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8/12/2019 RA 8291 GSIS Law
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RA 8291
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Introduction
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)
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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 ServiceCommission, 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).
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Objectives and scope:
Revised the 20-year old charter of GSIS (PD
1146)
Aims to expand and increase the coverage
and benefits of GSIS;
Introduce institutional reforms for GSIS tohave more flexibility and thus perform its
mission of providing social security
protection more effectively.
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Effectivity
June 24, 1997, 15 days after it was
published on June 9, 1997. It was approved
on May 30, 1997
Repeal of retirement laws PD 1146
RA 660
RA 1616
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Who are covered?Compulsory for all employees:
Appointive or elective
Whether temporary, casual, permanent orcontractual w/ e-e relationship
(so those under job orders are not covered)
Who are receiving basic pay or salary but not
per diems, honoraria or allowances; and
Who have not reached the compulsory
retirement age of 65 yrs.
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When coverage takes effect?
Upon the employees assumption to dutypursuant to a valid appointment or election
and oath of office.
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Are elective officials still covered after
their term of office 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.
On social security coverage, said official shall continue to
be a member and shall be entitled to benefits that providefor contingencies (death, disability or separation) subject
to satisfaction of eligibility conditions.
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Who are not covered?
Employees who have separate retirementschemes under special laws and are therefore
covered by their respective retirement laws,
such as the members of the Judiciary,
Constitutional Commissions, and other similarlysituated government officials;
Uniformed members of AFP & PNP including
BJMP;
Those who are not receiving basic pay or salary
Contractuals who have no employer and
employee relationship with the agencies they
serve
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When does a contractual have e-e
relationship with his employer?
Person was selected and engaged by the
employer
Employer pays the salary
Employer has the power of dismissal
Employer has the power to control the meansand the result of the work to be done
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Compensation
Is the basic pay or salary received by an
employee pursuant to this
election/appointment.
Does not include per diems, bonuses,
overtime pay, honoraria, allowances and any
other emoluments received in addition to
basic pay (RA 8291, Sec. 1)
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Contributions
Member Employer
First P10,000 9% 12%
In excess of P10,000 2% 12%
Who is responsible for remittance of contributions?
employer
Date of remittance?
First ten days of calendar month following the month to
which contributions apply.
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Effect of non-remittance?
All loan privileges of member shall be
suspended
Determination of eligibility to and computationof 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.
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Penal Provisions?
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
Employee, who after deducting, fails to
remit to GSIS within 30 days from date they
should be remitted
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Penal provisions?
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
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Membership in GSIS
Enjoyment of life insurance, retirement andother social security protection such as
disability, survivorship, separation andunemployment benefits
Members of judiciary and constitutional
commissions are covered by GSIS with lifeinsurance only; retirement laws aregoverned by special laws
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Is part time service included in the computation of
total service rendered?
As a rule, all full-time service with compensationfrom date of original appointment or election shall
be computed for purpose of determining retirement
benefits.
service shall mean full-time service w/
compensation. Part time service w/ compensation
shall be converted to full time equivalent.
Part-time shall be converted using a 40-hour perweek and 52-week per year as basis.
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Valdez v. GSIS
Petitioner would want SC to reverse CAruling rejecting his assertion that his
services rendered in the MECO, MMSU,
PHIVIDEC and as OIC Vice-Governor of
Ilocos Norte should be credited in the
computation of his retirement benefits .
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Benefits
Contingencies compensable?
Retirement
Separation (NOT BENEFITS IN SSS) Unemployment (not in SSS)
Disability
Survivorship Death (Life Insurance and Funeral)
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New benefits?
Unemployment benefit
Separation benefit
Improvement of existing benefits?
Increase in Average Monthly Compensation(AMC) Limit: from AMC limit of P3,000 to
P10,000
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Improvement of existing benefits?
Increase in the Revalued Average Monthly
Compensation (RAMC): from P140 to P700
Full enjoyment of 5-year lump sum benefit
(no more discounted per PD 1146 where
retiree receives only 52.17 months while it
is full 60 months at present)
Liberalization of eligibility requirements
Allocation of at least 40% of the Social
Insurance Fund SIF to member Loans
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BenefitsRetirement
Conditions: rendered at least 15 yrs. of service
at least 60 year old at time of retirement
not receiving monthly pension from permanent total
disability
Options:
- lump sum payment of basic monthly pension multipliedby 60 plus basic monthly pension for life upon
expiration of 5 years period- cash payment of 18 times the basic monthly pension
plus basic monthly pension for life payableimmediately upon retirement but without 5-yearguaranteed period.
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Retirement
If rendered at least 15 years service but is lessthan 60 years at time of separation or resignation,member will be entitled to cash payment
equivalent to 18 times his basic monthly pensionpayable at the time of separation or resignationand upon reaching the age of 60 years, he will beentitled to basic monthly pension payable monthlyfor life.
This is denominated as separation benefit butin reality a combination of separation andretirement benefits.
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Retirement
Entitlement to retirement is premised on serviceof at least 15 years.
Member who is 60 years old upon retirement butwith less than 15 years of service is not entitled toretirement. What he gets is a separation benefitconsisting of cash benefit equivalent to 100% of
his average monthly compensation for each year ofservice he paid contributions but not less thanP12,000 provided he has at least 3 years but lessthan 15 years of service.
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Retirement
Member who has at least 15 years of service may
retire at 60 or may continue in the service until 65
(compulsory retirement age) If he has less than 15 years, he may be allowed to
continue in the service in accordance with existing
civil service rules and regulations. Extension of
service is no longer mandatory in contrast to PD
1146.
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Notice by employer
It shall be the duty of the Employer to notify
its Employee at least Ninety (90) days in
advance of the date of his/her compulsory
retirement.
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Separation: Who are eligible?
Types:- rendered at least 3years 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 ifnot receiving monthly pension from permanent total
disability)
- rendered at least 15 years & who is below 60 at time ofresignation/separation
(cash payment equivalent to 15 times the basic Monthly
Pension payable upon separation plus monthly pension
starting 60)
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Separation
IRR, Rule II, Sec. 2.5:
Member separated for cause
automatically forfeit
Unless terms of resignation or separation provide
otherwise
Member separated not for cause
shall continue to be member & entitled subject to
qualification & other prescription
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Unemployment
The benefit is paid when a permanentemployee is involuntarily separated from
the service as a result of the abolition of his
office or position usually resulting from
reorganization.
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Disability
Any loss or impairment of the normalfunctions 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)
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Disability
Evaluation of disability as a contingency is
vested solely in GSIS ( IRR, Sec. 9.3.1)
General condition for entitlement is thatthe disability was not due to misconduct ,
notorious negligence, habitual
intoxication or willful intention to kill
himself or another (IRR, Sec. 9.3.2)
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Disability
Permanent Total Disability
A member who becomes permanently and totally
disabled when he/she is in the service and haspaid at least 180 monthly contributions (monthly
income benefit for life equivalent to basic monthly
pension plus cash payment equivalent to 18 times
his basic monthly pension effective on date of
disability)
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Permanent Total Disability
A member who becomes permanently and totally
disabled are eligible when (a) he is in the service at
time of disability or (b) separated from the service and
has paid at least 36 monthly contributions within the
last 5 years immediately preceding the disability or
has paid a total of at least 180 monthly contributions
(monthly income benefit for life equivalent to the basic
monthly pension)
A member who becomes permanently and totally
disabled when he is separated from service with atleast 3 years of service but has not paid 36 monthly
contributions within the last 5 years is still eligible
(cash payment equivalent to 100% of the AMC) for
every year of service but not less than P12,000)
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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
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Permanent Partial Disability
A member who becomes permanently and
partially disabled when
- when he is in the service at time of
disability; or
- separated from service and has paid 36
monthly contributions within the last 5
years immediately preceding the disability
or has paid a total of at least 180monthly
contributions.
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Permanent Partial?
Any finger
Any toe
One arm
One hand
One foot or leg
One or both ears
Hearing of one or both ears
Sight of one eye
Other cases as may be determined
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Temporary Total Disability
Accrues or arises when there is complete
but temporary incapacity to continue with amember's present employment or engage in
any gainful occupation due to the loss or
impairment of the normal function of thephysical and/or mental faculties of the
member. In effect, this loss or impairment
can be reversed to the point where themember can continue with his previous
employment or engage in another gainful
occupation
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Gainful employment
Any productive activity that provides themember with income at least equal to the
minimum compensation of government
employees (IRR, Sec. 1.17)
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Temporary Total Disability
A member who suffers temporary total disabilityfor reasons not due to grave misconduct, notorious
negligence, habitual intoxication or willful
intention to kill himself or another may be entitled
if:
- he is in service at time of disability and has
exhausted sick leave credits; or
- if separated, has rendered at least 3 years ofservice and has paid at least 6 monthly
contributions in the twelve month period
immediately preceding his disability.
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Disability
A written notice of sickness or injury shall
be given by a member or anybody in his/her
behalf within five (5) working days from the
date of the occurrence of the contingency.
An application for disability benefits must
be filed with the GSIS within Four (4) yearsfrom the date of the occurrence of the
contingency, fully supported by required
papers and documents.
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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 prescribed medication; or
(c) have himself/herself confined in a hospital without justifiable reason,
when such confinement is required by the GSIS; or
(d) avail himself/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 prescribedby 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.
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Survivorship
Those granted to surviving and qualifiedbeneficiaries of the deceased member or
pensioner to cushion them against the
adverse economic, psychological and
emotional loss resulting from the death of awage earner or pensioner.
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Survivorship
If at time of death, a member was in the service
with less than 3 years service or was separated
from the service with at least 3 years of serviceand has paid 36 monthly contributions within the
5-year period immediately preceding his death or
has paid a total of at least 180 monthly
contributions prior to death (primarybeneficiaries to receive survivorship pension plus
cash payment; secondary beneficiaries or legal
heirs entitled to cash payment)
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Survivorship
Primary Beneficiaries
The legitimate spouse, until he/she
remarries, and the dependent children.
Secondary Beneficiaries(a) the dependent parents; and
(b) the legitimate descendants
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Who are dependents?
(a) the legitimate spouse dependent for support;
(b) any legitimate, legitimated and/or legally
adopted child, including any illegitimate child, whois 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 defect
acquired prior to age of majority; and
(c) the parents dependent upon the member for
support.
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GSIS v. MontesclarosFacts:
SB member Nicolas Montesclaros married Milagros Orbiso.
Nicolas was a 72-year old widower when he marriedMilagros who was then 43 years old. Nicolas died. Milagros
then filed with the GSIS a claim for survivorship pension
under PD 1146. The GSIS denied the claim because under
Section 18 of PD 1146, the surviving spouse has no right to
survivorship pension if the surviving spouse contracted the
marriage with the pensioner within three years before the
pensioner qualified for the pension.
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SC:Section 18 of Presidential Decree No. 1146 void for being
violative of the constitutional guarantees 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 three-year
prohibited period. There is outright confiscation of benefits
due the surviving spouse without giving the survivingspouse 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 three years before the
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FuneralShall 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 years old but opts to retire under RA 1616; or
(e) a member who retired under RA 1616 prior to the
effectivity of RA 8282 with at 20 years service regardless of
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Funeral
Amount is initially P12,000 but shall be
increased to at least P18,000 after five
years.
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Funeral
The funeral benefit shall be paid to one of the
following in the order in which they appear
herein below:
(a) the 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 ex enses.
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Compulsory Life Insurance
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 FireProtection (BFP) and Bureau of Jail
Management and Penology.
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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.
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Life Insurance Benefits
Accidental Death BenefitWhen the death of the
member is accidental in accordance with Section
10.9.2 of IRR, the GSIS shall pay the designatedbeneficiaries or the legal heirs, as the case may be,
an additional amount equivalent to the face
amount of his/her compulsory insurance;
Waiver of Premiums. When a member isseparated due to total and permanent disability,
the contributions that may become due and
payable during the period of disability shall be
deemed waived and considered aid.
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Life Insurance Benefits
Cash Surrender Value (CSV). After his/her
insurance shall have been in force for one (1) year,
a member separated from the service prior to thematurity of the insurance may be paid the cash
value less any indebtedness thereon unless the
terms of his/her separation provide otherwise;
Insurance Loans. Upon application, a memberwho has been insured for at least one (1) year may
be granted an insurance loan in an amount not
exceeding Fifty Percent (50%) of the cash value of
his her insurance at the time of a lication.
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Life Insurance Benefits
Dividends. An annual dividend may be
granted to all members of the GSIS whose
life insurance is in force for at least one (1)
year, based on records submitted by the
employer. A Dividend Allocation Formula
shall be determined and circularized by theGSIS for this purpose.
Adjudication of Claims
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Adjudication of ClaimsGSIS has original & exclusive jurisdiction to settleany dispute arising under RA 8291 w/ respect to:
- coverage- entitlement to benefits
- collection & payment of contributions
- any other matter related to the any or all of the
foregoing which is necessary for theirdetermination
Which body of GSIS vested with Quasi-JudicialFunctions? Board of Trustees
Prescriptive Period ?
- 4 years from date of contingency except life &retirement which do not prescribe.
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Tax Exemption
RUBIA V. GSIS
- exemption of GSIS from execution
does not cover refund of amortization
payment
CITY OF DAVAO V. RTC
- on real property taxes, GSIS tax-exempt status in previous law was
withdrawn under RA 7160 but restored
under Sec. 39 RA 8291
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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 orcontrolled corporations under Section 22,
Rule 141 (Legal Fees) of the Rules of Court.
GSIS anchors its petition on Section 39 of its
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Issue:
May the legislature exempt GSIS from legal
fees imposed by the Court on government-
owned and controlled corporations and
local government units?
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SC:
Since the payment of legal fees is a vital component
of the rules promulgated by this Court concerning
pleading, practice and procedure, it cannot bevalidly annulled, changed or modified by Congress.
As one of the safeguards of this Court's
institutional independence, the power to
promulgate rules of pleading, practice andprocedure is now the Court's exclusive domain.
That power is no longer shared by this Court with
Congress, much less with the Executive.
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SC:Congress could not have carved out an exemption for the GSIS
from the payment of legal fees without transgressing
another equally important institutional safeguard of the
Court's independence fiscal autonomy. Any exemption
from the payment of legal fees granted by Congress to
government-owned or controlled corporations and local
government units will necessarily reduce the JDF and the
SAJF. Undoubtedly, such situation is constitutionally infirmfor it impairs the Court's guaranteed fiscal autonomy and
erodes its independence.
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What is the effect of re-employment?
A member who is re-employed is considered
a new entrant if he was paid separation or
retirement benefits corresponding to his
previous services.
P t bilit f b fit
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Portability of benefits
( Portability law RA 7699)
A member of GSIS who does not qualify for oldage and other benefits by reason of non-fulfillment
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 aprivate employer and for which contributions
were paid to SSS. This is allowed under RA 7699
(approved May 1, 1994)
The Act instituted a limited portability scheme in
the GSIS and SSS by totalizing the workers
creditable services or contributions in each of the
Systems.
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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]).
Totalizationrefers to the process of adding up theperiods 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 membershipshall be considered once only (Sec. 3)
Overlapping period refers to the period during
which a worker contributes simultaneously to