THEGOVERNMENT SERVICE
INSURANCE
SYSTEM ACT OF 1997REPUBLIC ACT NO.
8291
AN ACT
AMENDING
PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE
COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM,
INSTITUTING
REFORMS THEREIN AND FOR OTHER PURPOSES.
SECTION
1. Presidential Decree
No. 1146, as amended, otherwise known as the "Revised Government
Service
Insurance Act of 1977", is hereby further amended to read as
follows:
"SECTION 1.
Title. -The title
of this Act shall be: "The Government Service Insurance System Act
of
1997."
"A.
DEFINITIONS
"SEC. 2.
Definition of terms.-
Unless the context otherwise indicates, the following terms shall mean:
"(a) GSIS-
The Government Service Insurance
System created by Commonwealth Act No. 186;
"(b) Board-
The Board of Trustees of
the Government Service Insurance System;
"(c) Employer-
The national government,
its political subdivisions, branches, agencies or instrumentalities,
including
government-owned or controlled corporations, and financial institutions
with original charters, the constitutional commissions and the
judiciary;
"(d) Employee
or Member- Any person
receiving compensation while in the service of an employer as defined
herein,
whether by election or appointment, irrespective of status of
appointment,
including barangay and Sanggunian officials;
"(e)
Active Member- A member who is
not separated from the service;
"(f) Dependents-
Dependents shall be
the following: (a) the legitimate spouse dependent for support upon the
member or pensioner; (b) the legitimate, legitimated, legally adopted
child,
including the illegitimate child, who is unmarried, not gainfully
employed,
not over the age of majority, or is over 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;
"(g)
Primary beneficiaries- The legal
dependent spouse until he/she remarries and the dependent children;
"(h) Secondary
beneficiaries- The dependent
parents and, subject to the restrictions on dependent children, the
legitimate
descendants;
"(i) Compensation-
The basic pay or
salary received by an employee, pursuant to his election/appointment,
excluding
per diems, bonuses, overtime pay, honoraria, allowances and any other
emoluments
received in addition to the basic pay which are not integrated into the
basic pay under existing laws;
"(j) Contribution-
The amount payable
to the GSIS by the member and the employer in accordance with Section 5
of this Act;
"(k) Current
Daily Compensation- The
actual daily compensation or the actual monthly compensation divided by
the number of working days in the month of contingency but not to
exceed
twenty-two (22) days;
"(l) Average
Monthly Compensation (AMC)-
The quotient arrived at after dividing the aggregate compensation
received
by the member during his last thirty-six (36) months of service
preceding
his separation/retirement/ disability/death by thirty-six (36), or by
the
number of months he received such compensation if he has less than
thirty-six
(36) months of service: Provided, That the average monthly
compensation
shall in no case exceed the amount and rate as may be respectively set
by the Board under the rules and regulations implementing this Act as
determined
by the actuary of the GSIS: Provided, further, That initially
the
average monthly compensation shall not exceed Ten thousand pesos
(P10,000.00),
and premium shall be nine percent (9%) and twelve percent (12%) for
employee
and employer covering the AMC limit and below and two percent (2%) and
twelve percent (12%) for employee and employer covering the
compensation
above the AMC limit;
"(m) Revalued
average monthly compensation-
An amount equal to one hundred seventy percent (170%) of the first One
thousand pesos (P1,000.00) of the average monthly compensation plus one
hundred percent (100%) of the average monthly compensation in excess of
One thousand pesos (P1,000.00);
"(n) Lump
sum- The basic monthly pension
multiplied by sixty (60);
"(o) Pensioner-
Any person receiving
old-age permanent total disability pension or any person who has
received
the lump sum excluding one receiving survivorship pension benefits as
defined
in Section 20 of this Act;
"(p) Gainful
Occupation- Any productive
activity that provided the member with income at least equal to the
minimum
compensation of government employees;
"(q) Disability-
Any loss or impairment
of the normal functions of the physical and/or mental faculty of a
member
which reduces or eliminates his/her capacity to continue with his/her
current
gainful occupation or engage in any other gainful occupation;
"(r) Total
Disability- Complete incapacity
to continue with his present employment or engage in any gainful
occupation
due to the loss or impairment of the normal functions of the physical
and/or
mental faculties of the member;
"(s) Permanent
Total Disability- Accrues
or arises when recovery from the impairment mentioned in Section 2 (Q)
is medically remote;
"(t) Temporary
Total Disability- Accrues
or arises when the impaired physical and/or mental faculties can be
rehabilitated
and/or restored to their normal functions;
"(u) Permanent
Partial Disability-
Accrues or arises upon the irrevocable loss or impairment of certain
portion/s
of the physical faculties, despite which the member is able to pursue a
gainful occupation.
"B.
MEMBERSHIP
IN THE GSIS
"SEC. 3.
Compulsory Membership.
- Membership in the GSIS shall be compulsory for all employees
receiving
compensation who have not reached the compulsory retirement age,
irrespective
of employment status, except members of the Armed Forces of the
Philippines
and the Philippine National Police, subject to the condition that they
must settle first their financial obligation with the GSIS, and
contractuals
who have no employer and employee relationship with the agencies they
serve.
"Except for
the members of the judiciary and
constitutional commissions who shall have life insurance only, all
members
of the GSIS shall have life insurance, retirement, and all other social
security protections such as disability, survivorship, separation, and
unemployment benefits.
"SEC. 4.
Effect of Separation from
the Service. - A member separated from the service shall continue
to
be a member, and shall be entitled to whatever benefits he has
qualified
to in the event of any contingency compensable under this Act.
"C.
SOURCES
OF FUNDS
"SEC. 5.
Contributions. - (a)
It shall be mandatory for the member and employer to pay the monthly
contributions
specified in the following schedule:
"Monthly
Compensation
Percentage of Monthly
Compensation
Payable by
Member
Employer
I. Maximum Average
Monthly Compensation
(AMC) Limit and
Below
9.0%
12.0%
II. Over the Maximum
AMC Limit
-Up to the Maximum
AMC
Limit
9.0%
12.0%
-In Excess of the
AMC
Limit
2.0%
12.0%
"Members of the judiciary and constitutional
commissioners shall pay three percent (3%) of their monthly
compensation
as personal share and their employers a corresponding three percent
(3%)
share for their life insurance coverage.
"(b) The
employer shall include in its annual
appropriation the necessary amounts for its share of the contributions
indicated above, plus any additional premiums that may be required on
account
of the hazards or risks of its employee’s occupation.
"(c) It shall
be mandatory and compulsory
for all employers to include the payment of contributions in their
annual
appropriations. Penal sanctions shall be imposed upon employers who
fail
to include the payment of contributions in their annual appropriations
or otherwise fail to remit the accurate/exact amount of contributions
on
time, or delay the remittance of premium contributions to the GSIS. The
heads of offices and agencies shall be administratively liable for
non-remittance
or delayed remittance of premium contributions to the GSIS.
"SEC. 6.
Collection and Remittance
of Contributions. - (a) The employer shall report to the GSIS the
names
of all its employees, their corresponding employment status, positions,
salaries and such other pertinent information, including subsequent
changes
therein, if any, as may be required by the GSIS; the employer shall
deduct
each month from the monthly salary or compensation of each employee the
contribution payable by him in accordance with the schedule prescribed
in the rules and regulations implementing this Act.
"(b) Each
employer shall remit directly to
the GSIS the employee’s and employer’s contributions within the first
ten
(10) days of the calendar month following the month to which the
contributions
apply. The remittance by the employer of the contribution to the GSIS
shall
take priority over and above the payment of any and all obligations,
except
salaries and wages of its employees.
"SEC. 7.
Interest on Delayed Remittances.
- Agencies which delay the remittance of any and all monies due the
GSIS shall be charged interests as may be prescribed by the Board but
not
less than two percent (2%) simple interest per month. Such interest
shall
be paid by the employers concerned.
"SEC. 8.
Government Guarantee. -
The government of the Republic of the Philippines hereby guarantees the
fulfillment of the obligations of the GSIS to its members as and when
they
fall due.
"D.
BENEFITS
"SEC. 9.
Computation of the Basic
Monthly Pension. - (a) The basic monthly pension is equal to:
"1)
thirty-seven and one-half percent (37.5%)
of the revalued average monthly compensation; plus
"2) two and
one-half percent (2.5%) of said
revalued average monthly compensation for each year of service in
excess
of (15) years: Provided, That the basic monthly pension shall
not
exceed ninety percent (90%) of the average monthly compensation.
"(b) The
basic monthly pension may be adjusted
upon the recommendation of the President and General Manager of the
GSIS
and approved by the President of the Philippines in accordance with the
rules and regulations prescribed by the GSIS: Provided, however,
that the basic monthly pension shall not be less than One thousand and
three hundred pesos (P1,300.00): Provided, further, that the
basic
monthly pension for those who have rendered at least twenty (20) years
of service after the effectivity of this Act shall not be less than Two
thousand four hundred pesos (P2,400.00) a month.
"SEC. 10.
Computation of Service.
- (a) The computation of service for the purpose of determining the
amount
of benefits payable under this Act shall be from the date of original
appointment/election,
including periods of service at different times under one or more
employers,
those performed overseas under the authority of the Republic of the
Philippines,
and those that may be prescribed by the GSIS in coordination with the
Civil
Service Commission.
"(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.
"For the
purpose of this section, the term
service shall include full-time service with compensation: Provided,
that part-time and other services with compensation may be included
under such rules and regulations as may be prescribed by the GSIS.
"SEPARATION
BENEFITS
"SEC. 11.
Separation Benefits.
- The separation benefits shall consist of: (a) a cash payment
equivalent
to one hundred percent (100%) of his average monthly compensation for
each
year of service he paid contributions, but not less than Twelve
thousand
pesos (P12,000) payable upon reaching sixty (60) years of age upon
separation,
whichever comes later: Provided, that the member resigns or
separates
from the service after he has rendered at least three (3) years of
service
but less than fifteen (15) years; or
"(b) a cash
payment equivalent to eighteen
(18) times his basic monthly pension at the time of resignation or
separation,
plus an old-age pension benefit equal to the basic monthly pension
payable
monthly for life upon reaching the age of sixty (60): Provided,
that the member resigns or separates from the service after he has
rendered
at least fifteen (15) years of service and is below sixty (60) years of
age at the time of resignation or separation.
"SEC. 12.
Unemployment or Involuntary
Separation Benefits. - Unemployment benefits in the form of monthly
cash payments equivalent to fifty percent (50%) of the average monthly
compensation shall be paid to a permanent employee who is involuntarily
separated from the service due to the abolition of his office or
position
usually resulting from reorganization: Provided, That he has
been
paying integrated contributions for at least one (1) year prior to
separation.
Unemployment benefits shall be paid in accordance with the following
schedules:
"Contributions Made
Benefit Duration
1 year but less than 3
years
2 months
3 or more years but less than 6
years
3 months
6 or more years but less than 9
years
4 months
9 or more years but less than 11 years 5 months
11 or more years but less than 15 years 6 months
"The first
payment shall be equivalent to
two (2) monthly benefits. A seven-day (7) waiting period shall be
imposed
on succeeding monthly payments.
"All
accumulated unemployment benefits paid
to the employee during his entire membership with the GSIS shall be
deducted
from voluntary separation benefits.
"The GSIS
shall prescribe the detailed guidelines
in the operationalization of this section in the rules and regulations
implementing this Act.
"RETIREMENT
BENEFITS
"SEC. 13.
Retirement Benefits.
- (a) Retirement benefits shall be:
"(1) the lump
sum payment as defined in this
Act payable at the time of retirement plus an old-age pension benefit
equal
to the basic monthly pension payable monthly for life, starting upon
expiration
of the five-year (5) guaranteed period covered by the lump sum; or
"(2) cash
payment equivalent to eighteen (18)
months of his basic monthly pension plus monthly pension for life
payable
immediately with no five-year (5) guarantee.
"(b) Unless
the service is extended by appropriate
authorities, retirement shall be compulsory for an employee of
sixty-five
(65) years of age with at least fifteen (15) years of service: Provided,
That if he has less than fifteen (15) years of service, he may be
allowed
to continue in the service in accordance with existing civil service
rules
and regulations.
"SEC. 13-A.
Conditions for Entitlement.
- A member who retires from the service shall be entitled to the
retirement
benefits enumerated in paragraph (a) of Section 13 hereof: Provided,
That:
(1) he has
rendered at least fifteen years
of service;
(2) he is at
least sixty (60) years of age
at the time of retirement; and
(3) he is not
receiving a monthly pension
benefit from permanent total disability.
"SEC. 14.
Periodic Pension Adjustment.
- The monthly pension of all pensioners including all those
receiving
survivorship pension benefits shall be periodically adjusted as may be
recommended by the GSIS actuary and approved by the Board in accordance
with the rules and regulations prescribed by the GSIS.
"PERMANENT
DISABILITY BENEFITS
"SEC. 15.
General Conditions for
Entitlement. - A member who suffers permanent disability for
reasons
not due to his grave misconduct, notorious negligence, habitual
intoxication,
or willful intention to kill himself or another, shall be entitled to
the
benefits provided for under Sections 16 and 17 immediately following,
subject
to the corresponding conditions thereof.
"SEC. 16.
Permanent Total Disability
Benefits. - (a) If the permanent disability is total, he shall
receive
a monthly income benefit for life equal to the basic monthly pension
effective
from the date of disability: Provided, That:
(1) he is in
the service at the time of disability;
or
(2) if
separated from the service, he has
paid at least thirty-six (36) monthly contributions within the five (5)
year period immediately preceding disability, or has paid a total of at
least one hundred eighty (180) monthly contributions, prior to his
disability:
Provided, further, That if at the time of disability, he was in
the service and has paid a total of at least one hundred eighty (180)
monthly
contributions, in addition to the monthly income benefit, he shall
receive
a cash payment equivalent to eighteen (18) times his basic monthly
pension:
Provided, finally, That a member cannot enjoy the monthly
income
benefit for permanent disability and the old-age retirement
simultaneously.
"(b) If a
member who suffers permanent total
disability does not satisfy conditions (1) and (2) in paragraph (a) of
this section but has rendered at least three (3) years of service at
the
time of his disability, he shall be advanced the cash payment
equivalent
to one hundred percent (100%) of his average monthly compensation for
each
year of service he paid contributions, but not less than Twelve
thousand
pesos (P12,000.00) which should have been his separation benefit.
"(c) Unless
the member has reached the minimum
retirement age, disability benefit shall be suspended when:
"(1) he is reemployed; or
"(2) he recovers from his disability as
determined
by the GSIS, whose decision shall be final and binding; or
"(3) he fails to present himself for
medical
examination when required by the GSIS.
"(d) The
following disabilities shall be deemed
total and permanent:
"(1) complete loss of sight of both eyes;chanroblesvirtualawlibrary
"(2) loss of two (2) limbs at or above the
ankle or wrist;chanroblesvirtualawlibrary
"(3) permanent complete paralysis of two
(2) limbs;chanroblesvirtualawlibrary
"(4) brain injury resulting in incurable
imbecility or insanity; and
"(5) such other cases as may be determined
by the GSIS.
"SEC. 17.
Permanent Partial Disability
Benefits. - (a) If the disability is partial, he shall receive a
cash
payment in accordance with a schedule of disabilities to be prescribed
by the GSIS: Provided, That he satisfies either conditions (1)
or
(2) of Section 16 (a);
"(b) The
following disabilities shall be deemed
permanent partial:
"(1) complete and permanent loss of the use
of:
(i) any finger
(ii) any toe
(iii) one arm
(iv) one hand
(v) one foot
(vi) one leg
(vii) one or both ears
(viii) hearing of one or both ears
(ix) sight of both eyes
"(2) such other cases as my be determined
by
the GSIS.
"TEMPORARY
DISABILITY BENEFITS
"SEC. 18.
Temporary Total Disability
Benefits. - (a) A member who suffers temporary total disability for
reasons not due to any of the conditions enumerated in Section 15
hereof
shall be entitled to seventy-five percent (75%) of his current daily
compensation
for each day or fraction thereof of temporary disability benefit not
exceeding
one hundred twenty (120) days in one calendar year after exhausting all
his sick leave credits and collective bargaining agreement sick leave
benefits,
if any, but not earlier than the fourth day of his temporary total
disability:
Provided, That:
"(1) he is in the service at the time of
his disability; or
"(2) if separated, he has rendered at
least
three (3) years of service and has paid at least six (6) monthly
contributions
in the twelve-month period immediately preceding his disability.
"Provided,
however, That a member cannot
enjoy the temporary total disability benefit and sick leave pay
simultaneously:
Provided, further, That if the disability requires more
extensive
treatment that lasts beyond one hundred twenty (120) days, the payment
of the temporary total disability benefit may be extended by the GSIS
but
not to exceed a total of two hundred forty (240) days.
"(b) The
temporary total disability benefit
shall in no case be less than Seventy pesos (P70.00) a day.
"(c) The
notices required of the member and
the employer, the mode of payment, and the other requirements for
entitlement
to temporary total disability benefits shall be provided in the rules
and
regulations to be prescribed by the GSIS.
"SEC. 19.
Non-scheduled Disability.
- For injuries or illnesses resulting in a disability not listed in
the schedule of partial/total disability provided herein, the GSIS
shall
determined the nature of the disability and the corresponding benefits
therefor.
"SURVIVORSHIP
BENEFITS
"SEC. 20.
Survivorship Benefits.
- When a member or pensioner dies, the beneficiaries shall be
entitled
to survivorship benefits provided in Sections 21 and 22 hereunder
subject
to the conditions therein provided for. The survivorship pension shall
consist of:
(1) the basic survivorship pension which
is fifty percent (50%) of the basic monthly pension; and
(2) the dependent children’s pension not
exceeding fifty percent (50%) of the basic monthly pension
"SEC. 21.
Death of a Member. -
(a) Upon the death of a member, the primary beneficiaries shall be
entitled
to:
(1) survivorship pension: Provided,
That the deceased:
(i) was in the service at the time of his
death; or
(ii) if separated from the service,
has at
least three (3) years of service at the time of his death and has paid
thirty-six (36) monthly contributions within the five-year period
immediately
preceding his death; or has paid a total of at least one hundred eighty
(180) monthly contributions prior to his death; or
(2) the survivorship pension plus a cash
payment
equivalent to one hundred percent (100%) of his average monthly
compensation
for every year of service: Provided, That the deceased was in
the
service at the time of his death with at least three (3) years of
service;
or
(3) a cash payment equivalent to one
hundred
percent (100%) of his average monthly compensation for each year of
service
he paid contributions, but not less than Twelve thousand pesos
(P12,000.00):
Provided, That the deceased has rendered at least three (3)
years
of service prior to his death but does not qualify for the benefits
under
item (1) or (2) of this paragraph.
(b) The
survivorship pension shall be paid as
follows:
(1) when the dependent spouse is the only
survivor, he/she shall receive the basic survivorship pension for life
or until he/she remarries;chanroblesvirtualawlibrary
(2) when only dependent children are the
survivors, they shall be entitled to the basic survivorship pension for
as long as they are qualified, plus the dependent children’s pension
equivalent
to ten percent (10%) of the basic monthly pension for every dependent
child
not exceeding five (5), counted from the youngest and without
substitution;chanroblesvirtualawlibrary
(3) when the survivors are the dependent
spouse and the dependent children, the dependent spouse shall receive
the
basic survivorship pension for life or until he/she remarries, and the
dependent children shall receive the dependent children’s pension
mentioned
in the immediately preceding paragraph (2) hereof.
(c) In the
absence of primary beneficiaries,
the secondary beneficiaries shall be entitled to:
(1) the cash payment equivalent to one
hundred
percent (100%) of his average monthly compensation for each year of
service
he paid contributions, but not less than Twelve thousand pesos
(P12,000.00):
Provided, That the member is in the service at the time of
his death
and has at least three (3) years of service; or
(2) in the absence of secondary
beneficiaries,
the benefits under this paragraph shall be paid to his legal heirs.
(d) For
purposes of the survivorship benefits,
legitimate children shall include legally adopted and legitimated
children.
"SEC. 22.
Death of a Pensioner.
- Upon the death of an old-age pensioner or a member receiving the
monthly income benefit for permanent disability, the qualified
beneficiaries
shall be entitled to the survivorship pension defined in Section 20 of
this Act, subject to the provisions of paragraph (b) of Section 21
hereof.
When the pensioner dies within the period covered by the lump sum, the
survivorship pension shall be paid only after the expiration of the
said
period.
"FUNERAL
BENEFITS
"SEC. 23.
Funeral Benefits. -
The amount of the funeral benefits shall be determined and specified by
the GSIS in the rules and regulations but shall not be less than Twelve
thousand pesos (P12,000.00): Provided, That it shall be
increased
to at least Eighteen thousand pesos (P18,000.00) after five (5) years
and
shall be paid upon the death of:
(a) an active member as defined under
Section
2 (e) of this Act; or
(b) a member who has been separated from
the service, but who may be entitled to future benefit pursuant to
Section
4 of this Act; or
(c) a pensioner, as defined in Section 2
(o) of this Act; or
(d) a retiree who at the time of his
retirement
was of pensionable age under this Act but who opted to retire under
Republic
Act No. 1616.
"LIFE
INSURANCE
BENEFITS
"SEC. 24.
Compulsory Life Insurance.
- All employees except for Members of the Armed Forces of the
Philippines
(AFP) and the Philippine National Police (PNP) shall, under such terms
and conditions as may be promulgated by the GSIS, be compulsorily
covered
with life insurance, which shall automatically take effect as follows:
(1) for those employed after the
effectivity
of this Act, their insurance shall take effect on the date of their
employment;
(2) for those whose insurance will mature
after the effectivity of this Act, their insurance shall be deemed
renewed
on the day following the maturity or expiry date of their insurance;
(3) for those without any life insurance
as of the effectivity of this Act, their insurance shall take effect
following
said effectivity.
"SEC. 25.
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 in accordance with a dividends
allocation
formula to be determined by the GSIS.
"SEC. 26.
Optional Insurance. -
Subject to the rules and regulations prescribed by the GSIS, a member
may
apply for insurance and/or pre-need coverage embracing life, health,
hospitalization,
education, memorial plans, and such other plans as may be designed by
the
GSIS, for himself and/or his dependents. Any employer may likewise
apply
for group insurance coverage for its employees. The payment of the
premiums/installments
for optional insurance and pre-need products may be made by the insured
or his employer and/or any person acceptable to the GSIS.
"SEC. 27.
Reinsurance. - The
GSIS may reinsure any of its interests or part thereof with any private
company or reinsurer whether domestic of foreign: Provided, That
the GSIS shall submit an annual report on its reinsurance operations to
the Insurance Commission.
"E.
ADJUDICATION
OF CLAIMS AND DISPUTES
"SEC. 28.
Prescription. - Claims
for benefits under this Act except for life and retirement shall
prescribe
after four (4) years from the date of contingency.
"SEC. 29.
Facility of Payment. -
The GSIS shall prescribe rules and regulations to facilitate
payment
of benefits, proceeds, and claims under this Act and any other laws
administered
by the GSIS. Payments made by the GSIS prior to its receipt of an
adverse
claim, to a beneficiary or claimant subsequently found not entitled
thereto,
shall not bar the legal and eligible recipient to his right to demand
the
payment of benefits, proceeds, and claims from the GSIS, who shall,
however,
have a right to institute the appropriate action in a court of law
against
the ineligible recipient.
"SEC. 30.
Settlement of Disputes.
- The GSIS shall have original and exclusive jurisdiction to settle
any disputes arising under this Act and any other laws administered by
the GSIS.
The Board may
designate any member of the
Board, or official of the GSIS who is a lawyer, to act as hearing
officer
to receive evidence, make findings of fact and submit recommendations,
together with all documentary and testimonial evidence to the Board
within
thirty (30) working days from the time the parties have closed their
respective
evidence and filed their last pleading. The Board shall decide the case
within thirty (30) days from the receipt of the hearing officer’s
findings
and recommendations. The cases heard directly by the Board shall be
decided
within thirty (30) working days from the time they are submitted by the
parties for decision.
"SEC. 31.
Appeals. - Appeals
from any decision or award of the Board shall be governed by Rules 43
and
45 of the 1997 Rules of Civil Procedure adopted by the Supreme Court on
April 8, 1997 which will take effect on July 1, 1997: Provided,
That pending cases and those filed prior to July 1, 1997 shall be
governed
by the applicable rules of procedure: Provided, further, That
the
appeal shall take precedence over all other cases except criminal cases
when the penalty of life imprisonment or death or reclusion perpetua
is imposable.
The appeal
shall not stay the execution of
the order or award unless ordered by the Board, by the Court of Appeals
or by the Supreme Court and the appeal shall be without prejudice to
the
special civil action of certiorari when proper.
"SEC. 32.
Execution of Decision.
- When no appeal is perfected and there is no order to stay by the
Board, by the Court of Appeals or by the Supreme Court, any decision or
award of the Board shall be enforced and executed in the same manner as
decisions of the Regional Trial Court. For this purpose, the Board
shall
have the power to issue to the city or provincial sheriff or its
appointed
sheriff such writs of execution as may be necessary for the enforcement
of such decision or award, and any person who shall fail or refuse to
comply
with such decision, award, writ or process after being required to do
so
shall, upon application by the GSIS, be punished for contempt.
"SEC. 33.
Oaths, Witnesses, and
Production of Records. - When authorized by the Board, an official
or employee of the GSIS shall have the power to administer oath and
affirmation,
take deposition, certify to official acts, and issue subpoena ad
testificandum
and subpoena duces tecum to compel the attendance of
witnesses
and the production of books, papers, correspondences, and other records
deemed necessary as evidence in connection with any question arising
under
this Act. Any case of contumacy shall be dealt with in accordance with
the provisions of Section 580 of the Revised Administrative Code.
"F. FUNDS
OF THE GSIS
"SEC. 34.
Funds. - All contributions
payable under Section 5 of this Act together with the earnings and
accruals
thereon shall constitute the GSIS Social Insurance Fund. The said fund
shall be used to finance the benefits administered by the GSIS under
this
Act. In addition, the GSIS shall administer the optional insurance fund
for the insurance coverage described in Section 26 hereof, the
Employees’
Compensation Insurance Fund created under P.D. 626, as amended, General
Insurance Fund created under Act No. 656, as amended, and such other
special
funds existing or that may be created for special groups or persons
rendering
services to the government. The GSIS shall maintain the required
reserves
to guarantee the fulfillment of its obligations under this Act.
The funds of
the GSIS shall not be used for
purposes other than what are provided for under this Act. Moreover, no
portion of the funds of the GSIS or income thereof shall accrue to the
General Fund of the national government and its political subdivisions,
instrumentalities and other agencies including government-owned and
controlled
corporations except as may be allowed under this Act.
"SEC. 35.
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 except as
may be otherwise approved by the President of the Philippines on the
basis
of actuarial and management studies.
"SEC. 36.
Investment of Funds. -
The funds of the GSIS which are not needed to meet the current
obligations
may be invested under such terms and conditions and rules and
regulations
as may be prescribed by the Board: Provided, That investments
shall
satisfy the requirements of liquidity, safety/security and yield in
order
to ensure the actuarial solvency of the funds of the GSIS: Provided,
further, That the GSIS shall submit an annual report on all
investments
made to both Houses of Congress of the Philippines, to wit:
(a) in interest-bearing bonds or securities
or other evidence of indebtedness of the Government of the Philippines;chanroblesvirtualawlibrary
(b) in interest-bearing deposits or
securities
in any domestic bank doing business in the Philippines: Provided, That
in the case of such deposits, there shall not exceed at any time the
unimpaired
capital and surplus or total private deposits of the depository bank,
whichever
is smaller: Provided, further, That the said bank has prior
designation
as a depository for the purpose by the Monetary Board of the Central
Monetary
Authority;chanroblesvirtualawlibrary
(c) in direct housing loans to members and
group housing projects secured by first mortgage, giving priority to
the
low income groups and in short and medium term loans to members such as
salary, policy, educational, emergency stock purchase plan and other
similar
loans: Provided, That no less than forty percent (40%) of the
investible
fund of the GSIS Social Insurance Fund shall be invested for these
purposes;chanroblesvirtualawlibrary
(d) in bonds, securities, promissory notes
or other evidence of indebtedness of educational or medical
institutions
to finance the construction, improvement and maintenance of schools and
hospitals;chanroblesvirtualawlibrary
(e) in real estate property including
shares
of stocks involving real state property and investments secured by
first
mortgages on real estate or other collaterals acceptable to the GSIS: Provided,
That such investment shall, in the determination of the Board,
redound
to the benefit of the GSIS, its members as well as the general public;chanroblesvirtualawlibrary
(f) in debt instruments and other
securities
traded in the secondary markets;chanroblesvirtualawlibrary
(g) in loans to, or in bonds, debentures,
promissory notes or other evidence of indebtedness of any solvent
corporation
created or existing under the laws of the Philippines;chanroblesvirtualawlibrary
(h) in common and preferred stocks of any
solvent corporation or financial institution created or existing under
the laws of the Philippines listed in the stock exchange with proven
track
record of profitability over the last three (3) years and payment of
dividends
at least once over the same period;chanroblesvirtualawlibrary
(i) in domestic mutual funds including
investments
related to the operations of mutual funds; and
(j) in foreign mutual funds and in foreign
currency deposits or foreign currency-denominated debts,
non-speculative
equities and other financial instruments or other assets issued in
accordance
with existing laws of the countries where such financial instruments
are
issued: Provided, That these instruments or assets are listed
in
bourses of the respective countries where these instruments or assets
are
issued: Provided, further, That the issuing company has proven
track
record of profitability over the last three (3) years and payment of
dividends
at least once over the same period.
"SEC. 37.
Records and Reports.
- The GSIS shall keep and cause to keep such records as may be
necessary
for the purpose of making actuarial studies, calculations and
valuations
of the funds of the GSIS including such data needed in the computation
of rates of disability, mortality, morbidity, separation and retirement
among the members and any other information useful for the adjustment
of
the benefits of the members. The GSIS shall maintain appropriate books
of accounts to record its assets, liabilities, income, expenses,
receipts
and disbursement of funds and other financial transactions and
operations.
"SEC. 38.
Examination and Valuation
of the Funds. - The GSIS shall make a periodic actuarial
examination
and valuation of its funds in accordance with accepted actuarial
principles.
"SEC. 39.
Exemption from Tax, Legal
Process and Lien. - It is hereby declared to be the policy of the
State
that the actuarial solvency of the funds of the GSIS shall be preserved
and maintained at all times and that contribution rates necessary to
sustain
the benefits under this Act shall be kept as low as possible in order
not
to burden the members of the GSIS and their employers. Taxes imposed on
the GSIS tend to impair the actuarial solvency of its funds and
increase
the contribution rate necessary to sustain the benefits of this Act.
Accordingly,
notwithstanding any laws to the contrary, the GSIS, its assets,
revenues
including all accruals thereto, and benefits paid, shall be exempt from
all taxes, assessments, fees, charges, or duties of all kinds. These
exemptions
shall continue unless expressly and specifically revoked and any
assessment
against the GSIS as of the approval of this Act are hereby considered
paid.
Consequently, all laws, ordinances, regulations, issuances, opinions or
jurisprudence contrary to or in derogation of this provision are hereby
deemed repealed, superseded and rendered ineffective and without legal
force and effect.
"Moreover,
these exemptions shall not be affected
by subsequent laws to the contrary unless this section is expressly,
specifically
and categorically revoked or repealed by law and a provision is enacted
to substitute or replace the exemption referred to herein as an
essential
factor to maintain or protect the solvency of the fund, notwithstanding
and independently of the guaranty of the national government to secure
such solvency or liability.
"The funds
and/or the properties referred
to herein as well as the benefits, sums or monies corresponding to the
benefits under this Act shall be exempt from attachment, garnishment,
execution,
levy or other processes issued by the courts, quasi-judicial agencies
or
administrative bodies including Commission on Audit (COA) disallowances
and from all financial obligations of the members, including his
pecuniary
accountability arising from or caused or occasioned by his exercise or
performance of his official functions or duties, or incurred relative
to
or in connection with his position or work except when his monetary
liability,
contractual or otherwise, is in favor of the GSIS.
"G.
ADMINISTRATION
"SEC. 40.
Implementing Body.
- The Government Service Insurance System as created under Commonwealth
Act No. 186 shall implement the provisions of this Act.
"SEC. 41.
Powers and Functions of
the GSIS. - The GSIS shall exercise the following powers and
functions:
(a) to formulate, adopt, amend and/or
rescind
such rules and regulations as may be necessary to carry out the
provisions
and purposes of this Act, as well as the effective exercise of the
powers
and functions, and the discharge of duties and responsibilities of the
GSIS, its officers and employees;chanroblesvirtualawlibrary
(b) to adopt or approve the annual and
supplemental
budget of receipts and expenditures including salaries and allowances
of
the GSIS personnel; to authorize such capital and operating
expenditures
and disbursements of the GSIS as may be necessary and proper for the
effective
management and operation of the GSIS;chanroblesvirtualawlibrary
(c) to invest the funds of the GSIS,
directly
or indirectly, in accordance with the provisions of this Act;chanroblesvirtualawlibrary
(d) to acquire, utilize or dispose of, in
any manner recognized by law, real or personal property in the
Philippines
or elsewhere necessary to carry out the purposes of this Act;chanroblesvirtualawlibrary
(e) to conduct continuing actuarial and
statistical
studies and valuations to determine the financial €condition of the GSIS
and taking into consideration such studies and valuations and the
limitations
herein provided, re-adjust the benefits, contributions, premium rates,
interest rates or the allocation or re-allocation of the funds to the
contingencies
covered;chanroblesvirtualawlibrary
(f) to have the power of succession;chanroblesvirtualawlibrary
(g) to sue and be sued;chanroblesvirtualawlibrary
(h) to enter into, make, perform and carry
out contracts of every kind and description with any person, firm or
association
or corporation, domestic or foreign;chanroblesvirtualawlibrary
(i) to carry on any other lawful business
whatsoever in pursuance of, or in connection with the provisions of
this
Act;chanroblesvirtualawlibrary
(j) to have one or more offices in and
outside
of the Philippines, and to conduct its business and exercise its powers
throughout and in any part of the Republic of the Philippines and/or in
any or all foreign countries, states and territories: Provided, That
the GSIS shall maintain a branch office in every province where there
exists
a minimum of fifteen thousand (15,000) membership;chanroblesvirtualawlibrary
(k) to borrow funds from any source,
private
or government, foreign or domestic, only as an incident in the
securitization
of housing mortgages of the GSIS and on account of its receivables from
any government or private entity;chanroblesvirtualawlibrary
(l) to invest, own or otherwise participate
in equity in any establishment, firm or entity;chanroblesvirtualawlibrary
(m) to approve appointments in the GSIS
except
appointments to positions which are policy determining, primarily
confidential
or highly technical in nature according to the Civil Service rules and
regulations: Provided, That all positions in the GSIS shall be
governed
by the compensation and position classification system and
qualifications
standards approved by the GSIS Board of Trustees based on a
comprehensive
job analysis and audit of actual duties and responsibilities: Provided,
further, That the compensation plan shall be comparable with the
prevailing
compensation plans in the private sector and shall be subject to the
periodic
review by the Board no more than once every four (4) years without
prejudice
to yearly merit reviews or increases based on productivity and
profitability;chanroblesvirtualawlibrary
(n) to design and adopt an Early Retirement
Incentives Plan (ERIP) and/or financial assistance for the purpose of
retirement
for its own personnel;chanroblesvirtualawlibrary
(o) to fix and periodically review and
adjust
the rates of interest and other terms and conditions for loans and
credits
extended to members or other persons, whether natural or juridical;chanroblesvirtualawlibrary
(p) to enter into agreement with the Social
Security System or any other entity, enterprise, corporation or
partnership
for the benefit of members transferring from one system to another
subject
to the provisions of Republic Act No. 7699, otherwise known as the
Portability
Law;chanroblesvirtualawlibrary
(q) to be able to float proper instrument
to liquefy long-term maturity by pooling funds for short-term secondary
market;chanroblesvirtualawlibrary
(r) to submit annually, not later than June
30, a public report to the President of the Philippines and the
Congress
of the Philippines regarding its activities in the administration and
enforcement
of this Act during the preceding year including information and
recommendations
on board policies for the development and perfection of the programs of
the GSIS;chanroblesvirtualawlibrary
(s) to maintain a provident fund, which
consists
of contributions made by both the GSIS and its officials and employees
and their earnings, for the payments of benefits to such officials and
employees or their heirs under such terms and conditions as it may
prescribe;chanroblesvirtualawlibrary
(t) to approve and adopt guidelines
affecting
investments, insurance coverage of government properties, settlement of
claims, disposition of acquired assets, privatization or expansion of
subsidiaries,
development of housing projects, increased benefit and loan packages to
members, and the enforcement of the provision of this Act;chanroblesvirtualawlibrary
(u) any provision of law to the contrary
notwithstanding, to authorize the payment of extra remuneration to the
officials and employees directly involved in the collection and/or
remittances
of contributions, loan repayments, and other monies due to the GSIS at
such rates and under such conditions as it may adopt: Provided, That
the best interest of the GSIS shall be observed thereby;chanroblesvirtualawlibrary
(v) to determine, fix and impose interest
upon unpaid premiums due from employers and employees;chanroblesvirtualawlibrary
(w) to ensure the collection or recovery
of all indebtedness, liabilities and/or accountabilities, including
unpaid
premiums or contributions in favor of the GSIS arising from any cause
or
source whatsoever, due from obligors, whether public or private. The
Board
shall demand payment or settlement of the obligations referred to
herein
within thirty (30) days from the date the obligation becomes due, and
in
the event of failure or refusal of the obligor or debtor to comply with
the demand, to initiate or institute the necessary or proper actions or
suits, criminal, civil or administrative or otherwise, before the
courts,
tribunals, commissions, boards, or bodies of proper jurisdiction within
thirty (30) days reckoned from the expiry date of the period fixed in
the
demand within which to pay or settle the account;chanroblesvirtualawlibrary
(x) to design and implement programs that
will promote and mobilize savings and provide additional resources for
social security expansion and at the same time afford individual
members
appropriate returns on their savings/investments. The programs shall be
so designed as to spur socio-economic take-off and maintain continued
growth;
and
(y) to exercise such powers and perform
such
other acts as may be necessary, useful, incidental or auxiliary to
carry
out the provisions of this Act, or to attain the purposes and
objectives
of this Act.
"SEC. 42.
The Board of Trustees; its
Composition; Tenure and Compensation. - The corporate powers and
functions
of the GSIS shall be vested in and exercised by the Board of Trustees
composed
of the President and General Manager of the GSIS and eight (8) other
members
to be appointed by the President of the Philippines, one (1) of whom
shall
be either the President of the Philippine Public School Teachers
Association
(PPSTA) or the President of the Philippine Association of School
Superintendents
(PASS), another two (2) shall represent the leading organizations or
associations
of government employees/retirees, another four (4) from the banking,
finance,
investment, and insurance sectors, and one (1) recognized member of the
legal profession who at the time of appointment is also a member of the
GSIS. The Trustees shall elect from among themselves a Chairman while
the
President and General Manager of the GSIS shall automatically be the
vice-chairman.
The Trustees,
except the President and General
Manager who shall cease as trustee upon his separation, shall hold
office
for six (6) years without reappointment, or until their successors are
duly appointed and qualified. Vacancy, other than through the
expiration
of the term, shall be filled for the unexpired term only. The members
of
the Board shall be entitled to a per diem of Two thousand five hundred
pesos (P2,500.00) for each board meeting actually attended by them, but
not to exceed Ten thousand pesos (P10,000.00) a month and reasonable
transportation
and representation allowances as may be fixed by the Board.
"SEC. 43.
Powers and Functions of
the Board of Trustees. - The Board of Trustees shall have the
following
powers and functions:
"(a) to formulate the policies, guidelines
and programs to effectively carry out the purposes of this Act;chanroblesvirtualawlibrary
"(b) to promulgate such rules and
regulations
as may be necessary or proper for the effective exercise of the powers
and functions as well as the discharge of the duties and
responsibilities
of the GSIS, its officers and employees;chanroblesvirtualawlibrary
"(c) upon the recommendation of the
President
and General Manager, to approve the annual and supplemental budget of
receipts
and expenditures of the GSIS, and to authorize such operating and
capital
expenditures and disbursements of the GSIS as may be necessary or
proper
for the effective management, operation and administration of the GSIS;chanroblesvirtualawlibrary
"(d) upon the recommendation of the
President
and General Manager, to approve the GSIS organizational and
administrative
structure and staffing pattern, and to establish, fix, review, revise
and
adjust the appropriate compensation packages for the officers and
employees
of the GSIS and reasonable allowances, incentives, bonuses, privileges
and other benefits as may be necessary or proper for the effective
management,
operation and administration of the GSIS, which shall be exempt from
Republic
Act No. 6758, otherwise known as the Attrition Law;chanroblesvirtualawlibrary
"(e) to fix and periodically review and
adjust
the rates of interest and other terms and conditions for loans and
credits
extended to its members or other persons, whether natural or juridical;chanroblesvirtualawlibrary
"(f) the provision of any law to the
contrary
notwithstanding, to compromise or release, in whole or in part, any
claim
or settle liability to the GSIS, regardless of the amount involved,
under
such terms and conditions as it may impose for the best interest of the
GSIS;chanroblesvirtualawlibrary
"(g) to approve and adopt guidelines
affecting
investments, insurance coverage of government properties, settlement of
claims, disposition of acquired assets, development of housing
projects,
increased benefit and loan packages to members, and the enforcement of
the provisions of this Act;chanroblesvirtualawlibrary
"(h) to determine, fix, and impose interest
upon unpaid or unremitted premiums and/or contributions; and
"(i) to do and perform any and all acts
necessary,
proper or incidental to the attainment of the purposes and objectives
of
this Act.
"SEC. 44.
Appointment, Qualifications,
and Compensation of the President and General Manager and of other
Personnel.
- The President and General Manager of the GSIS shall be its Chief
Executive Officer and shall be appointed by the President of the
Philippines.
He shall be a person with management and investments expertise
necessary
for the effective performance of his duties and functions under this
Act.
"The GSIS
President and General Manager shall
be assisted by one or more executive vice-presidents, senior
vice-presidents
and managers in addition to the usual supervisory and rank-and-file
positions
who shall be appointed and removed by the President and General Manager
with the approval of the Board, in accordance with the existing Civil
Service
rules and regulations.
"SEC. 45.
Powers and Duties of the
President and General Manager. - The President and General Manager
of the GSIS shall, among others, execute and administer the policies
and
resolutions approved by the Board and direct and supervise the
administration
and operations of the GSIS. The President and General Manager, subject
to the approval of the Board, shall appoint the personnel of the GSIS,
remove, suspend or otherwise discipline them for cause, in accordance
with
the existing Civil Service rules and regulations, and prescribe their
duties
and qualifications to the end that only competent persons may be
employed.
"SEC. 46.
Auditor. - (a) The
Chairman of the Commission on Audit shall be the ex officio
auditor
of the GSIS, and the necessary personnel to assist said representative
in the performance of his duties.
"(b) The
Chairman of the Commission on Audit
or his authorized representatives, shall submit to the Board soon after
the close of each calendar year, an audited statement showing the
financial
condition and progress of the GSIS for the calendar year just ended.
"SEC. 47.
Legal Counsel. - The
Government Corporate Counsel shall be the legal adviser and consultant
of the GSIS, but the GSIS may assign to the Office of the Government
Corporate
Counsel (OGCC) cases for legal action or trial, issues for legal
opinions,
preparation and review of contracts/agreements and others, as the GSIS
may decide or determine from time to time: Provided, however, That
the present legal services group in the GSIS shall serve as its
in-house
legal counsel.
"The GSIS
may, subject to approval by the
proper court, deputize any personnel of the legal service group to act
as special sheriff in the enforcement of writs and processes issued by
the court, quasi-judicial agencies or administrative bodies in cases
involving
the GSIS.
"SEC. 48.
Powers of the Insurance
Commission. - The Insurance Commissioner or his authorized
representatives
shall make an examination of financial condition and methods of
transacting
business of the GSIS at least once every three (3) years and the report
of said examination shall be submitted to the Board of Trustees and
copies
thereof be furnished the Office of the President of the Philippines and
the two houses of the Congress of the Philippines within five (5) days
after the close of examination: Provided, however, That for
each
examination, the GSIS shall pay the office of the Insurance
Commissioner
an amount equal to the actual expenses incurred by the said office in
the
conduct of examination, including the salaries of the examiners and of
the actuary of such examination for the actual time spent.
"H.
GENERAL
PROVISION
"SEC. 49.
Dispensation of Social
Insurance Benefits. - (a) 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 the retirement;
"(b) The GSIS
shall discontinue the processing
and adjudication of retirement claims under R.A. No. 1616 except refund
of retirement premium under R. A. No. 910. Instead, all agencies
concerned
shall process and pay the gratuities of their employees. The Board
shall
adopt the proper rules and procedures for the implementation of this
provision.
"SEC. 50.
Development and Disposition
of Acquired Assets. - 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.
"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
property
or acquired assets to determine its current market value. All notices
of
sale shall be published in newspapers of general circulation.
"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.
"SEC. 51.
Government Assistance
to the GSIS. - The GSIS may call upon any employer for such
assistance
as may be necessary in the discharge of its duties and functions.
"I. PENAL
PROVISIONS
"SEC. 52.
Penalty. - (a) 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.
"(b) Whoever
shall obtain or receive any money
or check invoking any provision of this Act or any agreement
thereunder,
without being entitled thereto with the intent to defraud any member,
any
employer, the GSIS, or any third party, shall be punished by a fine of
not less than Five thousand pesos (P5,000.00) nor more than Twenty
thousand
pesos (P20,000.00) or by imprisonment of not less than six (6) years
and
one (1) day to twelve (12) years, or both, at the discretion of the
court.
"(c) Whoever
fails or refuses to comply with
the provisions of this Act or with the rules and regulations adopted by
the GSIS, shall be punished by a fine of not less than Five thousand
pesos
(P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or
imprisonment
of not less than six (6) years and one (1) day to twelve (12) years, or
both, at the discretion of the court.
"(d) The
treasurer, finance officer, cashier,
disbursing officer, budget officer or other official or employee who
fails
to include in the annual budget the amount corresponding to the
employer
and employee contributions, or who fails or refuses or delays by more
than
thirty (30) days from the time such amount becomes due and demandable,
or to deduct the monthly contributions of the employee shall, upon
conviction
by final judgment, suffer the penalties of imprisonment from six (6)
months
and one (1) day to six (6) years, and a fine of not less than Three
thousand
pesos (P3,000.00) but not more than Six thousand pesos (P6,000.00), and
in addition, shall suffer absolute perpetual disqualification from
holding
public office and from practicing any profession or calling licensed by
the government.
"(e) Any
employee or member who receives or
keeps fund or property belonging, payable or deliverable to the GSIS
and
appropriates the same, or takes or misappropriates or uses the same for
any purpose other than authorized by this Act, or permits another
person
to take, misappropriate or use said fund or property by expressly
consenting
thereto, or through abandonment or negligence, or is otherwise guilty
of
the misappropriation of said fund or property, in whole or in part,
shall
suffer the penalties provided in Article 217 of the Revised Penal Code,
and in addition, shall suffer absolute perpetual disqualification from
holding public office and from practicing any profession or calling
licensed
by the government.
"(f) Any
employee who, after deducting the
monthly contribution or loan amortization from a member’s compensation,
fails to remit the same to the GSIS within thirty (30) days from the
date
they should have been remitted under Section 6(a), shall be presumed to
have misappropriated such contribution or loan amortization and shall
suffer
the penalties provided in Article 315 of the Revised Penal Code, and in
addition, shall suffer absolute perpetual disqualification from holding
public office and from practicing any profession or calling licensed by
the government.
"(g) The
heads of the offices of the national
government, its political subdivisions, branches, agencies and
instrumentalities,
including government-owned or controlled corporations and government
financial
institutions, and the personnel of such offices who are involved in the
collection of premium contributions, loan amortization and other
accounts
due the GSIS who shall fail, refuse or delay the payment, turnover,
remittance
or delivery of such accounts to the GSIS within thirty (30) days from
the
time that the same shall have been due and demandable shall, upon
conviction
by final judgment, suffer the penalties of imprisonment of not less
than
one (1) year nor more than five (5) years and a fine of not less than
Ten
thousand pesos (P10,000.00) nor more than Twenty thousand pesos
(P20,000.00),
and in addition, shall suffer absolute perpetual disqualification from
holding public office and from practicing any profession or calling
licensed
by the government.
"(h) The
officers and/or personnel referred
to in paragraph (g) of this section shall be liable not only criminally
but also civilly to the GSIS or to the employee or member concerned in
the form of damages, including surcharges and interests.
"(i) For the
charges or complaints referred
to in paragraph (g) of this section, the liabilities therein set forth
shall be construed as waiver of the State of its immunity from suit,
hence,
the above-mentioned officials and/or personnel may not invoke the
defense
of non-suability of the State.
"(j) Failure
of the Members of the GSIS Board,
including the chairman and the vice-chairman, to comply with the
provisions
of paragraph (w) of Section 41 hereof, shall subject them to
imprisonment
of not less than six (6) months nor more than one (1) year or a fine of
not less than Five thousand pesos (P5,000.00) nor more than Ten
thousand
pesos (P10,000.00) without prejudice to any civil or administrative
liability
which may also arise therefrom.
"(k) Criminal
actions arising from violations
of the provisions of this Act may be commenced by the GSIS or by the
aggrieved
member, either under this Act or, in appropriate cases, under the
Revised
Penal Code.
"SEC. 53.
Implementing Rules and
Regulations. - The implementing rules and regulations to carry out
the provisions of this Act shall be adopted and promulgated by the GSIS
not later than ninety (90) days after the approval of this Act.
"SEC. 54.
Non-impairment of Benefits,
Powers, Jurisdiction, Rights, Privileges, Functions and Activities. -
Nothing in this Act shall be construed to repeal, amend or limit any
provision
of existing laws, Presidential Decrees and Letters of Instructions, not
otherwise specifically inconsistent with the provisions of this Act.
"SEC. 55.
Exclusiveness of Benefits.
- Whenever other laws provide similar benefits for the same
contingencies
covered by this Act, 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 law chosen are less than the benefits provided
under this Act, the GSIS shall pay only the difference.
"SEC. 56.
Appropriations. -
The amount necessary to carry out the provisions of this Act shall be
included
in the respective budgets of the agencies in the national government
obligation
program of the year following its enactment into law and thereafter."
SEC. 2.
Separability Clause. -
Should any provision of this Act or any part thereof be declared
invalid,
the other provisions, so far as they are separable from the invalid
ones,
shall remain in force and effect.
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
acquired
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
subsequent
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.
SEC. 4.
Effectivity. -
This Act shall take effect fifteen (15) days after its publication in
the
Official Gazette or in at least two (2) newspapers of general
circulation.
This Act,
which is a consolidation of Senate
Bill No. 2013 and House Bill No. 8561, was finally passed by the Senate
and the House of Representatives on May 29, 1997 and May 28, 1997,
respectively.
Approved: May 30, 1997
(Sgd.) FIDEL V. RAMOSPresident of the Philippines |