PRESIDENTIAL DECREE NO.

1146
[as amended by Republic Act No. 8291]

AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED,

EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE
GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS
THEREIN AND FOR OTHER PURPOSES

THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

COVERAGE OF GSIS

The GSIS covers government employees, irrespective of employment

status, who are employed with:

a. the national government, its political subdivision, branches, agencies

or instrumentalities;

b. government-owned or controlled corporations;

c. government financial institutions with original charter;

d. constitutional commissions; and

e. the judiciary.

COMPULSORY MEMBERSHIP

Membership is compulsory upon:

a. All government personnel who are receiving fixed monthly

compensations and have not reached the mandatory retirement age of 65
years, whether elective or appointive;

b. Elective officials who will be more than 65 years old at the end of his
term (including the period of his re-election without interruption);

c. Officials appointed by the President of the Republic of the Philippines

who remain in the office after reaching the age of 65;

d. Contractual or casual employees who receive fixed monthly

compensation and render the required number of working hours for the month.

EMPLOYEES NOT SUBJECT TO COMPULSORY COVERAGE OF THE GSIS

The following employees are excluded from compulsory coverage of the

GSIS:
 a. Uniformed Personnel of the Armed Forces of the Philippines, Philippine
National Police, Bureau of Fire Protection, and Bureau of Jail Management and
Penology;

b. Barangay and Sanggunian Officials who are not receiving fixed

monthly compensation;

c. Contractual Employees who are not receiving fixed compensation; and

d. Employees who do not have monthly regular hours of work and are
not receiving fixed monthly compensation.

CLASSES OF GSIS MEMBERSHIP

a. Regular or Special

Regular Members – those employed with 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 Forced of the Philippines (AFP), the Philippine
National Police (PNP), Bureau of Jail Management and Penology (BJMP)
and the Bureau of Fire Protection (BFP), who are required by law to remit
regular monthly contributions to the GSIS;

Special Members – the constitutional commissions, members

of the judiciary, including those with equivalent rank, 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.

b. Active or Inactive

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.

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.

EFFECTIVE DATE OF GSIS MEMBERSHIP

GSIS membership takes effect on the date of assumption to office by

virtue of the original appointment of election.

SEPARATION FROM SERVICE DOES NOT TERMINATE GSIS MEMBERSHIP

A GSIS member who is separated from the service continues to be a

member, and therefore, entitled to whatever benefits he has qualified to in the
event of any compensable contingency.
THE GSIS BENEFITS

Members of GSIS are entitled to the following benefits:

a. Separation Benefits

- for member who resigned or are separated from the service after
rendering service for at least 3 years but less than 15 years

- for members who resigned or are separated from the service after
rendering at least 15 years of service and is below 60 years or upon
separation, whichever comes later

b. Unemployment or Involuntary Separation Benefits

- for members who are permanent employees but was involuntarily

separated from service due to the abolition of office.

c. Permanent Total Disability Benefits

- Disability is caused by injury or disease resulting in complete,

irreversible and permanent incapacity to work or to engage in any
gainful occupation.

The following disabilities shall be deemed total and

permanent:

1. Complete loss of sight for both eyes;

2. Loss of two limbs at or above the ankle or wrist;

3. Permanent complete paralysis of two limbs; and

4. Brain injury resulting in incurable imbecility or insanity;

and

5. Such other cases as may be determined and approved by

the GSIS.

d. Permanent Partial Disability Benefits

- Permanent and partial disability is when the member is

incapacitated to work for a limited period of time because
of complete and permanent loss of any of the following
body part:

o any finger
o any toe
o one arm
o one hand
o one foot
o one leg
o one or both ears
o hearing of one or both ears
o sight of one eye
 o other causes as may be determined by GSIS

A GSIS member is entitled to permanent partial disability benefit:

a. if he was in the service at the time of disability;

b. if separated from the service, he has paid at least 36 months

contributions within the 5-year period immediately preceding his
disability’ or has paid a total of at least 180 months contributions
prior to the disability; provided, that the following conditions are
met:

o he is gainfully employed prior to the commencement of

disability resulting in loss of income as evidenced by
any incontrovertible proof thereof;

o he is not a registered member of any social insurance

institution; and

o he is not receiving any other pension either from GSIS

or another local or foreign institution or organization.

e. Temporary Total Disability Benefits

- is when a member is momentarily incapacitated to work or

engage in ay gainful occupation as a result of impairment of
physical or mental faculties which can be rehabilitated or
restored to their normal functions.

Note: if the disability requires more extensive treatment

beyond 120 days, the payment of the temporary total disability
benefit may be extended by the GSIS for a period not exceeding
240 days.

A member is entitled to Temporary Total Disability Benefit under

the following conditions:

a. The GSIS member must be in service at the time of his

disability or, if separated, he has:

(i) rendered at least three (3) years of service; and

(ii) paid at least six (6) monthly contributions in the
12-month period immediately preceding his
disability

b. The GSIS member must have exhausted all his sick leave
credits

The disability benefits will be automatically forfeited if the GSIS

member refuses or fails:

a. to have himself medically treated by a physician when

required by the GSIS;
 b. to take the prescribed medications;
c. to have himself confined in a hospital, when such
confinement is required by the GSIS; or
d. to avail himself of rehabilitation facilities as may be duly
recommended by the GSIS; or
e. to observe such precautionary or preventive measures as
prescribed by a physician to prevent the aggravation or
continuance of his disability.

f. Retirement Benefits

- A member is entitled to retirement benefits when he meet

the following conditions:

a. he has rendered at least fifteen (15) years of service;

b. he has at least sixth (60) years of age at the time of

retirement; and

c. he is not receiving a monthly pension benefit from

permanent total disability;

- A retiring GSIS member has the following options:

a. 5-year lump sum equivalent to 60 months of basic

monthly pension. After the lapse of the 5-year period, old-age
pension benefit equal to the basic monthly pension payable
for life; or

b. Cash payment benefit equivalent to 18 times the

basic monthly pension plus monthly pension for life.

What is the effect of death of a GSIS Member while the

Retirement claims are being processed?

a. If the deceased member opted for 5-year lump sum

benefit, his legal heirs shall be entitled to 5-year lump
sum benefit equivalent to 60 months basic monthly
pension. But the survivorship pension shall be granted
only after the end of the 5-year guaranteed period;

b. If the deceased member opted for immediate pension,

his legal heirs shall be entitled to the cash payment
benefit equivalent to 18 months of basic pension, plus
accrued pension up to the date of death of the retiree;

c. If the deceased member failed to indicate any

retirement option, the retirement benefit shall be
computed as it he opted for immediate pension.
g. Survivorship Benefits

- If the GSIS member dies, the primary beneficiaries are

entitled to the following survivorship benefits, whichever is
applicable:

a. Survivorship pension, under the following conditions:

(i) The deceased was in the service at the time of his

death; or

(ii) if separated from service,

 has at least three (3) years of service at the

time of his death and has paid 36 monthly
contributions within the five-year period
immediately preceding his death; or

 has paid a total of at least 180 monthly

contributions prior to his death;

b. Survivorship pension plus a cash payment equivalent to

100% of average monthly compensation for every year of
service, under the following conditions:

(i) the deceased was in the service at the time of

his death; and

(ii) must have rendered at least three (3) years of

service.

c. Cash payment equivalent to 100% of his average monthly

compensation for each year of service he paid contributions,
but not less than P12,000.00, under the following
conditions;

(i) the deceased has rendered at least three (3)

years of service prior to his death;

(ii) but does not qualify for survivorship pension

mentioned above.

The survivorship pension shall be paid to:

a. the dependent spouse – if she is the only survivor, to be

enjoyed for life or until he/she remarries;

b. the dependent children – if they are the only survivors,

to be enjoyed for as long as they are qualified, plus the dependent
children’s pension;

c. the dependent spouse and the dependent children, if

they are survivors – the dependent spouse shall receive the basic
survivor pension for life or until he/she remarries, while the
 dependent children shall receive the dependent children’s pension
equivalent to 10% of the basic monthly pension for every
dependent child not exceeding five (5) counted from the youngest
and without substitution.

If there are no primary beneficiaries, the survivorship benefits shall

be paid to the secondary beneficiaries in the following amount:

a. Cash payment equivalent to 100% of the average monthly

compensation for each year of service he paid contributions, but not less
than P12,000.00, if the GSIS member:

(i) was in the service at the time of his death; and

(ii) has at least three (3) years of service.

In the absence of secondary beneficiaries, the benefits shall be paid

to his legal heirs.

h. Funeral Benefits

- is extended to help defray the expenses incident to the

burial and funeral of the deceased member, pensioner or
retiree. It is payable to any qualified individual, in
accordance with the following order of priority:

a. Legitimate spouse;

b. Legitimate child who spent for the funeral services;

or

c. Any other person who can show incontrovertible

proof that he shouldered the funeral expenses of the
deceased.

Funeral benefit is:

a. the prevailing amount approved by the Board of

Trustees at the time of death of the member-pensioner;

b. P10,000.00 – for uniformed members of the

Philippine National Police, Bureau of Jail Management and
Penology, and Bureau of fire Protection.

i. Life Insurance Benefit

- The GSIS insurance is compulsory and available to all

employees, except for members of the Armed Forces of the
Philippines and the Philippine National Police.

Claims for GSIS benefits except for life insurance and retirement
must be filed within 4 years from the date of contingency. Claims
filed after 4 years will be barred by prescription.