GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)

Republic Act No. 8291

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 workrelated accidents and death benefits

Purpose of GSIS?
The GSIS provides social security coverage to employees in the public sector. It officially started its operations in May 31, 1937 with life insurance program as its only business and was transformed into a more comprehensive social insurance scheme in 1951 with the addition of old-age, invalidity and survivors benefits. The GSIS also administers the Employees Compensation Program, which provides for work-related social security benefits for the public sector and the General Insurance Fund, which provides non-life coverage for all properties with government insurable interest. GSIS, as designed in its charter, is a social insurance institution under a defined benefit scheme. It insures its members against the occurrence of certain contingencies in exchange for their monthly premium contributions. In addition, the GSIS is entrusted with the administration of the General Insurance Fund by virtue of R.A. 656 of the Property Insurance Law. It provides comprehensive insurance coverage to assets and properties that have government insurable interests.

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 contractual employees, 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. 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. 2. 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.

Contractual employees including casuals and other employees with an employeegovernment agency relationship are also compulsorily covered, provided they are receiving fixed monthly compensation and rendering the required number of working hours for the month

Classes of Membership (By Type and By Status)

A. Type of members: 1. Regular Members are those employed by the government of the Republic of the Philippines, national or local, legislative bodies, government-owned and controlled corporations (GOCC) with original charters, government financial institutions (GFIs), except uniformed personnel of the Armed Forces of the Philippines, the Philippine National Police, Bureau of Jail Management and Penology (BJMP) and Bureau of Fire Protection (BFP), who are required by law to remit regular monthly contributions to the GSIS. 2. Special Members are constitutional commissioners, members of the judiciary, including those with equivalent ranks, who are required by law to remit regular monthly contributions for life insurance policies to the GSIS in order to answer for their life insurance benefits defined under RA 8291.

Classes of Membership (By Type and By Status)

B. Status of membership: 1. Active member refers to a member of the GSIS, whether regular or special, who is still in the government service and together with the government agency to which he belongs, is required to pay the monthly contribution. 2. Inactive member a member who is separated from the service either by resignation, retirement, disability, dismissal from the service, retrenchment or, who is deemed retired from the service under this Act.
Effect of Separation from the Service. A member separated from the service shall continue to be a member, and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act.

Benefits Provided under GSIS

Separation Benefits
The Separation benefit is given to employees who have not reached the retirement age (60) but have been separated from the service. The benefit can be in the form of cash payment or cash payment and pension. 1. For members with at least 3 years but less than 15 years of service: A cash payment equivalent to one hundred percent (100%) of the AMC for every year of service the member has paid contributions (creditable service), but not less than twelve thousand pesos ( P 12,000 ), payable upon reaching age 60, or upon his separation if he is already 60 years of age at the time of separation. 2. For members with at least 15 years of service and less than age 60 upon separation: a. A cash payment equivalent to eighteen (18) times the BMP payable at the time of resignation or separation. b. An old-age pension benefit equal to the BMP, payable monthly for life upon reaching the age of 60. Reckoning Date of Separation of Uniformed PNP, BJMP and BFP Personnel shall be February 1, 1996. The computation of benefit shall be based on their basic monthly salary (premium-based) when they ceased to be members of the GSIS.

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.

Disability Benefits

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

Disability Benefits

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

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 c. 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.

Disability Benefits

Temporary Total Disability (TTD)

TTD accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions, but such disability shall result in temporary incapacity to work or to engage in any gainful occupation. The temporary total disability benefit is in the form of a daily benefit equivalent to 75% of his current daily compensation for the duration of the disability starting on the 4th day of disability but not to exceed 120 days. For more extensive cases, duration may be extended up to a maximum of 240 days.

A member shall be entitled to the TTD benefit when:

a. he/she is in the service at the time of disability; or b. 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

Any applicable disability benefit shall be suspended when he/she: a. is re-employed; or b. recovers from his/her disability as determined by the GSIS, whose decision shall be final and binding; or c. fails to present himself for medical examination when required by GSIS; or d. is receiving any other pension either from GSIS or another local or foreign institution or organization

Forfeiture of Disability Benefits

All the foregoing provisions notwithstanding, any member who is enjoying disability benefits shall automatically forfeit his/her right to the continued enjoyment thereof if he/she refuses or deliberately fails to: a. have himself/herself medically treated by a physician when required by the GSIS; or b. take the prescribed medications ; 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 prescribed by a physician or expressly required of him/her to prevent the aggravation or continuance of his/her disability.

However, upon compliance with the requirements, his/her benefits shall be resumed if he/she is still qualified.

Survivorship Benefits The benefits payable to the surviving qualified beneficiaries of the deceased member or pensioner who are either: 1. Primary the legitimate spouse, until he/she remarries and the dependent children. In this regard, dependent children shall be the legitimate, legitimated and/or legally adopted child, including any illegitimate child, who is below 18 years of age, unmarried, not gainfully employed, or being more than 18 years of age but incapacitated and incapable of self-support due to mental or physical incapacity acquired prior to age of majority. 2. Secondary are the dependent parents and legitimate descendants.

The primary and secondary beneficiaries, except dependent children, shall be entitled to applicable survivorship benefits, subject to the following: a. not engaged in any gainful occupation as defined in Sec 2 (p) of RA 8291;

b. the surviving spouse and the deceased member were living together as husband and wife; c. not gainfully engaged in a business or economic activity (self- employed); d. employed/engaged in a business or economic activity but receiving income less than the minimum compensation of government employees. e. not receiving any other pension from the GSIS or another local or foreign institution or organization; and f. In the case of the dependent spouse, payment of the basic survivorship pension shall discontinue when he remarries, cohabits, or engages in common-law relationship.
The foregoing conditions, except the last one, must be present immediately preceding the death of the member or pensioner.

MANDATE
The GSIS is created by Commonwealth Act No. 186 that was passed on November 14, 1936, and later amended under Republic Act No. 8291 dated June 24, 1997. GSIS, as designed in its charter, is a social insurance institution under a defined benefit scheme. It insures its members against the occurrence of certain contingencies in exchange for their monthly premium contributions. The social security benefits available for all GSIS members are: compulsory life insurance, optional life insurance, retirement benefits, disability benefits for work-related contingencies and death benefits. In addition, the GSIS is entrusted with the administration of the General Insurance Fund by virtue of R.A. 656 of the Property Insurance Law. It provides insurance coverage to assets and properties that have government insurable interests.

COVERAGE
The GSIS covers all government workers irrespective of their employment status, except:

-Members of the Judiciary and Constitutional Commissions who are covered by separated retirement laws;

-Contractual employees who have no employee-employer relationship with their agencies;

- Uniformed members of the Armed Forces of the Philippines and the Philippine National Police, including the Bureau of Jail Management and Penology and the Bureau of Fire Protection.

BENEFITS AND SERVICES

The principal benefit package of the GSIS consists of compulsory and optional life insurance, retirement, separation, and employee's compensation benefits.

SERVICE PRIVILEGES...

Active GSIS members are entitled to the following loan privileges: salary, policy, emergency and housing loans, subject to the cross-default policy of the System (CLIP).

ORGANIZATION
The governing and policy-making body of the GSIS is the Board of Trustees, the members of which are appointed by the President of the Philippines. The GSIS workforce consists of 3,104 employees, 52% of whom are in the Head Office while the remaining 48% are in the Branches. To date, the GSIS has 15 Regional Offices, 25 Branch Offices and 18 Satellite Offices nationwide.