The GSIS and RA 8291 Objectives and scope:
Constitutional Provisions
1987 constitution has given constitutional recognition to the
obligation of the state to retirees by providing that the state
shall from time to time review to upgrade the pensions and
other benefits due to retirees of both government and private
sector (art. Xvi, sec.8)
Another feature of 1987 constitution is to the effect that
pensions or gratuities are not considered as additional, double
or indirect compensation (art. Ix, b, the civil service
commission, sec. 8, par. 2)
As a consequence, a retiree who is reappointed to a
government position shall receive the compensation for the
position without violating the constitutional prohibition
imposed on elective or appointive public officers or employees
against receiving, additional, double or indirect compensation
(id, par.1)
About GSIS
GSIS is a social insurance institution created under CA no. 186
that was passed on November 14, 1936 and later amended
under RA no. 8291 dated June 24, 1997.
To secure the future of all employees of the Philippine
government, it provides and administers a pension fund that
has the following social security benefits: compulsory life
insurance, optional life insurance, retirement benefits, and
disability benefits for work-related accidents and death
benefits.
Mandate of GSIS
GSIS, as designed in its charter, 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.
The social security benefits available for all GSIS members are:
compulsory life insurance, optional life insurance, retirement
benefits, disability benefits for work-related contingencies and
death benefits.
Organization of GSIS
The governing and policy-making body of the GSIS is the Board
of Trustees, the members of which are appointed by the
President of the Philippines.
The GSIS workforce consists of 3104 employees, 52% of whom
are in the Head Office while the remaining 48% are in the
Branches. To date, the GSIS has 15 regional offices, 25 branch
offices and 18 satellite offices nationwide.
RA 8291
Jesus Loves you! (John 15:13-15)
Revised the 20 year old charter of GSIS (PD 1146)
Aims to expand the increase the coverage and benefits of GSIS;
Introduce the institutional reforms for GSIS to have more
flexibility and thus perform its mission of providing social
security protection more effectively.
Effectivity
June 24, 1997, 15 days after it was published on June 9, 1997. It
was approved on may 30, 1997
Important because retirement is an issue. If the date of
retirement on June 24, 1997 then it is the new law that will
apply.
Repeal of retirement laws
PD 1146, RA 660, RA 1616
These laws have different schemes
Who are covered? Memorize!
Compulsory for all employees
1. Appointive or elective
2. Whether temporary, casual, permanent, or contractual
w/ e-e relationship (those under job orders not
covered)
o Those with job orders usually perform clerical
functions.
3. Who are receiving basin pay or salary but not per
diems, honoraria or allowances and
4. Who have not reached the compulsory retirement of
65 yrs.
Example: There are several boards (regular members, ex-officio
members and those appointed by the City Mayor) created by
the Sanggunian of Cebu City unlike from the regular
departments. So even if there is an appointment from the City
Mayor and even if it is temporary at the discretion of the mayor
or for a specific period BUT the person appointed doesn’t
receive basic pay or salary but only receives honoraria, then
that person is NOT compulsorily covered.
Consultants are also NOT compulsorily covered. They are
appointed and contractual because there is a period but they
only receive honoraria.
When coverage takes effect? (Unlike SSS)
Upon the employee’s assumption to duty pursuant to a valid
appointment or election and oath of office.
“Valid appointment”  still have to ask because the law is
silent. Some of the appointments of the CASUAL employees are
referred to Civil Service Commission (CSC).
So what happens if there is an appointment extended to a
person by the city mayor but it takes months for the CSC to
examine and the appointment is disapproved. Questions arise
like “what happens to the contribution?” and assuming the
disapproval becomes final and executory, “what is the possible
effect on that on his right to employee... (di maklaro :?)
Are elective officials still covered after their term of office
expires? Expressly mentioned in the law
rd
Elective officials still covered after their 3 term expires
Compulsory coverage shall cease upon expiration of term
They have the option to continue with life insurance so long as
they will pay both the employee and employer shares
Although most of them will surrender the policy and have the
Cash Surrender Value
On social security coverage, said official shall continue to be a
member and shall be entitled to benefits that provide for
contingencies (death, disability, or separation) subject to
satisfaction of eligibility conditions.
Be careful with the phrase “continue to be a member”, that
doesn’t meant that ma.compulsorily covered ang elective
official. Why? Because it ceases upon expiration BUT the official
may avail of the benefit and the expiration of the term will not
be a disadvantage again because he continues to be a member
and avail of the benefits provided he is eligible.
Who are not covered? Take note
1. Employees who have separate retirement schemes under
special laws and are therefore covered by their
respective retirement laws. Such as the members of the
judiciary, constitutional commissions, and other similarly
situated government officials
According to the judicial bar council, the judiciary has the
largest retirement package as of now.
2. Uninformed members of AFP and PNP including BJMP
3. Those who are not receiving basic pay or salary
4. Contractual who have no employer and employee
relationship with the agencies they serve
Compensation
Defined as the basic pay or salary received by an employee
pursuant to this election/appointment
Jesus Loves you! (John 15:13-15)
Does not include per diems, bonuses, overtime
pay, honoraria, allowances and any other
emoluments received in addition to basin pay (RA 8291, sec. 1)
Contributions
Member Employer
First Php 10,000 9% 12%
In excess of Php 10,000 2% 12%
GSIS has bigger contributions than SSS  reason why GSIS has
the largest fund in the Philippines
Who is responsible for remittance of contributions? -
EMPLOYER  can refer to an LGU, agency, etc. and managed by
RESPONSIBLE officials
Date of remittance?
Fisrt ten days of calendar month following the month to which
contributions apply.
Effect of non-remittance?
All loan privileges of member shall be suspended
Determination of eligibility to and computation of benefits will
be made subject to deduction of contribution arrearages and
service loans accounts plus surcharges from proceeds of claim
Penalties on delayed remittances?
Aside from penal provisions, interest of not less than 2% per
month
Penal Provisions? The following are liable
1. Official or employee who fails to include in annual
budget the amount corresponding to e-e contributions or
who fails by more than 30 days to remit the amount from
the time such amount becomes due
2. Employee, who after deducting, fails to remit to GSIS
within 30 days from date they should be remitted
3. Heads of offices of national government, etc. Who shall
fail, refuse or delay the payment, turn-over, remittance
or delivery of such amounts to GSIS.
IRR: LIST OF THOSE RESPONSIBLE
59.3. The Heads of Offices, 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 government agency 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 Increase in average monthly compensation
disqualification from holding public office and from practicing (AMC) limit; from AMC limit of Php 3,000 to Php
any profession or calling licensed by the government. 10,000

Membership in GSIS Retirement

Enjoyment of life insurance, retirement and other social Conditions:

security protection such as disability, survivorship, separation  Rendered at least 15 yrs of service
and unemployment benefits  At least 60 yr old at the time of retirement
Members of judiciary and constitutional commissions are  Not receiving monthly pension from permanent total
covered by GSIS with life insurance only; retirement laws are disability
governed by special laws
Options:
Is part-time service included in the computation of total  Lump sum payment of basic monthly pension
service rendered? multiplied by 60 plus basic monthly pension for life
upon expiration of 5 yrs period
As a rule, all full-time service with compensation from date of  Cash payment of 18 times the basic monthly pension
original appointment or election shall be computed for purpose plus basic monthly pension for life payable
of determining retirement benefits
immediately upon retirement but without 5 year
guaranteed period
‘service’ shall mean full-time service w/ compensation. Part-
o If you choose this option, you cannot anymore
time service w/ compensation shall be converted to full-time change to lump sum
equivalent.
Part-time service should be WITH COMPENSATION, otherwise it Retirement – if rendered at least 15 yrs service but is less than
will not be credited.
60 yrs at time of separation or resignation. Member will be
entitled to cash payment equivalent to 18 times his basic
Part-time shall be converted using a 40 hour per week and 52 monthly pension payable at the time of separation or
week per year as basis. resignation and upon reaching the age of 60 yrs, he will be
entitled to basic monthly pension payable monthly for life.
Creditable Service This is denominated as separation benefit but in reality a
combination of separation and retirement benefits.
Valdez vs. GSIS
Petitioner would want SC to reverse CA ruling rejecting his If the member is 60 upon retirement but less than 15 years of
assertion that his services rendered in the MECO, MMSU, service, what he gets is SEPARATION benefit NOT retirement.
PHIVIDEC, and as OIC Vice-Governor of Ilocos Norte should be Cash benefit equivalent to 100% of the average monthly
credited in the computation of his retirement benefits. compensation for each year of service if he paid contributions.
SC: Notice by employer
Aside from having been rendered part-time in said agencies, the It shall be the duty of the employer to notify its employee at
said positions were without compensation as defined in section least ninety days in advance of the date of his/her compulsory
2(i) of RA No. 8291 retirement.
Benefits GSIS vs. COA
Contingencies compensable: Issue: Whether the coa disallowances, representing loyalty and
Retirement
service cash awards of the respondents as well as housing
Separation allowance in excess of that approved by the coa, could be
Unemployment
legally deducted from their retirement benefits.
Disability
Survivorship
Sec. 39 Exemption from Tax, legal Process and Lien
Death (life insurance and funeral) XXX The funds and/or the properties referred to herein as
well as the benefits, sums or monies corresponding to the
New Benefits: not found in SSS benefits under this act shall be exempt from attachment,
Unemployment benefits
garnishment, execution, levy or other processes issued by the
Separation benefit courts. Quasi-judicial agencies or administrative bodies
Improvement of existing benefits including commission on audit (COA) disallowances
Jesus Loves you! (John 15:13-15)
and from all financial obligations of the members, including his
pecuniary accountability arising from or caused or occasioned
by his exercise of performance of his official functions or duties
or incurred relative to or in connection with this position or
work except when his monetary liability, contractual or
otherwise in in favour of the GSIS.
COA disallowances cannot be deducted from retirement
benefits.
Santos vs. Committee on claims
August 1986, petitioner Jose s. Santos retired from DAR
pursuant to RA 1616 after rendering almost 21 yrs of service
January 1989, petitioner was re-employed in the office of the
Deputy Ombudsman for Luzon
In 1997, petitioner initiated moves to avail of early retirement
under RA 660. He requested and received from GSIS operating
unit a tentative computation of retirement benefits under RA
660 amounting to Php 667, 937,40. Petitioner formally applied
for retirement under RA 660 in January 1998.
Section 3 RA 8291 provides:
Sec. 3. Repealing clause – all laws and any other law or parts
of law specifically inconsistent herewith are hereby repealed or
modified accordingly provided, that the rights under the
existing laws, rules, and regulations vested upon or acquitted 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,
subsequently 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.
In addition, section 10(b) of PD 11146, as amended by RA
8291, states:
(b) all service credited for retirement, resignation, or
separation for which corresponding benefits have been
awarded under this act or other laws shall be excluded in the
computation of service in case of reinstatement in the service
of an employer and subsequent retirement or separation which
is compensable under this act.
As a re-employed member of the government service who is
retiring during the effectivity of RA 8291, petitioner cannot
have his previous government service with the DAR credited in
the computation of his retirement benefit. Neither can he
choose a mode of retirement except that provided under RA
8291.
GSIS vs. De Leon
Respondent retired as Chief State Prosecutor of DOJ in 1992,
after 44 years of service to the government. He applied for
retirement under RA 910, invoking RA 3783, as amended by RA
Jesus Loves you! (John 15:13-15)
4140, which provides that chief state
prosecutors hold the same rank as judges. The
application was approved by GSIS. Thereafter, and for more
than nine years, respondent continuously received his
retirement benefits, until 2001, when he failed to receive his
monthly pension.
Respondent learned that GSIS cancelled the payment of his
pension because DBM informed GSIS that respondent was not
qualified to retire under RA 910; that the law was meant to
apply only to justices and judges; and that having the same
rank and qualification as a judge did not entitle respondent to
the retirement benefits provided thereunder. Thus, GSIS
stopped the payment of respondent’s monthly pension.
Respondent filed a mandamus case in CA to compel GSIS to
continue paying the pension
CA granted.
So GSIS filed the petition with the SC questioning both
procedural and substantive matters
SC:
Technicality
GSIS contended that respondent has no right to relief sought
because he presented no law upon which he based his claim
SC said that the inflexible rule is that social legislation must be
liberally construed in favour of the beneficiaries. Retirement
laws, in particular, are liberally construed in favour of the
retiree because their objective is to provide for the retiree’s
sustenance and hopefully, even comfort, when he no longer has
the capability to earn a livelihood. The liberal approach aims to
achieve the humanitarian purposes of the law in order that
efficiency, security, and well being of government employees
may be enhanced. Indeed, retirement laws are liberally
construed and administered in favour of the persons intended
to be benefited, and all doubts are resolved in favour of the
retiree to achieve their humanitarian purpose.
GSIS argument that respondent has already been enormously
benefited under RA 910 (unjust enrichment) misses the point
Retirement benefits are a form of reward for an employee’s
loyalty and service to the employer, and are intended to help
the employee enjoy the remaining years of his life, lessening
the burden of having to worry about his financial support or
upkeep. A pension partakes of the nature of retained wages of
the retiree for a dual purpose: to entice competent people to
enter the government service; and to permit them to retire
from the service with relative security, not only for those who
have retained their vigor, but more so for those who have been
incapacitated by illness or accident.
Surely, giving respondent what is due him under the law is not
unjust enrichment.
Separation
Separation benefit
A cash payment of 18 times the basic monthly pension at time
of separation and a life pension to start at the age of 60 will be
given to those who separate from the service with at least 15
years service and are below 60 years of age.
Under PD 1146, separated member will have to wait until he is
60 years of age to receive any separation benefit. (OLD LAW)
JUSTIFICATION of new law: because the service rendered for at
least 15 years. If service is below 15 years, dili makadawat ug
kwarta nga instant lump sum, madawat ra ni igka abot ug 60
years old.
Who are eligible?
Types
1. Rendered at least 3 years but less than 15 years
 (Cash payment equivalent to 100% of average monthly
compensation for every year of service payable upon
reaching 60 or upon separation whichever comes later
if not receiving monthly pension from permanent
disability)
2. Rendered at least 15 years and who is below 60 at time
of resignation/separation (cash payment equivalent to
15 times the basic monthly pension payable upon
separation plus monthly pension starting 60)
IRR, Rule II, sec. 25; DISTINCTION
 Member separated for cause
o Automatically forfeit
o Unless terms of resignation or separation
provide otherwise
 Member separated not for cause
o Shall continue to be a member and entitled
subject to qualification and other prescription
Lledo vs. Lledo
SC dismissed from the service atty. Cesar v. Lledo, former
branch clerk of court of the regional trial court of quezon city,
branch 94. Cesar’s wife, Carmelita, had filed an administrative
case against him, charging the latter with immorality,
abandonment, and conduct unbecoming a public official.
During the investigation, it was established that cesar had left
his family to live with another woman with whom he also begot
children. He failed to provide support for his family.
Dispositive portion says –
“wherefore, Cesar V. Lledo, branch clerk of court of RTC, branch
94, Quezon city, is hereby dismissed from the service, with
forfeiture of all retirement benefits and leave credits and with
Jesus Loves you! (John 15:13-15)
prejudice to reemployment in any branch or
instrumentality of the government, including
any government-owned or controlled corporation. This case is
REFERRED to the IBP Board of Governors pursuant to section 1
or rule 139-B of the Rules of Court.”
It was the children who petitioned GSIS to release their father’s
benefits to them. WHY? Because the mistress left Atty. Lledo,
then he went back to the family and he was very sick.
Issue:
May a government employee, dismissed from the service for
cause, be allowed to recover the personal contributions he paid
to the Government service Insurance System (GSIS)?
SC:
Section 11 (d) of Commonwealth Act 186, as amended,
continues to govern cases of employees dismissed for cause
and their claims for the return of their personal contribution.
The said law provides –
II. – Retirement Insurance Benefit
Xxx xxx xxx
(d) upon dismissal for cause or on voluntary separation, he shall
be entitled only to his own premiums and voluntary deposits, if
any, plus interest of three per centum per annum, compounded
monthly.
GSIS laws are in the nature of social legislation, to be liberally
construed in favour of the government employees. The money
subject of the instant request consists of personal contribution
made by the employee, premiums paid in anticipation of
benefits expected upon retirement. The occurrence of a
contingency, i.e., his dismissal from the service prior to reaching
retirement age, should not deprive him of the money that
belongs to him from the outset. To allow forfeiture of their
personal contribution in favour of the GSIS would condone
undue enrichment.
Pursuant to the foregoing discussion, Cesar is entitled to the
return of his premiums and voluntary deposits, if any, with
interest of three per centum per annum, compounded monthly.
Unemployment (Another New BENEFIT)
The benefit is paid when permanent employee is involuntarily
separated from the service as a result of the abolition of his
office or position usually resulting from reorganization.
Who is eligible?
 Permanent employee who has paid 12 monthly
contributions.
 Duration of benefit – depends on length of service
ranges from 2 mos. To a maximum of 6 mos.
 Equivalent of benefit – 50% of the average monthly
compensation
  Options – those who have more than 15 yrs service
may either avail of retirement or separation benefits as
the case may be
Disability (Not part sa exam daw pero well...)
Defined as any loss or impairment of the normal functions of
the physical or mental faculties of a member, which reduces, or
eliminates his capacity to continue with his current gainful
occupation or engage in any other gainful occupation (IRR sec.
1.18)
Evaluation of disability as a contingency is vested solely in GSIS
(IRR, sec. 9.3.1)
Only when there is grave abuse of discretion by the GSIS that
the courts can intervene.
General condition for entitlement is that the disability was NOT
due to misconduct, notorious negligence, habitual intoxication,
or wilful intention to kill himself or another (IRR, sec. 9.3.2)
NOTE: like SSS (in the case of Ortega vs. SSC), disability in GSIS is
patterned on the parts of the body unlike that of the claims
under Labor Code.
Disabilities considered permanent total?
Complete loss of sight in both eyes
Loss of two limbs at or above ankle or wrist
Permanent complete paralysis of 2 limbs
Brain injury resulting in incurable imbecility or insanity
Other cases as may be determined by GSIS
Disability – forfeiture of disability benefits if member refuses or
deliberately fails to:
a) Have himself/herself medically treated by a physician
when required by the GSIS; or
b) Take the prescribe medications; or
c) Have himself/herself confined in a hospital without
justifiable reason when such confinement is required
by the GSIS; or
d) Avail himeselft/herself of such rehabilitation facilities
as may be duly recommended by the GSIS and made
available for him/her; or
e) Observe such precautionary and/or preventive
measures as prescribed by a physician or expressly
required of him/her to prevent the aggravation or
continuance of his/her disability
f) Report on his/her re-employment
All of this relate to the fault of the GSIS member.
Survivorship
Those granted to surviving and qualified beneficiaries of the
deceased member or pensioner to cushion them again the
adverse economic, psychological and emotional loss resulting
from the death of a wage earner or pensioner.
Jesus Loves you! (John 15:13-15)
Who are eligible?
If at time of death, a member was in the service and has
rendered at least 3 years of service (primary beneficiaries to
receive survivorship pension plus cash payment; secondary
beneficiaries or legal heirs entitled to cash payment)
Take NOTE of the BENEFICIARIES:
Primary beneficiaries
The legitimate spouse, until he/she remarries, and the
dependent children
Secondary benefeciaries
The dependent parents; and
Legitimate descendants
Beneficiaries in SSS and GSIS are the same EXCEPT for two
things:
1. Age of majority with respect to children
 18 – GSIS
 21 – SSS
2. SSS: in the absence of secondary beneficiaries, it is
the person designated by the member and the legal
heirs only comes if there is no person designated.
GSIS: legal heirs take the place in the absence of
secondary beneficiaries.
Who are dependents?
a) The legitimate spouse dependent for support
b) Any legitimate, legitimated and/or legally adopted
child
c) Any legitimate, legitimated and/or legally adopted
child, including any illegitimate child, who is
unmarried, not gainfully employed, who has not
attained the age of majority, or being at the age of
majority but incapacitated and incapable of self-
support due to a mental or physical effect acquired
prior to age of majority and
d) The parents dependent upon the member for support
Meaning of dependent?
Dependent means one who derives his or her main support
from another, meaning, relying, or subject to, someone else for
support; not able to exist or sustain oneself, or to perform
anything without the will, power, or aid of someone else. (A.M
No. 100119 – Ret. February 22, 2001 [ RE: APPLICATION FOR
SUVIVOR’S BENEFITS OF MS. MAYLENNE G. MANLAVI,
DAUGHTER OF THE LATE ERNESTO R. MANLAVI])
A.M No. 100119 – Ret. February 22, 2001 [ RE: APPLICATION
FOR SUVIVOR’S BENEFITS OF MS. MAYLENNE G. MANLAVI,
DAUGHTER OF THE LATE ERNESTO R. MANLAVI)
While Marilou G. Manlavi’s marriage to the late Ernesto R.
Manlavi had never been dissolved prior to his death,
she abandoned the family for more than seventeen (17) years
until he died and lived with other men
It is obvious that she was not dependent on her legal husband
for any support, financial or otherwise, during that entire
period. In fact her whereabouts were unknown to her family.
She never attempted to communicate with them, even to check
up on the well-being of her only daughter. Such being the case,
Marilou G. Manlavi is not a dependent within the
contemplation of RA 8291 as to be entitled to survivorship
benefits.
SC:
Section 18 of PD no 1146 is void for being violative of the
constitutional guarantee of due process and equal protection of
the law. The proviso is unduly oppressive in outrightly denying a
dependent spouse’s claim for survivorship pension if the
dependent spouse contracted marriage to the pensioner within
the 3year prohibited period. There is outright confiscation of
benefits due the surviving spouse without giving the surviving
spouse an opportunity to be heard. The proviso also violated
the equal protection clause because it discriminates the
dependent spouse who contracts marriage to the pensioner
within 3yrs (nasalipdan sa table ang words) pensioner qualified
for the (natabunan napud).
Manlavi case: the wife abandoned the family for more than 17
years until the member died  nibalik to purposely claim
survivorship
SC: wife cannot be considered to be dependent on the support
of her husband
GSIS vs. Montesclaros: validity of sec. 18  void for violating
due process and equal protection (we can skip this...)
Two policies which are different
One under GMA and another under PNOY pertaining to
survivorship.
BOT Policy under GMA
In the revised IRR of the GSIS Charter (RA 8291), surviving
spouses were disqualified from getting the usual half of the
GSIS pensioners monthly benefits if the spouse earns more
than the minimum wage rate of national government
employees or is getting pension from other institutions, no
matter what amount.  changed starting 2010
BOT Policy under PNoy
Board resolved to allow surviving spouses of workers and
pensioners to receive their monthly pension benefits even if
they are gainfully employed and receiving other sources of
income.
Jesus Loves you! (John 15:13-15)
In relation to the concept of dependence.
Board recognized that gainful employment does not imply that
a surviving spouse is no longer dependent for support upon the
decreased member or pensioner
Note: whether under GMA or PNOY doesn’t touch on the fact of
what the implication is if there is separation de facto. If there is
separation de facto, we have to rely on the case of MANLAVI 
leading case when it comes to ABANDONMENT.
This is very different because in the case of SSS, nay
presumption na gihimo ang SC in two cases which is not clear
under GSIS.
USE PRESENT POLICY OF PNOY...
Family code clearly defines that support comprises everything
indispensable for sustenance, dwelling, clothing, medical
attendance, education, and transportation, in keeping with the
financial capacity of the family.
Funeral
Shall be paid upon the death of:
a) An active member; or
b) A member who has been separated from the service,
but who is entitled to future separation or retirement
benefit; or
c) A member who is a pensioner (excluding survivorship
pensioners); or
d) A retiree who at the time of his/ her retirement is at
least 60 yrs old but opts to retire under RA 1616; or
e) A member who retired under RA 1616 prior to the
effectivity of RA 8282 yrs service regardless of age
The benefit shall be paid to one of the following in the order in
which they appear herein below:
a) Surviving spouse;
b) The legitimate child who spent for the funeral services;
or
c) Any other person who can show incontrovertible
proofs of having borne the funeral expenses.
Compulsory Life Insurance  NOTE
All employees, including the members of the judiciary and the
constitutional commissioners, but excluding the uniformed
members of the Armed Forces of the Philippines (AFP), the
Philippine National Police and the Bureau of Fire Protection
(BFP), and Bureau of Jail Management and Penology.
In contributions, there is a column 9% employees, 12%
employers, in excess of 10,000 it is subject to 2%. There is a
column for members of the judiciary and the constitutional
commissioners. Ang percentage sa ilang contribution
is 3% representing compulsory life insurance. And NOTE: THERE
IS NOTHING THERE ABOUT EMPLOYER’S CONTRIBUTION. Why?
Because they are not covered. Ang coverage nila is only with
respect to life insurance.
Life insurance Benefits
Maturity benefit – upon maturity of the life insurance, the face
amount less any indebtedness against the policy, shall be paid
to the member;
Death benefit – when a member dies prior to the maturity of
his/her insurance and during its continuance, the GSIS shall pay
to the designated beneficiaries or to his/her legal heirs, as the
case may be, the face amount less any indebtedness thereon.
Adjudication of Claims
Jurisdiction (Part of the Final Exam)
GSIS has original and exclusive jurisdiction to settle any dispute
arising under RA 8291 w/ respect to:
- Coverage
- Entitlement to benefits
- Collection and payment of contributions
- Any other matter related to any or all of the foregoing
which is necessary for their determination
Prescriptive period
Four years from date of contingency except life and retirement
which do not prescribe.
Tax Exemption
Rubia vs. GSIS
Exemption of GSIS from execution does not cover refund of
amortization payment
City of Davao vs. RTC
On real property taxes, GSIS tax exempt status in previous law
was withdrawn under RA 7160 but restored under sec. 39 RA
8291
In all cases, consistent ruling of SC, pursuant to sec. 39, the
funds of the GSIS, the properties are exempt from real property
taxes.
GSIS vs. City of Treasurer of Manila – dli mabasa
Legal Fees
A.M. No. 08-2-01-0, February 11, 2010
Facts:
GSIS seeks exemption from the payment of legal fees imposed
on government-owned or controlled corporations under section
Jesus Loves you! (John 15:13-15)
22, Rule 141 (legal fees) of the rules of court.
GSIS anchors its petition on section 39 of its
charter, RA 8291.
SC: GSIS you cannot be exempted. Why? Who grants you the
exemption? It is CONGRESS. While legal fees by the SUPREME
COURT. Therefore, if you have to rely on the law, then that will
undermine the independence between the two branches of the
government.
GSIS vs. NLRC (important)
Remember there is an indirect employer under the labor code.
Private respondents were security guards of a security agency
assigned to Tacloban branch of GSIS.
The security guards thereafter filed an illegal dismissal against
th
the agency and GSIS, separation pay, salary differential, 13
month and unpaid salary.
When there was an execution against GSIS for the money
claims, GSIS argued, you cannot touch our funds, invoking SEC.
39 of the Charter.
GSIS filed the present petition contending the error committed
because it is exempt from execution per charter.
SC:
The fact that there is no actual and direct employer – employee
relationship between petitioner and respondents does not
absolve the former from liability for the latter’s monetary
claims. When petitioner contracted DNL security’s services,
petitioner became an indirect employer of respondents,
pursuant to article 107 of the labor code.
After DNL security failed to pay respondents the correct wages
and other monetary benefits, petitioner, as principal, became
jointly and severally liable, as provided in articles 106 and 109
of the labor code.
Citing GSIS vs. RTC of Pasig. SC did not agree with petitioner
that the enforcement of the decision is impossible because its
charter unequivocally exempts it from execution.
Petitioner’s charter should not be used to evade its liabilities to
its employees, even to its indirect employees, as mandated by
the labor code.
PEOPLE nagpadungog2 napud balik ang contracting agency
echus sa LABOR. Maygawshhh!!!! Saup baya ko atong essay!!!!
PORTABILITY OF BENEFITS
(PORTABILITY LAW – RA 7699)
A member of GSIS who does not qualify for old age and other
benefits by reason of non-fulfilment of the required period of
service may be able to qualify for such benefits by
making use of the period during which he rendered services to
a private employer and for which contributions were paid to
SSS. This is allowed under RA 7699 (approved May 1, 1994)
TAKE NOTE: “in each of the systems”
EXAMPLE (on the basis of this definition): If a person was
employed in a private corporation and paid contribution to SSS
for 10 yrs then transferred to GSIS for another 10 years but it
was not enough in order to qualify for the retirement benefits.
- So, his length of service with SSS can be added to his
length of service to GSIS so he can qualify for
retirement benefits under GSIS.
- NOTE: while the person can qualify under GSIS, the
Benefit will only be limited to the contributions made
to GSIS. GSIS will not pay the supposed benefit
pursuant to SSS because that is another system
(explanation given by GSIS)
- BUT if you look at the provision of the law, in the
definition of portability and totalization, it is not a
must, it is not a prerequisite that ang kailangan
mag.una ang SSS nya magsunod ng GSIS because
portability is defined among others as “transfers from
one system to another”, there is no requirement that it
should start with SSS.
The Act instituted a limited portability scheme in the GSIS and
SSS by totalizing the worker’s credibility services or
contributions in each of the systems.
Portability – refers to transfer of funds for the benefit and
account of a worker who transfers from one system to the
other (RA 7699, sec. 2(b))
Totalization – refers to the process of adding up the periods of
creditable services or contributions in each of the systems for
purposes of eligibility and computation of benefits, for purposes
of totalization, overlapping periods of membership shall be
considered once only (sec.3)
It is possible that you may start employment with GSIS and later
on, you opt to qualify with SSS. And this time it is your length of
service with GSIS which can be added to your present length of
service to SSS to be able to qualify for the benefit under SSS.
Note: each of the system has this scheme  can be invoked in
both SSS and GSIS
Overlapping period – refers to the period during which a
worker contributes simultaneously to GSIS and SSS
Jesus Loves you! (John 15:13-15)
The totalization of service credits is only
resorted to when the retiree does not qualify for
benefits in either or both of the systems. (IMPORTANT, relate
this wih GAMOGAMO)
If a person is qualified to receive benefits granted by GSIS if
such right has not yet been exercised, then this principle does
not apply.
Gamogamo vs. PNOC, GR 141707, may 7, 2002
Facts: He used to work with DOH but na.abolish iya position sa
DOH (served 17 yrs), transferred to private employment and
while serving for a minimal number of years.
CONTENTION: ang iyang 17 years of service should be added
invoking RA 7699 because when SSS computed his number of
years with the private employment, ang iyang madawat would
only be 500k na retirement, BUT if including GSIS, it will reach
about 1.8M.
SC: you cannot invoke portability law since under GSIS law you
can qualify for separation benefits.
- and since you can qualify for separation benefits under
GSIS law assuming that you have NOT yet applied for it
(kay wa may facts didto if ni.apply ba xa or wala), you
cannot invoke portability law.
Held:
The totalization of service credits was resorted to only when the
retiree did not qualify for benefits in either or both the social
security system (SSS) and the government service insurance
system (GSIS). In this case, petitioner was qualified to receive
benefits granted by the GSIS, if such right hand not yet been
exercised.
In any case, petitioner’s fourteen years of service with the DOH
may not remain uncompensated because it may be recognized
by the GSIS pursuant to section 12 of GSIS act of 1977, as may
be determined by the GSIS. Since petitioner may be entitled to
some benefits from the GSIS, he cannot avail of the benefits
under RA 7699
Justices and judges cannot avail of the portability scheme
because their retirement is covered by special law.
- Their coverage under GSIS is only LIFE INSURANCE.
- They cannot invoke portability law.
ADDITIONAL: In SSS law, there is maternity. In GSIS, there is no
maternity.
Does that mean that government female employees have no
maternity leave? As far as 1940s, there was a law (ACT)
providing maternity benefits to female government officials.
Different schemes:
 - permanent regular, only 60 days (no distinction unlike
SSS)  maternity leave with pay
- Casual: can leave but without pay.

Jesus Loves you! (John 15:13-15)