Government Service Insurance

System
Group 2
Galano, Jahaziel
Dumlao, Alyssa
Azcueta, Carmie
Agacia, Glory
Layaoen, Germy Vian
Yadao, Shella Marie
Cario, Triscia Abigail
Rivera, Abigail Anne
Malabed, Isazen
Salvador, Lheslee
Agtang, Kristine
Triste, Ella Joy

INTRODUCTION

Government Service Insurance System

is a social insurance institution under a defined benefit scheme
it insures its members against the occurrence of certain
contingencies in exchange for their monthly premium
contributions

HISTORY
Created under Commonwealth Act No. 186 that was passed on
November 14, 1936, and later amended under Republic Act No.
8291 dated June 24, 1997.
It officially started its operations in May 31,1937 with Life
Insurance Program as its only business
In 1951, it was transformed into a more comprehensive social
insurance scheme.
with addition of:
Old-age benefits
Invalidity benefits
Survivor benefits

SOCIAL SECURITY BENEFITS

compulsory life insurance
optional life insurance
retirement benefits
disability benefits for work-related contingencies
death benefits

The GSIS is entrusted with the administration of the General

Insurance
Fund by virtue of R.A. 656 of the Property Insurance Law.
GSIS also administers the Employees Compensation
Program.

MEMBERSHIP

GSIS covers all government workers irrespective of their

employment status, except:
Members of the Judiciary and Constitutional Commissions
who are covered by separated retirement laws;
Contractual employees who have no employee-employer
relationship with their agencies;
Uniformed Personnel of AFP, PNP, BJMP, BFP as well as
Forest Rangers of DENR and members of Philippine Coast
Guard

COMPULSARY MEMBERSHIP
all government personnel
receiving fixed monthly compensation
have not reached 65 years old

OPTIONAL MEMBERSHIP
Elective official of the National Government or of a local
government that is a member of the System
PROVIDED THAT:
if he desires to come within the purview of this Act, he
must notify the System in writing to that effect
he complies with the requirements of the System and
that he is in the Government service when his insurance
takes effect
after his admission into the System he shall be entitled
to life insurance benefit for which he shall pay either one
per centum or three per centum of his monthly salary,
depending on the kind of insurance selected by him, and
his employer shall likewise pay for him the same

TYPES OF MEMBERS
REGULAR MEMBERS
Those employed by the government of the Republic of the
Philippines
SPECIAL MEMBERS
Are constitutional commissioners, members of the judiciary
including those with equivalent ranks, who are required by
law to remit regular monthly contributions for life insurance
policies to the GSIS in order to answer for their life
insurance benefits defined under RA 8291

STATUS OF MEMBERS
ACTIVE MEMBER
Refers to member of GSIS, whether regular of special who
is still in the government service and together with the
government agency which he/she belongs, is required to
pay monthly contributions.
INACTIVE MEMBER
A member who is separated from service either by
resignation, retirement, disability, dismissal from the
service, retrenchment or who is deemed retired from the
service under this act.

EFFECT OF SEPARATION FROM THE SERVICE

A member separated from the service shall continue to be a
member and shall be entitled to whether benefits he has qualified to
in the event of any contingency compensable under this act.

COLLECTION AND
REMITTANCE OF
CONTRIBUTIONS AND
OTHER AMOUNTS

AMOUNTS OF
CONTRIBUTION

For Regular Members

Effective June 24, 1997 and up to December 31,
2002, the amount of contributions shall be
computed as follows:
Monthly Compensation (MC)

If MC is equal to or less than the

prevailing
Average Monthly
Compensation (AMC)
during a particular period
If MC is greater than the
prevailing AMC
during a particular period:
Up to the maximum AMC limit
Amount in excess of the AMC
limit

Rate of Contribution
Member

Government Agency

9%

12%

9%
2%

For Special Members

The Special Member shall pay the required life
insurance premiums of 3% of the fixed monthly
compensation for both employees and government
agencys share.

Budgetary Appropriations to Cover Government

Agencies Contributions
The government agency shall ensure that the necessary
amounts for contributions for government share shall be
included in their respective annual budgets (or budgetary
allocations), including all amounts due the GSIS.

Collection of Contributions
It shall be compulsory upon the government agency to deduct
from the fixed monthly compensation the personal share of
the members and to promptly remit the same to GSIS.
It is prohibited for a government agency to delay the
remittance to GSIS of the premium contributions deducted
from the compensation of the members and use it for other
purposes.

Remittance of Contributions
Each government agency shall remit directly to the GSIS the
employees and government agencys contributions within the
first Ten (10) days of the calendar month following the month
to which the contributions apply. The remittance by the
government agency of the contributions to the GSIS shall take
priority over and above the payment of any and all obligations,
except salaries and wages of its employees.
The government agency shall also deduct from the fixed
monthly compensation of the employee the loan amortizations
(consolidated loans, policy loan, emergency loan, housing
loan, and other loans), premium payments (optional, pre-need
and other non-life insurance) and other amounts due the GSIS.

 The said amounts shall be remitted to the GSIS within the first
Ten (10) days of the calendar month following the month when
the deductions were effected, accompanied by supporting lists in
the form prescribed by the GSIS.
The member has the corresponding responsibility to ensure that
the required premium contributions and other amounts due the
GSIS that were deducted from his compensation are promptly
remitted to GSIS.

Interest on Delayed Remittance

The government agency shall be imposed interest for every month
of delay, or a portion thereof, in the remittance of the monthly
premium contributions and other amounts due the GSIS, at the
rate of 2% per month simple interest. Such interest will begin to
accrue at the end of the month following the due month.

Effects of Non-Remittance of Contributions and

Other Amounts on the Eligibility to Benefits of
Members
All loan privileges of all the members of the affected agencies will
be suspended and they shall be disqualified to receive the yearly
dividends.
Any unremitted premium contributions and loan amortizations and
other amounts due the GSIS shall be deducted from the proceeds of
the loans and claims that will be due the member.

KINDS OF
LOAN

1. ENHANCED CONSO-LOAN PLUS

5 Different Loan Products in ConsoLoan

1. Salary Loan
2. Restructured Salary Loan
3. Enhanced Salary Loan
4. Emergency Loan Assistance
5. Summer One-Month Salary

Who are qualified to avail of the ConsoLoan?

active GSIS members (permanent and nonpermanent) who have no
pending administrative or criminal case;
an active member who is not on leave of absence without pay;
active member whose net take-home pay is sufficient to cover the
regular monthly amortization (not less than Php3,000 mandated
under the General Appropriations Act);
an active member from an agency that remitted at least 3 monthly
premium payments within the last 6 months prior to the filing of
ConsoLoan;
members from suspended agencies are not qualified to avail of the
Conso-Loan.

Remember:
A member should have a computed loanable
amount of at least Php15,000 to be able to qualify
under the Enhanced Conso-Loan Plus Program. If
the computed loanable amount is less than
Php15,000, the loan will not be processed.

How much can you apply for under the

ConsoLoan?
Minimum Premium
Payments Required

Maximum Loan Amount

(Basic Monthly Salary)

25 years

14 month loan

15 years

12 month loan

10 years

10 month loan

5 years

7 month loan

40 months

4 month loan

20 months

3 month loan

The consolidation of the above loans will result in the full

liquidation of the outstanding balances of the abovementioned
loans, less penalties and surcharges (if any), which are
automatically waived under the conso-loan program.

How can members apply for the loan?

Members with a GSIS eCard Plus can apply for the Conso-Loan via the GSIS Wireless
Automated Processing System orG-W@PSkiosk placed in all GSIS servicing offices and
select government agencies. Those still using the old eCard can apply for the loan, over-thecounter, in their servicing GSIS offices.
To apply for a Conso-Loan loan using the kiosk, members need to first place their eCard Plus
on the card reader of the kiosk, then, they need to place any of their pre-selected fingers on
the fingerprint biometric scanner of the kiosk.
Using the touch screen monitor of theG-W@PS, members must select Consolidated Loan
from the list of loans available on the loan menu and follow the simple instructions that will
be displayed on the screen to complete the transaction. Then you will be updated if your
loan has been granted or not.

How is the ConsoLoan paid for?

How much is the interest rate?

2. POLICY LOAN

There are two kinds of compulsory GSIS life

insurance programs which are automatically
granted to you the day you enter government
service:
1. Enhanced Life Policy (ELP)
2. Life Endowed policy (LEP)

Who are qualified to avail of the Policy

Loan?
A member who has been insured for at least one
year may be granted the Policy Loan.
The availing member must also have updated
premium payments
Has an active policy to be eligible under this loan
product.

How much can you apply for under the Policy

Loan?
The amount that you can loan is based on your
policy on your policy:
ELP 90% of the Terminal Value (TV)
LEP 50% of the Cash Value (CV)

How can a member apply for the Policy

Loan?
A member can apply for the Policy Loan using the GSIS
Wireless Automated Processing System (G-W@PS) kiosk
installed in all GSIS servicing offices and select
government offices nationwide.

How is the Policy Loan paid for?

How much is the interest rate?

Optional Policy Loan

A member has an option to avail of an
additional life insurance without any limit to his
life insurance coverage. When availing of the
Optional Policy Loan, a member can choose to
either pay it through monthly amortization or have
it count against his optional policy life contract.

What is the difference

between a regular loan and
a Conso-Loan?

A REGULAR LOAN is acquired for paying any

kind of transaction a borrower needs it fit, may it
be for personal consumption or any other
transaction outside the GSIS.

A CONSO-LOAN will be specifically used for

any previous borrowing such as those mentioned
above to fix any negative effects on your
borrowing capacity with a member government
organization.

3. Emergency Loan

A loan facility offered to members

working and residing in areas declared
in a state of calamity by the
government.
There
are
no
documentary requirements needed to
apply for an emergency loan.

Who can avail of the Emergency

Loan?
How can members apply for the
Emergency loan?
1. Process via GSIS Wireless Automated Processing
System
(G-W@PS)
2. Via Office Application

4. eCard Cash Advance Loan

This loan offers a substantial amount of
P10,000 at reasonable terms that will come in
handy for any member which can be avail only
once.

Who can avail of the eCard

cash advance loan?

How eCard cash advance loan

paid for?

BENEFIT
S

Sec. 18 Compulsary Life Insurance Benefits

under the Life
Endowment (LEP)
LEP is the old insurance coverage issued to GSIS members who
entered the government service before Aug. 1, 2003
The Benefits given Under LEP are:
Maturity Benefits
Cash Surrender Value
Death Benefit
Accidental Death Benefit
Annual Dividend

Sec. 18 Compulsary Life Insurance Benefits under

the Life
Endowment (LEP)
MATURITY BENEFIT ( Sec 18.1)
- The face amount payable to the member upon maturity of the policy.
Computation:
Original Amount of Insurance
Add:

Supplementary

Less:

Outstanding Obligations
XXX

This benefit is a life insurance claim. As such, it has no

prescription period under RA 8291.

Sec. 18 Compulsary Life Insurance Benefits under

the Life
Endowment (LEP)
CASH SURRENDER VALUE (Sec. 18.2)
- The earned values during the term of the insurance payable to
the member when he is separated from the service before the
maturity date or when he is considered as a case of PTD.

This benefit has no prescription period under 8291.

Sec. 18 Compulsary Life Insurance Benefits

under the
Life Endowment (LEP)
DEATH BENEFIT
- The face value of the policy payable to designated
beneficiary/ beneficiaries or legal heirs, in the
absence of the former, upon the death of a
member.

This benefit is a life insurance claim. As such,

it has no prescription period under RA 8291.

Sec. 18 Compulsary Life Insurance Benefits

under the
Life Endowment (LEP)

ACCIDENTAL DEATH BENEFIT

- An additional benefit equivalent to the amount of
Death Benefit when the member dies by accident.

Sec. 18 Compulsary Life Insurance

Benefits under the Life
Endowment Policy (LEP)
CASH DIVIDEND
-A policy holder is entitled to dividends
subjects to the Guidelines as approved by
the GSIS Board.
- This is not a guaranteed benefit

Sec. 18 Compulsary Life Insurance

Benefits under the Enhance Life
Policy (ELP)
New entrants in the government service ( on
or after August 1, 2003) are covered by ELP
The Benefits given under ELP are:
Death Benefit
Termination Value
Cash Dividend

Sec. 18 Compulsary Life Insurance

Benefits under the Enhance Life
Policy (ELP)
Conditions:
1. You are a government employee who entered the service
after July 31, 2003.
2. Your LEP has matured after July 31, 2003.
3. You are a regular GSIS Member whose LEP has lapsed due
to nonpayment of life insurance premiums but continue to
be in active service.
4. You are a regular GSIS member who opted to convert your
existing LEP into LEP.

Sec. 18 Compulsary Life Insurance

Benefits under the Enhance Life
Policy (ELP)
DEATH BENEFIT
= (Latest Annual Salary x 1.5 (AOI factor)) Outstanding Obligations

Sec. 18 Compulsary Life Insurance

Benefits under the Enhance Life
Policy (ELP)
TERMINATION VALUE
Monthly Life Insurance Premium
X

25%
XXX

Sec. 18 Compulsary Life Insurance

Benefits under the Enhance Life
Policy (ELP)
CASH DIVIDEND
-A policy holder is entitled to dividends
subjects to the Guidelines as approved by
the GSIS Board.
- This is not a guaranteed benefit

Sec. 20 Retirement Benefits

There are five different laws to choose from:
Retirement Law

Effectivity Date

RA 8291 (GSIS Act of 1997)

June 24, 1997

RA 7699 (The Portability Law)

May 1, 1994

PD 1146 (Pension or Cash

Payment)
RA 1616 (Gratuity Benefit)

May 31, 1977

RA 660 (Magic 87)

June 16, 1951

May 31, 1957

Sec. 20 Retirement Benefits

Republic Act 8291 ( GSIS Act of 1997)
Eligibility:
1. You must have rendered at least 15
years of service and must be at least
60 years old upon retirement
2. You must not be a permanent total
disability pensioner.

Sec. 20 Retirement Benefits

Retirement Benefits under this law:
Option 1: LUMP SUM and OLD- AGE (basic
monthly) PENSION
Option 2: CASH PAYMENT and OLD- AGE
(basic monthly) PENSION

Sec. 20 Retirement Benefits

Computation for Basic Monthly Salary:
BMP= ( 2.5%) ( AMC + P700) (PPP)
Where:
AMC= average monthly salary
PPP= periods with paid premiums

Sec. 20 Retirement Benefits

Computation

of AMC:

1. If your PPP is less than 36 months:

Members total compensation(with

corresponding paid premiums) prior to
employment/disability/death
AMC=
Actual number of months such
received

compensation was

Sec. 20 Retirement Benefits

Computation

of AMC:

2. If your PPP is 36 months or more:

Members total compensation(with
corresponding
paid premiums) prior to
employment/disability/death
AMC=
36 Months
Under this law, the BMP should not exceed 90% of
the AMC.

Sec. 20 Retirement Benefits

Sample computation:
BASIC DATA
Name

Juan dela Cruz

Office

DepEd Pulang Lupa

Date of Birth

June 20, 1952

Date of entry in service

March 1, 1978

Date of retirement

January 1, 2014

PPP

31. 86574

AMC

P 23, 805.55

Highest Salary Received

P 25, 000. 00

Age of Retirement

61. 52 years old

Sec. 20 Retirement Benefits

Computation:
1. BMP= ( 2.5%) (P 23, 805. 55 + P 700)
( 31.86574)
= P 19, 522.18

Sec. 20 Retirement Benefits

Computation:
2. Retirement Benefit
Option 1: 5- year Lump sum

= (P 19, 522.18) (60 months)

= P 1, 171, 330.8
BMP ( P 19, 522.18) to start on Jan. 1, 2019

Sec. 20 Retirement Benefits

Computation:
2. Retirement Benefit
Option 2: 18- month Cash Payment
= ( P 19, 522.18) (18 months)
= P 351, 399.24, plus immediate BMP
starting Jan. 1, 2014

SEPARATION BENEFIT
Condition

Computation

Age: below 60

PPP: at least 3
= (100% AMC)
but less than
(PPP)
15 years
Age: below 60

PPP: at least 15
= 18 BMP
years
Age: at least 60

PPP: at least 3
= (100% AMC)
years but less
(PPP)
than 15 years

When Benefit is
payable
At age 60

Upon
Separation; BP
for life to start
at age 60
Immediately

Sec. 20 Retirement Benefits

Presidential Decree 1146 ( Pension or Cash
Payment)
Eligibility
1. You must have rendered at least 15 years
of service and must be at least 60 years
old upon retirement; and
2. Your date of retirement or separation is prior
to June 24, 1997.

Sec. 20 Retirement Benefits

Benefits
1. Pension
Option 1: Annuity- the monthly pension
paid annually for 5 years, after which, your
BMP for life shall commence.
Option 2: Five- year Lump Sum- the
amount to be received within the 5 year
guaranteed period.

Sec. 20 Retirement Benefits

Computation of Old- age pension:

BMP= (2.5%) (RAMC) (Total years of service)

Where:
RAMC= 170% AMC (If AMC is not more than 200)
or
RAMC= AMC + P140 (If AMC is more than 200 but
less than P 3, 000)

Sec. 20 Retirement Benefits

BASIC DATA
Name

Pedro Jose

Office

DepEd

Position

Teacher 1

Date of Birth

March 21, 1940

Date of retirement

March 21, 1996

PPP

20. 22146

AMC

P 3, 000.00

RAMC (AMC+ P140)

P 3, 140.00

Highest Salary Received

P 25, 000. 00

Computation:
1. BMP = (2.5%) (RAMC) (Total years of
service)
= (2.5%) (3, 140.00) ( 20.22146)
= P 1587.38 *
(* Note: Effective Jan. 1, 2013, the minimum
pension for old- age and RA 8291 disability
pensioners is P 5, 000.00)

Computation:
2. Retirement Benefit

Option 1: Annuity= (P 1587.38) (12 months)

= P 19, 048.56

Option 2: Accrual Period : March 21, 2000 to March 20,

2005 ( or 60 months)
5- year lump Sum= (P 1587.38) (60 months)
= P 95, 242.80

BMP (P 1587.38) to start on April 1, 2005.

Sec. 20 Retirement Benefits

Benefits:
2. Cash Payment
Cash payment= (AMC) (PPP)

Sec. 20 Retirement Benefits

Republic Act 1616 ( Gratuity Benefit)
Eligibility
1. You must have entered government service before
June 1, 1977;

2. You must have rendered at least 20 years of service

regardless of age and employment status; and
3. Your last 3 years of service prior to retirement must
be continuous, except in cases of death, disability,
abolition, or phase- out of position due to reorganization.

Sec. 20 Retirement Benefits

Benefits
1. Gratuity pay or benefit
Gratuity Months

Factor

First 20 years of
service
21- 30 years of
service
In excess of 30
years of service

X 1 month
X 1.5 months
X 2 months

2. Refund of Retirement premiums

Sample Computation:
BASIC DATA
Name

Juan dela Cruz

Office

DepEd Pulang Lupa

Date of Birth

June 20, 1947

Date of entry in service

March 1, 1973

Date of retirement

January 1, 2009

PPP

31. 86574

AMC

P 23, 805.55

Highest Salary Received

P 25, 000. 00

Age of Retirement

61. 52 years old

Computation:
1. Gratuity Months:

20 years X 1

= 20

10 years X 1.5 = 15
1.86574

X 2

= 3.7315

Total Gratuity Months= 38.7315

2. Gratuity benefit:

= (Gratuity months)(Highest salary received)

= (38.7315)(25, 000)
= P 968, 287.5

Sec. 20 Retirement Benefits

Republic Act 660 (Magic 87)
Eligibility
1. You must have entered government service before June
1, 1977;
2. Your appointment status is permanent;
3. Your last 3 years of service prior to retirement must be
continuous, except in cases of death, disability, abolition, or
phase- out of position due to reorganization; and
4. You must be at least 52 years old and meet the
corresponding years of service (YOS) required for eligibility.

Sec. 20 Retirement Benefits

Benefits
Retirement Age
63 and above

Benefit
5- year lump sum

Below 63 but at Initial 3- year lump sum

least 60
payable upon retirement; and
Subsequent 2- year balance
payable at age 63
Below 60
Monthly pension paid annuallywith discount

Sec. 20 Retirement Benefits

Your monthly pension under RA 660 is computed as
follows:

R= P30.00 + [( 2% x M) + (1.2% X P)] (A)

Where:
R= monthly pension at age 57
M= number of years after June 16, 1951 (Effectivity date
of RA 660)
P= number of years before June 16, 1951
A= Average monthly salary for the last 3 years

An actuarial adjustment factor:

Table of Actuarial Adjustment Factors
Ag
e

52

53

54

55

56

57

58

59

60

61

62

63

64

65

Fac 0.8 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.1 1.1 1.1 1.2 1.2
tor 7
9
2
4
7
0
3
6
8
1
5
6
0
4

Sample Computation:
BASIC DATA
Name
Office
Date of Birth
Date of entry in service
Date of retirement
PPP
Number of years after June 16,
1951 (M)
Number of years before June 16,
1951 (P)
AMC

Juan dela Cruz

DepEd Pulang
Lupa
June 20, 1947
March 1, 1973
January 1, 2009
31. 86574
31. 86574
0
P 23, 805.55

Computation:
1.Monthly pension

R= P30.00 + [(2% X M)+ (1.2% X P)] (A)

= P 30.00 + [(2% X M=31. 86574)+ (1.2% X 0)] (23, 805.55)
= P 30.00 + (0.637315)(23, 805.55)
= P 30.00 + 15, 171.63
= P 15, 201.63

Then get the actuarial factor at age 61.52 from the table:
= (R) (Actuarial factor)
= ( 15, 201.63) (1.13)
= P 17, 177.84

Computation:
2. Since Mr. dela Cruz is 61.52 years old upon
retirement, he is entitled to the following:
3- year lump sum (or 36 months) payable
immediately on his retirement ( January
2009):

= (Monthly pension)(36 months)

= (17, 177.84) (36)
= P 618, 402.24

Computation:
Subsequent 2- year lump sum ( or 24
months) payable at age 63 (June 20,2010)
upon request:
= (Monthly pension)(24 months)
=(17, 177.84) (24)
= P 412, 268.16

Monthly Pension (17, 177.84) to start in

January 2014

THE PORTABILITY LAW

You can apply RA 7699 only if:

1. You are not entitled for the pension
benefit from either or both GSIS or SSS
2. You have less than 120 months of SSS
contributions or less than 180 months of
creditable GSIS at the time of retirement.

SAMPLE PROBLEM
Basic Data
Name: Juan de la Cruz
Office: DepED Pulang Lupa
Position: Teacher 1
Date of Birth : March 21, 1940
Date of entry in the government service : March 1, 1987
Date of retirement/separation: March 1, 1996
Period of employment in the SSS: 7years (Dec. 10, 1979 to Dec. 15,
1986)
PPP under GSIS : 9years
AMC: 3000
RAMC (AMC+ P140): 3140
Highest Salary Received: P 25.000

3. SSS shall compute and grant the benefit

for his period of employment under SSS
from Dec. 10, 1979 to December 15, 1986

SECTION 22
UNEMPLOYMENT BENEFIT

CONDITIONS OF ENTITLEMENT
OF THE BENEFIT
He or she was a permanent employee at the
time of separation
His or her separation was involuntary due to
the abolition of his or her office or position
resulting from reorganization
He or she has been paying the contributions
for at least one (1) year prior to operation

AMOUNT, DURATION AND

PAYMENT OF BENEFIT
The amount of unemployment benefit is
equivalent to 50% of the AMC (Average Monthly
Compensation) and shall be paid in accordance with
the Following Schedule:

SECTION 23
DISABILITY BENEFIT

THREE TYPES OF DISABILITY BENEFIT

Permanent Total Disability
Permanent Partial Disability
Temporary Total Disability

PERMANENT TOTAL DISABILITY

(PTD)
may be granted if your disability caused
complete
irreversible
and
lifelong
incapacity that permanently hinders you to
work or to engage in any gainfully
occupation, resulting in loss of income. The
benefit is effective from the date of
disability.

DISABILITIES UNDER PTD

1. Complete loss of sight of both eyes
2. Loss of 2 limbs at or above the ankle or
wrist
3. Permanent complete paralysis of 2 limbs
4. Brain injury resulting in incurable
imbecility, insanity or other irreversible
conditions
5. Other cases as may be determined by the
GSIS

PERMANENT PARTIAL DISABILITY

(PPD)
results from the complete and permanent
loss of the use of any of the following:
any finger, any toe, one arm, one hand,
one foot, one leg
one or both ears,
hearing of one or both ears.
sight of one eye
Such other cases as may be determined
and approved by GSIS

COMPUTATION OF PPD
The amount of PPD benefit shall be
computed by dividing the BMP by 30 days
and multiplying the quotient by the number
of compensable calendar days of leave of
absence without pay (LWOP).
(BMP/30days) (LWOP)

TEMPORARY TOTAL DISABILITY

accrues or arises when impaired physical
or mental faculties can be rehabilitated or
restored to their normal functions but such
disability has resulted in temporary
incapacity to work or to engage in any
gainful occupation.

COMPUTATION OF TTD
The amount of TTD benefit shall be
computed by multiplying 75% of the daily
salary of the member by the number of
days of disability based on the medical
evaluation but not exceed 240 days for the
same contingency. However, the computed
daily salary shall not be less than seventy
pesos (P 70.00) but not to exceed P340.00
per day.

A member shall be entitled with the

different disability benefit when:
1.He/she is in the service at the time of disability
2.If separated from the service, he has paid at least 36 months
contributions within the five year period immediately
preceding his/her disability or has paid a total of at least 180
months contributions prior to his/her disability provided,
however that the following conditions shall be met:
a. He/she is gainfully employed prior to the commencement
of disability resulting in loss of income as evidenced by any
inconvertible proof thereof
b. he/she is not registered member of any social insurance
institution
c. he/ she in not receiving any other pension either from GSIS
or another local or foreign institution or organization

SECTION 24
SURVIVORSHIP BENEFIT

COVERAGE
All primary and secondary beneficiaries residing in
the Philippines or abroad who are existing
survivorship
pensioners
or
claiming
for
survivorship pension.
Those who were receiving survivorship benefits
but were suspended when the policy on the same
was amended and implemented in August 2009
Those who applied for survivorship benefits but
were disapproved due to the issuance or approval
of management implementing guidelines

Maximum Amount of Survivorship Pension

1. The surviving spouses shall be entitle to basic pension which is
fifty percent (50%) of the Basic Monthly Pension (BMP) but
not to exceed fifty percent (50%) of the current salary of an
Undersecretary pursuant to the Salary Standardization Law and its
amendments.
2. The dependent children shall be entitled to dependent children for
a maximum of five (5) children equivalent to 10% of the BMP
for each child but not to exceed fifty percent (50%) of the
BMP, counted from the youngest and without substitution.
3. The maximum amount of basic survivorship pension prevailing at
the time of death of the member or pensioner shall apply. Any
subsequent increases in the salary will not result in any adjustment
to the survivorship pension already being received by the surviving
spouse.

SURVIVORSHIP BENEFITS OF
MEMBERS IN ACTIVE SERVICE
a. At he time of death, a member rendered
15 years of service:
His primary beneficiaries will receive (BMP
x18)
In the absence of primary, the secondary
beneficiaries shall receive (BMP x 18)
In the absence of secondary beneficiaries,
legal heirs will receive (BMP x 18)
b. Less than 15 years (100% of AMC)

SURVIVORSHIP BENEFITS OF
INACTIVE MEMBERS
a. Primary beneficiaries who rendered at
least 15 years of service will receive
survivorship pension only.
. Inactive members who have 3years but
less than 15 years of service and less than
60 years old will receive 100% of AMC
. Those who rendered at least 15 years of
service and at least 60 years old shall not
receive survivorship benefit.

SECTION 25
FUNERAL BENEFITS

QUALIFIED INDIVIDUALS
1. Your legitimate spouse
2. Your legitimate child who shouldered the
funeral expenses- if you are a member,
pensioner, or gratuitant
3. Any person who spent for the funeral,
with valid proofs of expenses.

AMOUNT OF FUNERAL BENEFIT

a. Approved prevailing amount of the Board
of trustees at the time of death
b. For uniformed members of PNP, BJMP and
BFP it is fixed at the amount of P10,000.00.

Your beneficiary is entitled to receive funeral benefit if your

death occurs:

1. When you are an active member

2. When you are already separated from the service, had
more than 15 years of service, and are entitled to the
future pension benefit
3. Within the 5-year guaranteed period after you retired
under RA 8291
4. When you are already an old-age pensioner (not a
survivorship pensioner) or a disability pensioner with more
than 15 years of service
5. When you were at least 60 years old when you retired or
when you opted to retire under RA 1616
6. When you retired under RA 1616 prior to the affectivity of
RA 8291 and had at least 20 years of service (regardless of
age when you retired)

ADJUDICATION
OF CLAIMS AND
DISPUTES

Committee on Claims (COC)

Evaluate and resolve issues / complaints arising from any dispute
in the settlement of claims
Disputes on claims shall be appealed to the Committee on Claims
within 60 days

Remedy when the Committee on Claims (COC)

rendered a Decision or Resolution which totally or
partially denied a claim
Elevate your case with the GSIS Board of Trustees by filing a
Petition appealing the Decision or Resolution of the COC within
60 days

Quasi-Judicial Function of the GSIS

Board of Trustees
It is whom where the quasi-judicial function of the GSIS shall be
vested upon.
Others laws administered by the GSIS with respect to
1.
2.
3.
4.

Coverage of government agencies and employees

Entitlement of members to benefits
Collection and payment of contributions
Housing loans and all its related policies, procedures and
guidelines
5. Optional Life Insurance and Pre-Need Benefits
6. Criminal actions arising from this Act
7. Any other matter

Hearing officer
Any member of the Board or official of the GSIS who is a lawyer
may be designated by the Board as Hearing Officer

What are the Powers and Duties of a Hearing officer?

Clerk of the GSIS

The Corporate Secretary or his designated representative

What are the Powers and Duties of the Clerk of the GSIS?

Suppletory Application of Rules of Court

In the absence of any applicable provision in these Rules,
the pertinent provisions of the Revised Rules of Court of
the Philippines shall, whenever practicable and
convenient, be applied by analogy or in a suppletory
character and effect.

Prescription Period
Claims for benefits under Republic Act No. 8291, except
for life insurance and retirement, shall prescribe after
four (4) years from date of contingency.

Construction
The provisions of these sections shall be liberally
construed in order to promote their purpose and to
assist the parties in obtaining just, speedy, and
inexpensive determination of every action and
proceeding.

General Principles in Hearing and

determination of Cases
1. The proceedings before the hearing officer shall
be summary and non-litigious in nature.
2. The technicalities of law and procedure and the
rules obtaining in the courts shall not strictly
apply.
3. In the hearing, investigation and determination of
any question or controversy, and in exercising
any duty or power under the law and this Rule,
the Board or Hearing Officer shall act on the

Parties
Petitioner - The party initiating the action

Respondent - The party against whom the action is

brought

Who may file petition?

The GSIS for appropriate cases

Any person whose rights are or may be prejudiced by
the operations or the enforcement of Republic Act No.
8291

How to draft a Petition?

1.The full name, address, and legal capacity of the
petitioner
2.The full name and address of the respondent
3.The date when the petitioner received the COC
Decision/Resolution to establish the timeliness of the
appeal
4.A clear and concise statement of the cause or causes of
action, specifying the particular section/s of the law or
rule violated or sued upon
5.The relief sought

Filing
All pleadings shall be filed with the Clerk of the GSIS at the Office
of the Corporate Secretary.
Other important requirements for a petition to be considered
properly and completely filed
1. Proper Verification
2. Service to the COC with proof of service
Service of Petition to the COC may be done through any of the
following:
Personal service
Service by registered mail
Service by ordinary mail
Service by private couriers
3. Payment of filing fee

What will happen if filing the Petition or other

requirements is after the 60-day period?

Is it allowed to file a Motion for Extension of

time to file a Petition?

What happens when the petitioner fails to file a

Motion for Extension after the 60-day period?

Summons

The Clerk of the GSIS shall immediately indorse the same to the
Hearing Officer for the issuance of the Summons.

The Hearing Officer shall issue the corresponding summons to the

respondent/s together with a copy of the petition and other
supporting documents.

Responsive Pleading

The respondent shall file his Comment or Answer to the Petition

within ten (10) days after service of summons.
Effect of failure to answer
The Board motu proprio, or on motion of the petitioner, shall
render judgment as may be warranted by the facts alleged in
the petition and limited to what is prayed for therein except
as to the amount of damages which the Board may decide in
its discretion.

What pleadings are prohibited during a

trial-type hearing?
1. Motions to dismiss
2. Motions for a bill of particulars
3. Motions for new trial, or for reopening of trial
4. Petitions for relief from judgment
5. Motions for extension of time to file pleading, affidavits or any
other paper
6. Memoranda
7. Petition for certiorari, mandamus prohibitions against any
interlocutory order issued by the Board or Hearing Officer
8. Motion to declare the defendant in default
9. Dilatory motions for postponement
10.Replies
11.Third party complaints
12.Interventions

Proceedings before the Hearing Officer

1.
2.
3.
4.
5.

Preliminary Conference
Affidavits, Hearing and Judgment
Findings and Recommendations of Hearing Officers
Decision of the Board
Appeals
Reme dies when the Board of Trustees totally denied or
partially denied Petition
May seek reconsideration of the decision by filing a Motion for
Reconsideration to the Board of Trustees through the OCS within
fifteen (15) calendar days from receipt of the Decision of the
Board
May appeal to the Court of Appeals by filing of a Petition for
Review under Rule 43 of the Rules of Court within fifteen (15)
calendar
days from receipt of the Decision of Board
6. Execution
of Decision

FUNDS OF THE
GSIS

Section 45. Funds

Section 46. Deposits and

Disbursements
All revenues collected and all accruals thereto shall be deposited,
administered and disbursed in accordance with the law. A
maximum expense loading of twelve percent (12%) of the yearly
revenues from all sources may be disbursed for administrative and
operational expenses as may be otherwise approved by the
President of the Philippines on the basis of actuarial and
management
studies.

Section 47. Investment of Funds

The funds of the GSIS which are 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 the requirements of liquidity,
safety/security and yield in order to ensure the actuarial solvency
of the funds of the GSIS.

Records and Reports.

Examination and Valuation of Funds

Exemption of GSIS and its

Assets and Funds from Taxes,
Assessments, Fees, Charges,
and Duties-State Policy.

Exemption of all Funds of the

GSIS from Tax, Attachment,
Execution, Levy or Other
Legal Processes

Government Guarantee

PENAL
PROVISIONS

Who may file Criminal Action?

may be initiated by the

aggrieved member

How to File Criminal Case

Report with the Barangay and Police authorities
(Blotter)
Secure the services of a good and efficient
Philippine lawyer, attorney or law firm
File a Complaint-Affidavit with the office of the
City Prosecutor where crime was committed
Office of the City Prosecutor will issue a subpoena
against the accused, requiring him to appear on a
certain date and time to submit his Counter
Affidavit. You may file a Reply Affidavit to
controvert the new issue he raised. Accused may
file a Rejoinder Affidavit
Process of Preliminary Investigation

 If respondent is held guilty, it is held on a trial

If no sufficient grounds, prosecutor will dismiss the
case and criminal complaint will not be filed in
court. Your lawyer will file a Motion for
Reconsideration to City Prosecutor. If denied, seek
remedy from the Department of Justice
If judge in the pertinent court finds sufficient
grounds, he shall issue a warrant of arrest except
for crimes punishable by reclusion perpetua
The Prosecutor or fiscal will be the one prosecuting
criminal case. However, he may be assisted by
private prosecutor.

Penalties under Article 172 of the

Revised Penal Code

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.

Art. 172. FALSIFICATION

Penalty

Prision Correctional in its medium and maximum

periods and a fine of not more than P5,000
Imposed to:
A. Private individual who commits falsifications
B. Any person causes damages to third person

Note: Prision Correccional, suspension and destierro- 6

months and 1 day to 6 years

Other Penalties:
1.Whoever shall obtain or receive any
money, without being entitled
thereto with the intent to
defraud
any
member,
any
government agency, the GSIS, or
any third party, shall be punished
by:
a. Fine
not less than P5,000.00 nor more
than P20,000.00

b. Imprisonment
not less than 6 years and 1 day to 12
years

Note: Both punishment can be applied, at

the discretion of the court.

2.Whoever

fails or refuses to comply

with the provisions of RA 8291 or with
the rules and regulations adopted by
the GSIS shall be punished by:

a. Fine
not less than P5,000.00 nor more than
P20,000.00
b. Imprisonment
not 6 years and 1 day to 12 years
Note: Both punishment can be applied, at the
discretion of the court.

3.

Officers including

Heads of Offices

Treasurer

Finance Officer

Cashier

Disbursing Officer

Budget Officer

other official or employee

who fails to include in the annual

budget the amount corresponding to the
government
agency
and
employee
contributions, or who fails or refuses or
delays by more than 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:

a. Imprisonment
. from 6 months and 1 day to 6 years

b. Fine
. not less than P3,000.00 but not more
than P6,000.00
c.

Absolute
disqualification

perpetual

. from holding public office and from practicing

any profession or calling licensed by the
government.

4.

Any employee or member who:

receives or keeps fund or property belonging,

payable or deliverable to the GSIS and
appropriates the same,

takes or misappropriates or uses the same to

any purpose other than that authorized by this
Act,

permits another person to take, misappropriate

or use said fund or property by expressly
consenting thereto,

through abandonment or negligence, or is

otherwise guilty of the misappropriation of said
fund or property, in whole or in part, shall

a. Penalties provided in Article 217 of the

Revised Penal Code,
b. Absolute perpetual disqualification

from holding public office and from

practicing any profession or calling
licensed by the government.

Art. 217.MALVERSATION
Penalties:
1. Prision correccional, if the amount involved in the
malversation does not exceed P200.00
2. Prision mayor in its minimum and medium periods,
if the amount involved is more than P200.00 but does
not exceed P6,000.00
3. Prision mayor in its maximum period to reclusion
temporal in its minimum period, if the amount involved
is more than P6,000.00 but is less than P12,000.00

4. Reclusion temporal, in its medium and maximum

periods, if the amount involved is more than P12,000.00 but
is less than P22,000.00.
5. If the amount exceeds the latter, the penalty shall be
reclusion temporal in its maximum period to reclusion
perpetua

Note:
1. Prision Correccional, suspension and destierro- 6 months and 1
day to 6 yrs
2. Prision Mayor- 6 yrs and 1 day to 12 yrs
3. Reclusion Temporal- 12 yrs and 1 day to 20 yrs
4. Reclusion Perpetua- 30 yrs

5.

Failure
to
remit
the
contibution/loan amortization to the
GSIS within 30 days from the date
they should have been remitted
under Rule III of the IRR shall be:

presumed to have misappropriated

such contribution or loan amortization

a. suffer the penalties provided in

Article 315 of the Revised Penal Code
b. suffer
absolute
disqualification

perpetual

Art. 315 SWINDLING

Penalties:

1. The penalty of prision correccional in its maximum period to prision

mayor in its minimum period, if the amount of the fraud is over 12,000
pesos but does not exceed 22,000 pesos
if such amount exceeds the latter sum, the penalty provided in this
paragraph shall be imposed in its maximum period, adding one year
for each additional 10,000 pesos; but the total penalty which may be
imposed shall not exceed twenty years.
Note: In such cases, the penalty shall be termed prision mayor or
reclusion temporal, as the case may be.

2. The penalty of prision correccional in its minimum and medium

periods, if the amount of the fraud is over 6,000 pesos but does not
exceed 12,000 pesos;

3.

The penalty of arresto mayor (1 month and 1 day to

6 months) if such amount is over 200 pesos but does not

exceed 6,000 pesos; and
By arresto mayor in its maximum period, if such
amount does not exceed 200 pesos, provided that in the
four cases mentioned, the fraud be committed by any of
the following means:
4.

With unfaithfulness or abuse of confidence

By means of any of the following false pretenses or
fraudulent acts executed prior to or simultaneously with
the commission of the fraud

 Through any of the following fraudulent means:

(a) By inducing another, by means of deceit, to
sign any document
(b) By resorting to some fraudulent practice to
insure success in a gambling game
(c) By removing, concealing or destroying, in
whole or in part, any court record, office files,
document or any other papers

6.

The heads of the offices

national government its political subdivisions,

branches,

agencies and instrumentalities,

- including government-owned or controlled corporations
and government financial institutions,

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

1. Imprisonment
-not less than 1 year nor more than 5
years
2.

Fine
-not less than P10,000.00 nor
more than P20,000.00

3. Absolute perpetual disqualification

from holding public office and from practicing
any profession or calling licensed by the
government.

7.

The officers and/or personnel

referred to above 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.

8.

For the charges or complaints

referred to above, the liabilities therein
set forth shall be construed as waiver of
the State of its immunity from suit;
hence, the above-mentioned officials
and/or personnel may not invoke the
defense of non- suability of the State.

9.

Failure of the Members of the GSIS

Board, including the Chairman and the
Vice- Chairman, to comply with the
provisions on penalties referred to
above shall subject:

1. Imprisonment
-not less than 6 months nor more than
1 year
2. Fine

-not less than P5,000.00 nor more

than P10,000.00 without prejudice to
any civil or administrative liability which
may also arise therefrom.

GENERAL
PROVISIONS

SECTION 60
Dispensation of
Social Insurance Benefits

60.1 The GSIS shall pay the

retirement
benefits
to
the
employee on his last day of service
in the government:
Provided, That all requirements are
submitted to the GSIS within a
reasonable period prior to the
effective date of retirement;

60.2. The GSIS shall discontinue the processing

and adjudication of retirement claims under
Republic Act 910 and R.A. No. 1616 except refund
of retirement premiums.
Instead, all agencies concerned shall process and
pay the gratuities of their employees after
securing the appropriate clearance from the GSIS
to clear any outstanding obligations to the System.

SECTION 61
Development and Disposition
of Acquired Assets

61.1. The GSIS shall have the right to develop

and dispose of its acquired assets obtained in
the ordinary course of its business. To add
value to, improve profitability on, and/or
enhance the marketability of an acquired
asset, the GSIS may further develop/renovate
the same either with its own capital or
through a joint venture arrangement with
private
companies
or
individuals.

61.2 The GSIS may sell its acquired assets in

accordance with existing Commission on
Audit (COA) rules and regulations for an
amount not lower than the current market
value of the property. For this purpose, the
GSIS shall conduct an annual appraisal of its
properties or acquired assets to determine
its current market value. All notices of sale
shall be published in newspapers in general
circulation.

61.3 No injunction or restraining order

issued by any court , commission, tribunal or
office shall bar, impede or delay the sale and
disposition by the GSIS of its acquired assets
except on questions of ownership and
national or public interest.

Section 62
Government Assistance to the GSIS
The GSIS may call upon any government
agency for such assistance as may be
necessary in the discharge of its duties and
functions

Nothing in this IRR shall be construed to repeal,

amend or limit any provision of RA 8291 nor of any
existing laws, Presidential Decrees and Letters of
Instructions, not otherwise specifically inconsistent
with
the
provisions
of
RA
8291.

Section 63
Non-impairment of Benefits, Powers,
Jurisdiction, Rights, Privileges,
Functions and Activities

Section 64
Exclusiveness of Benefits
Whenever other laws provide similar benefits for
the same contingencies covered by RA 8291, 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 other law
chosen are less than the benefits provided under
RA 8291, the GSIS shall pay only the difference.

Section 65
Appropriations
The amount necessary to carry out the
provisions of RA 8291 shall be included
in the respective budgets of the
covered agencies in the national
government obligation program
starting CY 1998.

Section 66
Separability Clause
Should any provision of RA 8291 or any part thereof
be declared invalid, the corresponding provisions in
this IRR shall be correspondingly stricken out,
amended, or qualified as appropriate. The other
provisions, insofar as they are separable from the
invalid ones, shall remain in force and in effect.

Section 67
Repealing Clause
All provisions of existing implementing rules
and regulations, circulars, and other
procedures corresponding to laws and any
other law or parts of law specifically
inconsistent with RA 8291 and with these IRR
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 RA
8291 shall remain in force and in effect.

Provide, further, That subsequent to the

effectivity of RA 8291, a new employee or an
employee who has previously retired or been
separated and is re-employed in the service,
shall be covered by the provisions of these IRR.