hundred twenty
"(1) complete loss of sight of both eyes;
(120) days, the payment of the temporary total disability benefit
may be extended by the GSIS but not to exceed a total of two
"(2) loss of two (2) limbs at or above the ankle or wrist; hundred forty (240) days.

"(3) permanent complete paralysis of two (2) limbs; "(b) The temporary total disability benefit shall in no case be less
than Seventy pesos (P70.00) a day.
"(4) brain injury resulting in incurable imbecility or
insanity; and "(c) The notices required of the member and the employer, the
mode of payment, and the other requirements for entitlement to
temporary total disability benefits shall be provided in the rules
"(5) such other cases as may be determined by the and regulations to be prescribed by the GSIS.
GSIS.

"SEC. 19. Non-scheduled Disability. - For injuries or illnesses

"SEC. 17. Permanent Partial Disability Benefits. - (a) If the resulting in a disability not listed in the schedule of partial/total
disability is partial, he shall receive a cash payment in accordance disability provided herein, the GSIS shall determined the nature of
with a schedule of disabilities to be prescribed by the the disability and the corresponding benefits therefor.
GSIS: Provided, That he satisfies either conditions (1) or (2) of
Section 16 (a);
"SURVIVORSHIP BENEFITS
"(b) The following disabilities shall be deemed permanent partial:
"SEC. 20. Survivorship Benefits. - When a member or pensioner
dies, the beneficiaries shall be entitled to survivorship benefits
"(1) complete and permanent loss of the use of: provided in Sections 21 and 22 hereunder subject to the conditions
therein provided for. The survivorship pension shall consist of:
(i) any finger
(1) the basic survivorship pension which is fifty percent
(ii) any toe (50%) of the basic monthly pension; and

(iii) one arm (2) the dependent children’s pension not exceeding fifty
percent (50%) of the basic monthly pension
(iv) one hand
"SEC. 21. Death of a Member. - (a) Upon the death of a member,
the primary beneficiaries shall be entitled to:
(v) one foot

(1) survivorship pension: Provided, That the deceased:

(vi) one leg

(i) was in the service at the time of his death;

(vii) one or both ears or

(viii) hearing of one or both ears (ii) if separated from the service, has at least
three (3) years of service at the time of his
(ix) sight of both eyes death and has paid thirty-six (36) monthly
contributions within the five-year period
immediately preceding his death; or has paid
"(2) such other cases as my be determined by the GSIS. a total of at least one hundred eighty (180)
monthly contributions prior to his death; or
"TEMPORARY DISABILITY BENEFITS
(2) the survivorship pension plus a cash payment
"SEC. 18. Temporary Total Disability Benefits. - (a) A member equivalent to one hundred percent (100%) of his
who suffers temporary total disability for reasons not due to any of average monthly compensation for every year of
the conditions enumerated in Section 15 hereof shall be entitled to service: Provided, That the deceased was in the service
seventy-five percent (75%) of his current daily compensation for at the time of his death with at least three (3) years of
each day or fraction thereof of temporary disability benefit not service; or
exceeding one hundred twenty (120) days in one calendar year
after exhausting all his sick leave credits and collective bargaining (3) a cash payment equivalent to one hundred percent
agreement sick leave benefits, if any, but not earlier than the fourth (100%) of his average monthly compensation for each
day of his temporary total disability: Provided, That: year of service he paid contributions, but not less than
Twelve thousand pesos (P12,000.00): Provided, That
"(1) he is in the service at the time of his disability; or the deceased has rendered at least three (3) years of
service prior to his death but does not qualify for the
benefits under item (1) or (2) of this paragraph.
"(2) if separated, he has rendered at least three (3) years
of service and has paid at least six (6) monthly
contributions in the twelve-month period immediately (b) The survivorship pension shall be paid as follows:
preceding his disability.

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 (1) when the dependent spouse is the only survivor, "SEC. 24. Compulsory Life Insurance. - All employees except for
he/she shall receive the basic survivorship pension for Members of the Armed Forces of the Philippines (AFP) and the
life or until he/she remarries; Philippine National Police (PNP) shall, under such terms and
conditions as may be promulgated by the GSIS, be compulsorily
covered with life insurance, which shall automatically take effect
(2) when only dependent children are the survivors,
as follows:
they shall be entitled to the basic survivorship pension
for as long as they are qualified, plus the dependent
children’s pension equivalent to ten percent (10%) of (1) for those employed after the effectivity of this Act,
the basic monthly pension for every dependent child not their insurance shall take effect on the date of their
exceeding five (5), counted from the youngest and employment;
without substitution;
(2) for those whose insurance will mature after the
(3) when the survivors are the dependent spouse and the effectivity of this Act, their insurance shall be deemed
dependent children, the dependent spouse shall receive renewed on the day following the maturity or expiry
the basic survivorship pension for life or until he/she date of their insurance;
remarries, and the dependent children shall receive the
dependent children’s pension mentioned in the
(3) for those without any life insurance as of the
immediately preceding paragraph (2) hereof.
effectivity of this Act, their insurance shall take effect
following said effectivity.
(c) In the absence of primary beneficiaries, the secondary
beneficiaries shall be entitled to:
"SEC. 25. Dividends. - An annual dividend may be granted to all
members of the GSIS whose life insurance is in force for at least
(1) the cash payment equivalent to one hundred percent one (1) year in accordance with a dividends allocation formula to
(100%) of his average monthly compensation for each be determined by the GSIS.
year of service he paid contributions, but not less than
Twelve thousand pesos (P12,000.00): Provided,  That
"SEC. 26. Optional Insurance. - Subject to the rules and
the member is in the service at the time of his death and
regulations prescribed by the GSIS, a member may apply for
has at least three (3) years of service; or
insurance and/or pre-need coverage embracing life, health,
hospitalization, education, memorial plans, and such other plans as
(2) in the absence of secondary beneficiaries, the may be designed by the GSIS, for himself and/or his dependents.
benefits under this paragraph shall be paid to his legal Any employer may likewise apply for group insurance coverage
heirs. for its employees. The payment of the premiums/installments for
optional insurance and pre-need products may be made by the
insured or his employer and/or any person acceptable to the GSIS.
(d) For purposes of the survivorship benefits, legitimate children
shall include legally adopted and legitimated children.
"SEC. 27. Reinsurance. - The GSIS may reinsure any of its
interests or part thereof with any private company or reinsurer
"SEC. 22. Death of a Pensioner. - Upon the death of an old-age
whether domestic of foreign: Provided, That the GSIS shall submit
pensioner or a member receiving the monthly income benefit for
an annual report on its reinsurance operations to the Insurance
permanent disability, the qualified beneficiaries shall be entitled to
Commission.
the survivorship pension defined in Section 20 of this Act, subject
to the provisions of paragraph (b) of Section 21 hereof. When the
pensioner dies within the period covered by the lump sum, the "E. ADJUDICATION OF CLAIMS AND DISPUTES
survivorship pension shall be paid only after the expiration of the
said period.
"SEC. 28. Prescription. - Claims for benefits under this Act except
for life and retirement shall prescribe after four (4) years from the
"FUNERAL BENEFITS date of contingency.

"SEC. 23. Funeral Benefits. - The amount of the funeral benefits "SEC. 29. Facility of Payment. - The GSIS shall prescribe rules
shall be determined and specified by the GSIS in the rules and and regulations to facilitate payment of benefits, proceeds, and
regulations but shall not be less than Twelve thousand pesos claims under this Act and any other laws administered by the
(P12,000.00): Provided, That it shall be increased to at least GSIS. Payments made by the GSIS prior to its receipt of an
Eighteen thousand pesos (P18,000.00) after five (5) years and shall adverse claim, to a beneficiary or claimant subsequently found not
be paid upon the death of: entitled thereto, shall not bar the legal and eligible recipient to his
right to demand the payment of benefits, proceeds, and claims
from the GSIS, who shall, however, have a right to institute the
(a) an active member as defined under Section 2 (e) of
appropriate action in a court of law against the ineligible recipient.
this Act; or

"SEC. 30. Settlement of Disputes. - The GSIS shall have original

(b) a member who has been separated from the service,
and exclusive jurisdiction to settle any disputes arising under this
but who may be entitled to future benefit pursuant to
Act and any other laws administered by the GSIS.
Section 4 of this Act; or

The Board may designate any member of the Board, or official of

(c) a pensioner, as defined in Section 2 (o) of this Act;
the GSIS who is a lawyer, to act as hearing officer to receive
or
evidence, make findings of fact and submit recommendations,
together with all documentary and testimonial evidence to the
(d) a retiree who at the time of his retirement was of Board within thirty (30) working days from the time the parties
pensionable age under this Act but who opted to retire have closed their respective evidence and filed their last pleading.
under Republic Act No. 1616. The Board shall decide the case within thirty (30) days from the
receipt of the hearing officer’s findings and recommendations. The
cases heard directly by the Board shall be decided within thirty
"LIFE INSURANCE BENEFITS

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(30) working days from the time they are submitted by the parties "SEC. 36.  Investment of Funds. - The funds of the GSIS which are
for decision. not needed to meet the current obligations may be invested under
such terms and conditions and rules and regulations as may be
prescribed by the Board: Provided,  That investments shall satisfy
"SEC. 31. Appeals. - Appeals from any decision or award of the
the requirements of liquidity, safety/security and yield in order to
Board shall be governed by Rules 43 and 45 of the 1997 Rules of
ensure the actuarial solvency of the funds of the GSIS: Provided,
Civil Procedure adopted by the Supreme Court on April 8, 1997
further, That the GSIS shall submit an annual report on all
which will take effect on July 1, 1997: Provided, That pending
investments made to both Houses of Congress of the Philippines,
cases and those filed prior to July 1, 1997 shall be governed by the
to wit:
applicable rules of procedure: Provided, further,  That the appeal
shall take precedence over all other cases except criminal cases
when the penalty of life imprisonment or death or reclusion (a) in interest-bearing bonds or securities or other
perpetua is imposable. evidence of indebtedness of the Government of the
Philippines;
The appeal shall not stay the execution of the order or award unless
ordered by the Board, by the Court of Appeals or by the Supreme (b) in interest-bearing deposits or securities in any
Court and the appeal shall be without prejudice to the special civil domestic bank doing business in the
action of certiorari when proper. Philippines: Provided,  That in the case of such
deposits, there shall not exceed at any time the
unimpaired capital and surplus or total private deposits
"SEC. 32. Execution of Decision. - When no appeal is perfected
of the depository bank, whichever is smaller: Provided,
and there is no order to stay by the Board, by the Court of Appeals
further, That the said bank has prior designation as a
or by the Supreme Court, any decision or award of the Board shall
depository for the purpose by the Monetary Board of
be enforced and executed in the same manner as decisions of the
the Central Monetary Authority;
Regional Trial Court. For this purpose, the Board shall have the
power to issue to the city or provincial sheriff or its appointed
sheriff such writs of execution as may be necessary for the (c) in direct housing loans to members and group
enforcement of such decision or award, and any person who shall housing projects secured by first mortgage, giving
fail or refuse to comply with such decision, award, writ or process priority to the low income groups and in short and
after being required to do so shall, upon application by the GSIS, medium term loans to members such as salary, policy,
be punished for contempt. educational, emergency stock purchase plan and other
similar loans: Provided,  That no less than forty percent
(40%) of the investible fund of the GSIS Social
"SEC. 33. Oaths, Witnesses, and Production of Records. - When
Insurance Fund shall be invested for these purposes;
authorized by the Board, an official or employee of the GSIS shall
have the power to administer oath and affirmation, take deposition,
certify to official acts, and issue subpoena ad (d) in bonds, securities, promissory notes or other
testificandum and subpoena duces tecum to compel the attendance evidence of indebtedness of educational or medical
of witnesses and the production of books, papers, correspondences, institutions to finance the construction, improvement
and other records deemed necessary as evidence in connection and maintenance of schools and hospitals;
with any question arising under this Act. Any case of contumacy
shall be dealt with in accordance with the provisions of Section
(e) in real estate property including shares of stocks
580 of the Revised Administrative Code.
involving real state property and investments secured
by first mortgages on real estate or other collaterals
"F. FUNDS OF THE GSIS acceptable to the GSIS: Provided, That such investment
shall, in the determination of the Board, redound to the
benefit of the GSIS, its members as well as the general
"SEC. 34. Funds. - All contributions payable under Section 5 of
public;
this Act together with the earnings and accruals thereon shall
constitute the GSIS Social Insurance Fund. The said fund shall be
used to finance the benefits administered by the GSIS under this (f) in debt instruments and other securities traded in the
Act. In addition, the GSIS shall administer the optional insurance secondary markets;
fund for the insurance coverage described in Section 26 hereof, the
Employees’ Compensation Insurance Fund created under P.D. 626,
(g) in loans to, or in bonds, debentures, promissory
as amended, General Insurance Fund created under Act No. 656, as
notes or other evidence of indebtedness of any solvent
amended, and such other special funds existing or that may be
corporation created or existing under the laws of the
created for special groups or persons rendering services to the
Philippines;
government. The GSIS shall maintain the required reserves to
guarantee the fulfillment of its obligations under this Act.
(h) in common and preferred stocks of any solvent
corporation or financial institution created or existing
The funds of the GSIS shall not be used for purposes other than
under the laws of the Philippines listed in the stock
what are provided for under this Act. Moreover, no portion of the
exchange with proven track record of profitability over
funds of the GSIS or income thereof shall accrue to the General
the last three (3) years and payment of dividends at
Fund of the national government and its political subdivisions,
least once over the same period;
instrumentalities and other agencies including government-owned
and controlled corporations except as may be allowed under this
Act. (i) in domestic mutual funds including investments
related to the operations of mutual funds; and
"SEC. 35.  Deposits and Disbursements. - All revenues collected
and all accruals thereto shall be deposited, administered and (j) in foreign mutual funds and in foreign currency
disbursed in accordance with the law. A maximum expense deposits or foreign currency-denominated debts, non-
loading of twelve percent (12%) of the yearly revenues from all speculative equities and other financial instruments or
sources may be disbursed for administrative and operational other assets issued in accordance with existing laws of
expenses except as may be otherwise approved by the President of the countries where such financial instruments are
the Philippines on the basis of actuarial and management studies. issued: Provided,  That these instruments or assets are
listed in bourses of the respective countries where these

6
 instruments or assets are issued: Provided, further,  That effective exercise of the powers and functions, and the
the issuing company has proven track record of discharge of duties and responsibilities of the GSIS, its
profitability over the last three (3) years and payment of officers and employees;
dividends at least once over the same period.
(b) to adopt or approve the annual and supplemental
"SEC. 37. Records and Reports. - The GSIS shall keep and cause budget of receipts and expenditures including salaries
to keep such records as may be necessary for the purpose of and allowances of the GSIS personnel; to authorize
making actuarial studies, calculations and valuations of the funds such capital and operating expenditures and
of the GSIS including such data needed in the computation of rates disbursements of the GSIS as may be necessary and
of disability, mortality, morbidity, separation and retirement proper for the effective management and operation of
among the members and any other information useful for the the GSIS;
adjustment of the benefits of the members. The GSIS shall
maintain appropriate books of accounts to record its assets,
(c) to invest the funds of the GSIS, directly or
liabilities, income, expenses, receipts and disbursement of funds
indirectly, in accordance with the provisions of this
and other financial transactions and operations.
Act;

"SEC. 38. Examination and Valuation of the Funds. - The GSIS

(d) to acquire, utilize or dispose of, in any manner
shall make a periodic actuarial examination and valuation of its
recognized by law, real or personal property in the
funds in accordance with accepted actuarial principles.
Philippines or elsewhere necessary to carry out the
purposes of this Act;
"SEC. 39. Exemption from Tax, Legal Process and Lien. - It is
hereby declared to be the policy of the State that the actuarial
(e) to conduct continuing actuarial and statistical
solvency of the funds of the GSIS shall be preserved and
studies and valuations to determine the financial
maintained at all times and that contribution rates necessary to
€condition of the GSIS and taking into consideration
sustain the benefits under this Act shall be kept as low as possible
such studies and valuations and the limitations herein
in order not to burden the members of the GSIS and their
provided, re-adjust the benefits, contributions, premium
employers. Taxes imposed on the GSIS tend to impair the actuarial
rates, interest rates or the allocation or re-allocation of
solvency of its funds and increase the contribution rate necessary
the funds to the contingencies covered;
to sustain the benefits of this Act. Accordingly, notwithstanding
any laws to the contrary, the GSIS, its assets, revenues including
all accruals thereto, and benefits paid, shall be exempt from all (f) to have the power of succession;
taxes, assessments, fees, charges, or duties of all kinds. These
exemptions shall continue unless expressly and specifically
(g) to sue and be sued;
revoked and any assessment against the GSIS as of the approval of
this Act are hereby considered paid. Consequently, all laws,
ordinances, regulations, issuances, opinions or jurisprudence (h) to enter into, make, perform and carry out contracts
contrary to or in derogation of this provision are hereby deemed of every kind and description with any person, firm or
repealed, superseded and rendered ineffective and without legal association or corporation, domestic or foreign;
force and effect.
(i) to carry on any other lawful business whatsoever in
"Moreover, these exemptions shall not be affected by subsequent pursuance of, or in connection with the provisions of
laws to the contrary unless this section is expressly, specifically this Act;
and categorically revoked or repealed by law and a provision is
enacted to substitute or replace the exemption referred to herein as
an essential factor to maintain or protect the solvency of the fund, (j) to have one or more offices in and outside of the
notwithstanding and independently of the guaranty of the national Philippines, and to conduct its business and exercise its
government to secure such solvency or liability. powers throughout and in any part of the Republic of
the Philippines and/or in any or all foreign countries,
states and territories: Provided, That the GSIS shall
"The funds and/or the properties referred to herein as well as the maintain a branch office in every province where there
benefits, sums or monies corresponding to the benefits under this exists a minimum of fifteen thousand (15,000)
Act shall be exempt from attachment, garnishment, execution, levy membership;
or other processes issued by the courts, quasi-judicial agencies or
administrative bodies including Commission on Audit (COA)
disallowances and from all financial obligations of the members, (k) to borrow funds from any source, private or
including his pecuniary accountability arising from or caused or government, foreign or domestic, only as an incident in
occasioned by his exercise or performance of his official functions the securitization of housing mortgages of the GSIS and
or duties, or incurred relative to or in connection with his position on account of its receivables from any government or
or work except when his monetary liability, contractual or private entity;
otherwise, is in favor of the GSIS.
(l) to invest, own or otherwise participate in equity in
"G. ADMINISTRATION any establishment, firm or entity;

"SEC. 40. Implementing Body. - The Government Service (m) to approve appointments in the GSIS except
Insurance System as created under Commonwealth Act No. 186 appointments to positions which are policy
shall implement the provisions of this Act. determining, primarily confidential or highly technical
in nature according to the Civil Service rules and
regulations: Provided, That all positions in the GSIS
"SEC. 41. Powers and Functions of the GSIS. - The GSIS shall shall be governed by the compensation and position
exercise the following powers and functions: classification system and qualifications standards
approved by the GSIS Board of Trustees based on a
comprehensive job analysis and audit of actual duties
(a) to formulate, adopt, amend and/or rescind such rules
and responsibilities: Provided, further,  That the
and regulations as may be necessary to carry out the
compensation plan shall be comparable with the
provisions and purposes of this Act, as well as the
7
prevailing compensation plans in the private sector and actions or suits, criminal, civil or administrative or
shall be subject to the periodic review by the Board no otherwise, before the courts, tribunals, commissions,
more than once every four (4) years without prejudice boards, or bodies of proper jurisdiction within thirty
to yearly merit reviews or increases based on (30) days reckoned from the expiry date of the period
productivity and profitability; fixed in the demand within which to pay or settle the
account;
(n) to design and adopt an Early Retirement Incentives
Plan (ERIP) and/or financial assistance for the purpose (x) to design and implement programs that will promote
of retirement for its own personnel; and mobilize savings and provide additional resources
for social security expansion and at the same time
afford individual members appropriate returns on their
(o) to fix and periodically review and adjust the rates of
savings/investments. The programs shall be so designed
interest and other terms and conditions for loans and
as to spur socio-economic take-off and maintain
credits extended to members or other persons, whether
continued growth; and
natural or juridical;

(y) to exercise such powers and perform such other acts

(p) to enter into agreement with the Social Security
as may be necessary, useful, incidental or auxiliary to
System or any other entity, enterprise, corporation or
carry out the provisions of this Act, or to attain the
partnership for the benefit of members transferring
purposes and objectives of this Act.
from one system to another subject to the provisions of
Republic Act No. 7699, otherwise known as the
Portability Law; "SEC. 42. The Board of Trustees; its Composition; Tenure and
Compensation. - The corporate powers and functions of the GSIS
shall be vested in and exercised by the Board of Trustees
(q) to be able to float proper instrument to liquefy long-
composed of the President and General Manager of the GSIS and
term maturity by pooling funds for short-term
eight (8) other members to be appointed by the President of the
secondary market;
Philippines, one (1) of whom shall be either the President of the
Philippine Public School Teachers Association (PPSTA) or the
(r) to submit annually, not later than June 30, a public President of the Philippine Association of School Superintendents
report to the President of the Philippines and the (PASS), another two (2) shall represent the leading organizations
Congress of the Philippines regarding its activities in or associations of government employees/retirees, another four (4)
the administration and enforcement of this Act during from the banking, finance, investment, and insurance sectors, and
the preceding year including information and one (1) recognized member of the legal profession who at the time
recommendations on board policies for the of appointment is also a member of the GSIS. The Trustees shall
development and perfection of the programs of the elect from among themselves a Chairman while the President and
GSIS; General Manager of the GSIS shall automatically be the vice-
chairman.
(s) to maintain a provident fund, which consists of
contributions made by both the GSIS and its officials The Trustees, except the President and General Manager who shall
and employees and their earnings, for the payments of cease as trustee upon his separation, shall hold office for six (6)
benefits to such officials and employees or their heirs years without reappointment, or until their successors are duly
under such terms and conditions as it may prescribe; appointed and qualified. Vacancy, other than through the
expiration of the term, shall be filled for the unexpired term only.
The members of the Board shall be entitled to a per diem of Two
(t) to approve and adopt guidelines affecting thousand five hundred pesos (P2,500.00) for each board meeting
investments, insurance coverage of government actually attended by them, but not to exceed Ten thousand pesos
properties, settlement of claims, disposition of acquired (P10,000.00) a month and reasonable transportation and
assets, privatization or expansion of subsidiaries, representation allowances as may be fixed by the Board.
development of housing projects, increased benefit and
loan packages to members, and the enforcement of the
provision of this Act; "SEC. 43.  Powers and Functions of the Board of Trustees. - The
Board of Trustees shall have the following powers and functions:
(u) any provision of law to the contrary
notwithstanding, to authorize the payment of extra "(a) to formulate the policies, guidelines and programs
remuneration to the officials and employees directly to effectively carry out the purposes of this Act;
involved in the collection and/or remittances of
contributions, loan repayments, and other monies due to
"(b) to promulgate such rules and regulations as may be
the GSIS at such rates and under such conditions as it
necessary or proper for the effective exercise of the
may adopt: Provided, That the best interest of the GSIS
powers and functions as well as the discharge of the
shall be observed thereby;
duties and responsibilities of the GSIS, its officers and
employees;
(v) to determine, fix and impose interest upon unpaid
premiums due from employers and employees;
"(c) upon the recommendation of the President and
General Manager, to approve the annual and
(w) to ensure the collection or recovery of all supplemental budget of receipts and expenditures of the
indebtedness, liabilities and/or accountabilities, GSIS, and to authorize such operating and capital
including unpaid premiums or contributions in favor of expenditures and disbursements of the GSIS as may be
the GSIS arising from any cause or source whatsoever, necessary or proper for the effective management,
due from obligors, whether public or private. The Board operation and administration of the GSIS;
shall demand payment or settlement of the obligations
referred to herein within thirty (30) days from the date
"(d) upon the recommendation of the President and
the obligation becomes due, and in the event of failure
General Manager, to approve the GSIS organizational
or refusal of the obligor or debtor to comply with the
and administrative structure and staffing pattern, and to
demand, to initiate or institute the necessary or proper
establish, fix, review, revise and adjust the appropriate
8
 compensation packages for the officers and employees "SEC. 47. Legal Counsel. - The Government Corporate Counsel
of the GSIS and reasonable allowances, incentives, shall be the legal adviser and consultant of the GSIS, but the GSIS
bonuses, privileges and other benefits as may be may assign to the Office of the Government Corporate Counsel
necessary or proper for the effective management, (OGCC) cases for legal action or trial, issues for legal opinions,
operation and administration of the GSIS, which shall preparation and review of contracts/agreements and others, as the
be exempt from Republic Act No. 6758, otherwise GSIS may decide or determine from time to time: Provided,
known as the Attrition Law; however,  That the present legal services group in the GSIS shall
serve as its in-house legal counsel.
"(e) to fix and periodically review and adjust the rates
of interest and other terms and conditions for loans and "The GSIS may, subject to approval by the proper court, deputize
credits extended to its members or other persons, any personnel of the legal service group to act as special sheriff in
whether natural or juridical; the enforcement of writs and processes issued by the court, quasi-
judicial agencies or administrative bodies in cases involving the
GSIS.
"(f) the provision of any law to the contrary
notwithstanding, to compromise or release, in whole or
in part, any claim or settle liability to the GSIS, "SEC. 48. Powers of the Insurance Commission. - The Insurance
regardless of the amount involved, under such terms Commissioner or his authorized representatives shall make an
and conditions as it may impose for the best interest of examination of financial condition and methods of transacting
the GSIS; business of the GSIS at least once every three (3) years and the
report of said examination shall be submitted to the Board of
Trustees and copies thereof be furnished the Office of the President
"(g) to approve and adopt guidelines affecting
of the Philippines and the two houses of the Congress of the
investments, insurance coverage of government
Philippines within five (5) days after the close of
properties, settlement of claims, disposition of acquired
examination: Provided, however, That for each examination, the
assets, development of housing projects, increased
GSIS shall pay the office of the Insurance Commissioner an
benefit and loan packages to members, and the
amount equal to the actual expenses incurred by the said office in
enforcement of the provisions of this Act;
the conduct of examination, including the salaries of the examiners
and of the actuary of such examination for the actual time spent.
"(h) to determine, fix, and impose interest upon unpaid
or unremitted premiums and/or contributions; and
"H. GENERAL PROVISION

"(i) to do and perform any and all acts necessary, proper

"SEC. 49.  Dispensation of Social Insurance Benefits. - (a) The
or incidental to the attainment of the purposes and
GSIS shall pay the retirement benefits to the employee on his last
objectives of this Act.
day of service in the government: Provided, That all requirements
are submitted to the GSIS within a reasonable period prior to the
"SEC. 44. Appointment, Qualifications, and Compensation of the effective date of the retirement;
President and General Manager and of other Personnel. - The
President and General Manager of the GSIS shall be its Chief
"(b) The GSIS shall discontinue the processing and adjudication of
Executive Officer and shall be appointed by the President of the
retirement claims under R.A. No. 1616 except refund of retirement
Philippines. He shall be a person with management and
premium under R. A. No. 910. Instead, all agencies concerned
investments expertise necessary for the effective performance of
shall process and pay the gratuities of their employees. The Board
his duties and functions under this Act.
shall adopt the proper rules and procedures for the implementation
of this provision.
"The GSIS President and General Manager shall be assisted by one
or more executive vice-presidents, senior vice-presidents and
"SEC. 50. Development and Disposition of Acquired Assets. - The
managers in addition to the usual supervisory and rank-and-file
GSIS shall have the right to develop and dispose of its acquired
positions who shall be appointed and removed by the President and
assets obtained in the ordinary course of its business. To add value
General Manager with the approval of the Board, in accordance
to, improve profitability on, and/or enhance the marketability of an
with the existing Civil Service rules and regulations.
acquired asset, the GSIS may further develop/renovate the same
either with its own capital or through a joint venture arrangement
"SEC. 45. Powers and Duties of the President and General with private companies or individuals.
Manager. - The President and General Manager of the GSIS shall,
among others, execute and administer the policies and resolutions
"The GSIS may sell its acquired assets in accordance with existing
approved by the Board and direct and supervise the administration
Commission on Audit (COA) rules and regulations for an amount
and operations of the GSIS. The President and General Manager,
not lower than the current market value of the property. For this
subject to the approval of the Board, shall appoint the personnel of
purpose, the GSIS shall conduct an annual appraisal of its property
the GSIS, remove, suspend or otherwise discipline them for cause,
or acquired assets to determine its current market value. All notices
in accordance with the existing Civil Service rules and regulations,
of sale shall be published in newspapers of general circulation.
and prescribe their duties and qualifications to the end that only
competent persons may be employed.
"No injunction or restraining order issued by any court,
commission, tribunal or office shall bar, impede or delay the sale
"SEC. 46. Auditor. - (a) The Chairman of the Commission on
and disposition by the GSIS of its acquired assets except on
Audit shall be the ex officio auditor of the GSIS, and the necessary
questions of ownership and national or public interest.
personnel to assist said representative in the performance of his
duties.
"SEC. 51. Government Assistance to the GSIS. - The GSIS may
call upon any employer for such assistance as may be necessary in
"(b) The Chairman of the Commission on Audit or his authorized
the discharge of its duties and functions.
representatives, shall submit to the Board soon after the close of
each calendar year, an audited statement showing the financial
condition and progress of the GSIS for the calendar year just "I. PENAL PROVISIONS
ended.

9
"SEC. 52. Penalty. - (a) Any person found to have participated from practicing any profession or calling licensed by the
directly or indirectly in the commission of fraud, collusion, government.
falsification, or misrepresentation in any transaction with the
GSIS, whether for him or for some other persons, shall suffer the
"(h) The officers and/or personnel referred to in paragraph (g) of
penalties provided for in Article 172 of the Revised Penal Code.
this section shall be liable not only criminally but also civilly to the
GSIS or to the employee or member concerned in the form of
"(b) Whoever shall obtain or receive any money or check invoking damages, including surcharges and interests.
any provision of this Act or any agreement thereunder, without
being entitled thereto with the intent to defraud any member, any
"(i) For the charges or complaints referred to in paragraph (g) of
employer, the GSIS, or any third party, shall be punished by a fine
this section, the liabilities therein set forth shall be construed as
of not less than Five thousand pesos (P5,000.00) nor more than
waiver of the State of its immunity from suit, hence, the above-
Twenty thousand pesos (P20,000.00) or by imprisonment of not
mentioned officials and/or personnel may not invoke the defense
less than six (6) years and one (1) day to twelve (12) years, or both,
of non-suability of the State.
at the discretion of the court.

"(j) Failure of the Members of the GSIS Board, including the

"(c) Whoever fails or refuses to comply with the provisions of this
chairman and the vice-chairman, to comply with the provisions of
Act or with the rules and regulations adopted by the GSIS, shall be
paragraph (w) of Section 41 hereof, shall subject them to
punished by a fine of not less than Five thousand pesos
imprisonment of not less than six (6) months nor more than one (1)
(P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or
year or a fine of not less than Five thousand pesos (P5,000.00) nor
imprisonment of not less than six (6) years and one (1) day to
more than Ten thousand pesos (P10,000.00) without prejudice to
twelve (12) years, or both, at the discretion of the court.
any civil or administrative liability which may also arise therefrom.

"(d) The treasurer, finance officer, cashier, disbursing officer,

"(k) Criminal actions arising from violations of the provisions of
budget officer or other official or employee who fails to include in
this Act may be commenced by the GSIS or by the aggrieved
the annual budget the amount corresponding to the employer and
member, either under this Act or, in appropriate cases, under the
employee contributions, or who fails or refuses or delays by more
Revised Penal Code.
than thirty (30) days from the time such amount becomes due and
demandable, or to deduct the monthly contributions of the
employee shall, upon conviction by final judgment, suffer the "SEC. 53.  Implementing Rules and Regulations. - The
penalties of imprisonment from six (6) months and one (1) day to implementing rules and regulations to carry out the provisions of
six (6) years, and a fine of not less than Three thousand pesos this Act shall be adopted and promulgated by the GSIS not later
(P3,000.00) but not more than Six thousand pesos (P6,000.00), and than ninety (90) days after the approval of this Act.
in addition, shall suffer absolute perpetual disqualification from
holding public office and from practicing any profession or calling
"SEC. 54.  Non-impairment of Benefits, Powers, Jurisdiction,
licensed by the government.
Rights, Privileges, Functions and Activities. - Nothing in this Act
shall be construed to repeal, amend or limit any provision of
"(e) Any employee or member who receives or keeps fund or existing laws, Presidential Decrees and Letters of Instructions, not
property belonging, payable or deliverable to the GSIS and otherwise specifically inconsistent with the provisions of this Act.
appropriates the same, or takes or misappropriates or uses the same
for any purpose other than authorized by this Act, or permits
"SEC. 55. Exclusiveness of Benefits. - Whenever other laws
another person to take, misappropriate or use said fund or property
provide similar benefits for the same contingencies covered by this
by expressly consenting thereto, or through abandonment or
Act, the member who qualifies to the benefits shall have the option
negligence, or is otherwise guilty of the misappropriation of said
to choose which benefits will be paid to him. However, if the
fund or property, in whole or in part, shall suffer the penalties
benefits provided by the law chosen are less than the benefits
provided in Article 217 of the Revised Penal Code, and in addition,
provided under this Act, the GSIS shall pay only the difference.
shall suffer absolute perpetual disqualification from holding public
office and from practicing any profession or calling licensed by the
government. "SEC. 56.  Appropriations. - The amount necessary to carry out the
provisions of this Act shall be included in the respective budgets of
the agencies in the national government obligation program of the
"(f) Any employee who, after deducting the monthly contribution
year following its enactment into law and thereafter."
or loan amortization from a member’s compensation, fails to remit
the same to the GSIS within thirty (30) days from the date they
should have been remitted under Section 6(a), shall be presumed to Section 2. Separability Clause. - Should any provision of this Act or any part
have misappropriated such contribution or loan amortization and thereof be declared invalid, the other provisions, so far as they are separable
shall suffer the penalties provided in Article 315 of the Revised from the invalid ones, shall remain in force and effect.
Penal Code, and in addition, shall suffer absolute perpetual
disqualification from holding public office and from practicing any
profession or calling licensed by the government. Section 3. Repealing Clause. - All laws and any other law or parts of law
specifically inconsistent herewith are hereby repealed or modified
accordingly: Provided, That the rights under the existing laws, rules and
"(g) The heads of the offices of the national government, its regulations vested upon or acquired by an employee who is already in the
political subdivisions, branches, agencies and instrumentalities, service as of the effectivity of this Act shall remain in force and
including government-owned or controlled corporations and effect: Provided, further, That subsequent to the effectivity of this Act, a new
government financial institutions, and the personnel of such offices employee or an employee who has previously retired or separated and is
who are involved in the collection of premium contributions, loan reemployed in the service shall be covered by the provisions of this Act.
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 thirty (30) days from the time Section 4. Effectivity. - This Act shall take effect fifteen (15) days after its
that the same shall have been due and demandable shall, upon publication in the Official Gazette or in at least two (2) newspapers of general
conviction by final judgment, suffer the penalties of imprisonment circulation.
of not less than one (1) year nor more than five (5) years and a fine
of not less than Ten thousand pesos (P10,000.00) nor more than This Act, which is a consolidation of Senate Bill No. 2013 and House Bill No.
Twenty thousand pesos (P20,000.00), and in addition, shall suffer 8561, was finally passed by the Senate and the House of Representatives on
absolute perpetual disqualification from holding public office and May 29, 1997 and May 28, 1997, respectively.

10
Approved: May 30, 1997.

11