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COOP LAWS AND SOCIAL LEGISLATION

Government Service Insurance System

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 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.

II. 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.
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. 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.

Contractual employees including casuals and other employees with an


employee-government 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.
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.
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.

The GSIS mandate, therefore, to provide the necessary protection is


indispensably linked with the monthly premium obligations of its members and their
agencies. Accordingly, the benefits a member receives must correspond to the
contributions received by the System on his behalf. To put it simply, by compelling the
remittance of premiums in return for a defined protection, the law is simply restating the
common principle in equity which states that what you get is what you paid for.

For Regular Members

Employees Share Employers Share


(Member) (Government)

9% 12%
of Actual Monthly Salary of Actual Monthly Salary

For Special Members

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

For the Agencies

The following penalties are imposed on an agency if it fails to remit loan


amortizations within 30 days from the time it received a billing notice from GSIS:

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

For the Members

The following are the consequences on the members for refusing to pay their
loan amortizations on time:

1. Annual dividend privileges are cancelled


2. All unpaid loans, including interests and surcharges, will be deducted from the
proceeds of the loans and the claims that will be due the member especially their
retirement claims.
VII. Benefits Provided under GSIS and Procedures of Claims in It

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

Unemployment benefit is paid when a permanent government employee who has


paid the required 12 months integrated contributions is involuntarily separated from the
service as a result of the abolition of his office or position usually resulting from
reorganization. The benefit is in the form of monthly cash payments equivalent to 50%
of the average monthly compensation (AMC). The unemployment benefit shall be paid
in accordance with the following schedule.

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.

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 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

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).
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.

A member shall be entitled to the TTD 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; and
he/she is not receiving any other pension either from GSIS or another local or
foreign institution or organization

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.

Notice and Filing of Claims and Other Documents Required

A written notice of sickness or injury shall be given by a member or anybody in


his/her behalf within one (1) month from the date of the occurrence of the contingency.
If the member is in the service, the notice shall be given to the GSIS; if separated from
the service, the member shall notify the GSIS directly. The notice must contain the
following information:
a. Name and address of the member;
b. His/her agency if in the government or employer if in the private sector;
c. Date and nature of sickness or injury;
d. Place of confinement; and
e. Any other pertinent information that may be required by the GSIS.

Periodic Medical Report

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.

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.

The beneficiaries/legal heirs of the deceased members are entitled to receive


either one of the following survivorship benefits:
1. Survivorship pension consisting of:
a. the basic survivorship pension which is fifty percent (50%) of the BMP; and
b. the dependent childrens pension equivalent to 10% of the BMP for each
child but not to exceed fifty percent (50%) of the BMP.
2. Cash payment equivalent to eighteen (18) months BMP;
3. Cash payment equivalent to one hundred percent (100%) of the AMC for every
year of service with paid contributions but not less than Twelve Thousand Pesos
(P12,000.00).

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.

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.
Claimants birth certificate is not required if the claimant is a GSIS member or
pensioner.

Life Insurance Benefits

Type 1. Life Endowment Policy (LEP) = Compulsory

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.

Type 2. Enhanced Endowment Policy (ELP) = Compulsory


1. Termination Value, the policy earns a Termination Value during the life of the
policy computed from the percentage of life insurance premiums actually remitted
and paid to GSIS.
Termination value is equivalent to a percentage of monthly life insurance
premiums as determined by the GSIS, due and paid in full, either by direct
remittance or through an APL facility. The accumulated termination value will
grow at such rate as determined by the Actuary.
The termination value shall be paid to the member upon his separation
from the government service less all indebtedness of the member with the GSIS
in accordance with CLIP.
2. Death Benefit equivalent to the latest annual salary multiplied by amount of
insurance (AOI) factor which is 1.5 or 18 times the current monthly salary of the
member or as determined by the GSIS, payable to the legal heirs, less all
outstanding obligations of the member in accordance with the CLIP.
3. Annual Dividend, a policyholder is entitled to dividends subject to the guidelines
as approved by the GSIS Board. This is not a guaranteed benefit.

Type 3. Policy Loan = Optional


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 has an option to avail of an additional life insurance without any limit
to his life insurance coverage. When availing of the Optional Policy Loan, a member can
choose to either pay it through monthly amortization or have it count against his optional
policy life contract. The Policy Loan bears an interest of 8% compounded annually.
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

My Shield Personal Accident Insurance


My Shield is the lowest insurance premium rate against personal accident in the
market today with about P40 for every P50,000 annual coverage. You can have a
minimum coverage of P50,000 to a maximum of P5 million.
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.
My Shield also has medical reimbursement features for expenses incurred within
52 weeks from the date of the accident. It allows you to claim 10% of your total
insurance to a maximum of P50,000 for medical expenses due to an accident.
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.

Home Shield Fire Insurance


Any type of residence, even a commercial establishment, can be insured with
Home Shield if the named owner is an active member of the GSIS or their immediate
family spouses, children, parents, brothers and sisters. Likewise, properties of retirees
and pensioners and their immediate family can also get a Home Shield Fire Insurance.
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.
Other protection against earthquake, typhoon or flood can also be availed for an
additional rate of only 0.04%. On top of the low premium rates, GSIS offers 20%
owners discount to all qualified assureds.
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
Auto Shield Car Insurance
Private and commercial vehicles owned, leased or loaned by active GSIS
members and their immediate relatives can be covered by a comprehensive annual
insurance worth P846,000 by paying only a premium of P9,508 - by far the lowest and
most affordable vehicle insurance to date. Unlike other car insurance that considers the
age of the vehicle, Auto Shield insures vehicles as long as they are in good running
condition.
Coverage of Auto Shield is all-inclusive since it covers the following: loss/own
damage of vehicle, comprehensive third party liability, property damage, excess bodily
harm, liability to insured passenger and unnamed driver.
Documentation required:
1. Duly accomplished Auto Shield Application Form
2. Photocopy of Certificate of Registration (CR)
3. Latest Official Receipt (OR) from LTO
4. Photocopy of previous motor vehicle policy insurance
5. Retiree number for retired employee and pensioner
6. Copy of Bank Financing for Mortgaged Unit
7. Photocopy of Sales Invoice
8. Any documentary proof of relationship with active GSIS member

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

Inflation Adjustment of Pensions


Periodic adjustments of the monthly pension of all pensioners, including those
allowing survivorship benefits, shall be done on the basis of what is sustainable and
prudent for the GSIS as recommended by its Actuary and approved by the President &
General Manager and the Board.
Christmas Cash Gift for Pensioners
A one-month pension up to a pre-determined maximum amount is usually given
to all pensioners during the Christmas season.

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.

Exemption from Tax


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.

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