AGRA-GSIS

1. Who are subject to compulsory coverage under the Government

Service Insurance System?
Membership in the GSIS shall be compulsory for all employees
receiving compensation who have not reached the compulsory
retirement age, irrespective of employment status, except members of
the Armed Forces of the Philippines and the Philippine National Police,
subject to the condition that they must settle first their financial
obligation with the GSIS, and contractual who have no employer and
employee relationship with the agencies they serve (Section 3, R.A.
8291).
2. Enumerate the powers and functions of the GSIS.

Section 41 of R.A. 8291 states the following powers and functions of

GSIS.

to formulate, adopt, amend and/or rescind such rules and

regulations as may be necessary to carry out the provisions and
purposes of this Act, as well as the effective exercise of the powers
and functions, and the discharge of duties and responsibilities of the
GSIS, its officers and employees

to adopt or approve the annual and supplemental budget of receipts

and expenditures including salaries and allowances of the GSIS
personnel to authorize such capital and operating expenditures and
disbursements of the GSIS as may be necessary and proper for the
effective management and operation of the GSIS

to invest the funds of the GSIS, directly or indirectly, in accordance

with the provisions of this Act

to acquire, utilize or dispose of, in any manner recognized by law,

real or personal property in the Philippines or elsewhere necessary
to carry out the purposes of this Act

to conduct continuing actuarial and statistical studies and

valuations to determine the financial condition of the GSIS and
taking into consideration such studies and valuations and the
limitations herein provided, readjust the benefits, contributions,
premium rates, interest rates or the allocation or reallocation of the
funds to the contingencies covered

to have the power of succession

to sue and be sued

to enter into, make, perform and carry out contracts of every kind
and description with any person, firm or association or corporation,
domestic or foreign

to carry on any other lawful business whatsoever in pursuance of, or

in connection with the provisions of this Act

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

conduct its business and exercise its 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
maintain a branch office in every province where there exists a
minimum of fifteen thousand (15,000) membership

to borrow funds from any source, private or government, foreign or

domestic, only as an incident in the securitization of housing
mortgages of the GSIS and on account of its receivables from any
government or private entity

to invest, own or otherwise participate in equity in any

establishment, firm or entity

to approve appointments in the GSIS except appointments to

positions which are policy determining, primarily confidential or
highly technical in nature according to the Civil Service rules and
regulations: Provided, That all positions in the GSIS shall be
governed by a compensation and position classification system and
qualifications standards approved by the GSIS Board of Trustees
based on a comprehensive job analysis and audit of actual duties
and responsibilities: Provided, further, That the compensation plan
shall be comparable with the prevailing compensation plans in the
private sector and shall be subject to the periodic review by the
Board no more than once every four (4) years without prejudice to
yearly merit reviews or increases based on productivity and
profitability

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

and/or financial assistance for the purpose of retirement for its own
personnel

to fix and periodically review and adjust the rates of interest and
other terms and conditions for loans and credits extended to
members or other persons, whether natural or juridical

to enter into agreement with the Social Security System or any

other entity, enterprise, corporation or partnership for the benefit of
members transferring from one system to another subject to the
provision of Republic Act No. 7699, otherwise known as the
Portability Law

to be able to float proper instrument to liquefy long term maturity

by pooling funds for short term secondary market

to submit annually, not later than June 30, a public report to the
President of the Philippines and the Congress of the Philippines
regarding its activities in the administration and enforcement of this
Act during the preceding year including information and
recommendations on broad policies for the development and
perfection of the programs of the GSIS

to maintain a provident fund, which consists of contributions made

by both the GSIS and its officials and employees and their earnings,
for the payment of benefits to such officials and employees or their
heirs under such terms and conditions as it may prescribe

to approve and adopt guidelines affecting investments, insurance

coverage of government properties, settlement of claims,
disposition of acquired assets, privatization or expansion of
subsidiaries, development of housing projects, increased benefit
and loan packages to members, and the enforcement of the
provisions of this Act

any provision of law to the contrary notwithstanding, to authorize

the payment of extra remuneration to the officials and employees
directly involved in the collection and/or remittance of contributions,
loan repayments, and other monies due to the GSIS at such rates
and under such conditions as it may adopt. Provided, That the best
interest of the GSIS shall be observed thereby

to determine, fix and impose interest upon unpaid premiums due

from employers and employees

to ensure the collection or recovery of all indebtedness, liabilities

and/or accountabilities, including unpaid premiums or contributions
in favor of the GSIS arising from any cause or source whatsoever,
due from all obligors, whether public or private.

to design and implement programs that will promote and mobilize

savings and provide additional resources for social security
expansion and at the same time afford individual members
appropriate returns on their savings/investments. The programs
shall be so designed as to spur socioeconomic takeoff and maintain
continued growth and

to exercise such powers and perform such other acts as may be

necessary, useful, incidental or auxiliary to carry out the provisions
of this Act, or to attain the purposes and objectives of this Act.

3. What are the services or benefits that the members are entitled
to under the GSIS? Discuss each briefly.

Members of the GSIS are entitled to the following services;

Separation Benefits
This benefit can be availed by members who resigned or
separated from the service after he has rendered at least
three years of service but less than 15 years. For
unemployment or involuntary separation benefits, it is a form
of monthly cash payments equivalent to fifty percent (50%) of
the average monthly compensation which shall be paid to a
permanent employee who is involuntarily separated from the
service due to the abolition of his office or position usually
resulting from reorganization.

Retirement Benefits
This benefit can be availed by members who retires from
service provided that the member has rendered at least 15
years in service, at least 60 years of age at the time of

retirement and he is not receiving a monthly pension benefit

from permanent total disability.
Permanent Disability Benefits
For permanent total disability benefits, a member shall
receive a monthly income benefit for life equal to the basic
monthly pension effective from the date of disability. For
permanent partial disability benefits, a member shall receive
a cash payment in accordance with a schedule of disabilities
to be prescribed by GSIS.
Temporary Disability Benefits
This pertains to a member who suffers temporary total
disability, he shall be entitled to seventy five percent (75%) of
his current daily compensation for each day or fraction thereof
of temporary disability benefit not exceeding one hundred
twenty (120) days in one calendar year after exhausting all
his sick leave credits and collective bargaining agreement sick
leave benefits, if any, but not earlier than the fourth day of his
temporary total disability provided that the requisites
provided by law are present.
Survivorship Benefits
When a member or pensioner dies, the beneficiaries shall be
entitled to survivorship benefits. For death of the member, the
primary beneficiaries shall be entitled for the survivorship
pension. For death of the pensioner, a member receiving the

monthly income benefit for permanent disability, the qualified

beneficiaries shall be entitled to the survivorship pension.
Funeral Benefits
The amount of funeral benefit shall be determined and
specified by the GSIS in the rules and regulations but shall not
be less than Twelve thousand pesos (P12,000.00): Provided,
That it shall be increased to at least Eighteen thousand pesos
(P18,000.00) after five (5) years and shall be paid upon the
death of:
an active member as defined under Section 2(e) of this
Act or
a member who has been separated from the service, but
who may be entitled to future benefit
a pensioner,
a retiree who at the time of his retirement was of
pensionable age under this Act but who opted to retire
under Republic Act No. 1616.
Life Insurance Benefits
All employees except for Members of the Armed Forces of the
Philippines (AFP) and the Philippine National Police (PNP) shall,
under terms and conditions as may be promulgated by the
GSIS, be compulsorily covered by life insurance.
4. How can the members avail of these services or benefits?
5. What is the effect if the member failed to pay the required
number of contributions?

6. Who has jurisdiction over adjudication and settlement of claims

or disputes arising from violation of the Revised Government
Insurance System Act?
The GSIS shall have original and exclusive jurisdiction to settle any
dispute arising under R.A. 8291 and any other laws administered by
the GSIS. The Board may designate any member of the Board, or
official of the GSIS who is a lawyer, to act as hearing officer to receive
evidence, make findings of fact and submit recommendations (Section
30, R.A. 8291).
7. What is the prescriptive period of claims or disputes arising from
violation of the Revised Service Insurance System Act?
Under Section 28 of R.A. 8291, claims for benefits under except
for life and retirement shall prescribe after four (4) years from
the date of contingency.
8. When does the decision of the Commission become final and
executor?
The law expressly provides that when no appeal is perfected and
there is no order to stay by the Board, by the Court of Appeals or
by the Supreme Court, any decision or award of the Board shall
be enforced and executed in the same manner as decisions of
the Regional Trial Court (Section 32, RA. 8291).
9. Where do you appeal the decision of the Board?
Appeals from any decision or award of the Board shall be
governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure
wherein an appeal under this Rule may taken to the Court of
Appeals (Section 31, R.A. 8291)
.

10.

Is the appellant required to post an appeal bond in order to

perfect the appeal?

11.

Does the appeal filed stay the order of the Board?

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 Court and the appeal shall be without prejudice to the
special civil action of certiorari when proper (Section 31 par. 2 of
R.A. 8291).

12.

Enumerate the acts prohibited and penalized under the GSIS

law?

The following acts are prohibited and penalized by Section 52 of R.A.

8291;

Any person found to have participated directly or indirectly in the

commission of fraud, collusion, falsification, or misrepresentation
in any transaction with the GSIS whether for him or for some other
persons, shall suffer the penalties provided for in Article 172 of the

Revised Penal Code.

Whoever shall obtain or receive any money or check invoking any
provision of this Act or any agreement thereunder, without being
entitled thereto with the intent to defraud any member, any
employer, the GSIS, or any third party, shall be punished by a fine
of not less than Five thousand pesos (P5,000.00) nor more than
Twenty thousand pesos (P20,000.00) or by imprisonment of not
less than six (6) years and one (1) day to twelve (12) years, or
both, at the discretion of the court.

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

Act or with the rules and regulations adopted by the GSIS shall be
punished by a

fine of not less than Five thousand pesos

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

or by imprisonment of not less than six (6) years and one (1) day
to twelve (12) years, or both, at the discretion of the court.

The treasurer, finance officer, cashier, disbursing officer, budget

officer or other official or employee who fails to include in the
annual budget the amount corresponding to the employer and
employee contributions, or who fails or refuses or delays by more
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
penalties of imprisonment from six (6) months and one (1) day to
six (6) years, and a fine of not less than Three thousand pesos
(P3,000.00) but not more than Six thousand pesos (P6,000.00),
and in addition shall suffer absolute perpetual disqualification from
holding public office and from practicing any profession or calling
licensed by the government.

Any employee or member who receives or keeps fund or property

belonging, payable or deliverable to the GSIS and appropriates the
same, or takes or misappropriates or uses the same to any
purpose other than that authorized by this Act, or permits another
person to take, misappropriate or use said fund or property by
expressly consenting thereto, or through abandonment or
negligence, or is otherwise guilty of the misappropriation of said
fund or property, in whole or in part, shall suffer the penalties
provided in Article 217 of the Revised 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.

Any employee, who after deducting the monthly contribution 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 have misappropriated such contribution or loan amortization
and shall suffer the penalties provided in Article 315 of the Revised
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.

The heads of the offices of the national government, its political

subdivisions, branches, agencies and instrumentalities, including
government owned or controlled corporations and government
financial institutions, and the personnel of such offices who are
involved in the collection of premium contributions, loan
amortization and other accounts due the GSIS who shall fail,
refuse or delay the payment, turnover, remittance or delivery of
such accounts to the GSIS within thirty (30) days from the time
that the same shall have been due and demandable shall, upon
conviction by final judgment, suffer the penalties of imprisonment
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 Twenty thousand pesos (P20,000.00), and in addition shall
suffer absolute perpetual disqualification from holding public office
and from practicing any profession or calling licensed by the
government.

The officers and/or personnel referred to in paragraph (g) of 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
damages, including surcharges and interests.

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

Section, the liabilities therein set forth shall be construed as
waiver of the State of its immunity from suit, hence, the
abovementioned officials and/or personnel may not invoke the
defense of non suability of the State.

Failure of the Members of the GSIS Board, including the chairman

and the vice chairman, to comply with the provisions of paragraph
(w) of Section 41 hereof, shall subject them to imprisonment of not
less than six (6) months nor more than one (1) year or a fine of not
less than Five thousand pesos (P5,000.00) nor more than Ten
thousand pesos (P10,000.00) without prejudice to any civil or
administrative liability which may also arise therefrom.