Professional Documents
Culture Documents
Group 2
Riemar Ballano
Ma. Regel Agoot
Willesa Go
Evelyn Lurcha
Sofia Quipit
Rose Bernadeth Quiambao
Prof. Al F. Fontamillas
nd
2 Semester, SY 2011-2012
BCOOP2-3
I. What is 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.
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. 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 65.
A. Type of members:
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.
IV. Computation of the Amount of Contribution
GSIS is, first and foremost, a social insurance institution. As such, and
consistent with the nature of insurance, it provides protection to its members and their
families against the occurrence of certain contingencies such as death, disability,
separation, unemployment or retirement on the basis of their monthly compensation. In
return, the law obligates and compels its members and their agencies to remit, every
month and without delay, premium contributions in proportion to their monthly
compensation.
9% 12%
of Actual Monthly Salary of Actual Monthly Salary
The Special Member shall pay the required life insurance premiums of 3% of the
fixed monthly compensation for both employees and government agencys share.
V. Remittance of Contribution to GSIS
1. 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.
VI. Penalty for Late Remittances
1. 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
2. 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
3. Those convicted for failure to remit loan amortizations will pay the surcharges
and interests incurred from the unpaid loans of all the agencys members
The following are the consequences on the members for refusing to pay their
loan amortizations on time:
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.
3. 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.
Processing of Separation Benefit of Members Who Died While Their Claims are
Being Processed
If the member dies during the pendency of his claim for separation benefit and he
has rendered at least 15 years of creditable service, his legal heirs shall be entitled to
receive cash payment equivalent to eighteen (18) times the basic monthly pension, plus
accrued BMP, if any, up to the date of death of the member. Thereafter, the primary
beneficiaries shall be entitled to survivorship pension.
If the member dies during the pendency of his claim for separation benefit and he
has rendered less than 15 years of creditable service, his legal heirs shall be entitled to
cash payment equivalent to one hundred percent (100%) of AMC for each year of
creditable service, but not less than Twelve Thousand Pesos (P12,000.00).
Unemployment Benefits
1. If the contributions have been made for a period of 1 year but less than 3
years, the benefit duration is for 2 months.
2. 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.
3. 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.
4. 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.
5. 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.
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 five-
year 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
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
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.
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.
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
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.
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.
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;
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).
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;
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).
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 4 th
day of disability but not to exceed 120 days. For more extensive cases, duration may
be extended up to a maximum of 240 days. Minimum benefit is P 70.00 per day while
the maximum is P 340.00 per day.
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.
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.
The disabled member, except those with permanent partial disability, shall submit
annual medical reports on his/her impairment, duly certified by his/her attending
physician, and/or submit himself/herself to annual medical and physical examination. If
he/she fails to comply with this requirement, the payment of his/her benefit shall be
suspended and shall be resumed only upon his/her compliance thereto provided that,
he/she is found still entitled to the benefits. The benefit corresponding to the period of
suspension shall also be paid.
Survivorship Benefits
The foregoing conditions, except the last one, must be present immediately
preceding the death of the member or pensioner.
If at the time of death, a member was in the service and has rendered at least
fifteen (15) years of creditable service:
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.
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.
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.
Claimants birth certificate is not required if the claimant is a GSIS member or
pensioner.
1. Maturity benefits, which is the face amount payable to the member upon maturity
of the policy.
2. Cash Surrender Value, which are earned values during the term of the insurance
payable to the member when he is separated from the service before maturity
date of the policy or when he is considered as a case of PTD.
3. Permanent Total Disability
4. Death Benefit, which is the face value of the policy payable to designated
beneficiary/beneficiaries or legal heirs, in the absence of the former, upon the
death of a member.
5. Accidental Death Benefit (ADB) is an additional benefit equivalent to the amount
of Death Benefit when the member dies by accident. In this connection, proof
must be presented to sufficiently establish that the cause of the members death
is accidental. The right to present sufficient proof to show that death was
accidental shall prescribe if the claim for ADB is filed four (4) years after the
death of the member.
6. Sickness Income Benefit is a purely employer-based contribution benefit.
Sickness must be listed /considered an "occupational disease"; or even if not
listed as one, it must be shown that the risk of contracting the sickness is
increased by the working conditions. List of Occupational Diseases (under
PD626)
Papilloma of the bladder Cancer of the lungs, liver and brain
Cataract 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
Cancer, epithellomatous or ulceration of the skin or of the corneal surface of
the eye
Cancer of the stomach and other lymphatic and blood forming vessels,
nasal cavities and sinuses
Infections: Anthrax, Brucellosis, Glanders, Rabies, Tuberculosis, Tularemia,
Weill's disease, Q Fever or equine encephalomyelitis, Mite dermatitis
Vascular disturbance in the upper extremities due to continuous vibration
from pneumatic tools or power drills, riveting machines or hammers
Ionizing radiation disease, inflammation, ulceration or malignant disease of
the skin or subcutaneous tissues of the bones or leukemia or anemia of the
aplastic type due to X-rays, ionizing particles, radium or other radioactive
substances Acute radiation syndrome: Chronic radiation syndrome and
Glass blower's cataract.
7. Annual Dividend, a policyholder is entitled to dividends subject to the guidelines
as approved by the GSIS Board. This is not a guaranteed benefit.
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 None
20 months or more 3 BMS
40 months or more 4 BMS
5 years or more 7 BMS
10 years or more 10 BMS
The Conso-Loan is a consolidation of five different loan products into one
Salary Loan, Restructured Salary Loan, Enhanced Salary Loan, Emergency Loan
Assistance, and Summer One-Month Salary Loan. By availing of the Conso-Loan, you
automatically fully settle your obligations from these loans.
You likewise receive an automatic condonation from the outstanding penalties or
surcharges incurred from the abovementioned loans. Thus, the Conso-Loan provides
you with the opportunity to restore your status as a member in good standing and lower
your monthly amortization, especially if you are experiencing difficulty in paying your
loans and have incurred arrears, penalties, and surcharges. The privilege of having the
penalties condoned can be enjoyed only during the first availment of the Conso-Loan.
The Conso-Loan is renewable as long as there are proceeds available. The loan
is payable in six years. The loan will be charged a minimal rate of 12% based on
diminishing balance.
Emergency Loan
The GSIS extends support to members affected by natural calamities with this
affordable loan program. This is payable in three years or 36 equal monthly installments
at an interest rate of six percent per annum. If an emergency loan is 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.
For a calamity-hit area, it must be declared in a state of calamity by its
Sangguniang Panlalawigan/Panglungsod and approved by the GSIS Board of Trustees
before members working in government offices in the said area become eligible for the
Emergency Loan.
Cash Advance
As the name suggests, the P10,000-Cash Advance Loan offers a substantial
amount of P10,000 (less service charge) at reasonable terms that will come in handy for
any member. If the availing member still has an outstanding balance from the old
P5,000- Cash Advance Loan, it will be deducted from the proceeds of the new loan. The
loan bears an interest rate of 12 percent payable in three years. A member can avail of
the P10,000-Cash Advance Loan only once.
To qualify for the P10,000-Cash Advance Loan, a member must have at least
three correct premium for personal and government share within the last six months
prior to application of the loan.
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
These are financial assistance/loans available to members at low interest rates
such as salary loan equivalent to a maximum of eight months salary of the member
payable in one, two, three or four years, policy loan equivalent to 50% of the life
insurance cash value (for LEP policies) or 90% of the termination value (for ELP
policies), housing loan, subject to the paying capacity of the member.