Article 73Labor and Agrarian Laws and Social Legislation, p. 73

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

loan packages to members, and the enforcement of the

provision of this Act;

(u) any provision of law to the contrary notwithstanding,

to authorize the payment of extra remuneration to the

officials and employees directly involved in the collection

and/or remittances of contributions, loan repayments,

and other monies due to the GSIS at such rates and

under such conditions as it may adopt: Provided, That the

best interest of the GSIS shall be observed thereby;

(v) to determine, fix and impose interest upon unpaid

premiums due from employers and employees;

(w)

to

ensure

the

collection

or

recovery

of

all

indebtedness, liabilities and/or accountabilities, including

unpaid premiums or contributions in favor of the GSIS

arising from any cause or source whatsoever, due from

obligors,

whether public or private. The Board shall

demand

payment

or

settlement

of

the

obligations

referred to herein within thirty (30) days from the date

the obligation becomes due, and in the event of failure or

refusal of the obligor or debtor to comply with the

demand, to initiate or institute the necessary or proper

actions

or

suits,

criminal,

civil

or

administrative

or

otherwise,

before

the courts, tribunals, commissions,

boards, or bodies of proper jurisdiction within thirty (30)

days reckoned from the expiry date of the period fixed in

the demand within which to pay or settle the account;

(x) to design and implement programs that will promote

and mobilize savings and provide additional resources for

social security expansion and at the same time afford

individual

members

appropriate

returns

on

their

savings/investments. The programs shall be so designed

as

to

spur

socio-economic

take-off

and

maintain

continued growth; and

(y) to exercise such powers and perform such other acts

as may be necessary, useful, incidental or auxiliary to carry

out the provisions of this Act, or to attain the purposes

and objectives of this Act.

SECTION 42. The Board of Trustees; its Composition;

Tenure and Compensation. - The corporate powers and

functions of the GSIS shall be vested in and exercised by

the Board of Trustees composed of the President and

General

Manager

of

the

GSIS

and

eight

(8)

other

members

to

be appointed by the President of the

Philippines, one (1) of whom shall be either the President

of the Philippine Public School Teachers Association

(PPSTA) or the President of the Philippine Association of

School Superintendents (PASS), another two (2) shall

represent the leading organizations or associations of

government employees/retirees, another four (4) from the

banking, finance, investment, and insurance sectors, and

one (1) recognized member of the legal profession who at

the time of appointment is also a member of the GSIS.

The

Trustees

shall

elect

from among themselves a

Chairman while the President and General Manager of

the GSIS shall automatically be the vice-chairman.

The Trustees, except the President and General Manager

who shall cease as trustee upon his separation, shall hold

office for six (6) years without reappointment, or until

their

successors

are

duly

appointed

and

qualified.

Vacancy, other than through the expiration of the term,

shall be filled for the unexpired term only. The members

of the Board shall be entitled to a per diem of Two

thousand five hundred pesos (P2,500.00) for each board

meeting actually attended by them, but not to exceed

Ten thousand pesos (P10,000.00) a month and reasonable

transportation and representation allowances as may be

fixed by the Board.

SECTION 43. Powers and Functions of the Board of

Trustees. - The Board of Trustees shall have the following

powers and functions:

(a) to formulate the policies, guidelines and programs to

effectively carry out the purposes of this Act;

(b) to promulgate such rules and regulations as may be

necessary or proper for the effective exercise of the

powers and functions as well as the discharge of the

duties and responsibilities of the GSIS, its officers and

employees;

(c) upon the recommendation of the President and

General

Manager,

to

approve

the

annual

and

supplemental budget of receipts and expenditures of the

GSIS,

and

to

authorize

such

operating

and

capital

expenditures and disbursements of the GSIS as may be

necessary

or

proper

for

the

effective

management,

operation and administration of the GSIS;

(d) upon the recommendation of the President and

General Manager, to approve the GSIS organizational and

administrative structure and staffing pattern, and to

establish, fix, review, revise and adjust the appropriate

compensation packages for the officers and employees of

the GSIS and reasonable allowances, incentives, bonuses,

privileges and other benefits as may be necessary or

proper for the effective management, operation and

administration of the GSIS, which shall be exempt from

Republic Act No. 6758, otherwise known as the Attrition

Law;

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

interest and other terms and conditions for loans and

credits

extended

to

its

members

or

other persons,

whether natural or juridical;

(f)

the

provision

of

any

law

to

the

contrary

notwithstanding, to compromise or release, in whole or in

part, any claim or settle liability to the GSIS, regardless of

the amount involved, under such terms and conditions as

it may impose for the best interest of the GSIS;

(g)

to

approve

and

adopt

guidelines

affecting

investments,

insurance

coverage

of

government

properties, settlement of claims, disposition of acquired

assets,

development

of

housing

projects,

increased

benefit

and

loan

packages

to

members,

and

the

enforcement of the provisions of this Act;

(h) to determine, fix, and impose interest upon unpaid or

unremitted premiums and/or contributions; and

(i) to do and perform any and all acts necessary, proper or

incidental

to

the

attainment

of

the

purposes

and

objectives of this Act.

SECTION

44.

Appointment,

Qualifications,

and

Compensation of the President and General Manager

and of other Personnel. - The President and General

Manager of the GSIS shall be its Chief Executive Officer

and

shall

be

appointed

by

the

President

of

the

Philippines. He shall be a person with management and

investments

expertise

necessary

for

the

effective

performance of his duties and functions under this Act.

The GSIS President and General Manager shall be assisted

by

one

or

more

executive

vice-presidents,

senior

vice-presidents and managers in addition to the usual

supervisory and rank-and-file positions who shall be

appointed and removed by the President and General

Manager with the approval of the Board, in accordance

with the existing Civil Service rules and regulations.

SECTION 45. Powers and Duties of the President and

General Manager. - The President and General Manager

of the GSIS shall, among others, execute and administer

the policies and resolutions approved by the Board and

direct and supervise the administration and operations of

the GSIS. The President and General Manager, subject to

the approval of the Board, shall appoint the personnel of

the GSIS, remove, suspend or otherwise discipline them

for cause, in accordance with the existing Civil Service

rules and regulations, and prescribe their duties and

qualifications to the end that only competent persons

may be employed.

SECTION

46.

Auditor.

-

(a)

The

Chairman

of

the

Commission on Audit shall be the ex officio auditor of the

GSIS,

and

the

necessary

personnel

to

assist

said

representative in the performance of his duties.

(b) The Chairman of the Commission on Audit or his

authorized representatives, shall submit to the Board

soon after the close of each calendar year, an audited

© Compiled By RGL

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