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June 1, 2022

Salient Features of Republic Act No. 8291 or the Government Service Insurance System Act of 1997

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Published — June 1, 2022

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

You may also read: Understanding SSS and its benefits

The Government Service Insurance System (GSIS) is mandated to provide government employees benefits that will ensure their social welfare, and to provide assistance in their financial needs in life. The law aims to provide safeguards in case contingencies in life happen to GSIS members. The GSIS is the counterpart of SSS with regard to government employees. R.A. No. 8291 provides similar benefits to government employees equivalent to benefits provided to private employees by R.A. No. 11199 or the New Social Security Law.

Coverage

Section 2.1., Rule II of the Implementing Rules and Regulations of R.A. No. 8291 provides, to wit:

“2.1. 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.”

The GSIS makes it compulsory for all employees in the government — the national government, its political subdivisions, branches, agencies or instrumentalities, including government-owned or controlled corporations, and financial institutions with original charters, the constitutional commissions, and the judiciary, to be members thereof. It does not distinguish between elected and appointed officials, as long as you are a government employee you are required to be a gsis.gov.ph member, and pay the required contributions thereof.

However, members of the Armed Forces of the Philippines and the Philippine National Police, are not mandatorily subjected to be members of the GSIS.

GSIS Benefits

The members of the GSIS are entitled to separation benefits, unemployment or involuntary separation benefits, permanent total disability benefits, permanent partial disability benefits, temporary total disability benefits, retirement benefits, survivorship benefits, funeral benefit, and life insurance benefit.

The separation benefits are given to GSIS members who are separated from service or who resigned therefrom provided that the qualifications set by law are met by the member claiming for separation benefits.

On the other hand, the Unemployment or Involuntary Separation Benefits are given to an employee who, at the time of separation from work, was holding a permanent employment, and was separated involuntarily due to the abolition of his/her office or position resulting from reorganization. In addition, the member shall have paid the required monthly contributions to be qualified thereto.

With respect to disability benefits, permanent total disability means disability caused by injury or disease resulting in complete, irreversible, and permanent incapacity to work or to engage in any gainful occupation, w hile there is permanent partial disability when a GSIS member is incapacitated to work for a limited period of time because of complete, and permanent loss of any of the following body parts:

  • any finger                           
  • any toe
  • one arm                              
  • one hand
  • one foot                             
  • one leg
  • one or both ears             
  • hearing of one or both ears
  • sight of one eye              
  • other cases as may be determined by the GSIS (Ungos, Jr. and Ungos, III., Agrarian Law and Social Legislation, 2014 Edition).

Further, there is temporary total disability when a GSIS member is momentarily incapacitated to work or engage in any gainful occupation as a result of impairment of physical or mental faculties which can be rehabilitated or restored to their normal functions (Id).

Under Section 16 (c) of R.A. No. 8291, the disability benefits shall be suspended, unless the member has reached the minimum retirement age, when he/she:

  1. is reemployed; or
  2. recovers from his disability as determined by the GSIS, whose decision shall be final and binding; or
  3. fails to present himself for medical examination when required by the GSIS.

Retirement benefits are those received by employees upon reaching the age of retirement which is sixty (60) years of age. To be entitled thereon, according to Section 13-A of R.A. No. 8291, the following qualifications shall be met:

  1. he has rendered at least fifteen years of service;
  2. he is at least sixty (60) years of age at the time of retirement; and
  3. he is not receiving a monthly pension benefit from permanent total disability.

Likewise, Survivorship benefits are given when a member or pensioner dies, his/her beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22 of R.A. No. 8291 as stated in Section 20 of said law provided the qualifications set by law are met.

Funeral benefit is given to the beneficiaries of the deceased member to help them defray the cost of burial, and funeral expenses.

While, life insurance benefit is given to all GSIS members, except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP). It is provided in Section 24 of R.A. No. 8291, to wit:

“All employees except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the GSIS, be compulsorily covered with life insurance, which shall automatically take effect as follows:

(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their employment;

(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed renewed on the day following the maturity or expiry date of their insurance;

(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said effectivity.”

It must be noted that the claims for benefits under this law shall be filed within 4 years from the time of the contingency except claims for life and retirement benefits. Hence, after the contingency such as separation from work, occurrence of disability, or death happens, then the member ought to file a claim immediately, in order to avail of the benefits provided under this law.


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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2 thoughts on “Salient Features of Republic Act No. 8291 or the Government Service Insurance System Act of 1997

  • We back FY 2001 to FY 2006, I was active member of GSIS. FY 2006 the end of pojects & finished our contract as Aquaculturist II (SG 15) and I didnt claim my separation benefits from GSIS. Luckily, I was immediately absorbed by the Bureau as Job Order till got Permanent. Later, I found out my GSIS Service Record at the status indicated “RESIGNED?” instead “End of Contract” why. Do this will not affect my performance in the government services to be question by CSC?

  • Very nice post. I just stumbled upon your blog and wished to say that I have really enjoyed surfing around your blog posts. After all I will be subscribing to your feed and I hope you write again very soon!

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