The GSIS and RA 8291 Constitutional Provisions 1987 Constitution has given constitutional recognition to the obligation of the

e 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) 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 Service Commission, Sec. 8, par. 2). As 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). About GSIS GSIS is a social insurance institution created under CA No. 186 that was passed on November 14, 1936 and later amended under RA No. 8281 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. Mandate of GSIS GSIS, as designed in its charter, is a social insurance institution under a defined benefit scheme. It insures its members against the occurrence of certain contingencies in exchange for their monthly premium contributions. The social security benefits available for all GSIS members are: compulsory life insurance, optional life insurance, retirement benefits, disability benefits for work-related contingencies and death benefits. Organization of GSIS The governing and policy-making body of the GSIS is the Board of Trustees, the members of which are appointed by the President of the Philippines. The GSIS workforce consists of 3,104 employees, 52% of whom are in the Head Office while the remaining 48% are in the Branches. To date, the GSIS has 15 Regional Offices, 25 Branch Offices and 18 Satellite Offices nationwide.

PD 1146 RA 660 RA 1616

Who are covered? Compulsory for all employees: Appointive or elective Whether temporary, casual, permanent or contractual 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. When coverage takes effect? Upon the employees assumption to duty pursuant to a valid appointment or election and oath of office. 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 provide for contingencies (death, disability or separation) subject to satisfaction of eligibility conditions.

Who are not covered? Employees who have separate retirement schemes under special laws and are therefore covered by their respective retirement laws, such as the members of the Judiciary Constitutional Commissions, and other similarly situated government officials; Uniformed members of AFP and 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 Compensation Defined as 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) Contributions First P 10,000 In excess of P10,000 Member Employer 9% 12% 2% 12%

RA No 8291 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 to have more flexibility and thus perform its mission of providing social security protection more effectively. Effectivity June 24, 1997, 15 days after it was published on June9, 1997. It was approved on May 30, 1997 Repeal of retirement laws:

Who is responsible for remittance of contributions? Employer 1

Date of remittance? First ten days of calendar month following the month to which contributions apply. Effect of non-remittance? All loan privileges of member shall be suspended Determination of eligibility to and computation of 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. Benefits Contingencies compensable: Retirement Separation Unemployment Disability Survivorship Death (Life Insurance and Funeral) 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 50% of the Social Insurance Fun (SIF) to member Loans Benefits Retirement Conditions: Rendered at least 15 yrs of service At least 60 years old at time of retirement Not receiving monthly pension from permanent total disability Options: Lump sum payment of basic monthly pension multiplied by 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 payable immediately upon retirement but without 5-year guaranteed period Retirement If rendered at least 15 years service but is less than 60 years at time of separation or resignation, member will be entitled to cash payment equivalent to 18 times his basic monthly pension payable at the time of separation or resignation and upon reaching the age of 60 years, he will be entitled to basic monthly pension payable monthly for life. This is denominated as separation benefit but in reality a combination of separation and retirement benefits.

Penal Provisions? The following are liable: 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 30days from date they should be remitted Penal provisions? (Who are liable) 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 Membership in GSIS Enjoyment of life insurance, retirement and other social security protection such as disability, survivorship, separation and unemployment benefits Members of judiciary and constitutional commissions are covered by GSIS with life insurance only; retirement laws are governed by special laws Is part time service included in the computation of total service rendered? As a rule, all full-time service with compensation from 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 per week and 52 week per year as basis. Creditable Services Valdez vs GSIS Petitioner would want SC to reverse CA ruling 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. SC: Aside from having been rendered part-time in said agencies, the said positions were without compensation as defined in Section 2 (i) of RA No 8291.

Retirement If rendered at least 15 years service but is less than 60 years at time of separation or resignation, member will be entitled to cash payment equivalent to 18 times his basic monthly pension payable at the time of separation or resignation and upon reaching the age of 60 years, he will be entitled to basic monthly pension payable monthly for life. This is denominated as separation benefit but in reality a combination of separation and retirement benefits. 2

Benefits Conditions: rendered at least 15 years of service at least 60 years old at time of retirement not receiving monthly pension from permanent total disability Options: lumps sum payment of basic monthly pension multiplied by 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 payable immediately upon retirement but without 5 years guaranteed period Entitlement to retirement is premised on service of at least 15 years Member who is 60 years old upon retirement but with less than 15 years of service is not entitled to retirement. What he gets is a separation benefit consisting of cash benefit equivalent to 100% of his average monthly compensation for each year of service he paid contributions but not less than P12,000 provided he has at least 3 years but less than 15 years of service Member who has at 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

did not entitle respondent to the retirement benefits provided thereunder. Thus, GSIS stopped the payment of respondents monthly pension. SC Technicality GSIS contended that respondent has no right to relief sought because he presented no law upon which he based his claim SC said that the inflexible rule is that social legislation must be liberally construed in favor of the beneficiaries. Retirement law, in particular, are liberally construed in favor of the retiree because their objective is to provide for the retirees sustenance and, hopefully, even comfort, when he no longer has the capability to earn a livelihood. The liberal approach aims to achieve the humanitarian purposes of the law in order that efficiency, security, and well-being of government employees may be enhanced. Indeed, retirement laws are liberally construed and administered in favor of the persons intended to be benefited, and all doubts are resolved in favor of the retiree to achieve their humanitarian purpose. Substance It must also be underscored that GSIS itself allowed respondent to retire under RA No 910, following jurisprudence laid down by this Court. One could hardly fault respondent, though a seasoned lawyer, for relying on petitioners interpretation of the pertinent retirement laws, considering that the latter is tasked to administer the governments retirement system. He had the right to assume that GSIS personnel knew what they were doing. Since the change in circumstances was through no fault of respondent, he cannot be prejudiced by the same. His right to receive monthly pension from the government cannot be jeopardized by a new interpretation of the law GSIS argument that respondent has already been enormously benefited under RA No 910 (unjust enrichment) misses the point. Retirement benefits are a form of reward for an employees loyalty and service to the employer, and are intended to help the employee enjoy the remaining years of his life, lessening the burden of having to worry about his financial support or upkeep. A pension partakes of the nature of retained wages of the retiree for a dual purpose: to entice competent people to enter the government service; and to permit them to retire from the service with relative security, not only for those who have retained their vigor, but more so for those who have been incapacitated by illness or accident. Surely, giving respondent what is due him under the law is not unjust enrichment Separation: Who are eligible? Types: Rendered at least 3 years but less than 15 years (cash payment equivalent to 100% of Average Monthly Compensation for every year of service a payable upon reaching 60 or upon separation whichever comes later if not receiving monthly pension from permanent total disability) Rendered at least 15 years and who is below 60 at time of resignation/separation (cash payment equivalent to 15 times the basic Monthly Pension payable upon separation plus monthly pension starting 60) Separation IRR, Rule II, Sec 2.5: Member separated for cause 3

GSIS vs COA Issue: Whether the COA disallowances, representing loyalty and service cash awards of the respondents as well as housing allowance in excess of that approved by the COA, could be legally deducted from their retirement benefits. Sec. 39 Exemption from Tax, Legal Process and Lienxxx xxx xxx The funds and/or the properties referred to herein as well as the benefits, sums or monies corresponding to the benefits under this Act shall be exempt from attachment, garnishment, execution, levy or other processes issued by the courts, quasi-judicial obligations of the members, including his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties, or incurred relative to or in connection with his position or work except when his monetary liability, contractual or otherwise, is in favor of the GSIS. Respondent retired as Chief State Prosecutor of DOJ in 1992 after 44 years of service to the government. He applied for retirement under RA No 910, invoking RA No 3783, as amended by RA No 4140, which provides that chief state prosecutors hold the same rank as judges. The application was approved by GSIS. Thereafter, and for more than nine years, respondent continuously received his retirement benefits, until 2001, when he failed to receive his monthly pensions. Respondent learned that GSIS cancelled the payment of his pension because DBM informed GSI that respondent was not qualified to retire under RA 910; that the law was meant to apply only to justices and judges; and that having the same rank and qualification as a judge

Automatically forfeit Unless terms of resignation or separation provide otherwise

Defined as any loss or impairment of the normal functions 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)

Member separated not for cause Shall continue to be member and entitled subject to qualification and other prescription Lledo vs Lledo SC dismissed from the service Atty. Cesar V. Lledo, former branch clerk of court of RTC of Quezon City, Brch 94. Cesars wife, Carmelita, had filled an administrative case against him, charing the latter with immorality, abandonment, and conduct unbecoming a public official. During the investigation, it was established that Cesar had left his family to live with another woman with whom he also begot children. He failed to provide support for his family

Temporary Total Disability Temporary Total Disability Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions (sec 2[t]) Accrues or arises when there is complete but temporary incapacity to continue with a members present employment or engage in any gainful occupation due to the loss or impairment of the normal function of the physical and/or mental faculties of the member. In effect, this loss or impairment can be reversed to the point where the member can continue with his previous employment or engage in another gainful occupation Permanent Total Disability Permanent Total Disability Accrues or arises when recovery from the impairment mentioned in sec 2 [q] is medically remote (sec 2 [s]) A member who becomes permanently and totally disabled when he /she is in the service and has paid 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) Disability Evaluation of disability as a contingency is vested solely in GSIS (IRR, sec 9.3.1) General condition for entitlement is that the disability was not due to misconduct, notorious negligence, habitual intoxication or willful intention to kill himself or another (IRR, sec 9.3.2) Survivorship Those granted to surviving and qualified beneficiaries of the deceased member or pensioner to cushion them against the adverse economic, psychological and emotional loss resulting from the death of a wage earner or pensioner.

Dispositive portions saysWHEREFORE, Cesar V. Lledo, brnch clerk of court of RTC, Brnch 94, Quezon City, is hereby DISMISSED from the service, with forfeiture of all retirement benefits and leave credits and with prejudice to reemployment in any branch or instrumentality of the government, including any government-owned or controlled corporation. This case is REFERRED to the IBP Board of Governors pursuant to sec 1 of Rule 139-B of the Rules of Court. Issue: May government employee, dismissed from the service for cause, be allowed to recover the personal contributions he paid to the GSIS? SC GSIS laws are in the nature of social legislation, to be liberally construed in favor of the government employees. The money subject of the instant request consists of personal contributions made by the employee, premiums paid in anticipation of benefits expected upon retirement. The occurrence of a contingency, i.e., his dismissal from the service prior to reaching retirement age, should not deprive him of the money that belongs to him from the outset. To allow forfeiture of these personal contributions in favor of the GSIS would condone undue enrichment. Pursuant to the foregoing discussion, Cesar is entitled to the return of his premiums and voluntary deposits, if any, with interest of three per centum per annum, compounded monthly.

Primary Beneficiaries The legitimate spouse, until he/she remarries and the dependent children. Secondary Beneficiaries a. The dependent parents; and b. The legitimate descendants Who are dependents? a. The legitimate spouse dependent for support; b. Any legitimate, legitimated and/or legally adopted child, including any illegitimate child, who is 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 AM No 10019-Ret February 22, 2001 (RE: Application for suvivors benefits of Ms. Maylenne G. Manlavi, daughter of the late Ernesto R. Manlavi)

Unemployment The benefit is paid when a permanent employee is involuntarily separated from the service as a result of the abolition of his office or position usually resulting from reorganization. Who is eligible? Permanent employee who has paid 12 monthly contributions. Duration of benefit on length of service ranges from 2 mos. to a maximum of 6 mos. Equivalent of benefit 50% of the average monthly compensation Option Those who have more than 15 years service may either avail of retirement or separation benefits as the case may be Disability

While Marilou G. Manlavis marriage to the late Ernesto R. Manlavi had never been dissolved prior to his death, she abandoned the family for more than 17 years until he died and lived with other men. It is obvious that she was not depend on her legal husband for any support, financial or otherwise, during that entire period. In fact her whereabouts were unknown to her family. She never attempted to communicate with them,, even to check up on the well-being of her only daughter. Such being the case, Marilou G. Manlavi is not a dependent within the contemplation of RA 8291 as to be entitled to Survivorship Benefits.

GSIS has

original and exclusive jurisdiction to settle any dispute arising under RA 8291 w/ respect to: Coverage Entitlement to benefits Collection and payment of contributions Any other matter related to any or all of the foregoing which is necessary for their determination

Prescriptive Period? 4 years from date of contingency except life and retirement which do not prescribe Tax Exemption Rubia vs GSIS exemption of GSIS from execution does not cover refund of amortization payement City of Davao vs RTC on real property taxes, GSIS tax exempt status in previous law was withdrawn under RA 7180 lbut restored under sec 39 RA 8291

BOT Policy under GMA In the revised IRR of the GSIS Charter (RA 8291), surviving spouses were disqualified from getting the usual half of the GSIS pensioners monthly benefit if the spouse earns more than the minimum wage rate of national government employees or is getting pension from other institutions, no matter what amount. Board resolved to allow surviving spouses of member and pensioners to receive their monthly pension benefits even if they are gainfully employed and receiving other sources of income Board recognized that gainful employment does not imply that s surviving spouse is no longer dependent for support upon the deceased member or pensioner. Family Code clearly defines that Support comprises everything indispensable for sustenance, dwelling, clothing, medical attendance, education and transportation, in keeping with the financial capacity of the family. The Board however placed a cap on the survivorship pension to avoid unsually large disparities in pension benefits. In either case, the basic survivorship pension or the total pension to be received by the dependent children shall not exceed 50% of current salary of an undersecretary at Step 1 of the salary matrix under the Salary Standardization Law and its amendments. The ceiling is based on the rank of an Undersecretary because this is the highest career position in government. Payment of the basic survivorship pension to the depend spouse shall be discontinued in case the latter remarries, cohabits, or engages in common-law relationship. Funeral Shall 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 benefits; 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 age The funeral benefit shall be paid to one of the following in the order in which they appear hereinbelow: 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 expenses

Legal Fees AM No 08-2-01-0, February 11, 2010 Facts GSIS seeks exemption from the payment of legal fees imposed on government-owned or controlled corporations under sec 22, Rule 141 (Legal Fees) of the Rules of Court, GSIS anchors its petition on sec 39 of its charter RA 8291. GSIS vs NLRC Private respondents were security guards of a security agency assigned to Tacloban branch of GSIS The security guard thereafter filed an illegal dismissal against the agency and GSIS, separation pay, salary differential, 13h month and unpaid salary. GSIS filed the present petition contending the error committed because it is exempt from execution per charter SC The fact that there is no actual and direct employer-employee relationship between petitioner and respondents does not absolve the former from liability for the latters monetary claims. When petitioner contracted DNI, Securitys services, petitioner became an indirect employer of respondent, pursuant to Art 107 of the Labor Code After DNL, Security failed to pay respondents the correct wages and other monetary benefits, petitioner, as principal, became jointly and severally liable, as provided in Art 106 and 109 of the Labor Code Citing GSIS vs RTC of Pasic, SC did not agree with petitioner that the enforcement of the decision is impossible because its charter unequivocally exempts it from execution Petitioners charter should not be used to evade its liabilities to its employees, as mandated by the Labor Code. Portability of benefits (Portability Law RA 7699) A member of GSIS who does not qualify for old age and other benefits by reason of nonfulfillment of the required period of service may be able to qualify for such benefits by making 5

Adjudication of Claims Jurisdiction?

use of the period during which he rendered service may be able to qualify for such benefits by making use of the period during which he rendered services to a private 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.

13. 14. 15. 16. 17. 18. 19. 20. 21. 22. III

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]). Totalization refers to the process of adding up the periods of creditable services or contributions in each of the Systems for purposes of eligibility and computation of benefits, for purposes of membership shall be considered once only (sec. 3) Overlapping period refers to the period during which a worker contributes simultaneously to GSIS and SSS The totalization of service credits is only resorted to when the retiree does not qualify for benefits in either or both of the Systems If a person is qualified to receive benefits granted by GSIS if such right has not yet been exercised, then this principle does not apply. Gamogamo vs PNOC, GR No 141707, May 7, 2002 Held: The totalization of service credits was resorted to only when the retiree did not qualify for benefits in either or both the SSS and the GSIS. In this case, petitioner was qualified to receive benefits granted by the GSIS, if such right had not yet been exercised. In any case, petitioners 14 years of service with the DOH may not remain uncompensated because it may be recognized by the GSIS pursuant to sec 12 of Government Insurance Act of 1977, as may be determined by the GSIS. Since petitioner may be entitled to some benefits from the GSIS, he cannot avail of the benefits under RA No 7699.

COA Disallowances GSIS Advances: sickness and maternity Primary ben in GSIS Claims jurisdiction SSS Ortega vs SSC Distinction for claims in LC and SSS Consent of SSS in any criminal action Compulsory Coverage of Judges Golf Atlantic Dacion en pago case Rep vs Aisan Pro Coop Case Separation for Cause GSIS

23. Defenses of lack of criminal intent of CF 24. Asia Pro Case 25. Choa Case IV 26. Independent Contracting and Labor only Requirement In relation to SS Law Employee excluded 27. 4 Q: on maternity leave 1. Who will qualify 2. Requirement of 3. Semester of contensency Essay: 1. Prescription GSIS 2. Director of Corp sued (Garcia vs SSC) 3. Purely Casual Employee not purposes of business (Mansal vs L-8017 4-30-1995 en banc 4. GSIS vs NLRC security guards case

Pointers: Finals 60% M&Q 40% Essay 1. 2. Jurisdiction of GSIS Employment in SS Law def emp services exclude from coverage 3. Def of Employer 4. Sickness Benefit maximum days 5. Totalization RA 1699 resorted 6. Employee and Employer relationship under SS Law Who determines Effect of final judgment in NLRC 7. Compulsory coverage GSIS 8. New Benefits of GSIS 9. Sec. 5 of SS Law Appeal of decision of SSC 10. Primary Ben SS Law 11. Effectivity of Coverage as compulsory overage in SS Law 12. Prescriptive Period of GSIS 6