Guidelines on GSIS Premiums Past Age 65

Policy background and legal basis

The guidelines implement a policy ensuring uniform treatment of members still in the service beyond the mandatory retirement age of 65 who were having retirement premiums remitted.
The policy is anchored on Section 13(b) of Republic Act No. 8291, which sets 65 as the mandatory retirement age unless service is extended by appropriate authorities under civil service rules and regulations.
The guidelines recognize extensions of service for specific categories under Executive Order No. 136 (s. 1999), Civil Service Commission Memorandum Circular No. 27 (s. 2001), Republic Act No. 8292, and Republic Act No. 9500.
The guidelines are issued to address errors and restore equity concerning members who continuously pay premiums beyond 65 and agencies that continued remitting retirement premiums.

Definitions and key terms

“Regular Members” are those who, together with the government agency to which they belong, are required to remit life and retirement premium contributions mandated under Section 5 of Republic Act No. 8291.
“Continuance of Coverage of Membership” requires GSIS to compulsorily collect monthly contributions from members who are already beyond 65 and were allowed, under existing civil service rules and regulations, to continue in the service.
“Optional Continuance of Membership” grants members the option to continue their GSIS membership and pay monthly contributions, even beyond the mandatory retirement age of 65.

Coverage of members and contributions

The policy covers regular members who have remitted premium contributions to GSIS even beyond the mandatory retirement age of 65.
The policy provides rules for premium remittances due starting month of May 2012 for members who have reached 65.
The policy establishes two general treatment paths: (1) crediting and computation inclusion of premiums and services under defined conditions, and (2) refund of premiums and/or adjustment of service credit.
The policy provides compulsory coverage for certain officials with valid service extensions and optional coverage for other officials/employees under specified conditions.

Core general rule on premium treatment

Premiums remitted beginning the due month of May 2012 for members who have reached the mandatory retirement age of 65 are no longer credited in computing the Total Length of Service (TLS) and Periods with Premium Payments (PPP), subject to the exceptions in Section III.C.1 and 2.
Premiums remitted for the due month May 2012 rule are to be returned to the members through the remitting agency, subject to Section III.E.1 and 2.
Premium contributions already collected prior to the cut-off date for services rendered beyond 65 and not yet refunded are credited to the members’ TLS and PPP, unless the member opts for the refund of these premium contributions.

Exceptions: who stays covered beyond 65

GSIS shall continue to compulsorily cover and collect monthly premium contributions from these members beyond 65, provided they were allowed under existing civil service rules and regulations to continue in the service:
- Presidential appointees whose extension of service was approved by the Office of the President (OP) under Executive Order No. 136 (s. 1999).
- Non-presidential appointees whose services were extended by the Civil Service Commission (CSC) under CSC Memorandum Circular No. 27 (s. 2001) for completing the fifteen (15) years of service required under Republic Act No. 8291 to qualify for retirement benefits.
- Non-presidential appointees whose services were extended under Republic Act No. 8292 and Republic Act No. 9500.
Members may opt for Optional Continuance of Membership, continuing GSIS membership and monthly contributions (personal share by the member and government share by the agency), even beyond 65, if they fall under any of these categories:
- An official elected to public office before 65 who reaches the mandatory retirement age during the term, with continued paying of premiums until end of term, including any period of re-election or election to another public office, provided such periods are continuous.
- An official appointed by the President before 65 to a public office for a fixed term and a fixed monthly compensation who reaches the mandatory retirement age during tenure, with continued paying of premiums until end of tenure, including any periods of term extension or re-appointment to another office, provided such periods are continuous.
- An official or employee holding a co-terminus or highly confidential position who reaches 65, with services considered automatically extended until expiration of the appointment or until earlier termination under CSC Memorandum Circular No. 27 (s. 2001).

PPP computation and included service periods

The policy requires the following to be included in computing the member’s PPP:
- Years of service corresponding to premium contributions already collected prior to due month May 2012 that have not been refunded.
- Extended services under Section III.C.1.
- Services pertaining to continued membership in GSIS under Section III.C.2 (Optional Continuance of Membership).

Refund of premiums beyond age 65

Refund of premium contributions is available to:
- Members who opt not to continue their GSIS membership after May 2012.
- Members who were erroneously issued a life insurance policy at age 65, were informed to claim refund, but did not comply.
- Members continuously covered after reaching 65 without a valid extension from the OP or CSC, and who fall within these instances:
  - Members whose paid separation or retirement benefit did not include service periods with premium payments after 65 and who did not claim refund.
  - Members whose claim for separation of retirement benefit was disapproved.
Refund for premiums paid beyond 65 is computed as:
- The personal share of the member from the time the member reaches 65 years of age up to the last payment remitted.
- The government share for the same period, refunded to the agency provided the agency has no arrears in remittances and a reconciliation of the agency’s account is made to ascertain its status before the refund.
Processing of refund requires filing of a member’s request through submission of a letter or a Member’s Request Form (MRF).
Re-processing of previously disapproved separation or retirement claim begins upon receipt of a duly accomplished Application for Retirement and Other Social Insurance Benefit Form.
Submission of an MRF is required for refund of premium payments made after reaching 65 years of age.

Data extraction, notices, and timelines

The Technical Support Departments (TSDs) of the Operations Group conduct an annual extraction of data of members turning 65 in June of each year.
Members are informed in writing of their option to either continue or discontinue membership, with the corresponding effect on PPP or possible refund.
Agencies are informed of the names of their employees nearing the mandatory retirement age of 65.
The Agency Authorized Officers (AAOs) must submit to GSIS within 30 days from receipt of notification the list of members with their options taken, including the notice of extension issued by the authorized agency, if any.
Non-submission of the list and notice of extension within the prescribed period results in discontinuance of membership coverage effective:
- May 2012 for members who are beyond age 65 upon issuance of BR 44; or
- The month following the member’s 65th birthday for members who will be turning 65 after issuance of the policy.

System requirements and reporting

The Information Technology Services Group (ITSG) ensures necessary enhancements to the computerized system for proper implementation of the policy.
The Operations Group, Information Security Office (ISO), and Internal Audit Services Office (IASO) provide business requirements and undertake Usersa Acceptance Testing (UAT).
The Corporate Communications Office (CCO) drafts a pro forma letter informing affected members of their options under Board Resolution No. 44, and the concerned Membership Department disseminates it.
Operating units concerned submit required reports to their respective SVPs for monitoring purposes.

Procedures under the Manual of Operations

The detailed procedures in the operating units’ Manual of Operations must follow these general guidelines.

Phase 1: extraction and option determination

Activity 1: TSD, Operations Group extracts data of members beyond 65 with premium contributions.
Activity 2: The Membership Department, Operations Group excludes special members from the list.
Activity 3: The Membership Department, Operations Group determines inactive members without claim and prepares notifications requiring members to respond directly to GSIS within 30 days upon receipt; notifications use the CCO-prepared pro forma letter.
Activity 4: The Membership Department, Operations Group determines members covered by Optional Continuance under BR 44 and prepares notifications requiring members to respond directly to GSIS or through AAOs within 30 days.
Activity 5: The Membership Department, Operations Group identifies those with valid notices of extension issued by OP or CSC; if with valid notice, coverage continues and services are included in PPP; if without notice, a letter is prepared requesting submission of notice of extension or the option taken within 30 days.
Activity 6–7: Letters are sent to the Records Management Department (RMD) for mailing, and RMD mails letters to concerned members and agencies.

Phase 1: processing responses

Membership Department, Operations Group monitors and follows up responses within 30 days from notice:
- For elected, appointed, or co-terminus employees:
  - If opting to continue, the MSP records the option taken and membership coverage continues.
  - If opting to discontinuance and refund is requested, refund is processed upon filing of an MRF.
  - If opting to have services included in PPP, the MSP is closed and the option is recorded.
- For non-elected, non-appointed, non-co-terminus employees:
  - If valid notice of extension is submitted, MSP records the option and coverage continues.
  - If refund is requested, refund is processed upon filing of an MRF.
  - If opting to have services included in PPP, the MSP is closed and the option is recorded.
- For inactive members:
  - If refund is requested, refund is processed upon filing an MRF.
  - If opting to have services included in PPP, MSP is updated, the option is recorded, and an open item for premiums is created and premiums paid are applied to the open item.

Phase II: annual turning-65 cycle

Activity 1: TSD, Operations Group extracts data of members about to turn 65 within the current year.
Activity 2: Membership Department, Operations Group excludes special members in the list and excludes the extracted members during Phase I.
Activity 3: For members covered by Optional Discontinuance under BR 44, Membership Department prepares notifications requiring responses within 30 days directly to GSIS or through AAOs, using the CCO pro forma letter.
Activity 4: For remaining members, Membership Department prepares notifications of termination of membership coverage unless a notice of extension from OP or CSC is submitted; responses are required within 30 days.
Activity 5–6: Letters are sent to RMD for mailing, and RMD mails letters to concerned members and agencies.

Phase II: monitoring AAO responses

Membership Department, Operations Group monitors AAO responses within 30 days from receipt of letters:
- For elected, appointed, or co-terminus employees:
  - If opting to continue, MSP records the option taken and coverage continues.
  - If opting to discontinue, MSP records the option taken and closes MSP upon separation from service or date of birth, whichever comes first.
- For non-elected, non-appointed, non-co-terminus employees:
  - If notice of extension is submitted, MSP records the option and coverage continues.
  - If notice of extension is not submitted, MSP records the option and closes MSP on the 65th birthday.
If no AAO response is received, MSP is closed upon separation from service or 65th birthday, whichever comes first, and GSIS informs both the member and the AAO through mail.

Final effect and supersession

The policy requires immediate effect and implements the approved treatment of premium payments beyond 65 under the superseded coverage framework.
Board Resolution No. 44 dated 22 March 2012 is superseded by GSIS Resolution No. 46 dated May 23, 2013.