LABOR LAW AND SOCIAL LEGISLATION

III. SOCIAL LEGISLATION

B. Government Service Insurance System Law - R.A. No. 8291

3. Benefits

The Government Service Insurance System (GSIS) operates under Republic Act No. 8291, also known as the "GSIS Act of 1997." This law outlines the benefits granted to members of the GSIS, which includes government employees, their dependents, and beneficiaries. Below is an exhaustive list and explanation of benefits under the GSIS Law.

A. SOCIAL INSURANCE BENEFITS

Compulsory Life Insurance
- All GSIS members are automatically covered by a life insurance policy.
- Types of Coverage:
  - Enhanced Life Policy (ELP) for regular members.
  - Optional Life Policy (OLP) for members who wish to augment their existing coverage.
- Benefits:
  - Death benefits for beneficiaries.
  - Funeral benefits to help with burial expenses.
  - Accrued dividends (if applicable).
Retirement Benefits
- Provided to members who have rendered service and reached retirement age or completed the required years of service.
- Modes of Retirement:
  - Under R.A. 8291:
    - Eligibility: Minimum of 15 years of service and 60 years old upon retirement.
    - Options:
      - 5-Year Lump Sum: Member receives a 60-month pension upfront with a resumption of monthly pensions after five years.
      - Cash Payment and Pension: Lump sum equivalent to 18 months' worth of the Basic Monthly Pension (BMP) and a corresponding monthly pension thereafter.
  - Under R.A. 1616:
    - Gratuity-based benefit for those with at least 20 years of service.
    - Refund of personal contributions without government counterpart.
  - Under P.D. 1146:
    - Older law applicable to members prior to R.A. 8291; offers a similar benefit structure to R.A. 8291.
Disability Benefits
- For members who are rendered permanently or temporarily disabled.
- Categories:
  - Permanent Total Disability (PTD): Lifetime monthly pension or cash benefit.
  - Permanent Partial Disability (PPD): Lump sum or monthly pension based on the degree of disability.
  - Temporary Total Disability (TTD): Daily cash benefit for the duration of the disability, up to 120 days (extendable to 240 days).
Survivorship Benefits
- Granted to the qualified beneficiaries of deceased GSIS members or pensioners.
- Eligibility:
  - Primary beneficiaries: Legal spouse and dependent children.
  - Secondary beneficiaries: Designated individuals or legal heirs (if no primary beneficiaries exist).
- Types of Benefits:
  - Lifetime monthly pension for eligible spouse.
  - Dependent children receive an equivalent of 10% of the BMP until they reach majority age.
Funeral Benefits
- Provided to assist with burial and funeral expenses of deceased members or pensioners.
- Fixed amount of PHP 30,000 to PHP 50,000, subject to periodic adjustments by the GSIS Board.

B. LOAN PRIVILEGES

Policy Loan
- Members can borrow against their life insurance policy's cash value.
Consolidated Loan (Conso-Loan)
- Combines salary loans, emergency loans, and other loan accounts into one.
Emergency Loan
- Available during calamities or emergencies declared by the government.
Housing Loan
- Assistance for members to purchase, construct, or renovate a house.
Educational Loan
- Available to assist members in funding their children’s education.
Pension Loan
- Exclusively for old-age pensioners, subject to age and pension rate limitations.

C. SEPARATION BENEFITS

For members who leave government service before qualifying for retirement benefits.
Types:
- Cash Payment: Refund of accumulated personal and government contributions, plus interest.
- Deferred Pension: Members with at least 15 years of service but below the minimum retirement age (60) may receive a pension upon reaching retirement age.

D. EMPLOYEES' COMPENSATION (EC) BENEFITS

Provides compensation for work-related contingencies.
Coverage:
- Sickness or injury.
- Permanent disability.
- Death resulting from work-related causes.
Benefits:
- Daily sickness allowance.
- Monthly disability pension.
- Funeral benefit for work-related death.

E. OPTIONAL BENEFITS

Members may avail themselves of optional products offered by GSIS, such as additional life insurance or housing benefit schemes.

F. PORTABILITY LAW BENEFITS

Under R.A. 7699, members who transfer between the GSIS and the Social Security System (SSS) may combine their service years from both institutions to qualify for retirement, disability, or survivorship benefits.

Key Notes:

Beneficiaries:
- Primary: Legal spouse, dependent children, and legitimate/illegitimate parents.
- Secondary: Designated individuals or legal heirs.
Contributions:
- Members contribute 9% of their monthly salary, while the government (as employer) contributes 12%.
Claim Requirements:
- Proper documentation such as proof of membership, service record, and necessary medical or legal certificates.
Administration:
- The GSIS Board of Trustees oversees policy implementation and benefits adjustments.
Exemptions:
- Members of the judiciary, constitutional commissions, and uniformed personnel have their own retirement systems but may be covered under GSIS for specific benefits.

This comprehensive guide on GSIS benefits ensures members and beneficiaries understand their entitlements, the conditions for claiming them, and the corresponding procedures under R.A. 8291.