Article 72Labor and Agrarian Laws and Social Legislation, p. 72

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

SECTION 39. Exemption from Tax, Legal Process and

Lien. - It is hereby declared to be the policy of the State

that the actuarial solvency of the funds of the GSIS shall

be preserved and maintained at all times and that

contribution rates necessary to sustain the benefits under

this Act shall be kept as low as possible in order not to

burden the members of the GSIS and their employers.

Taxes imposed on the GSIS tend to impair the actuarial

solvency of its funds and increase the contribution rate

necessary to sustain the benefits of this Act. Accordingly,

notwithstanding any laws to the contrary, the GSIS, its

assets,

revenues

including

all

accruals

thereto,

and

benefits

paid,

shall

be

exempt

from

all

taxes,

assessments, fees, charges, or duties of all kinds. These

exemptions

shall

continue

unless

expressly

and

specifically revoked and any assessment against the GSIS

as of the approval of this Act are hereby considered paid.

Consequently, all laws, ordinances, regulations, issuances,

opinions or jurisprudence contrary to or in derogation of

this provision are hereby deemed repealed, superseded

and rendered ineffective and without legal force and

effect.

Moreover, these exemptions shall not be affected by

subsequent laws to the contrary unless this section is

expressly,

specifically

and

categorically

revoked

or

repealed by law and a provision is enacted to substitute

or

replace

the

exemption

referred

to

herein as an

essential factor to maintain or protect the solvency of the

fund,

notwithstanding

and

independently

of

the

guaranty of the national government to secure such

solvency or liability.

The funds and/or the properties referred to herein as well

as the benefits, sums or monies corresponding to the

benefits under this Act shall be exempt from attachment,

garnishment, execution, levy or other processes issued by

the

courts,

quasi-judicial

agencies

or

administrative

bodies

including

Commission

on

Audit

(COA)

disallowances and from all financial obligations of the

members, including his pecuniary accountability arising

from

or

caused

or

occasioned

by

his

exercise

or

performance of his official functions or duties, or incurred

relative to or in connection with his position or work

except

when

his

monetary

liability,

contractual

or

otherwise, is in favor of the GSIS.

G. ADMINISTRATION

SECTION 40. Implementing Body. - The Government

Service

Insurance

System

as

created

under

Commonwealth

Act

No.

186

shall

implement

the

provisions of this Act.

SECTION 41. Powers and Functions of the GSIS. - The

GSIS shall exercise the following powers and functions:

(a) to formulate, adopt, amend and/or rescind such rules

and regulations as may be necessary to carry out the

provisions and purposes of this Act, as well as the

effective exercise of the powers and functions, and the

discharge of duties and responsibilities of the GSIS, its

officers and employees;

(b) to adopt or approve the annual and supplemental

budget of receipts and expenditures including salaries

and allowances of the GSIS personnel; to authorize such

capital and operating expenditures and disbursements of

the GSIS as may be necessary and proper for the effective

management and operation of the GSIS;

(c) to invest the funds of the GSIS, directly or indirectly, in

accordance with the provisions of this Act;

(d) to acquire, utilize or dispose of, in any manner

recognized by law, real or personal property in the

Philippines or elsewhere necessary to carry out the

purposes of this Act;

(e) to conduct continuing actuarial and statistical studies

and valuations to determine the financial €condition of

the GSIS and taking into consideration such studies and

valuations and the limitations herein provided, re-adjust

the benefits, contributions, premium rates, interest rates

or the allocation or re-allocation of the funds to the

contingencies covered;

(f) to have the power of succession;

(g) to sue and be sued;

(h) to enter into, make, perform and carry out contracts of

every kind and description with any person, firm or

association or corporation, domestic or foreign;

(i) to carry on any other lawful business whatsoever in

pursuance of, or in connection with the provisions of this

Act;

(j) to have one or more offices in and outside of the

Philippines, and to conduct its business and exercise its

powers throughout and in any part of the Republic of the

Philippines and/or in any or all foreign countries, states

and territories: Provided, That the GSIS shall maintain a

branch office in every province where there exists a

minimum of fifteen thousand (15,000) membership;

(k)

to

borrow

funds

from

any

source,

private

or

government, foreign or domestic, only as an incident in

the securitization of housing mortgages of the GSIS and

on account of its receivables from any government or

private entity;

(l) to invest, own or otherwise participate in equity in any

establishment, firm or entity;

(m)

to

approve

appointments

in

the

GSIS

except

appointments to positions which are policy determining,

primarily

confidential

or

highly

technical

in

nature

according to the Civil Service rules and regulations:

Provided, That all positions in the GSIS shall be governed

by the compensation and position classification system

and qualifications standards approved by the GSIS Board

of Trustees based on a comprehensive job analysis and

audit

of

actual

duties and responsibilities: Provided,

further, That the compensation plan shall be comparable

with the prevailing compensation plans in the private

sector and shall be subject to the periodic review by the

Board no more than once every four (4) years without

prejudice to yearly merit reviews or increases based on

productivity and profitability;

(n) to design and adopt an Early Retirement Incentives

Plan (ERIP) and/or financial assistance for the purpose of

retirement for its own personnel;

(o) to fix and periodically review and adjust the rates of

interest and other terms and conditions for loans and

credits extended to members or other persons, whether

natural or juridical;

(p) to enter into agreement with the Social Security

System or any other entity, enterprise, corporation or

partnership for the benefit of members transferring from

one system to another subject to the provisions of

Republic Act No. 7699, otherwise known as the Portability

Law;

(q) to be able to float proper instrument to liquefy

long-term

maturity

by

pooling funds for short-term

secondary market;

(r) to submit annually, not later than June 30, a public

report

to

the

President

of the Philippines and the

Congress of the Philippines regarding its activities in the

administration and enforcement of this Act during the

preceding

year

including

information

and

recommendations on board policies for the development

and perfection of the programs of the GSIS;

(s)

to

maintain a provident fund, which consists of

contributions made by both the GSIS and its officials and

employees

and

their

earnings, for the payments of

benefits to such officials and employees or their heirs

under such terms and conditions as it may prescribe;

(t)

to

approve

and

adopt

guidelines

affecting

investments,

insurance

coverage

of

government

properties, settlement of claims, disposition of acquired

assets,

privatization

or

expansion

of

subsidiaries,

development of housing projects, increased benefit and

© Compiled By RGL

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