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DELIMA
Bachelor of Laws 2
Agrarian Reform and Social Legislation
SOCIAL LEGISLATION
Government Service Insurance System
I. What is GSIS?
The GSIS is a social insurance institution created under Commonwealth Act
Number 186 that was passed on November 14, 1936, and later amended under
Republic Act No. 8291 dated June 24, 1997. To secure the future of all employees of the
Philippine government, it provides and administers a pension fund that has the following
social security benefits: compulsory life insurance, optional life insurance, retirement
benefits, and disability benefits for work-related accidents and death benefits.
III. Membership
Compulsory Membership
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, all government personnel, whether elective or
appointive, irrespective of status of appointment, provided they are receiving fixed
monthly compensation and have not reached the mandatory retirement age of 65 years,
are compulsorily covered as members of the GSIS and shall be required to pay
contributions.
However, employees who have reached the retirement age of 65 or more shall
also be covered, subject to the following rules:
1.
2.
An elective official who at the time of election to public office is below 65 years of
age and will be 65 years or more at the end of his term of office, including the
period/s of his re-election to public office thereafter without interruption.
Appointive officials who, before reaching the mandatory age of 65, are appointed
to government position by the President of the Republic of the Philippines and
shall remain in government service at age beyond 65.
Type of members:
1.
2.
B.
Status of membership:
1.
2.
Employers Share
(Government)
9%
of Actual Monthly Salary
12%
of Actual Monthly Salary
Each government agency shall remit directly to the GSIS the employees and
government agencys contributions within the first Ten (10) days of the calendar
month following the month to which the contributions apply. The remittance by
the government agency of the contributions to the GSIS shall take priority over
and above the payment of any and all obligations, except salaries and wages of
its employees.
2.
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.
3.
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.
4.
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.
3.
Agency pays not less than two percent (2%) interest per month on unremitted
collections computed from the due date and until the time GSIS receives the
payments
The head of your agency including the finance officer, cashier and other officials
who failed to remit to GSIS the loan amortizations will face administrative and
criminal charges and if convicted by the court, will be imprisoned from one to five
years and be fined with amount ofP10,000.00 to P20,000.00
Those convicted for failure to remit loan amortizations will pay the surcharges
and interests incurred from the unpaid loans of all the agencys members
of the average monthly compensation (AMC). The unemployment benefit shall be paid
in accordance with the following schedule.
1.
2.
3.
4.
5.
If the contributions have been made for a period of 1 year but less than 3
years, the benefit duration is for 2 months.
If the contributions have been made for a period of 3 or more years but less
than 6 years, the benefit duration is for 3 months.
If the contributions have been made for a period of 6 years or more but less
than 9 years, the benefit duration is for 4 months.
If the contributions have been made for a period of 9 years or more but less
than 11 years, the benefit duration is for 5 months.
If the contributions have been made for a period of 11 years or more but less
than 15 years, the benefit duration is for 6 months.
Those entitled to more than two (2) months of Unemployment Benefits shall
initially receive two (2) monthly payments. A seven-day (7-day) waiting period shall be
imposed on succeeding monthly payments to determine whether the separated member
has found gainful employment either in the public or private sector.
In cases of reemployment, all accumulated unemployment benefit paid to the
employee during his/her entire membership with the GSIS shall be deducted without
interest from the separation or retirement benefits, as the case maybe, to which the
member may be entitled to upon his voluntary resignation, separation or retirement.
Retirement Benefits
A member who has reached the age of 60 years and who has at least 15 years
of creditable service rendered may retire from active service and receive the retirement
benefits, provided the member is not receiving a monthly pension from permanent total
disability. The retirement benefit consists of a monthly pension which is computed
based on years of creditable service and AMC for the last 3 years. A retiring member
has the following options:
1. Five (5) year lump sum equivalent to sixty (60) months of the BMP, subject to
qualification requirements, less all outstanding obligations of the member in
accordance with the CLIP, plus an old-age pension benefit equal to the BMP
payable for life, starting on the first day of the month following the expiration of
the five year guaranteed period;
2. A cash payment benefit equivalent to eighteen (18) times of the BMP, subject to
qualification requirements, less all outstanding obligations of the member in
accordance with the CLIP, plus monthly pension for life payable on the first
month following the date of retirement;
Change of retirement benefit option from eighteen (18) months cash payment
plus immediate pension to five (5) year lump sum, or vice versa, shall not be allowed.
Conversion in the mode of retirement from R.A. No. 8291 to any other retirement laws
and vice versa administered by the GSIS shall not be allowed. Those who became
GSIS members prior to the implementation of this Act shall have the option to retire
under PD 1146, RA 660, or RA 1616, subject to eligibility.
Processing of Retirement Benefits of Qualified Members Who Died While their Claims
are Being Processed
a. If the deceased member opted for five year lump sum benefit as indicated in
his/her claim for retirement application, his legal heirs shall be entitled to fiveyear lump sum benefit equivalent to sixty (60) months basic monthly pension
(BMP). However, the survivorship pension to qualified primary beneficiaries, if
any, shall be granted after the end of the 5-year guaranteed period, but filing of
claim for survivorship benefit should be done before the end of the 4-year
prescription period.
b. If the deceased member opted for immediate pension as indicated in his/her
claim for retirement benefit his legal heirs shall be entitled to retirement benefits
equivalent to eighteen (18) months of BMP, plus accrued pension, if any, up to
the date of death of the retiree. The corresponding survivorship pension shall
be paid to the qualified primary beneficiaries, if any, and shall be computed
from the date of death of the retiree, subject to filing of claim.
c. In case the deceased member failed to indicate in his/her retirement option, it
shall be computed as if he/she opted for immediate pension.
d. The proceeds of retirement benefits shall be paid and distributed to the legal
heirs in accordance with the law on succession under the Civil Code of the
Philippines.
Effects of Re-Employment
When a retired/separated member is re-employed or reinstated in the service,
his/her previous services credited at the time of his/her retirement/separation for which
a corresponding benefit had been awarded, shall be excluded in the computation of
service. In effect, he/she shall be considered a new entrant.
However, for those who retired prior to the enactment of RA 8291, the previous
services of a retired/separated member may be added in the computation of his
creditable services (subject to premium-based policy) upon subsequent retirement
under RA 8291 only when both conditions are met:
a. the retiree re-entered government service before June 24, 1997;
b. the total amount of benefit previously received, if any, including the prescribed
interest was refunded to GSIS on or before March 2, 2006
Computation of Total Service and Creditable Service
Total Length of Service (TLS) is the number of years in government service
regardless of status of employment, with or without premium contributions.
For purposes of computing the total length of service under part-time status of
employment, services shall be converted to their full-time equivalent using forty-hour
week and fifty two-week a year as basis.
The computation of creditable service for the purpose of determining the amount
of benefits payable shall include the period or periods of service with the required
premium contributions.
Computation of Average Monthly Compensation (AMC)
The AMC shall be computed on the basis of the average salary of the member
for the last 36 months of creditable service immediately preceding his retirement or
separation.
The basis for computing the AMC of a separated or retired member requesting
for computation of benefits shall be the prevailing policy on AMC at the time the claim is
being processed.
Computation of Revalued Monthly Compensation
= AMC plus Seven Hundred Pesos (P700.00)
As a general rule, the BMP shall only be computed for those members or
dependents/heirs of members who are eligible to receive benefits under this law. The
formula for computing BMP shall be: BMP = RAMC x (2.5% x RCS), but in no case shall
it exceed 90% of the AMC of the member.
Adjustment/Increase in Pension
Periodic adjustments of the monthly pension of all existing pensioners shall be
done on the basis of what is sustainable and prudent for the GSIS as recommended by
its Actuary and approved by the Board.
Policies Affecting Pension Administration
Regardless of the date of retirement, the monthly pension shall commence on
the 1st day of the month following the month of retirement.
Annual Renewal of Active Status (ARAS) of Old Age and Survivorship
Pensioners are required on their birth month every year. If they dont renew:
a. There will be suspension of payment of monthly pension
b. Non-entitlement to cash gift if status is suspended at the time of declaration
c. Non-entitlement to pension increase if status is suspended at the time of
declaration
Disability Benefits
Disability refers to any loss or impairment of the normal functions of the physical
and/or mental faculties of a member, which permanently or temporarily prevents him to
continue with his work or engage in any other gainful occupation resulting in the loss of
income.
The actual loss of income shall refer to the number of days when a member went
on leave of absence without pay (LWOP) reckoned immediately from the date of
commencement of disability and for the duration of entitlement thereto, based on
medical evaluation. Any LWOP incurred after the duration of entitlement to the benefit
shall not be compensable.
Any disability or injury as a result of, or due to grave misconduct, participation in
riots, gross and inexcusable negligence, under the influence of drugs or alcohol or willful
intention to injure or kill himself or another, shall not be compensable.
If the member has two or more different contingencies during the same period of
benefit entitlement, he shall be compensated only once for the overlapping periods.
All injuries, disabilities, illnesses and all other infirmities compensable under PD
626 shall not be compensable under this Act.
Permanent Total Disability (PTD)
PTD are disabilities due to injury or disease causing complete, irreversible and
permanent incapacity that will permanently disable a member to work or to engage in
any gainful occupation resulting to loss of income.
a. complete loss of sight for both eyes;
b. loss of two limbs at or above the ankle or wrists;
c. permanent complete paralysis of two limbs; and
d. brain injury resulting in incurable imbecility or insanity.
e. such other cases as may be determined and approved by the GSIS
A member who becomes permanently and totally disabled shall be entitled to the
PTD benefits when:
a. he/she is in the service at the time of disability; or
b. if separated from the service, he has paid at least thirty six (36) months
contributions within the five year (5) period immediately preceding his/her
disability; or has paid a total of at least one hundred eighty (180) months
contributions prior to his/her disability;
Provided, however, that the following conditions shall be met:
he/she is gainfully employed prior to the commencement of disability resulting in
loss of income as evidenced by any incontrovertible proof thereof;
he/she is not a registered member of any social insurance institution; and
he/she is not receiving any other pension either from GSIS or another local or
foreign institution or organization
In addition to the monthly income benefits for life, a cash payment equivalent to
eighteen (18) times his/her basic monthly pension (BMP), shall be paid to a member
who was in the service at the time of his/her permanent total disability and who has paid
a total of one hundred eighty (180) monthly contributions.
A separated member who has at least three (3) years of service and becomes
permanently and totally disabled but has not paid a total of at least one hundred eighty
(180) monthly contributions prior to his/her disability shall be entitled only to cash
payment equivalent to one hundred percent (100%) of his/her average monthly
compensation for each year of service with paid contributions but not less than twelve
thousand pesos (P12,000.00).
Permanent Partial Disability (PPD)
PPD arises due to the complete and permanent loss of the use of any of the
following resulting to the disability to work for a limited period of time. Such injuries
include those on any finger, toe, one arm, one hand, one foot, one leg, ears, hearing of
ears, sight of one eye, and such other cases as may be determined and approved by
the GSIS
A member whose disability is partial shall be entitled to the PPD benefit when:
a. he/she is in the service at the time of disability; or
b. if separated from the service, he has paid at least thirty six (36) months
contributions within the five year (5) period immediately preceding his/her
disability; or has paid a total of at least one hundred eighty (180) months
contributions prior to his/her disability;
Provided, however, that the following conditions shall be met:
he/she is gainfully employed prior to the commencement of disability resulting in
loss of income as evidenced by any incontrovertible proof thereof;
he/she is not a registered member of any social insurance institution;
he/she is not receiving any other pension either from GSIS or another local or
foreign institution or organization
The period of entitlement to PPD benefit shall be determined after due medical
evaluation; but such period of entitlement to the benefit shall not exceed 12 months for
the same contingency. Only the leave of absence/s without pay incurred during the
period of entitlement, duly certified by the authorized officer of the agency where he is
employed, shall be compensable.
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).
The period of entitlement to TTD benefit shall be determined after due medical
evaluation and proof of actual loss of work resulting in loss of income by way of the
incurred actual number of days of leave of absence/s without pay duly certified by the
authorized officer of the agency where he is employed; but such period of entitlement to
the benefit shall not exceed 120 days in one calendar year. However, if the disability
requires more extensive treatment that lasts beyond 120 days, the payment of the TTD
may be extended by the GSIS but not to exceed a total of 240 days.
Only the leave of absence/s without pay incurred during the period of entitlement
shall be compensable. Entitlement, however, shall start from the fourth day of the
disability.
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 to exceed 240 days for the same contingency. However, the
computed daily salary shall not be less than seventy pesos (P70.00) but not to exceed
P340.00 per day.
a. his primary beneficiaries shall receive the survivorship pension and cash
payment equivalent to 18 x the BMP; or
b. in the absence of primary beneficiaries, his secondary beneficiaries shall receive
the cash payment equivalent to 18 x the BMP; or
c. in the absence of secondary beneficiaries, the legal heirs shall receive the cash
payment equivalent to 18 x the BMP.
If at the time of death, the member was in the service with less than fifteen (15)
years of creditable service; his primary beneficiaries shall receive the cash payment
equivalent to 100% of the AMC for every year of creditable service.
On the other hand, primary beneficiaries of inactive members:
a. Who have at least 15 years of creditable service shall receive the survivorship
pension only.
b. Who have at least 3 years but less than 15 years of creditable service and were
less than 60 years old at the time of death shall receive the cash payment
equivalent to 100% of the AMC for every year of creditable service, but not less
than P12,000.00.
c. Who have less than 15 years of creditable service but were at least 60 years old
at the time of separation and have received the corresponding separation benefit,
shall not be entitled to survivorship benefits. However, if the member has not
received yet his separation benefit within four years after his/her separation, the
primary beneficiaries shall receive the cash benefit equivalent to 100% of the
inactive members AMC for every year of creditable service, but not less than
P12,000.00.
The survivorship benefits shall be paid as follows:
a. When the dependent spouse is the only survivor, he shall receive the basic
survivorship pension;
b. When only the dependent children are the survivors, they shall be entitled only to
the dependent childrens pension equivalent to 10% of the BMP for every
dependent child, not exceeding five (5), counted from the youngest and without
substitution;
c. 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
remarries or cohabits, and the dependent children shall receive the dependent
childrens pension.
d. When the dependent spouse and dependent children are already receiving the
basic survivorship pension and dependent childrens pension, respectively, any
subsequent death, emancipation or disqualification of any one of them shall not
entitle the other beneficiaries to the forfeited share.
e. In the absence of a natural guardian, the guardian de facto of dependent
children, as well as the physically or mentally incapacitated dependent children,
must file a Petition for Guardianship to be able to claim the survivorship benefits
on behalf of the dependent children.
f. When the pensioner dies within the 5-year period after receiving the five-year
lump sum, the survivorship pension shall be paid only after the end of the said
five-year period. However, filing of claim for survivorship benefit should be done
before the end of the 4-year prescription period.
Funeral Benefits
The funeral benefit, in the amount P20,000, (for uniformed members of the PNP,
BJMP and BFP, the amount of funeral benefit is fixed at P10,000.00) is intended to
defray the expenses incident to the burial and funeral of the deceased member,
pensioner, or retiree under RA 660, RA 1616, PD 1146, and RA 8291. It is payable to
the members of the family of the deceased, in the order which they appear:
1. Legitimate spouse
2. Legitimate child who spent for the funeral services, or
3. any other person who can show unquestionable proof of his having borne the
funeral expenses of the deceased.
Conditions for entitlement are as follows:
1. Active member or
2. A member who has been separated from the service but who is entitled to future
separation or retirement benefit; or
3. A member who is an old age pensioner or
4. A retiree who at the time of his retirement was of pensionable age under RA 8291
but who opted to retire under RA 1616; or
5. A member who retired under RA 1616 prior to the effectivity of RA 8291 with at
least 20 years of service, regardless of age
To avail P20,000 funeral benefit, and if claimant is the legal spouse, present:
1. Original copy of Death Certificate of the member from NSO.
2. Original copy of Marriage Contract from NSO
3. Two valid ID (original to be shown, photocopy to be submitted)
4. Original copy of NSO certified Birth Certificate of the claimant (if there will be
claims for death and survivorship benefits). If not registered, may apply for late
registration.
If claimant is other than the legal spouse (Application will be accepted only if the legal
spouse is already deceased. In this case, priority is given to legitimate children):
1. Original copy of Death Certificate of the member from NSO.
2. GSIS Affidavit of Funeral Expense Form
3. Original & Xerox copy of Official Receipt under the claimants name or if a
Funeral Plan was used, a Certification from the memorial service provider that
the plan was availed of.
4. Two valid IDs (original to be shown, photocopy to be submitted)
5. Birth certificate of the claimant or valid ID (issued by the government) indicating
his/her date of birth.
Cardio-vascular diseases
Deafness
Pneumonia
Decompression sickness
Hernia
Caisson disease
Bronchial asthma
Aeroembolism
Osteoarthritis
Poisoning
Viral encephalitis
Pneumoconiosis
Peptic ulcer
Poisoning by cadmium
Pulmonary tuberculosis
Viral hepatitis
Viral hepatitis
Leukemia and lymphoma
Essential hypertension
Cerebro-vascular accidents
Asbestosis
Malaria and schistosomiasis
Dermatitis due to irritants and sensitizers
Diseases caused by abnormalities in temperature and humidity
This is a loan program that lets you borrow from the seed money or cash
value of your life insurance. It is a loan program which you can avail from your GSIS life
insurance policy, LEP and ELP.
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 and has
an active policy to be eligible under this loan product.
Personal Insurance
Age is not a factor when availing of My Shield. It covers all active GSIS
members, their dependents and even immediate relatives brothers, sisters - aged 3 to
80 years old. Retirees, pensioners and their immediate families can also avail of My
Shield.
If the insured dies due to an accident, the beneficiaries can claim 100% of
total insurance coverage. The same benefit applies if the insured dies due to an
accident within 180 days after the date of the mishap. Unprovoked murder is covered,
and beneficiaries can claim 50% of the Principal Sum but not to exceed Php50,000.00.
Each injury which results in dismemberment also has corresponding claims. For
example, loss of both hands and feet pays the insured 100% insurance coverage
while loss of one eye pays 50% of the principal sum. A comprehensive coverage
is also offered for Permanent Total Disability. The GSIS will pay 1% of the
principal sum per month for 100 months but less of any amount paid or payable
under My Shield as a result of the same accident.
Premium rate for this insurance is one of the lowest in the market at P640
for every P1 million of annual coverage against fire.
Different rates, however, are applied based on the location of the property.
GSIS has a zoning system for its Home Shield Fire Insurance premium rate as follows:
Zone 1 at 0.08% rate covers Metro Manila, Metro Cebu, SBMA Area, Clark
Development Corporation and all export processing zones and industrial parks. While
Zone 2 at 0.188% are all areas not covered by Zone 1.
Another unique feature of Home Shield is that premium can be paid in full
or installment basis in cash or by just issuing post-dated checks.
Documentation required:
1. Transfer of Certificate of Title (TCT), and/ or Tax Declaration or a copy of the
Articles of Incorporation for corporate properties
2. Birth certificates and marriage contracts as proof of relationship for the extended
and immediate family of active members
Service Loans
A member can apply for these loans using the GSIS Wireless Automated
Processing System (G-W@PS) kiosk installed in all GSIS servicing offices and select
government offices nationwide.
Consolidated Loan
A member who has been in government service for at least 10 years can
avail of a Conso-Loan equivalent to 10 months of their monthly salary. The minimum
creditable years in service a member has to have to qualify is 20 months, with the
Conso-Loan proceeds equivalent to three months of his monthly salary. The gross loan
amount shall be a multiple of the basic monthly salary (BMS), depending on the
members accumulated record of creditable service (RCS), to wit:
RCS
Maximum Loan
Amount
Less than 20
months
20 months or
more
3 BMS
40 months or
more
4 BMS
5 years
more
or
7 BMS
10 years or
more
10 BMS
None
Emergency Loan
renewed, the balance of the outstanding loan will be deducted from the proceeds of the
new loan.
To qualify for the emergency loan, the member-applicant must be: a bona
fide employee of the government office within the declared calamity area; be in active
service and not on leave of absence without pay; has no pending criminal or
administrative charges; has no arrearages in the payment of mandatory social
insurance contributions; and has no loan that has been declared in default. In addition,
the agency of the member-applicant must not be suspended due to non-payment and
non-remittance of premiums and loans.
Cash Advance
Ancillary Benefits
Cash Benefits
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 the records submitted by
the employer.
A Dividend Allocation Formula shall be determined and
circularized by the GSIS for this purpose.
Loan Privileges
It is 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 it provides to its members shall be kept as low as
possible in order not to burden them 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 benefits it provides. Accordingly, notwithstanding any laws to the
contrary, the GSIS, its assets, revenues including all accruals thereto, and benefits paid,
is exempted from all taxes, assessments, fees, charges of all kinds.