B. Government Service Insurance (RA 8291)

Excluded

• Armed Forces of the Philippines and Philippine National Police. However, they must settle first their financial obligation with the GSIS.
• Contractuals who have no employer and employee relationship with the agencies they serve.

General Rule: All members of the GSIS shall have life insurance, retirement, and all other social security protection such as disability, survivorship, separation, and unemployment benefits.

Exception: Members of the judiciary and constitutional commissions who shall have life insurance only

Computation of Service

• 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,
• Those that may be prescribed by the GSIS in coordination with the Civil Service Commission.

Benefits

Monthly Pension [Sec. 12]

The basic monthly pension is 37.5% of the revalued average monthly compensation, plus 2.5% of that compensation for each year of service beyond fifteen years, subject to the statutory ceiling and minimums.

Retirement Benefit [Sec. 13]

A retiree may opt to receive a lump sum equivalent to sixty (60) months of the basic monthly pension.

The monthly pension shall:

• Not exceed 90% of the average monthly compensation.
• Not be less than P2,400 for those with 20 years of service and not less than P1,300 for everyone else.

Eligibility Requirements

• Permanent employee involuntarily separated from service due to abolition of his office or position resulting from reorganization; and
• Employee has been paying integrated contributions for at least 1 year prior to separation.

Eligibility Requirements

• 60 years of age, or separation from service with at least 3 years but not over 15 years served
• Below 60 years of age, but at least 15 years of service rendered

Separation Benefit

For at least three but less than fifteen years of service → cash payment, upon reaching age sixty or separation from service, whichever comes later, of 100% of average monthly compensation for each year of service or P12,000 whichever is higher.

Below 60 years of age and at least 15 years of service → cash payment equivalent to 18 x [monthly pension] at the time of resignation or separation plus an old-age pension benefit equal to basic monthly pension.

If Ineligible

A member that has rendered at least 3 years of service shall receive cash payment equal to 100% of average monthly compensation for each year of service or P12,000 whichever is higher, payable upon reaching age sixty or separation from service, whichever comes later.

Life Insurance Benefits

Compulsory for all employees, except AFP and PNP.

Effectivity

• Employed after GSIS - date of employment.
• Mature after GSIS - insurance deemed renewed on the date after maturity/expiry.
• Without life insurance - date of effectivity of GSIS.

Dividends

Granted to all members of the GSIS whose life insurance is in force for at least 1 year in accordance with a dividend allocation formula to be determined by the GSIS.

Reinsurance

GSIS may reinsure any of its interests or part thereof with any private company or reinsurer whether domestic or foreign.

GSIS shall submit an annual report on its reinsurance operations to the Insurance Commission.