Article 71Labor and Agrarian Laws and Social Legislation, p. 71

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

rules of procedure: Provided, further, That the appeal shall

take precedence over all other cases except criminal

cases when the penalty of life imprisonment or death or

reclusion perpetua is imposable.

The appeal shall not stay the execution of the order or

award unless ordered by the Board, by the Court of

Appeals or by the Supreme Court and the appeal shall be

without prejudice to the special civil action of certiorari

when proper.

SECTION 32. Execution of Decision. - When no appeal is

perfected and there is no order to stay by the Board, by

the Court of Appeals or by the Supreme Court, any

decision or award of the Board shall be enforced and

executed

in

the

same

manner

as

decisions of the

Regional Trial Court. For this purpose, the Board shall

have the power to issue to the city or provincial sheriff or

its appointed sheriff such writs of execution as may be

necessary for the enforcement of such decision or award,

and any person who shall fail or refuse to comply with

such decision, award, writ or process after being required

to do so shall, upon application by the GSIS, be punished

for contempt.

SECTION

33. Oaths, Witnesses, and Production of

Records. - When authorized by the Board, an official or

employee of the GSIS shall have the power to administer

oath and affirmation, take deposition, certify to official

acts,

and

issue

subpoena

ad

testificandum

and

subpoena duces tecum to compel the attendance of

witnesses

and

the

production

of

books,

papers,

correspondences, and other records deemed necessary

as evidence in connection with any question arising

under this Act. Any case of contumacy shall be dealt with

in accordance with the provisions of Section 580 of the

Revised Administrative Code.

F. FUNDS OF THE GSIS

SECTION 34. Funds. - All contributions payable under

Section 5 of this Act together with the earnings and

accruals

thereon

shall

constitute

the

GSIS

Social

Insurance Fund. The said fund shall be used to finance

the benefits administered by the GSIS under this Act. In

addition, the GSIS shall administer the optional insurance

fund for the insurance coverage described in Section 26

hereof, the Employees’ Compensation Insurance Fund

created under P.D. 626, as amended, General Insurance

Fund created under Act No. 656, as amended, and such

other special funds existing or that may be created for

special groups or persons rendering services to the

government.

The

GSIS

shall

maintain

the

required

reserves to guarantee the fulfillment of its obligations

under this Act.

The funds of the GSIS shall not be used for purposes other

than what are provided for under this Act. Moreover, no

portion of the funds of the GSIS or income thereof shall

accrue to the General Fund of the national government

and its political subdivisions, instrumentalities and other

agencies including government-owned and controlled

corporations except as may be allowed under this Act.

SECTION

35.

Deposits

and

Disbursements.

-

All

revenues collected and all accruals thereto shall be

deposited, administered and disbursed in accordance

with the law. A maximum expense loading of twelve

percent (12%) of the yearly revenues from all sources may

be disbursed for administrative and operational expenses

except as may be otherwise approved by the President of

the

Philippines

on

the

basis

of

actuarial

and

management studies.

SECTION 36. Investment of Funds. - The funds of the

GSIS

which

are

not

needed

to

meet

the

current

obligations

may be invested under such terms and

conditions

and

rules

and

regulations

as

may

be

prescribed by the Board: Provided, That investments shall

satisfy the requirements of liquidity, safety/security and

yield in order to ensure the actuarial solvency of the funds

of the GSIS: Provided, further, That the GSIS shall submit

an annual report on all investments made to both Houses

of Congress of the Philippines, to wit:

(a)

in

interest-bearing

bonds

or

securities

or

other

evidence of indebtedness of the Government of the

Philippines;

(b)

in

interest-bearing

deposits

or

securities

in any

domestic

bank

doing

business

in

the

Philippines:

Provided, That in the case of such deposits, there shall not

exceed at any time the unimpaired capital and surplus or

total private deposits of the depository bank, whichever is

smaller: Provided, further, That the said bank has prior

designation as a depository for the purpose by the

Monetary Board of the Central Monetary Authority;

(c)

in

direct housing loans to members and group

housing

projects

secured

by

first

mortgage,

giving

priority to the low income groups and in short and

medium term loans to members such as salary, policy,

educational, emergency stock purchase plan and other

similar loans: Provided, That no less than forty percent

(40%) of the investible fund of the GSIS Social Insurance

Fund shall be invested for these purposes;

(d)

in

bonds,

securities,

promissory

notes

or

other

evidence

of indebtedness of educational or medical

institutions to finance the construction, improvement

and maintenance of schools and hospitals;

(e) in real estate property including shares of stocks

involving real estate property and investments secured by

first

mortgages

on

real

estate

or

other

collaterals

acceptable to the GSIS: Provided, That such investment

shall, in the determination of the Board, redound to the

benefit of the GSIS, its members as well as the general

public;

(f) in debt instruments and other securities traded in the

secondary markets;

(g) in loans to, or in bonds, debentures, promissory notes

or

other

evidence

of

indebtedness

of

any

solvent

corporation created or existing under the laws of the

Philippines;

(h) in common and preferred stocks of any solvent

corporation or financial institution created or existing

under the laws of the Philippines listed in the stock

exchange with proven track record of profitability over

the last three (3) years and payment of dividends at least

once over the same period;

(i)

in

domestic

mutual

funds including investments

related to the operations of mutual funds; and

(j) in foreign mutual funds and in foreign currency

deposits

or

foreign

currency-denominated

debts,

non-speculative equities and other financial instruments

or other assets issued in accordance with existing laws of

the

countries

where

such

financial

instruments are

issued: Provided, That these instruments or assets are

listed in bourses of the respective countries where these

instruments or assets are issued: Provided, further, That

the

issuing

company

has

proven

track

record

of

profitability over the last three (3) years and payment of

dividends at least once over the same period.

SECTION 37. Records and Reports. - The GSIS shall keep

and cause to keep such records as may be necessary for

the purpose of making actuarial studies, calculations and

valuations of the funds of the GSIS including such data

needed in the computation of rates of disability, mortality,

morbidity,

separation

and

retirement

among

the

members

and

any

other information useful for the

adjustment of the benefits of the members. The GSIS

shall maintain appropriate books of accounts to record its

assets,

liabilities,

income,

expenses,

receipts

and

disbursement of funds and other financial transactions

and operations.

SECTION 38. Examination and Valuation of the Funds.

- The GSIS shall make a periodic actuarial examination

and valuation of its funds in accordance with accepted

actuarial principles.

© Compiled By RGL

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