Article 70Labor and Agrarian Laws and Social Legislation, p. 70

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

(2)

the

survivorship

pension

plus

a

cash

payment

equivalent to one hundred percent (100%) of his average

monthly compensation for every year of service: Provided,

That the deceased was in the service at the time of his

death with at least three (3) years of service; or

(3) 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 (P12,000.00): Provided, That the

deceased has rendered at least three (3) years of service

prior to his death but does not qualify for the benefits

under item (1) or (2) of this paragraph.

(b) The survivorship pension shall be paid as follows:

(1) when the dependent spouse is the only survivor,

he/she shall receive the basic survivorship pension for life

or until he/she remarries;

(2) when only dependent children are the survivors, they

shall be entitled to the basic survivorship pension for as

long as they are qualified, plus the dependent children’s

pension equivalent to ten percent (10%) of the basic

monthly

pension

for

every

dependent

child

not

exceeding

five

(5), counted from the youngest and

without substitution;

(3) when the survivors are the dependent spouse and the

dependent children, the dependent spouse shall receive

the basic survivorship pension for life or until he/she

remarries, and the dependent children shall receive the

dependent

children’s

pension

mentioned

in

the

immediately preceding paragraph (2) hereof.

(c) In the absence of primary beneficiaries, the secondary

beneficiaries shall be entitled to:

(1) the 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 (P12,000.00): Provided, That the

member is in the service at the time of his death and has

at least three (3) years of service; or

(2) in the absence of secondary beneficiaries, the benefits

under this paragraph shall be paid to his legal heirs.

(d) For purposes of the survivorship benefits, legitimate

children shall include legally adopted and legitimated

children.

SECTION 22. Death of a Pensioner. - Upon the death of

an old-age pensioner or a member receiving the monthly

income benefit for permanent disability, the qualified

beneficiaries shall be entitled to the survivorship pension

defined in Section 20 of this Act, subject to the provisions

of paragraph (b) of Section 21 hereof. When the pensioner

dies within the period covered by the lump sum, the

survivorship

pension

shall

be

paid

only

after

the

expiration of the said period.

FUNERAL BENEFITS

SECTION 23. Funeral Benefits. - The amount of the

funeral benefits shall be determined and specified by the

GSIS in the rules and regulations but shall not be less

than Twelve thousand pesos (P12,000.00): Provided, That

it shall be increased to at least Eighteen thousand pesos

(P18,000.00) after five (5) years and shall be paid upon the

death of:

(a) an active member as defined under Section 2 (e) of

this Act; or

(b) a member who has been separated from the service,

but who may be entitled to future benefit pursuant to

Section 4 of this Act; or

(c) a pensioner, as defined in Section 2 (o) of this Act; or

(d) a retiree who at the time of his retirement was of

pensionable age under this Act but who opted to retire

under Republic Act No. 1616.

LIFE INSURANCE BENEFITS

SECTION 24. Compulsory Life Insurance. - All employees

except

for

Members

of

the

Armed

Forces

of

the

Philippines

(AFP) and the Philippine National Police

(PNP) shall, under such terms and conditions as may be

promulgated by the GSIS, be compulsorily covered with

life insurance, which shall automatically take effect as

follows:

(1) for those employed after the effectivity of this Act, their

insurance

shall

take

effect

on

the

date

of

their

employment;

(2) for those whose insurance will mature after the

effectivity of this Act, their insurance shall be deemed

renewed on the day following the maturity or expiry date

of their insurance;

(3) for those without any life insurance as of the effectivity

of this Act, their insurance shall take effect following said

effectivity.

SECTION 25. Dividends. - An annual dividend may be

granted to all members of the GSIS whose life insurance

is in force for at least one (1) year in accordance with a

dividends allocation formula to be determined by the

GSIS.

SECTION 26. Optional Insurance. - Subject to the rules

and regulations prescribed by the GSIS, a member may

apply for insurance and/or pre-need coverage embracing

life, health, hospitalization, education, memorial plans,

and such other plans as may be designed by the GSIS, for

himself

and/or

his

dependents.

Any

employer

may

likewise

apply

for

group

insurance

coverage

for its

employees. The payment of the premiums/installments

for optional insurance and pre-need products may be

made by the insured or his employer and/or any person

acceptable to the GSIS.

SECTION 27. Reinsurance. - The GSIS may reinsure any of

its interests or part thereof with any private company or

reinsurer whether domestic of foreign: Provided, That the

GSIS shall submit an annual report on its reinsurance

operations to the Insurance Commission.

E. ADJUDICATION OF CLAIMS AND DISPUTES

SECTION 28. Prescription. - Claims for benefits under

this Act except for life and retirement shall prescribe after

four (4) years from the date of contingency.

SECTION 29. Facility of Payment. - The GSIS shall

prescribe rules and regulations to facilitate payment of

benefits, proceeds, and claims under this Act and any

other laws administered by the GSIS. Payments made by

the GSIS prior to its receipt of an adverse claim, to a

beneficiary or claimant subsequently found not entitled

thereto, shall not bar the legal and eligible recipient to his

right to demand the payment of benefits, proceeds, and

claims from the GSIS, who shall, however, have a right to

institute the appropriate action in a court of law against

the ineligible recipient.

SECTION 30. Settlement of Disputes. - The GSIS shall

have original and exclusive jurisdiction to settle any

disputes arising under this Act and any other laws

administered by the GSIS.

The Board may designate any member of the Board, or

official of the GSIS who is a lawyer, to act as hearing

officer to receive evidence, make findings of fact and

submit

recommendations,

together

with

all

documentary and testimonial evidence to the Board

within thirty (30) working days from the time the parties

have closed their respective evidence and filed their last

pleading. The Board shall decide the case within thirty

(30) days from the receipt of the hearing officer’s findings

and recommendations. The cases heard directly by the

Board shall be decided within thirty (30) working days

from the time they are submitted by the parties for

decision.

SECTION 31. Appeals. - Appeals from any decision or

award of the Board shall be governed by Rules 43 and 45

of the 1997 Rules of Civil Procedure adopted by the

Supreme Court on April 8, 1997 which will take effect on

July 1, 1997: Provided, That pending cases and those filed

prior to July 1, 1997 shall be governed by the applicable

© Compiled By RGL

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