Article 68Labor and Agrarian Laws and Social Legislation, p. 68

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

imposed

upon

employers

who

fail

to

include

the

payment of contributions in their annual appropriations

or otherwise fail to remit the accurate/exact amount of

contributions

on

time,

or

delay

the

remittance

of

premium contributions to the GSIS. The heads of offices

and

agencies

shall

be

administratively

liable

for

non-remittance

or

delayed

remittance

of

premium

contributions to the GSIS.

SECTION

6.

Collection

and

Remittance

of

Contributions. - (a) The employer shall report to the GSIS

the names of all its employees, their corresponding

employment status, positions, salaries and such other

pertinent information, including subsequent changes

therein, if any, as may be required by the GSIS; the

employer shall deduct each month from the monthly

salary

or

compensation

of

each

employee

the

contribution payable by him in accordance with the

schedule

prescribed

in

the

rules

and

regulations

implementing this Act.

(b) Each employer shall remit directly to the GSIS the

employee’s and employer’s contributions within the first

ten (10) days of the calendar month following the month

to which the contributions apply. The remittance by the

employer of the contribution to the GSIS shall take

priority over and above the payment of any and all

obligations, except salaries and wages of its employees.

SECTION

7.

Interest

on

Delayed

Remittances.

-

Agencies which delay the remittance of any and all

monies due the GSIS shall be charged interests as may be

prescribed by the Board but not less than two percent

(2%) simple interest per month. Such interest shall be

paid by the employers concerned.

SECTION 8. Government Guarantee. - The government

of the Republic of the Philippines hereby guarantees the

fulfillment of the obligations of the GSIS to its members

as and when they fall due.

D. BENEFITS

SECTION 9. Computation of the Basic Monthly Pension.

- (a) The basic monthly pension is equal to:

1)

thirty-seven

and

one-half

percent

(37.5%)

of

the

revalued average monthly compensation; plus

2) two and one-half percent (2.5%) of said revalued

average monthly compensation for each year of service in

excess of (15) years: Provided, That the basic monthly

pension shall not exceed ninety percent (90%) of the

average monthly compensation.

(b) The basic monthly pension may be adjusted upon the

recommendation of the President and General Manager

of

the GSIS and approved by the President of the

Philippines in accordance with the rules and regulations

prescribed by the GSIS: Provided, however , that the basic

monthly pension shall not be less than One thousand

and three hundred pesos (P1,300.00): Provided, further,

that the basic monthly pension for those who have

rendered at least twenty (20) years of service after the

effectivity of this Act shall not be less than Two thousand

four hundred pesos (P2,400.00) a month.

SECTION

10.

Computation

of

Service.

-

(a)

The

computation of service for the purpose of determining

the amount of benefits payable under this Act shall be

from the date of original appointment/election, including

periods of service at different times under one or more

employers, those performed overseas under the authority

of the Republic of the Philippines, and those that may be

prescribed by the GSIS in coordination with the Civil

Service Commission.

(b) All service credited for retirement, resignation or

separation for which corresponding benefits have been

awarded under this Act or other laws shall be excluded in

the computation of service in case of reinstatement in

the service of an employer and subsequent retirement or

separation which is compensable under this Act.

For the purpose of this section, the term service shall

include full-time service with compensation: Provided,

that part-time and other services with compensation

may be included under such rules and regulations as may

be prescribed by the GSIS.

SEPARATION BENEFITS

SECTION

11.

Separation

Benefits.

-

The

separation

benefits shall consist of: (a) a cash payment equivalent to

one hundred percent (100%) of his average monthly

compensation

for

each

year

of

service

he

paid

contributions, but not less than Twelve thousand pesos

(P12,000) payable upon reaching sixty (60) years of age

upon separation, whichever comes later: Provided, that

the member resigns or separates from the service after

he has rendered at least three (3) years of service but less

than fifteen (15) years; or

(b) a cash payment equivalent to eighteen (18) times his

basic monthly pension at the time of resignation or

separation, plus an old-age pension benefit equal to the

basic monthly pension payable monthly for life upon

reaching the age of sixty (60): Provided, that the member

resigns

or

separates

from

the

service after he has

rendered at least fifteen (15) years of service and is below

sixty (60) years of age at the time of resignation or

separation.

SECTION 12. Unemployment or Involuntary Separation

Benefits.

-

Unemployment

benefits

in the form of

monthly cash payments equivalent to fifty percent (50%)

of the average monthly compensation shall be paid to a

permanent employee who is involuntarily separated from

the service due to the abolition of his office or position

usually resulting from reorganization: Provided, That he

has been paying integrated contributions for at least one

(1) year prior to separation. Unemployment benefits shall

be paid in accordance with the following schedules:

Contributions Made Benefit Duration

1 year but less than 3 years 2 months

3 or more years but less than 6 years 3 months

6 or more years but less than 9 years 4 months

9 or more years but less than 11 years 5 months

11 or more years but less than 15 years 6 months

The first payment shall be equivalent to two (2) monthly

benefits. A seven-day (7) waiting period shall be imposed

on succeeding monthly payments.

All accumulated unemployment benefits paid to the

employee during his entire membership with the GSIS

shall be deducted from voluntary separation benefits.

The GSIS shall prescribe the detailed guidelines in the

operationalization

of

this

section

in

the

rules

and

regulations implementing this Act.

RETIREMENT BENEFITS

SECTION

13.

Retirement

Benefits.

- (a) Retirement

benefits shall be:

(1) the lump sum payment as defined in this Act payable

at the time of retirement plus an old-age pension benefit

equal to the basic monthly pension payable monthly for

life,

starting

upon

expiration

of

the

five-year

(5)

guaranteed period covered by the lump sum; or

(2) cash payment equivalent to eighteen (18) months of

his basic monthly pension plus monthly pension for life

payable immediately with no five-year (5) guarantee.

(b)

Unless

the

service

is

extended

by

appropriate

authorities,

retirement

shall

be

compulsory

for

an

employee of sixty-five (65) years of age with at least

fifteen (15) years of service: Provided, That if he has less

than fifteen (15) years of service, he may be allowed to

continue in the service in accordance with existing civil

service rules and regulations.

SECTION 13-A. Conditions for Entitlement. - A member

who retires from the service shall be entitled to the

retirement

benefits

enumerated in paragraph (a) of

Section 13 hereof: Provided, That:

© Compiled By RGL

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