gsis report

Government Service Insurance System

Group 2

Galano, Jahaziel Dumlao, AlyssaAzcueta, Carmie

Agacia, GloryLayaoen, Germy VianYadao, Shella Marie

Cariño, Triscia AbigailRivera, Abigail Anne

Malabed, IsazenSalvador, LhesleeAgtang, KristineTriste, 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 amount.

TYPES OF MEMBERS

REGULAR MEMBERSThose employed by the government of the Republic of the

Philippines

SPECIAL MEMBERSAre 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 MEMBERRefers 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 MEMBERA 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 MembersEffective June 24, 1997 and up to December 31,

2002, the amount of contributions shall be computed as follows:

Monthly Compensation (MC) Rate of Contribution

Member Government Agency

If MC is equal to or less than the prevailingAverage Monthly Compensation (AMC)during a particular period

9%

12%

If MC is greater than the prevailing AMCduring a particular period:• Up to the maximum AMC limit• Amount in excess of the AMC limit

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 agency’s 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 agency’s 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?

• 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.

Minimum Premium Payments Required

Maximum Loan Amount (Basic Monthly Salary)

25 years 14 –month loan




40 months 4 –month loan

20 months 3 –month loan

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 or G-W@PS kiosk placed in all GSIS servicing offices and select government agencies. Those still using the old eCard can apply for the loan, over-the-counter, 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 the G-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?

BENEFITS

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

• 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.


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.


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.


ACCIDENTAL DEATH BENEFIT

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


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 Life Endowment Policy (LEP)

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.


DEATH BENEFIT

= (Latest Annual Salary x 1.5 (AOI factor)) - Outstanding Obligations


TERMINATION VALUE

Monthly Life Insurance PremiumX 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

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) May 31, 1977

RA 1616 (Gratuity Benefit) May 31, 1957

RA 660 (Magic 87) June 16, 1951

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.



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

Computation for Basic Monthly Salary:

BMP= ( 2.5%) ( AMC + P700) (PPP)

Where:AMC= average monthly salaryPPP= periods with paid premiums


Computation of AMC:

1. If your PPP is less than 36 months:

Member’s total compensation(with corresponding paid premiums) prior to employment/disability/death

AMC= Actual number of months such compensation was received


Computation of AMC:

2. If your PPP is 36 months or more:

Member’s 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.


Sample computation:


BASIC DATAName Juan dela CruzOffice DepEd Pulang LupaDate of Birth June 20, 1952Date of entry in service March 1, 1978Date of retirement January 1, 2014PPP 31. 86574AMC P 23, 805.55Highest Salary Received P 25, 000. 00Age of Retirement 61. 52 years old

Computation:

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

= P 19, 522.18


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


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 When Benefit is payable

Age: below 60PPP: at least 3 but less than 15 years

= (100% AMC)

(PPP)

At age 60

Age: below 60PPP: at least 15 years

= 18 BMP

Upon Separation; BP for life to start

at age 60Age: at least 60PPP: at least 3 years but less than 15 years

= (100% AMC)

(PPP)

Immediately

Presidential Decree 1146 ( Pension or Cash Payment)

Eligibility1. 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.


Benefits1. 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.


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)



BASIC DATAName Pedro JoseOffice DepEdPosition Teacher 1Date of Birth March 21, 1940Date of retirement March 21, 1996PPP 20. 22146AMC P 3, 000.00RAMC (AMC+ P140) P 3, 140.00Highest 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.

Benefits:

2. Cash Payment

Cash payment= (AMC) (PPP)


Republic Act 1616 ( Gratuity Benefit)

Eligibility1. 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.


Benefits

1. Gratuity pay or benefit

2. Refund of Retirement premiums

Gratuity Months Factor

First 20 years of service X 1 month

21- 30 years of service X 1.5 months

In excess of 30 years of service

X 2 months


Sample Computation:

BASIC DATAName Juan dela CruzOffice DepEd Pulang LupaDate of Birth June 20, 1947Date of entry in service March 1, 1973Date of retirement January 1, 2009PPP 31. 86574AMC P 23, 805.55Highest Salary Received P 25, 000. 00Age of Retirement 61. 52 years old

Computation:1. Gratuity Months: 20 years X 1 = 2010 years X 1.5 = 151.86574 X 2 = 3.7315Total Gratuity Months= 38.7315 2. Gratuity benefit: = (Gratuity months)(Highest salary received)= (38.7315)(25, 000)= P 968, 287.5

Republic Act 660 (Magic 87)Eligibility1. 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.


Benefits


Retirement Age Benefit

63 and above 5- year lump sum

Below 63 but at least 60

Initial 3- year lump sum payable upon retirement; and

Subsequent 2- year balance payable at age 63

Below 60 Monthly pension paid annually- with discount

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


An actuarial adjustment factor:

Table of Actuarial Adjustment Factors

Age 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Factor

0.87 0.89 0.92 0.94 0.97 1.00 1.03 1.06 1.08 1.11 1.15 1.16 1.20 1.24

Sample Computation:

BASIC DATAName Juan dela CruzOffice DepEd Pulang LupaDate of Birth June 20, 1947Date of entry in service March 1, 1973Date of retirement January 1, 2009PPP 31. 86574Number of years after June 16, 1951 (M) 31. 86574Number of years before June 16, 1951 (P) 0AMC P 23, 805.55Age of Retirement 61. 52 years old

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

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

Computation:

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 PROBLEMBasic 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

Age at retirement : 56 yrs old

Date processed : Jan. 16, 2014

3. SSS shall compute and grant the benefit for his period of employment under SSS from Dec. 10, 1979 to December 15, 1986

SECTION 22UNEMPLOYMENT 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 23DISABILITY 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 PTD1. Complete loss of sight of both eyes2. Loss of 2 limbs at or above the ankle or wrist3. Permanent complete paralysis of 2 limbs4. Brain injury resulting in incurable imbecility, insanity

or other irreversible conditions5. 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 disability2.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 24SURVIVORSHIP 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 25FUNERAL BENEFITS

QUALIFIED INDIVIDUALS

1. Your legitimate spouse2. 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 member2. 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. Coverage of government agencies and employees2. Entitlement of members to benefits 3. Collection and payment of contributions4. Housing loans and all its related policies, procedures and

guidelines5. Optional Life Insurance and Pre-Need Benefits6. Criminal actions arising from this Act7. Any other matter

What are the Powers and Duties of a Hearing officer?

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

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 merits of the case with the end in view of promoting justice and equity.

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 Verification2. 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 dismiss2. Motions for a bill of particulars3. Motions for new trial, or for reopening of trial4. Petitions for relief from judgment5. Motions for extension of time to file pleading, affidavits or any

other paper6. Memoranda7. Petition for certiorari, mandamus prohibitions against any

interlocutory order issued by the Board or Hearing Officer8. Motion to declare the defendant in default9. Dilatory motions for postponement10.Replies11.Third party complaints12.Interventions

Proceedings before the Hearing Officer

1. Preliminary Conference2. Affidavits, Hearing and Judgment3. Findings and Recommendations of Hearing Officers4. Decision of the Board5. 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 Board6. 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 FundsThe 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

• 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

How to File Criminal Case

• 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.

• 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.

Penalties under Article 172 of the Revised Penal Code

• PenaltyPrision 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

Art. 172. FALSIFICATION

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

Other Penalties:

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 perpetual disqualification

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

Note: These Punishments are cumulative in character

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 suffer

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.

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

Art. 217. MALVERSATION

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 yrs2. Prision Mayor- 6 yrs and 1 day to 12 yrs3. Reclusion Temporal- 12 yrs and 1 day to 20 yrs4. 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 perpetual disqualification

• 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;

Art. 315 SWINDLING

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

4. 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:

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 of1. Imprisonment

-not less than 1 year nor more than 5 years

2. Fine -not less than P10,000.00 nor

more than P20,000.003. 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 60Dispensation 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 61Development 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.

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