Republic Act No.

8291
May 30, 1997
REPUBLIC ACT NO. 8291
AN ACT AMENDING PRESIDENTIAL DECREE NO.
1146, AS AMENDED, EXPANDING AND INCREASING
THE COVERAGE AND BENEFITS OF THE
GOVERNMENT SERVICE INSURANCE SYSTEM,
INSTITUTING REFORMS THEREIN AND FOR OTHER
PURPOSES

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

member and the employer in accordance with Section 5 of this
Act;
"(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 twenty-two (22) days;

SECTION 1. Presidential Decree No. 1146, as amended,

otherwise known as the "Revised Government Service Insurance
Act of 1977", is hereby further amended to read as follows:
"SECTION 1. Title. The short title of this Act shall be: 'The
Government Service Insurance System Act of 1997.'
"A. DEFINITIONS
otherwise indicates, the following terms shall mean:
"(a) GSIS The Government Service Insurance System created
by Commonwealth Act No. 186;

the member during his last thirty-six (36) months of service

preceding his separation/retirement/disability/death by thirty-six
(36), or by the number of months he received such
service: Provided, That the average monthly compensation shall
in no case exceed the amount and rate as may be respectively set
by the Board under the rules and regulations implementing this
Act as determined by the actuary of the GSIS: Provided, further,

"(b) Board The Board of Trustees of the Government Service

Insurance System;

That initially the average monthly compensation shall not

exceed Ten thousand pesos (P10,000.00), and premium shall be

"(c) Employer The national government, its political

subdivisions, branches, agencies or instrumentalities, including
government-owned or controlled corporations, and financial
with

arrived at after dividing the aggregate compensation received by

compensation if he has less than thirty-six (36) months of

"SECTION 2. Definition of Terms. Unless the context

institutions

"(l) Average Monthly Compensation (AMC) The quotient

original

charters,

the

constitutional

commissions and the judiciary;

"(d) Employee or Member Any person, receiving
compensation 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;
"(e) Active Member A member who is not separated from the
service;
"(f) Dependents Dependents shall be the following: (a) the
legitimate spouse dependent for support upon the member or
pensioner; (b) the legitimate, legitimated, legally adopted child,
including the illegitimate child, who is unmarried, not gainfully
employed, not over the age of majority, or is over the age of
majority but incapacitated and incapable of self-support due to a
mental or physical defect acquired prior to age of majority; and
(c) the parents dependent upon the member for support;
"(g) Primary beneficiaries The legal dependent spouse until
he/she
remarries and the dependent children;
"(h) Secondary beneficiaries The dependent parents and,
subject to the restrictions on dependent children, the legitimate
descendants;
"(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 emoluments received in addition to the basic pay which
are not integrated into the basic pay under existing laws;

nine percent (9%) and twelve percent (12%) for employee and
employer covering the AMC limit and below; and two percent
(2%) and twelve percent (12%) for employee and employer
covering the compensation above the AMC limit;
"(m) Revalued average monthly compensation An amount
equal to one hundred seventy percent (170%) of the first One
thousand pesos (P1,000) of the average monthly compensation
plus one hundred percent (100%) of the average monthly
compensation in excess of One thousand pesos (P1,000);
"(n) Lump sum The basic monthly pension multiplied by
sixty (60);
"(o) Pensioner Any person receiving old-age or permanent
total disability pension or any person who has received the lump
sum excluding one receiving survivorship pension benefits as
defined in Section 20 of this Act;
"(p) Gainful Occupation Any productive activity that
provided the member with income at least equal to the minimum
compensation of government employees;
"(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 occupation or engage in any other gainful
occupation;
"(r) Total Disability Complete incapacity to continue with his
present employment or engage in any gainful occupation due to
the loss or impairment of the normal functions of the physical
and/or mental faculties of the member;
"(s) Permanent Total Disability Accrues or arises when
recovery from the impairment mentioned in Section 2(Q) is
medically remote;
"(t) Temporary Total Disability Accrues or arises when the

impaired physical and/or mental faculties can be rehabilitated

appropriations. Penal sanctions shall be imposed upon

and/or restored to their normal functions;

employers who fail to include the payment of contributions in

"(u) Permanent Partial Disability Accrues or arises upon the

their annual appropriations or otherwise fail to remit the

irrevocable loss or impairment of certain portion/s of the

accurate/exact amount of contributions on time, or delay the

physical faculties, despite which the member is able to pursue a

remittance of premium contributions to the GSIS. The heads of

gainful occupation.

offices and agencies shall be administratively liable for non-

"B. MEMBERSHIP IN THE GSIS

remittance or delayed remittance of premium contributions to

"SECTION 3. Compulsory Membership. Membership in the

the GSIS.

GSIS shall be compulsory for all employees receiving

"SECTION 6. Collection and Remittance of Contributions.

compensation who have not reached the compulsory retirement

(a) The employer shall report to the GSIS the names of all its

age, irrespective of employment status, except members of the

employees, their corresponding employment status, positions,

Armed Forces of the Philippines and the Philippine National

salaries and such other pertinent information, including

Police, subject to the condition that they must settle first their

subsequent changes therein, if any, as may be required by the

financial obligation with the GSIS, and contractuals who have

GSIS; the employer shall deduct each month from the monthly

no employer and employee relationship with the agencies they

salary or compensation of each employee the contribution

serve.

payable by him in accordance with the schedule prescribed in

"Except for the members of the judiciary and constitutional

the rules and regulations implementing this Act.

commissions who shall have life insurance only, all members of

"(b) Each employer shall remit directly to the GSIS the

the GSIS shall have life insurance, retirement, and all other

employees' and employers' contributions within the first ten (10)

social security protection such as disability, survivorship,

days of the calendar month following the month to which the

separation, and unemployment benefits.

contributions apply. The remittance by the employer of the

"SECTION 4. Effect of Separation from the Service. A

contributions to the GSIS shall take priority over and above the

member separated from the service shall continue to be a

payment of any and all obligations, except salaries and wages of

member, and shall be entitled to whatever benefits he has

its employees.

qualified to in the event of any contingency compensable under

"SECTION 7. Interests on Delayed Remittances. Agencies

this Act.

which delay the remittance of any and all monies due the GSIS

"C. SOURCES OF FUNDS

shall be charged interests as may be prescribed by the Board but

"SECTION 5. Contributions. (a) It shall be mandatory for the

not less than two percent (2%) simple interest per month. Such

member and the employer to pay the monthly contributions

interest shall be paid by the employers concerned.

specified in the following schedule:

"SECTION 8. Government Guarantee. The government of

"Monthly Compensation Percentage of Monthly

the Republic of the Philippines hereby guarantees the fulfillment

Compensation Payable by

of the obligations of the GSIS to its members as and when they

Member Employer

fall due.

I. Maximum Average

"D. BENEFITS

Monthly Compensation

"SECTION 9. Computation of the Basic Monthly Pension.

(AMC) Limit and Below 9.0% 12.0%

(a) the basic monthly pension is equal to:

II. Over the Maximum AMC Limit

"1) thirty-seven and one-half percent (37.5%) of the revalued

III.

average monthly compensation; plus

Up to the Maximum AMC Limit 9.0% 12.0%

"2) two and one-half percent (2.5%) of said revalued average

In Excess of the AMC Limit 2.0% 12.0%

monthly compensation for each year of service in excess of

"Members of the judiciary and constitutional commissioners

fifteen (15) years: Provided, That the basic monthly pension

shall pay three percent (3%) of their monthly compensation as

shall not exceed ninety percent (90%) of the average monthly

personal share, and their employers a corresponding three

compensation.

percent (3%) share for their life insurance coverage.

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

"(b) The employer shall include in its annual appropriation the

recommendation of the President and General Manager of the

necessary amounts for its share of the contributions indicated

GSIS and approved by the President of the Philippines in

above, plus any additional premiums that may be required on

accordance with the rules and regulations prescribed by the

account of the hazards or risks of its employees' occupation.

GSIS: Provided, however, That the basic monthly pension shall

"(c) It shall be mandatory and compulsory for all employers to

not be less than One thousand and three hundred pesos

include the payment

(P1,300.00): Provided, further, That the basic monthly pension

of contributions in their annual

for those who have rendered at least twenty (20) years of service

1 year but less than 3 years 2 months

after the effectivity of this Act shall not be less than Two

3 or more years but less than 6 years 3 months

thousand four hundred pesos (P2,400.00) a month.

6 or more years but less than 9 years 4 months

"SECTION 10. Computation of Service. (a) The computation

9 or more years but less than 11 years 5 months

of service for the purpose of determining the amount of benefits

11 or more years but less than 15 years 6 months

payable under this Act shall be from the date of original

"The first payment shall be equivalent to two (2) monthly

appointment/election, including periods of service at different

benefits. A seven-day (7) waiting period shall be imposed on

times under one or more employers, those performed overseas

succeeding monthly payments.

under the authority of the Republic of the Philippines, and those

"All accumulated unemployment benefits paid to the employee

that may be prescribed by the GSIS in coordination with the

during his entire membership with the GSIS shall be deducted

Civil Service Commission.

from voluntary separation benefits.

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

"The GSIS shall prescribe the detailed guidelines in the

for which corresponding benefits have been awarded under this

operationalization of this section in the rules and regulations

Act or other laws shall be excluded in the computation of

implementing this Act.

service in case of reinstatement in the service of an employer

"RETIREMENT BENEFITS

and subsequent retirement or separation which is compensable

"SECTION 13. Retirement Benefits. (a) Retirement benefit

under this Act.

shall be:

"For the purpose of this section the term service shall include

"(1) the lump sum payment as defined in this Act payable at the

full time service with compensation: Provided, That part time

time of retirement plus an old-age pension benefit equal to the

and other services with compensation may be included under

basic monthly pension payable monthly for life, starting upon

such rules and regulations as may be prescribed by the GSIS.

expiration of the five-year (5) guaranteed period covered by the

"SEPARATION BENEFITS

lump sum; or

"SECTION 11. Separation Benefits. The separation benefit

"(2) cash payment equivalent to eighteen (18) months of his

shall consist of: (a) a cash payment equivalent to one hundred

basic monthly pension plus monthly pension for life payable

percent (100%) of his average monthly compensation for each

immediately with no five-year (5) guarantee.

year of service he paid contributions, but not less than Twelve

"(b) Unless the service is extended by appropriate authorities,

thousand pesos (P12,000) payable upon reaching sixty (60)

retirement shall be compulsory for an employee at sixty-five

years of age or upon separation, whichever comes later:

(65) years of age with at least fifteen (15) years of service:

Provided, That the member resigns or separates from the service

Provided, That if he has less than fifteen (15) years of service,

after he has rendered at least three (3) years of service but less

he may be allowed to continue in the service in accordance with

than fifteen (15) years; or

existing civil service rules and regulations.

"(b) A cash payment equivalent to eighteen (18) times his basic

"SECTION 13-A. Conditions for Entitlement. A member

monthly pension payable at the time of resignation or

who retires from the service shall be entitled to the retirement

separation, plus an old-age pension benefit equal to the basic

benefits in paragraph (a) of Section 13 hereof: Provided, That:

monthly pension payable monthly for life upon reaching the age

(1) he has rendered at least fifteen (15) years of service;

of sixty (60): Provided, That the member resigns or separates

(2) he is at least sixty (60) years of age at the time of retirement;

from the service after he has rendered at least fifteen (15) years

and

of service and is below sixty (60) years of age at the time of

(3) he is not receiving a monthly pension benefit from

resignation or separation.

permanent total disability.

"SECTION 12. Unemployment or Involuntary Separation

"SECTION 14. Periodic Pension Adjustment. The monthly

Benefits. Unemployment benefits in the form of monthly

pension of all pensioners including all those receiving

cash payments equivalent to fifty percent (50%) of the average

survivorship pension benefits shall be periodically adjusted as

monthly compensation shall be paid to a permanent employee

may be recommended by the GSIS' actuary and approved by the

who is involuntarily separated from the service due to the

Board in accordance with the rules and regulations prescribed

abolition of his office or position usually resulting from

by the GSIS.

reorganization: Provided, That he has been paying integrated

"PERMANENT DISABILITY BENEFITS

contributions for at least one (1) year prior to separation.

"SECTION 15. General Conditions for Entitlement. A

Unemployment benefits shall be paid in accordance with the

member who suffers permanent disability for reasons not due to

following schedule:

his

"Contributions Made Benefit Duration

intoxication, or willful intention to kill himself or another, shall

grave

misconduct,

notorious

negligence,

habitual

be entitled to the benefits provided for under Sections 16 and 17

(i) any finger

immediately following, subject to the corresponding conditions

(ii) any toe

therefor.

(iii) one arm

"SECTION 16. Permanent Total Disability Benefits. (a) If

(iv) one hand

the permanent disability is total, he shall receive a monthly

(v) one foot

income benefit for life equal to the basic monthly pension

(vi) one leg

effective from the date of disability: Provided, That:

(vii) one or both ears

(1) he is in the service at the time of disability; or

(viii) hearing of one or both ears

(2) if separated from the service, he has paid at least thirty-six

(ix) sight of one eye

(36) monthly contributions within the five (5) year period

"(2) such other cases as may be determined by the GSIS.

immediately preceding his disability, or has paid a total of at

"TEMPORARY DISABILITY BENEFITS

least one hundred eighty (180) monthly contributions, prior to

"SECTION 18. Temporary Total Disability Benefit. (a) A

his disability: Provided, further, That if at the time of disability,

member who suffers temporary total disability for reasons not

he was in the service and has paid a total of at least one hundred

due to any of the conditions enumerated in Section 15 hereof

eighty (180) monthly contributions, in addition to the monthly

shall be entitled to seventy-five percent (75%) of his current

income benefit, he shall receive a cash payment equivalent to

daily compensation for each day or fraction thereof of

eighteen (18) times his basic monthly pension: Provided, finally,

temporary disability benefit not exceeding one hundred twenty

That a member cannot enjoy the monthly income benefit for

(120) days in one calendar year after exhausting all his sick

permanent disability and the old-age retirement simultaneously.

leave credits and collective bargaining agreement sick leave

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

benefits, if any, but not earlier than the fourth day of his

satisfy conditions (1) and (2) in paragraph (a) of this section but

temporary total disability: Provided, That:

has rendered at least three (3) years service at the time of his

"(1) he is in the service at the time of his disability; or

disability, he shall be advanced the cash payment equivalent to

"(2) if separated, he has rendered at least three (3) years of

one hundred percent (100%) of his average monthly

service and has paid at least six (6) monthly contributions in the

compensation for each year of service he paid contributions, but

twelve-month period immediately preceding his disability.

not less than Twelve Thousand pesos (P12,000) which should

Provided, however, That a member cannot enjoy the temporary

have been his separation benefit.

total disability benefit and sick leave pay simultaneously:

"(c) Unless the member has reached the minimum retirement

Provided, further, That if the disability requires more extensive

age, disability benefit shall be suspended when:

treatment that lasts beyond one hundred twenty (120) days, the

"(1) he is reemployed or

payment of the temporary total disability benefit may be

"(2) he recovers from disability as determined by the GSIS,

extended by the GSIS but not to exceed a total of two hundred

whose decision shall be final and binding; or

forty (240) days.

"(3) he fails to present himself for medical examination when

"(b) The temporary total disability benefit shall in no case be

required by the GSIS.

less than Seventy pesos (P70.00) a day.

"(d) The following disabilities shall be deemed total and

"(c) The notices required of the member and the employer, the

permanent:

mode of payment, and the other requirements for entitlement to

"(1) complete loss of sight of both eyes;

temporary total disability benefits shall be provided in the rules

"(2) loss of two (2) limbs at or above the ankle or wrist;

and regulations to be prescribed by the GSIS.

"(3) permanent complete paralysis of two(2) limbs;

"SECTION 19. Non-scheduled Disability. For injuries or

"(4) brain injury resulting in incurable imbecility or insanity;

illnesses resulting in a disability not listed in the schedule of

and

partial/total disability, as provided herein, the GSIS shall

"(5) such other cases as may be determined by the GSIS.

determine the nature of the disability and the corresponding

"SECTION 17. Permanent Partial Disability Benefits. (a) If

benefits therefor.

the disability is partial, he shall receive a cash payment in

"SURVIVORSHIP BENEFITS

accordance with a schedule of disabilities to be prescribed by

"SECTION 20. Survivorship Benefits. When a member or

the GSIS: Provided, That he satisfies either conditions (1) or (2)

pensioner dies, the beneficiaries shall be entitled to survivorship

of Section 16(a);

benefits provided in Sections 21 and 22 hereunder subject to the

"(b) The following disabilities shall be deemed permanent and

conditions therein provided for. The survivorship pension shall

partial:

consist of:

"(1) complete and permanent loss of the use of:

(1) the basic survivorship pension which is fifty percent (50%)

of the basic monthly pension; and

shall include legally adopted and legitimate children.

(2) the dependent children's pension not exceeding fifty percent

"SECTION 22. Death of a Pensioner. Upon the death of an

(50%) of the basic monthly pension.

old-age pensioner or a member receiving the monthly income

(3)

benefit for permanent disability, the qualified beneficiaries shall

"SECTION 21. Death of a Member. (a) Upon the death of a

be entitled to the survivorship pension defined in Section 20 of

member, the primary beneficiaries shall be entitled to:

this Act, subject to the provisions of paragraph (b) of Section 21

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

hereof. When the pensioner dies within the period covered by

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

the lump sum, the survivorship pension shall be paid only after

(ii) if separated from the service, has at least three (3) years of

the expiration of the said period.

service at the time of his death and has paid thirty-six (36)

"FUNERAL BENEFITS

monthly contributions within the five-year period immediately

"SECTION 23. Funeral Benefit. The amount of funeral

preceding his death; or has paid a total of at least one hundred

benefit shall be determined and specified by the GSIS in the

eighty (180) monthly contributions prior to his death; or

rules and regulations but shall not be less than Twelve thousand

(2) the survivorship pension plus a cash payment equivalent to

pesos (P12,000.00): Provided, That it shall be increased to at

one hundred percent (100%) of his average monthly

least Eighteen thousand pesos (P18,000.00) after five (5) years

compensation for every year of service: Provided, That the

and shall be paid upon the death of:

deceased was in the service at the time of his death with at least

(a) an active member as defined under Section 2(e) of this Act;

three (3) years of service; or

or

(3) a cash payment equivalent to one hundred percent (100%) of

(b) a member who has been separated from the service, but who

his average monthly compensation for each year of service he

may be entitled to future benefit pursuant to Section 4 of this

paid contributions, but not less than Twelve thousand pesos

Act; or

(P12,000.00): Provided, That the deceased has rendered at least

(c) a pensioner, as defined in Section 2(o) of this Act; or

three (3) years of service prior to his death but does not qualify

(d) a retiree who at the time of his retirement was of pensionable

for the benefits under the item (1) or (2) of this paragraph.

age under this Act but who opted to retire under Republic Act

(b) The survivorship pension shall be paid as follows:

No. 1616.

(1) when the dependent spouse is the only survivor, he/she shall

"LIFE INSURANCE BENEFITS

receive the basic survivorship pension for life or until he/she

"SECTION 24. Compulsory Life Insurance. All employees

remarries;

except for Members of the Armed Forces of the Philippines

(2) when only dependent children are the survivors, they shall

(AFP) and the Philippine National Police (PNP) shall, under

be entitled to the basic survivorship pension for as long as they

such terms and conditions as may be promulgated by the GSIS,

are qualified, plus the dependent children's pension equivalent to

be compulsorily covered with life insurance, which shall

ten percent (10%) of the basic monthly pension for every

automatically take effect as follows:

dependent child not exceeding five (5), counted from the

(1) for those employed after the effectivity of this Act, their

youngest and without substitution;

insurance shall take effect on the date of their employment;

(3) when the survivors are the dependent spouse and the

(2) for those whose insurance will mature after the effectivity of

dependent children, the dependent spouse shall receive the basic

this Act, their insurance shall be deemed renewed on the day

survivorship pension for life or until he/she remarries, and the

following the maturity or expiry date of their insurance;

dependent children shall receive the dependent children's

(3) for those without any life insurance as of the effectivity of

pension mentioned in the immediately preceding paragraph (2)

this Act, their insurance shall take effect following said

hereof.

effectivity.

(c) In the absence of primary beneficiaries, the secondary

"SECTION 25. Dividends. An annual dividend may be

beneficiaries shall be entitled to:

granted to all members of the GSIS whose life insurance is in

(1) the cash payment equivalent to one hundred percent (100%)

force for at least one (1) year in accordance with a dividend

of his average monthly compensation for each year of service he

allocation formula to be determined by the GSIS.

paid contributions, but not less than Twelve thousand pesos

"SECTION 26. Optional Insurance. Subject to the rules and

(P12,000): Provided, That the member is in the service at the

regulations prescribed by the GSIS, a member may apply for

time of his death and has at least three (3) years of service; or

insurance and/or pre-need coverage embracing life, health,

(2) in the absence of secondary beneficiaries, the benefits under

hospitalization, education, memorial plans, and such other plans

this paragraph shall be paid to his legal heirs.

as may be designed by the GSIS, for himself and/or his

(d) For purposes of the survivorship benefits, legitimate children

dependents. Any employer may likewise apply for group

insurance coverage for its employees. The payment of the

Supreme Court and the appeal shall be without prejudice to the

premiums/installments for optional insurance and pre-need

special civil action of certiorari when proper.

products may be made by the insured or his employer and/or

"SECTION 32. Execution of Decision. When no appeal is

any person acceptable to the GSIS.

perfected and there is no order to stay by the Board, by the

"SECTION 27. Reinsurance. The GSIS may reinsure any of

Court of Appeals or by the Supreme Court, any decision or

its interests or part thereof with any private company or

award of the Board shall be enforced and executed in the same

reinsurer whether domestic or foreign: Provided, That the GSIS

manner as decisions of the Regional Trial Court. For this

shall submit an annual report on its reinsurance operations to the

purpose, the Board shall have the power to issue to the city or

Insurance Commission.

provincial sheriff or its appointed sheriff such writs of execution

"E. ADJUDICATION OF CLAIMS AND DISPUTES

as may be necessary for the enforcement of such decision or

"SECTION 28. Prescription. Claims for benefits under this

award, and any person who shall fail or refuse to comply with

Act except for life and retirement shall prescribe after four (4)

such decision, award, writ or process after being required to do

years from the date of contingency.

so, shall, upon application by the GSIS, be punished for

"SECTION 29. Facility of Payment. The GSIS shall

contempt.

prescribe rules and regulations to facilitate payment of benefit,

"SECTION 33. Oaths, Witnesses, and Production of Records.

proceeds, and claims under this Act and any other laws

When authorized by the Board, an official or employee of the

administered by the GSIS. Payments made by the GSIS prior to

GSIS shall have the power to administer oath and affirmation,

its receipt of an adverse claim, to a beneficiary or claimant

take depositions, certify to official acts, and issue subpoena ad

subsequently found not entitled thereto, shall not bar the legal

testificandum and subpoena duces tecum to compel the

and eligible recipient to his right to demand the payment of

attendance of witnesses and the production of books, papers,

benefits, proceeds, and claims from the GSIS, who shall,

correspondences, and other records deemed necessary as

however, have a right to institute the appropriate action in a

evidence in connection with any question arising under this Act.

court of law against the ineligible recipient.

Any case of contumacy shall be dealt with in accordance with

"SECTION 30. Settlement of Disputes. The GSIS shall have

the provisions of Section 580 of the Revised Administrative

original and exclusive jurisdiction to settle any dispute arising

Code.

under this Act and any other laws administered by the GSIS.

"F. FUNDS OF THE GSIS

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

"SECTION 34. Funds. All contributions payable under

of the GSIS who is a lawyer, to act as hearing officer to receive

Section 5 of this Act together with the earnings and accruals

evidence, make findings of fact and submit recommendations

thereon shall constitute the GSIS Social Insurance Fund. The

thereon. The hearing officer shall submit his findings and

said Fund shall be used to finance the benefits administered by

recommendations, together with all the documentary and

the GSIS under this Act. In addition, the GSIS shall administer

testimonial evidence to the Board within thirty (30) working

the optional insurance fund for the insurance coverage described

days from the time the parties have closed their respective

in Section 26 hereof, the employees' Compensation Insurance

evidence and filed their last pleading. The Board shall decide the

Fund created under P.D. 626, as amended, the General Insurance

case within thirty (30) days from the receipt of the hearing

Fund created under Act No. 656, as amended, and such other

officer's findings and recommendations. The cases heard

special funds existing or that may be created for special groups

directly by the Board shall be decided within thirty (30) working

or persons rendering services to the government. The GSIS shall

days from the time they are submitted by the parties for

maintain the required reserves to guarantee the fulfillment of its

decision.

obligations under this Act.

"SECTION 31. Appeals. Appeals from any decision or award

"The funds of the GSIS shall not be used for purposes other than

of the Board shall be governed by Rules 43 and 45 of the 1997

what are provided for under this Act. Moreover, no portion of

Rules of Civil Procedure adopted by the Supreme Court on April

the funds of the GSIS or income thereof shall accrue to the

8, 1997 which will take effect on July 1, 1997: Provided, That

General Fund of the national government and its political

pending cases and those filed prior to July 1, 1997 shall be

subdivisions, instrumentalities and other agencies including

governed by the applicable rules of procedure: Provided, further,

government-owned and controlled corporations except as may

That the appeal shall take precedence over all other cases except

be allowed under this Act.

criminal cases when the penalty of life imprisonment or death or

"SECTION 35. Deposits and Disbursements. All revenues

reclusion perpetua is imposable.

collected and all accruals thereto shall be deposited,

The appeal shall not stay the execution of the order or award

administered and disbursed in accordance with the law. A

unless ordered by the Board, by the Court of Appeals or by the

maximum expense loading of twelve percent (12%) of the

yearly revenues from all sources may be disbursed for

operations of mutual funds; and

administrative and operational expenses except as may be

(j) In foreign mutual funds and in foreign currency deposits or

otherwise approved by the President of the Philippines on the

foreign currency-denominated debts, non-speculative equities

basis of actuarial and management studies.

and other financial instruments or other assets issued in

"SECTION 36. Investment of Funds. The funds of the GSIS

accordance with existing laws of the countries where such

which are not needed to meet the current obligations may be

financial

invested under such terms and conditions and rules and

instruments or assets are listed in bourses of the respective

regulations as may be prescribed by the Board: Provided, That

countries where these instruments or assets are issued: Provided,

investments shall satisfy the requirements of liquidity,

further, That the issuing company has proven track record of

safety/security and yield in order to ensure the actuarial

profitability over the last three (3) years and payment of

solvency of the funds of the GSIS: Provided, further, That the

dividends at least once over the same period.

GSIS shall submit an annual report on all investments made to

"SECTION 37. Records and Reports. The GSIS shall keep

both Houses of Congress of the Philippines, to wit:

and cause to keep such records as may be necessary for the

(a) in interest-bearing bonds or securities or other evidence of

purpose of making actuarial studies, calculations and valuations

indebtedness of the Government of the Philippines;

of the funds of the GSIS including such data needed in the

(b) In interest-bearing deposits or securities in any domestic

computation of rates of disability, mortality, morbidity,

bank doing business in the Philippines: Provided, That in the

separation and retirement among the members and any other

case of such deposits, these shall not exceed at any time the

information useful for the adjustment of the benefits of the

unimpaired capital and surplus or total private deposits of the

members. The GSIS shall maintain appropriate books of

depository bank, whichever is smaller: Provided, further, That

accounts to record its assets, liabilities, income, expenses,

said bank has prior designation as a depository for the purpose

receipts and disbursements of funds and other financial

by the Monetary Board of the Central Monetary Authority;

transactions and operations.

(c) in direct housing loans to members and group housing

"SECTION 38. Examination and Valuation of the Funds. The

projects secured by first mortgage, giving priority to the low

GSIS shall make a periodic actuarial examination and valuation

income groups and in short-and-medium-term loans to members

of its funds in accordance with accepted actuarial principles.

such as salary, policy, educational, emergency, stock purchase

"SECTION 39. Exemption from Tax, Legal Process and Lien.

plan and other similar loans: Provided, That no less than forty

It is hereby declared to be the policy of the State that the

percent (40%) of the investable fund of the GSIS Social

actuarial solvency of the funds of the GSIS shall be preserved

Insurance Fund shall be invested for these purposes;

and maintained at all times and that contribution rates necessary

(d) in bonds, securities, promissory notes or other evidence of

to sustain the benefits under this Act shall be kept as low as

indebtedness of educational or medical institutions to finance

possible in order not to burden the members of the GSIS and

the construction, improvement and maintenance of schools and

their employers. Taxes imposed on the GSIS tend to impair the

hospitals;

actuarial solvency of its funds and increase the contribution rate

(e) in real estate property including shares of stocks involving

necessary to sustain the benefits of this Act. Accordingly,

real estate property and investments secured by first mortgages

notwithstanding any laws to the contrary, the GSIS, its assets,

on real estate or other collaterals acceptable to the GSIS:

revenues including all accruals thereto, and benefits paid, shall

Provided, That such investments shall, in the determination of

be exempt from all taxes, assessments, fees, charges or duties of

the Board, redound to the benefit of the GSIS, its members, as

all kinds. These exemptions shall continue unless expressly and

well as the general public;

specifically revoked and any assessment against the GSIS as of

(f) In debt instruments and other securities traded in the

the approval of this Act are hereby considered paid.

secondary markets;

Consequently, all laws, ordinances, regulations, issuances,

(g) In loans to, or in bonds, debentures, promissory notes or

opinions or jurisprudence contrary to or in derogation of this

other evidence of indebtedness of any solvent corporation

provision are hereby deemed repealed, superseded and rendered

created or existing under the laws of the Philippines;

ineffective and without legal force and effect.

(h) In common and preferred stocks of any solvent corporation

"Moreover, these exemptions shall not be affected by

or financial institution created or existing under the laws of the

subsequent laws to the contrary unless this section is expressly,

Philippines listed in the stock exchange with proven track record

specifically and categorically revoked or repealed by law and a

or profitability over the last three (3) years and payment of

provision is enacted to substitute or replace the exemption

dividends at least once over the same period;

referred to herein as an essential factor to maintain or protect the

(i) In domestic mutual funds including investments related to the

solvency of the fund, notwithstanding and independently of the

instruments are

issued:

Provided, That

these

guaranty of the national government to secure such solvency or

and in any part of the Republic of the Philippines and/or in any

liability.

or all foreign countries, states and territories: Provided, That the

"The funds and/or the properties referred to herein as well as the

GSIS shall maintain a branch office in every province where

benefits, sums or monies corresponding to the benefits under

there exists a minimum of fifteen thousand (15,000)

this Act shall be exempt from attachment, garnishment,

membership;

execution, levy or other processes issued by the courts, quasi-

(k) to borrow funds from any source, private or government,

judicial agencies or administrative bodies including Commission

foreign or domestic, only as an incident in the securitization of

on Audit (COA) disallowances and from all financial obligations

housing mortgages of the GSIS and on account of its receivables

of the members, including his pecuniary accountability arising

from any government or private entity;

from or caused or occasioned by his exercise or performance of

(l) to invest, own or otherwise participate in equity in any

his official functions or duties, or incurred relative to or in

establishment, firm or entity;

connection with his position or work except when his monetary

(m) to approve appointments in the GSIS except appointments

liability, contractual or otherwise, is in favor of the GSIS.

to positions which are policy determining, primarily confidential

"G. ADMINISTRATION

or highly technical in nature according to the Civil Service rules

"SECTION 40. Implementing Body. The Government

and regulations: Provided, That all positions in the GSIS shall

Service Insurance System as created under Commonwealth Act

be governed by a compensation and position classification

No. 186 shall implement the provisions of this Act.

system and qualifications standards approved by the GSIS

"SECTION 41. Powers and Functions of the GSIS. The GSIS

Board of Trustees based on a comprehensive job analysis and

shall exercise the following powers and functions:

audit of actual duties and responsibilities: Provided, further,

(a) to formulate, adopt, amend and/or rescind such rules and

That the compensation plan shall be comparable with the

regulations as may be necessary to carry out the provisions and

prevailing compensation plans in the private sector and shall be

purposes of this Act, as well as the effective exercise of the

subject to the periodic review by the Board no more than once

powers and functions, and the discharge of duties and

every four (4) years without prejudice to yearly merit reviews or

responsibilities of the GSIS, its officers and employees;

increases based on productivity and profitability;

(b) to adopt or approve the annual and supplemental budget of

(n) to design and adopt an Early Retirement Incentive Plan

receipts and expenditures including salaries and allowances of

(ERIP) and/or financial assistance for the purpose of retirement

the GSIS personnel; to authorize such capital and operating

for its own personnel;

expenditures and disbursements of the GSIS as may be

(o) to fix and periodically review and adjust the rates of interest

necessary and proper for the effective management and

and other terms and conditions for loans and credits extended to

operation of the GSIS;

members or other persons, whether natural or juridical;

(c) to invest the funds of the GSIS, directly or indirectly, in

(p) to enter into agreement with the Social Security System or

accordance with the provisions of this Act;

any other entity, enterprise, corporation or partnership for the

(d) to acquire, utilize or dispose of, in any manner recognized by

benefit of members transferring from one system to another

law, real or personal property in the Philippines or elsewhere

subject to the provision of Republic Act No. 7699, otherwise

necessary to carry out the purposes of this Act;

known as the Portability Law;

(e) to conduct continuing actuarial and statistical studies and

(q) to be able to float proper instrument to liquefy long-term

valuations to determine the financial condition of the GSIS and

maturity by pooling funds for short-term secondary market;

taking into consideration such studies and valuations and the

(r) to submit annually, not later than June 30, a public report to

limitations herein provided, re-adjust the benefits, contributions,

the President of the Philippines and the Congress of the

premium rates, interest rates or the allocation or re-allocation of

Philippines regarding its activities in the administration and

the funds to the contingencies covered;

enforcement of this Act during the preceding year including

(f) to have the power of succession;

information and recommendations on broad policies for the

(g) to sue and be sued;

development and perfection of the programs of the GSIS;

(h) to enter into, make, perform and carry out contracts of every

(s) to maintain a provident fund, which consists of contributions

kind and description with any person, firm or association or

made by both the GSIS and its officials and employees and their

corporation, domestic or foreign;

earnings, for the payment of benefits to such officials and

(i) to carry on any other lawful business whatsoever in

employees or their heirs under such terms and conditions as it

pursuance of, or in connection with the provisions of this Act;

may prescribe;

(j) to have one or more offices in and outside of the Philippines,

(t) to approve and adopt guidelines affecting investments,

and to conduct its business and exercise its powers throughout

insurance coverage of government properties, settlement of

claims, disposition of acquired assets, privatization or expansion

is also a member of the GSIS. The Trustees shall elect from

of subsidiaries, development of housing projects, increased

among themselves a Chairman while the President and General

benefit and loan packages to members, and the enforcement of

Manager of the GSIS shall automatically be the vice-chairman.

the provisions of this Act;

The Trustees, except the President and General Manager who

(u) any provision of law to the contrary notwithstanding, to

shall cease as trustee upon his separation, shall hold office for

authorize the payment of extra remuneration to the officials and

six (6) years without reappointment, or until their successors are

employees directly involved in the collection and/or remittance

duly appointed and qualified. Vacancy, other than through the

of contributions, loan repayments, and other monies due to the

expiration of the term, shall be filled for the unexpired term

GSIS at such rates and under such conditions as it may adopt.

only. The members of the Board shall be entitled to a per diem

Provided, That the best interest of the GSIS shall be observed

of Two thousand five hundred pesos (P2,500) for each board

thereby;

meeting actually attended by them, but not to exceed Ten

(v) to determine, fix and impose interest upon unpaid premiums

thousand pesos (P10,000) a month and reasonable transportation

due from employers and employees;

and representation allowances as may be fixed by the Board.

(w) to ensure the collection or recovery of all indebtedness,

"SECTION 43. Powers and Functions of the Board of Trustees.

liabilities and/or accountabilities, including unpaid premiums or

The Board of Trustees shall have the following powers and

contributions in favor of the GSIS arising from any cause or

functions:

source whatsoever, due from all obligors, whether public or

"(a) to formulate the policies, guidelines and programs to

private. The Board shall demand payment or settlement of the

effectively carry out the purposes of this Act;

obligations referred to herein within thirty (30) days from the

"(b) to promulgate such rules and regulations as may be

date the obligation becomes due, and in the event of failure or

necessary or proper for the effective exercise of the powers and

refusal of the obligor or debtor to comply with the demand, to

functions as well as the discharge of the duties and

initiate or institute the necessary or proper actions or suits,

responsibilities of the GSIS, its officers and employees;

criminal, civil or administrative or otherwise, before the courts,

"(c) upon the recommendation of the President and General

tribunals, commissions, boards, or bodies of proper jurisdiction

Manager, to approve the annual and supplemental budget of

within thirty (30) days reckoned from the expiry date of the

receipts and expenditures of the GSIS, and to authorize such

period fixed in the demand within which to pay or settle the

operating and capital expenditures and disbursements of the

account;

GSIS as may be necessary or proper for the effective

(x) to design and implement programs that will promote and

management, operation and administration of the GSIS;

mobilize savings and provide additional resources for social

"(d) upon the recommendation of the President and General

security expansion and at the same time afford individual

Manager,

members appropriate returns on their savings/investments. The

administrative structures and staffing pattern, and to establish,

programs shall be so designed as to spur socio-economic take-

fix, review, revise and adjust the appropriate compensation

off and maintain continued growth; and

package for the officers and employees of the GSIS with

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

reasonable allowances, incentives, bonuses, privileges and other

be necessary, useful, incidental or auxiliary to carry out the

benefits as may be necessary or proper for the effective

provisions of this Act, or to attain the purposes and objectives of

management, operation and administration of the GSIS, which

this Act.

shall be exempt from Republic Act No. 6758, otherwise known

"SECTION 42. The Board of Trustees; Its Composition; Tenure

as the Salary Standardization Law and Republic Act No. 7430,

and Compensation. The corporate powers and functions of

otherwise known as the Attrition Law;

the GSIS shall be vested in and exercised by the Board of

"(e) to fix and periodically review and adjust the rates of interest

Trustees composed of the President and General Manager of the

and other terms and conditions for loans and credits extended to

GSIS and eight (8) other members to be appointed by the

its members or other persons, whether natural or juridical;

President of the Philippines, one (1) of whom shall be either the

"(f) the provision of any law to the contrary notwithstanding, to

President of the Philippine Public School Teachers Association

compromise or release, in whole or in part, any claim or settle

(PPSTA) or the President of the Philippine Association of

liability to the GSIS, regardless of the amount involved, under

School Superintendents (PASS), another two (2) shall represent

such terms and conditions as it may impose for the best interest

the leading organizations or associations of government

of the GSIS;

employees/retirees, another four (4) from the banking, finance,

"(g) to approve and adopt guidelines affecting investments,

investment, and insurance sectors, and one (1) recognized

insurance coverage of government properties, settlement of

member of the legal profession who at the time of appointment

claims, disposition of acquired assets, development of housing

to

approve

the

GSIS'

organizational

and

projects, increased benefit and loan packages to members, and

house legal counsel.

the enforcement of the provisions of this Act;

"The GSIS may, subject to approval by the proper court,

"(h) to determine, fix and impose interest upon unpaid or

deputize any personnel of the legal service group to act as

unremitted premiums and/or contributions; and

special sheriff in the enforcement of writs and processes issued

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

by the court, quasi-judicial agencies or administrative bodies in

incidental to the attainment of the purposes and objectives of

cases involving the GSIS.

this Act.

"SECTION 48. Powers of the Insurance Commission. The

"SECTION 44. Appointment, Qualifications, and Compensation

Insurance Commissioner or his authorized representatives shall

of the President and General Manager and of Other Personnel.

make an examination of the financial condition and methods of

The President and General Manager of the GSIS shall be its

transacting business of the GSIS at least once every three (3)

Chief Executive Officer and shall be appointed by the President

years and the report of said examination shall be submitted to

of the Philippines. He shall be a person with management and

the Board of Trustees and copies thereof be furnished the Office

investments expertise necessary for the effective performance of

of the President of the Philippines and the two Houses of the

his duties and functions under this Act.

Congress of the Philippines within five (5) days after the close

"The GSIS President and General Manager shall be assisted by

of examination: Provided, however, That for each examination

one or more executive vice-presidents, senior vice-presidents,

the GSIS shall pay the office of the Insurance Commissioner an

vice-presidents and managers in addition to the usual

amount equal to the actual expenses incurred by the said office

supervisory and rank and file positions who shall be appointed

in the conduct of the examination, including the salaries of the

and removed by the President and General Manager with the

examiners and of the actuary of such examination for the actual

approval of the Board, in accordance with the existing Civil

time spent.

Service rules and regulations.

"H. GENERAL PROVISIONS

"SECTION 45. Powers and Duties of the President and General

"SECTION 49. Dispensation of Social Insurance Benefits.

Manager. The President and General Manager of the GSIS

(a) The GSIS shall pay the retirement benefits to the employee

shall among others, execute and administer the policies and

on his last day of service in the government: Provided, That all

resolutions approved by the board and direct and supervise the

requirements are submitted to the GSIS within a reasonable

administration and operations of the GSIS. The President and

period prior to the effective date of the retirement;

General Manager, subject to the approval of the Board, shall

"(b) The GSIS shall discontinue the processing and adjudication

appoint the personnel of the GSIS, remove, suspend or

of retirement claims under R.A. No. 1616 except refund of

otherwise discipline them for cause, in accordance with existing

retirement premium and R.A. No. 910. Instead, all agencies

Civil Service rules and regulations, and prescribe their duties

concerned shall process and pay the gratuities of their

and qualifications to the end that only competent persons may

employees. The Board shall adopt the proper rules and

be employed.

procedures for the implementation of this provision.

"SECTION 46. Auditor. (a) The Chairman of the

"SECTION 50. Development and disposition of Acquired

Commission on Audit shall be the ex officio auditor of the

Assets. The GSIS shall have the right to develop and dispose

GSIS. For this purpose, he may appoint a representative who

of its acquired assets obtained in the ordinary course of its

shall be the Auditor of the GSIS, and the necessary personnel to

business. To add value to, improve profitability on, and/or

assist said representative in the performance of his duties.

enhance the marketability of an acquired asset, the GSIS may

"(b) The Chairman of the Commission on Audit or his

further develop/renovate the same either with its own capital or

authorized representative, shall submit to the Board soon after

through a joint venture arrangement with private companies or

the close of each calendar year, an audited statement showing

individuals.

the financial condition and progress of the GSIS for the calendar

"The GSIS may sell its acquired assets in accordance with

year just ended.

existing Commission on Audit (COA) rules and regulations for

"SECTION 47. Legal Counsel. The Government Corporate

an amount not lower than the current market value of the

Counsel shall be the legal adviser and consultant of the GSIS,

property. For this purpose, the GSIS shall conduct an annual

but the GSIS may assign to the Office of the Government

appraisal of its property or acquired assets to determine its

Corporate Counsel (OGCC) cases for legal action or trial, issues

current market value. All notices of sale shall be published in

for

newspapers of general circulation.

legal

opinions,

preparation

and

review

of

contracts/agreements and others, as the GSIS may decide or

"No injunction or restraining order issued by any court,

determine from time to time: Provided, however, That the

commission, tribunal or office shall bar, impede or delay the

present legal services group in the GSIS shall serve as its in-

sale and disposition by the GSIS of its acquired assets except on

questions of ownership and national or public interest.

"(f) Any employee, who after deducting the monthly

"SECTION 51. Government Assistance to the GSIS. The

contribution

GSIS may call upon any employer for such assistance as may be

compensation, fails to remit the same to the GSIS within thirty

necessary in the discharge of its duties and functions.

(30) days from the date they should have been remitted under

"L. PENAL PROVISIONS

Section 6(a) shall be presumed to have misappropriated such

"SECTION 52. Penalty. (a) Any person found to have

contribution or loan amortization and shall suffer the penalties

participated directly or indirectly in the commission of fraud,

provided in Article 315 of the Revised Penal Code, and in

collusion, falsification, or misrepresentation in any transaction

addition shall suffer absolute perpetual disqualification from

with the GSIS whether for him or for some other persons, shall

holding public office and from practicing any profession or

suffer the penalties provided for in Article 172 of the Revised

calling licensed by the government.

Penal Code.

"(g) The heads of the offices of the national government, its

"(b) Whoever shall obtain or receive any money or check

political subdivisions, branches, agencies and instrumentalities,

invoking any provision of this Act or any agreement thereunder,

including government-owned or controlled corporations and

without being entitled thereto with the intent to defraud any

government financial institutions, and the personnel of such

member, any employer, the GSIS, or any third party, shall be

offices who are involved in the collection of premium

punished by a fine of not less than Five thousand pesos

contributions, loan amortization and other accounts due the

(P5,000.00) nor more than Twenty thousand pesos (P20,000.00)

GSIS who shall fail, refuse or delay the payment, turnover,

or by imprisonment of not less than six (6) years and one (1) day

remittance or delivery of such accounts to the GSIS within thirty

to twelve (12) years, or both, at the discretion of the court.

(30) days from the time that the same shall have been due and

"(c) Whoever fails or refuses to comply with the provisions of

demandable shall, upon conviction by final judgment, suffer the

this Act or with the rules and regulations adopted by the GSIS

penalties of imprisonment of not less than one (1) year nor more

shall be punished by a fine of not less than Five thousand pesos

than five (5) years and a fine of not less than Ten thousand pesos

(P5,000.00) nor more than Twenty thousand pesos (P20,000.00),

(P10,000.00)

or by imprisonment of not less than six (6) years and one (1) day

(P20,000.00), and in addition shall suffer absolute perpetual

to twelve (12) years, or both, at the discretion of the court.

disqualification from holding public office and from practicing

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

any profession or calling licensed by the government.

budget officer or other official or employee who fails to include

"(h) The officers and/or personnel referred to in paragraph (g) of

in the annual budget the amount corresponding to the employer

this section shall be liable not only criminally but also civilly to

and employee contributions, or who fails or refuses or delays by

the GSIS or to the employee or member concerned in the form

more than thirty (30) days from the time such amount becomes

of damages, including surcharges and interests.

due and demandable, or to deduct the monthly contributions of

"(i) For the charges or complaints referred to in paragraph (g) of

the employee shall, upon conviction by final judgment, suffer

this Section, the liabilities therein set forth shall be construed as

the penalties of imprisonment from six (6) months and one (1)

waiver of the State of its immunity from suit, hence, the above-

day to six (6) years, and a fine of not less than Three thousand

mentioned officials and/or personnel may not invoke the defense

pesos (P3,000.00) but not more than Six thousand pesos

of non-suability of the State.

(P6,000.00), and in addition shall suffer absolute perpetual

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

disqualification from holding public office and from practicing

chairman and the vice-chairman, to comply with the provisions

any profession or calling licensed by the government.

of paragraph (w) of Section 41 hereof, shall subject them to

"(e) Any employee or member who receives or keeps fund or

imprisonment of not less than six (6) months nor more than one

property belonging, payable or deliverable to the GSIS and

(1) year or a fine of not less than Five thousand pesos

appropriates the same, or takes or misappropriates or uses the

(P5,000.00) nor more than Ten thousand pesos (P10,000.00)

same to any purpose other than that authorized by this Act, or

without prejudice to any civil or administrative liability which

permits another person to take, misappropriate or use said fund

may also arise therefrom.

or property by expressly consenting thereto, or through

"Criminal actions arising from violations of the provisions of

abandonment or negligence, or is otherwise guilty of the

this Act may be commenced by the GSIS or by the aggrieved

misappropriation of said fund or property, in whole or in part,

member, either under this Act or, in appropriate cases, under the

shall suffer the penalties provided in Article 217 of the Revised

Revised Penal Code.

Penal Code, and in addition shall suffer absolute perpetual

"SECTION 53. Implementing Rules and Regulations. The

disqualification from holding public office and from practicing

implementing rules and regulations to carry out the provisions

any profession or calling licensed by the government.

of this Act shall be adopted and promulgated by the GSIS not

or

loan

nor

amortization

more

than

from

Twenty

member's

thousand

pesos

later than ninety (90) days after the approval of this Act.
"SECTION

54.

Non-impairment

of

Benefits,

Powers,

Jurisdiction, Rights, Privileges, Functions and Activities.

Nothing in this Act shall be construed to repeal, amend or limit
any provision of existing laws. Presidential Decrees and Letters
of Instructions, not otherwise specifically inconsistent with the
provisions of this Act.
"SECTION 55. Exclusiveness of Benefits. Whenever other
laws provide similar benefits for the same contingencies covered
by this Act, the member who qualifies to the benefits shall have
the option to choose which benefits will be paid to him.
However, if the benefits provided by the law chosen are less
than the benefits provided under this Act, the GSIS shall pay
only the difference.
"SECTION 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 year following its enactment into law
and thereafter."
SECTION 2. Separability Clause. Should any provision of
this Act or any part thereof be declared invalid, the other
provisions, so far as they are separable from the invalid ones,
shall remain in force and effect.
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 existing laws, rules and regulations vested upon or
acquired by an employee who is already in the service as of the
effectivity of this Act shall remain in force and effect: Provided,
further, That subsequent to the effectivity of this Act, a new
employee or an employee who has previously retired or
separated and is reemployed in the service shall be covered by
the provisions of this Act.
SECTION 4. Effectivity. This Act shall take effect fifteen
(15) days after its publication in the Official Gazette or in at
least two (2) newspapers of general circulation.
Approved: May 30, 1997
Published in Malaya, The Philippine Star, Philippine Daily
Inquirer, and the Manila Bulletin on June 9, 1997. July 28, 1997.
Published in the Official Gazette, Vol. 93 No. 29 page 4360 on
July 21, 1997.