QuestionsQuestions (PRESIDENTIAL DECREE NO. 1981)
PD No. 1981 aims to further amend PD No. 1116 (Revised Government Service Insurance Act of 1977) by clarifying conflicting interpretations affecting GSIS coverage and benefits. It specifically addresses issues on whether elective officials are covered during their tenure, whether separation for cause or “considered resigned” results in automatic forfeiture of retirement benefits, and whether government employees at the time of PD No. 1146’s effect can choose retirement under PD No. 1146 or CA No. 186.
It amends Section 2(d) so that “Employee” means: “Any person, whether elected or appointed, in the service of an employer who receives compensation for such service.”
Membership is compulsory for: (1) all permanent employees below 60 years of age upon appointment to permanent status; and (2) all elective officials, for the duration of their tenure.
It requires (1) approval of the President of the Philippines and (2) subject to the availability of funds. It may be extended simultaneously, in phases, or by groups.
They may be covered upon approval by the System at the request of their respective Governing Boards.
The coverage of temporary employees under R.A. No. 4968 shall remain in force.
A member separated from the service continues to be a member and is entitled to whatever benefits have accrued or been earned at the time of separation in the event of any contingency compensable under the Act.
If the member is separated for cause or is considered resigned, he automatically forfeits the accrued benefits—unless the terms of his resignation or separation provide otherwise.
Even in forfeiture, the separated employee is still entitled to receive one-half of the cash surrender value of his life insurance.
They may, at the time of retirement, choose to retire either under the Act (PD No. 1116 as amended) or under Commonwealth Act No. 186 (as amended), with benefits determined according to the law opted.
If the member is re-employed, the subsequent retirement shall be governed by the provisions of the Act.
Yes. The member may change the mode of retirement within one year from the date of retirement, in accordance with rules and regulations prescribed by the GSIS.
The System has original and exclusive jurisdiction to settle any dispute arising under the Act and any other laws administered by the System.
The claim is paid in accordance with PD No. 1116 (i.e., “the claim shall be paid in accordance with this Act” in case of conflicting claims between the two laws).
The hearing officer submits findings and recommendations within thirty working days from closure of evidence and filing of the last pleading. The Board decides within thirty days from receipt. Cases heard directly by the Board are decided within thirty working days from when submitted by the parties for decision.
It reiterates that the exemptions are not affected by subsequent laws to the contrary (e.g., PD No. 1931 and similar laws) unless expressly and categorically repealed by law, and a substituting provision is enacted to substitute the declared policy of exemption from taxes as an essential factor for the solvency of the fund.
Among others: (1) to formulate policies and programs; (2) promulgate necessary rules and regulations; (3) approve annual/supplemental budgets and authorize operating/capital expenditures upon recommendation; (4) approve organizational structure and staffing pattern and set compensation package, exempt from certain government rules on budget/compensation/position classification; (5) fix and adjust rates of interest and loan terms; (6) compromise or release claims/settled liabilities regardless of amount under terms for the best interest of the System; and (7) do all acts necessary or proper to attain Act objectives.
It mandates that the insurance and investment operations of the System are under its full and sole responsibility, notwithstanding Section 246 of the Insurance Code (as amended).