QuestionsQuestions (Republic Act No. 660)
RA 660 amends CA 186 (Government Service Insurance System Act) by redefining key terms, expanding/clarifying coverage, adjusting contribution and insurance rules, and inserting the Retirement Insurance Benefit provisions, among others.
“Employer” refers to the National or a local government, or any agency/board/corporation controlled or owned by the Government. “Employee” refers to any Filipino citizen in the service of such employer.
It means one whose commission or enlistment is in the regular force of the AFP and not in the reserve force.
Compulsory membership applies to all regularly and permanently appointed employees (including fixed/limited tenure by law), all teachers except substitutes, and all regular officers and enlisted men of the AFP.
It becomes compulsory only if and when the municipal government below first class has joined the System under terms and conditions prescribed by the System.
Yes. Elective officials of the National or local government who are members of the System may opt in by notifying the System in writing, complying with its requirements, and being in government service when the insurance takes effect.
After admission into the System, they are entitled to life insurance benefits for which they pay either 1% or 3% of monthly salary (depending on the selected kind), and their employer pays the same amount.
Premium payment begins on the last day of the calendar month preceding the month when the person’s insurance takes effect.
Premiums for retirement insurance begin on the last day of the third calendar month following the month RA 660 was approved or when the employee entered the service, whichever is later.
Justices of the Supreme Court, elective officials, and regular officers and enlisted men are excluded from the retirement insurance benefit.
Each employee may deposit additional amounts up to a total not exceeding 10% of the total salaries received prior to retirement; deposits are credited with 3% per annum interest compounded monthly.
Compulsory membership term insurance starts automatically on the first day of the seventh calendar month following appointment, or the first day of the sixth calendar month if appointment is on the first day of the month, subject to approved medical examination if required.
It is term insurance equal to the employee’s current annual salary.
On completion of 30 years of total service and attainment of age 57 years, a member may opt to retire (with conditions regarding continuous service for the last three years and contributions for at least five years).
Retirement is automatic and compulsory at age 65, if the member has completed 15 years of service (with specified exceptions for certain positions).
If permanently and totally disabled and services are no longer desirable, the member is discharged and paid own contributions with 3% per annum compounded monthly if served less than 5 years; if served at least 5 but less than 15 years, he also gets the corresponding employer’s premiums described for life insurance; if served at least 15 years, he is retired and entitled to the retirement benefit under Section 11(a).
Any life insurance policy issued under the Act is not assignable except to the System.
Life insurance policies issued under the Act and their proceeds (when paid to a member) and other benefits are exempt from attachment, garnishment, or other legal process, and generally cannot be seized to pay debts or be included in the estate—except when obligations/indebtedness to the employer are involved.
A fine not exceeding PHP 1,000 or imprisonment not exceeding 1 year, or both, at the court’s discretion, plus disqualification from holding public office and from practicing a Government-licensed profession or calling.