ra 8291 gsis law

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RA 8291

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Introduction

1987 Constitution has given constitutional

recognition to the obligation of the state to

retirees by providing that the state shall

from time to time review to upgrade the

pensions and other benefits due to retirees

of both government and private sector (Art.XVI, Sec. 8)

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Another feature of 1987 Constitution is to the

effect that pensions or gratuities are not

considered as additional, double or indirect

compensation (Art. IX, B, The Civil ServiceCommission, Sec. 8, par. 2).

As a consequence, a retiree who is reappointed to

a government position shall receive the

compensation for the position without violating

the constitutional prohibition imposed on elective

or appointive public officers or employees against

receiving additional, double or indirect

compensation (id., par. 1).

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Objectives and scope:

Revised the 20-year old charter of GSIS (PD

1146)

Aims to expand and increase the coverage

and benefits of GSIS;

Introduce institutional reforms for GSIS tohave more flexibility and thus perform its

mission of providing social security

protection more effectively.

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Effectivity

June 24, 1997, 15 days after it was

published on June 9, 1997. It was approved

on May 30, 1997

Repeal of retirement laws PD 1146

RA 660

RA 1616

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Who are covered?Compulsory for all employees:

Appointive or elective

Whether temporary, casual, permanent orcontractual w/ e-e relationship

(so those under job orders are not covered)

Who are receiving basic pay or salary but not

per diems, honoraria or allowances; and

Who have not reached the compulsory

retirement age of 65 yrs.

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When coverage takes effect?

Upon the employees assumption to dutypursuant to a valid appointment or election

and oath of office.

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Are elective officials still covered after

their term of office expires? Compulsory coverage shall cease upon expiration of term.

They have the option to continue with life insurance so

long as they will pay both the employee and employer

shares.

On social security coverage, said official shall continue to

be a member and shall be entitled to benefits that providefor contingencies (death, disability or separation) subject

to satisfaction of eligibility conditions.

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Who are not covered?

Employees who have separate retirementschemes under special laws and are therefore

covered by their respective retirement laws,

such as the members of the Judiciary,

Constitutional Commissions, and other similarlysituated government officials;

Uniformed members of AFP & PNP including

BJMP;

Those who are not receiving basic pay or salary

Contractuals who have no employer and

employee relationship with the agencies they

serve

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When does a contractual have e-e

relationship with his employer?

Person was selected and engaged by the

employer

Employer pays the salary

Employer has the power of dismissal

Employer has the power to control the meansand the result of the work to be done

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Compensation

Is the basic pay or salary received by an

employee pursuant to this

election/appointment.

Does not include per diems, bonuses,

overtime pay, honoraria, allowances and any

other emoluments received in addition to

basic pay (RA 8291, Sec. 1)

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Contributions

Member Employer

First P10,000 9% 12%

In excess of P10,000 2% 12%

Who is responsible for remittance of contributions?

employer

Date of remittance?

First ten days of calendar month following the month to

which contributions apply.

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Effect of non-remittance?

All loan privileges of member shall be

suspended

Determination of eligibility to and computationof benefits will be made subject to deduction of

contribution arrearages and service loans

accounts plus surcharges from proceeds of

claim

Penalties on delayed remittances?

Aside from penal provisions, interest of not less

than 2% per month.

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Penal Provisions?

Official or employee who fails to include in

annual budget the amount corresponding to

e-e contributions or who fails by more than

30 days to remit the amount from the time

such amount becomes due

Employee, who after deducting, fails to

remit to GSIS within 30 days from date they

should be remitted

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Penal provisions?

Heads of offices of national government, etc.

who shall fail, refuse or delay the payment,

turn-over, remittance or delivery of such

amounts to GSIS

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Membership in GSIS

Enjoyment of life insurance, retirement andother social security protection such as

disability, survivorship, separation andunemployment benefits

Members of judiciary and constitutional

commissions are covered by GSIS with lifeinsurance only; retirement laws aregoverned by special laws

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Is part time service included in the computation of

total service rendered?

As a rule, all full-time service with compensationfrom date of original appointment or election shall

be computed for purpose of determining retirement

benefits.

service shall mean full-time service w/

compensation. Part time service w/ compensation

shall be converted to full time equivalent.

Part-time shall be converted using a 40-hour perweek and 52-week per year as basis.

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Valdez v. GSIS

Petitioner would want SC to reverse CAruling rejecting his assertion that his

services rendered in the MECO, MMSU,

PHIVIDEC and as OIC Vice-Governor of

Ilocos Norte should be credited in the

computation of his retirement benefits .

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Benefits

Contingencies compensable?

Retirement

Separation (NOT BENEFITS IN SSS) Unemployment (not in SSS)

Disability

Survivorship Death (Life Insurance and Funeral)

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New benefits?

Unemployment benefit

Separation benefit

Improvement of existing benefits?

Increase in Average Monthly Compensation(AMC) Limit: from AMC limit of P3,000 to

P10,000

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Improvement of existing benefits?

Increase in the Revalued Average Monthly

Compensation (RAMC): from P140 to P700

Full enjoyment of 5-year lump sum benefit

(no more discounted per PD 1146 where

retiree receives only 52.17 months while it

is full 60 months at present)

Liberalization of eligibility requirements

Allocation of at least 40% of the Social

Insurance Fund SIF to member Loans

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BenefitsRetirement

Conditions: rendered at least 15 yrs. of service

at least 60 year old at time of retirement

not receiving monthly pension from permanent total

disability

Options:

- lump sum payment of basic monthly pension multipliedby 60 plus basic monthly pension for life upon

expiration of 5 years period- cash payment of 18 times the basic monthly pension

plus basic monthly pension for life payableimmediately upon retirement but without 5-yearguaranteed period.

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Retirement

If rendered at least 15 years service but is lessthan 60 years at time of separation or resignation,member will be entitled to cash payment

equivalent to 18 times his basic monthly pensionpayable at the time of separation or resignationand upon reaching the age of 60 years, he will beentitled to basic monthly pension payable monthlyfor life.

This is denominated as separation benefit butin reality a combination of separation andretirement benefits.

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Retirement

Entitlement to retirement is premised on serviceof at least 15 years.

Member who is 60 years old upon retirement butwith less than 15 years of service is not entitled toretirement. What he gets is a separation benefitconsisting of cash benefit equivalent to 100% of

his average monthly compensation for each year ofservice he paid contributions but not less thanP12,000 provided he has at least 3 years but lessthan 15 years of service.

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Retirement

Member who has at least 15 years of service may

retire at 60 or may continue in the service until 65

(compulsory retirement age) If he has less than 15 years, he may be allowed to

continue in the service in accordance with existing

civil service rules and regulations. Extension of

service is no longer mandatory in contrast to PD

1146.

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Notice by employer

It shall be the duty of the Employer to notify

its Employee at least Ninety (90) days in

advance of the date of his/her compulsory

retirement.

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Separation: Who are eligible?

Types:- rendered at least 3years but less than 15 years

(cash payment equivalent to 100% of Average Monthly

Compensation for every year of service payable upon

reaching 60 or upon separation whichever comes later ifnot receiving monthly pension from permanent total

disability)

- rendered at least 15 years & who is below 60 at time ofresignation/separation

(cash payment equivalent to 15 times the basic Monthly

Pension payable upon separation plus monthly pension

starting 60)

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Separation

IRR, Rule II, Sec. 2.5:

Member separated for cause

automatically forfeit

Unless terms of resignation or separation provide

otherwise

Member separated not for cause

shall continue to be member & entitled subject to

qualification & other prescription

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Unemployment

The benefit is paid when a permanentemployee is involuntarily separated from

the service as a result of the abolition of his

office or position usually resulting from

reorganization.

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Disability

Any loss or impairment of the normalfunctions of the physical or mental faculties

of a member, which reduces or eliminates

his capacity to continue with his current

gainful occupation or engage in any other

gainful occupation (IRR, Sec. 1.18)

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Disability

Evaluation of disability as a contingency is

vested solely in GSIS ( IRR, Sec. 9.3.1)

General condition for entitlement is thatthe disability was not due to misconduct ,

notorious negligence, habitual

intoxication or willful intention to kill

himself or another (IRR, Sec. 9.3.2)

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Disability

Permanent Total Disability

A member who becomes permanently and totally

disabled when he/she is in the service and haspaid at least 180 monthly contributions (monthly

income benefit for life equivalent to basic monthly

pension plus cash payment equivalent to 18 times

his basic monthly pension effective on date of

disability)

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Permanent Total Disability


disabled are eligible when (a) he is in the service at

time of disability or (b) separated from the service and

has paid at least 36 monthly contributions within the

last 5 years immediately preceding the disability or

has paid a total of at least 180 monthly contributions

(monthly income benefit for life equivalent to the basic

monthly pension)


disabled when he is separated from service with atleast 3 years of service but has not paid 36 monthly

contributions within the last 5 years is still eligible

(cash payment equivalent to 100% of the AMC) for

every year of service but not less than P12,000)

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Disabilities considered permanent total?

Complete loss of sight in both eyes

Loss of two limbs at or above ankle or wrist Permanent complete paralysis of 2 limbs

Brain injury resulting in incurable imbecility

or insanity Other cases as may be determined by GSIS

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Permanent Partial Disability

A member who becomes permanently and

partially disabled when

- when he is in the service at time of

disability; or

- separated from service and has paid 36

monthly contributions within the last 5

years immediately preceding the disability

or has paid a total of at least 180monthly

contributions.

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Permanent Partial?

Any finger

Any toe

One arm

One hand

One foot or leg

One or both ears

Hearing of one or both ears

Sight of one eye

Other cases as may be determined

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Temporary Total Disability

Accrues or arises when there is complete

but temporary incapacity to continue with amember's present employment or engage in

any gainful occupation due to the loss or

impairment of the normal function of thephysical and/or mental faculties of the

member. In effect, this loss or impairment

can be reversed to the point where themember can continue with his previous

employment or engage in another gainful

occupation

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Gainful employment

Any productive activity that provides themember with income at least equal to the

minimum compensation of government

employees (IRR, Sec. 1.17)

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Temporary Total Disability

A member who suffers temporary total disabilityfor reasons not due to grave misconduct, notorious

negligence, habitual intoxication or willful

intention to kill himself or another may be entitled

if:

- he is in service at time of disability and has

exhausted sick leave credits; or

- if separated, has rendered at least 3 years ofservice and has paid at least 6 monthly

contributions in the twelve month period

immediately preceding his disability.

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Disability

A written notice of sickness or injury shall

be given by a member or anybody in his/her

behalf within five (5) working days from the

date of the occurrence of the contingency.

An application for disability benefits must

be filed with the GSIS within Four (4) yearsfrom the date of the occurrence of the

contingency, fully supported by required

papers and documents.

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Disability - forfeiture of disability benefits if member refuses or

deliberately fails to:

(a) have himself/herself medically treated by a physician when required

by the GSIS; or

(b) take the prescribed medication; or

(c) have himself/herself confined in a hospital without justifiable reason,

when such confinement is required by the GSIS; or

(d) avail himself/herself of such rehabilitation facilities as may be duly

recommended by the GSIS and made available for him/her; or

(e) observe such precautionary and/or preventive measures as prescribedby a physician or expressly required of him/her to prevent the

aggravation or continuance of his/her disability.

(f) report on his/her re-employment.

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Survivorship

Those granted to surviving and qualifiedbeneficiaries of the deceased member or

pensioner to cushion them against the

adverse economic, psychological and

emotional loss resulting from the death of awage earner or pensioner.

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Survivorship

If at time of death, a member was in the service

with less than 3 years service or was separated

from the service with at least 3 years of serviceand has paid 36 monthly contributions within the

5-year period immediately preceding his death or

has paid a total of at least 180 monthly

contributions prior to death (primarybeneficiaries to receive survivorship pension plus

cash payment; secondary beneficiaries or legal

heirs entitled to cash payment)

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Survivorship

Primary Beneficiaries

The legitimate spouse, until he/she

remarries, and the dependent children.

Secondary Beneficiaries(a) the dependent parents; and

(b) the legitimate descendants

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Who are dependents?

(a) the legitimate spouse dependent for support;

(b) any legitimate, legitimated and/or legally

adopted child, including any illegitimate child, whois unmarried, not gainfully employed, who has not

attained the age of majority, or being at the age of

majority but incapacitated and incapable of self-

support due to a mental or physical defect

acquired prior to age of majority; and

(c) the parents dependent upon the member for

support.

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GSIS v. MontesclarosFacts:

SB member Nicolas Montesclaros married Milagros Orbiso.

Nicolas was a 72-year old widower when he marriedMilagros who was then 43 years old. Nicolas died. Milagros

then filed with the GSIS a claim for survivorship pension

under PD 1146. The GSIS denied the claim because under

Section 18 of PD 1146, the surviving spouse has no right to

survivorship pension if the surviving spouse contracted the

marriage with the pensioner within three years before the

pensioner qualified for the pension.

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SC:Section 18 of Presidential Decree No. 1146 void for being

violative of the constitutional guarantees of due process

and equal protection of the law. The proviso is unduly

oppressive in outrightly denying a dependent spouse's

claim for survivorship pension if the dependent spouse

contracted marriage to the pensioner within the three-year

prohibited period. There is outright confiscation of benefits

due the surviving spouse without giving the survivingspouse an opportunity to be heard. The proviso also

violated the equal protection clause because it

discriminates the dependent spouse who contracts

marriage to the pensioner within three years before the

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FuneralShall be paid upon the death of:

(a) an active member; or

(b) a member who has been separated from the service,but who is entitled to future separation or retirement

benefit; or

(c) a member who is a pensioner (excluding survivorship

pensioners); or(d) a retiree who at the time of his/her retirement is at

least 60 years old but opts to retire under RA 1616; or

(e) a member who retired under RA 1616 prior to the

effectivity of RA 8282 with at 20 years service regardless of

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Funeral

Amount is initially P12,000 but shall be

increased to at least P18,000 after five

years.

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Funeral

The funeral benefit shall be paid to one of the

following in the order in which they appear

herein below:

(a) the surviving spouse;

(b) the legitimate child who spent for the

funeral services; or

(c) any other person who can show

incontrovertible proofs of having borne the

funeral ex enses.

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Compulsory Life Insurance

All employees, including the members of the

Judiciary and the Constitutional

Commissioners, but excluding the

uniformed members of the Armed Forces of

the Philippines (AFP), the Philippine

National Police and the Bureau of FireProtection (BFP) and Bureau of Jail

Management and Penology.

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Life Insurance Benefits

Maturity Benefit. Upon maturity of the life

insurance, the face amount less any indebtedness

against the policy, shall be paid to the member;Death Benefit. When a member dies prior to the

maturity of his/her insurance and during its

continuance, the GSIS shall pay to the designated

Beneficiaries or to his/her legal heirs, as the case

may be, the face amount less any indebtedness

thereon.

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Accidental Death BenefitWhen the death of the

member is accidental in accordance with Section

10.9.2 of IRR, the GSIS shall pay the designatedbeneficiaries or the legal heirs, as the case may be,

an additional amount equivalent to the face

amount of his/her compulsory insurance;

Waiver of Premiums. When a member isseparated due to total and permanent disability,

the contributions that may become due and

payable during the period of disability shall be

deemed waived and considered aid.

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Cash Surrender Value (CSV). After his/her

insurance shall have been in force for one (1) year,

a member separated from the service prior to thematurity of the insurance may be paid the cash

value less any indebtedness thereon unless the

terms of his/her separation provide otherwise;

Insurance Loans. Upon application, a memberwho has been insured for at least one (1) year may

be granted an insurance loan in an amount not

exceeding Fifty Percent (50%) of the cash value of

his her insurance at the time of a lication.

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Dividends. An annual dividend may be

granted to all members of the GSIS whose

life insurance is in force for at least one (1)

year, based on records submitted by the

employer. A Dividend Allocation Formula

shall be determined and circularized by theGSIS for this purpose.

Adjudication of Claims

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Adjudication of ClaimsGSIS has original & exclusive jurisdiction to settleany dispute arising under RA 8291 w/ respect to:

- coverage- entitlement to benefits

- collection & payment of contributions

- any other matter related to the any or all of the

foregoing which is necessary for theirdetermination

Which body of GSIS vested with Quasi-JudicialFunctions? Board of Trustees

Prescriptive Period ?

- 4 years from date of contingency except life &retirement which do not prescribe.

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Tax Exemption

RUBIA V. GSIS

- exemption of GSIS from execution

does not cover refund of amortization

payment

CITY OF DAVAO V. RTC

- on real property taxes, GSIS tax-exempt status in previous law was

withdrawn under RA 7160 but restored

under Sec. 39 RA 8291

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Legal Fees

A.M. No. 08-2-01-0, February 11, 2010

Facts:

GSIS seeks exemption from the payment of

legal fees imposed on government-owned orcontrolled corporations under Section 22,

Rule 141 (Legal Fees) of the Rules of Court.

GSIS anchors its petition on Section 39 of its

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Issue:

May the legislature exempt GSIS from legal

fees imposed by the Court on government-

owned and controlled corporations and

local government units?

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SC:

Since the payment of legal fees is a vital component

of the rules promulgated by this Court concerning

pleading, practice and procedure, it cannot bevalidly annulled, changed or modified by Congress.

As one of the safeguards of this Court's

institutional independence, the power to

promulgate rules of pleading, practice andprocedure is now the Court's exclusive domain.

That power is no longer shared by this Court with

Congress, much less with the Executive.

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SC:Congress could not have carved out an exemption for the GSIS

from the payment of legal fees without transgressing

another equally important institutional safeguard of the

Court's independence fiscal autonomy. Any exemption

from the payment of legal fees granted by Congress to

government-owned or controlled corporations and local

government units will necessarily reduce the JDF and the

SAJF. Undoubtedly, such situation is constitutionally infirmfor it impairs the Court's guaranteed fiscal autonomy and

erodes its independence.

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What is the effect of re-employment?

A member who is re-employed is considered

a new entrant if he was paid separation or

retirement benefits corresponding to his

previous services.

P t bilit f b fit

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Portability of benefits

( Portability law RA 7699)

A member of GSIS who does not qualify for oldage and other benefits by reason of non-fulfillment

of the required period of service may be able to

qualify for such benefits by making use of the

period during which he rendered services to aprivate employer and for which contributions

were paid to SSS. This is allowed under RA 7699

(approved May 1, 1994)

The Act instituted a limited portability scheme in

the GSIS and SSS by totalizing the workers

creditable services or contributions in each of the

Systems.

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Portability refers to transfer of funds for the

benefit and account of a worker who transfers

from one system to the other (RA 7699, Sec. 2 [b]).

Totalizationrefers to the process of adding up theperiods of creditable services or contributions in

each of the Systems for purposes of eligibility and

computation of benefits, For purposes of

totalization, overlapping periods of membershipshall be considered once only (Sec. 3)

Overlapping period refers to the period during

which a worker contributes simultaneously to

ra 8291 gsis law

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