Republic of the Philippines "(e) Active Member- A member who is not separated from the service;

Congress of the Philippines

Metro Manila "(f) Dependents- Dependents shall be the following: (a) the legitimate spouse
dependent for support upon the member or pensioner; (b) the legitimate, legitimated,
Tenth Congress legally adopted child, including the illegitimate child, who is unmarried, not gainfully
employed, not over the age of majority, or is over the age of majority but
incapacitated and incapable of self-support due to a mental or physical defect
acquired prior to age of majority; and (c) the parents dependent upon the member for
support;
Republic Act No. 8291 May 30, 1997
"(g) Primary beneficiaries- The legal dependent spouse until he/she remarries and
the dependent children;
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING
AND INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE
INSURANCE SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER "(h) Secondary beneficiaries- The dependent parents and, subject to the restrictions
PURPOSES on dependent children, the legitimate descendants;

Be it enacted by the Senate and House of Representatives of the Philippines in Congress "(i) Compensation- The basic pay or salary received by an employee, pursuant to his
assembled:: election/appointment, excluding per diems, bonuses, overtime pay, honoraria,
allowances and any other emoluments received in addition to the basic pay which are
not integrated into the basic pay under existing laws;
Section 1. Presidential Decree No. 1146, as amended, otherwise known as the "Revised
Government Service Insurance Act of 1977", is hereby further amended to read as follows:
"(j) Contribution- The amount payable to the GSIS by the member and the employer
in accordance with Section 5 of this Act;
"SECTION 1. Title. - The title of this Act shall be: "The Government Service
Insurance System Act of 1997."
"(k) Current Daily Compensation- The actual daily compensation or the actual
monthly compensation divided by the number of working days in the month of
"A. DEFINITIONS
contingency but not to exceed twenty-two (22) days;
"SEC. 2. Definition of terms.- Unless the context otherwise indicates, the following
"(l) Average Monthly Compensation (AMC)- The quotient arrived at after dividing the
terms shall mean:
aggregate compensation received by the member during his last thirty-six (36)
months of service preceding his separation/retirement/ disability/death by thirty-six
"(a) GSIS- The Government Service Insurance System created by Commonwealth (36), or by the number of months he received such compensation if he has less than
Act No. 186; thirty-six (36) months of service: Provided, That the average monthly compensation
shall in no case exceed the amount and rate as may be respectively set by the Board
"(b) Board- The Board of Trustees of the Government Service Insurance System; under the rules and regulations implementing this Act as determined by the actuary
of the GSIS: Provided, further, That initially the average monthly compensation shall
"(c) Employer- The national government, its political subdivisions, branches, not exceed Ten thousand pesos (P10,000.00), and premium shall be nine percent
agencies or instrumentalities, including government-owned or controlled (9%) and twelve percent (12%) for employee and employer covering the AMC limit
corporations, and financial institutions with original charters, the constitutional and below and two percent (2%) and twelve percent (12%) for employee and
commissions and the judiciary; employer covering the compensation above the AMC limit;

"(d) Employee or Member- Any person receiving compensation while in the service of "(m) Revalued average monthly compensation- An amount equal to one hundred
an employer as defined herein, whether by election or appointment, irrespective of seventy percent (170%) of the first One thousand pesos (P1,000.00) of the average
status of appointment, including barangay and Sanggunian officials; monthly compensation plus one hundred percent (100%) of the average monthly
compensation in excess of One thousand pesos (P1,000.00);
"(n) Lump sum- The basic monthly pension multiplied by sixty (60); "C. SOURCES OF FUNDS

"(o) Pensioner- Any person receiving old-age permanent total disability pension or "SEC. 5. Contributions. - (a) It shall be mandatory for the member and employer to
any person who has received the lump sum excluding one receiving survivorship pay the monthly contributions specified in the following schedule:
pension benefits as defined in Section 20 of this Act;
"Monthly Compensation Percentage of
"(p) Gainful Occupation- Any productive activity that provided the member with MonthlyCompensation Payable by
income at least equal to the minimum compensation of government employees;
Member Employer
"(q) Disability- Any loss or impairment of the normal functions of the physical and/or I. Maximum Average
mental faculty of a member which reduces or eliminates his/her capacity to continue Monthly Compensation
with his/her current gainful occupation or engage in any other gainful occupation; (AMC) Limit and Below 9.0% 12.0%
II. Over the Maximum AMC Limit
"(r) Total Disability- Complete incapacity to continue with his present employment or -Up to the Maximum AMC Limit 9.0% 12.0%
engage in any gainful occupation due to the loss or impairment of the normal
functions of the physical and/or mental faculties of the member; -In Excess of the AMC Limit 2.0% 12.0%

"(s) Permanent Total Disability- Accrues or arises when recovery from the impairment "Members of the judiciary and constitutional commissioners shall pay three percent
mentioned in Section 2 (Q) is medically remote; (3%) of their monthly compensation as personal share and their employers a
corresponding three percent (3%) share for their life insurance coverage.
"(t) Temporary Total Disability- Accrues or arises when the impaired physical and/or
mental faculties can be rehabilitated and/or restored to their normal functions; "(b) The employer shall include in its annual appropriation the necessary amounts for
its share of the contributions indicated above, plus any additional premiums that may
"(u) Permanent Partial Disability- Accrues or arises upon the irrevocable loss or be required on account of the hazards or risks of its employees occupation.
impairment of certain portion/s of the physical faculties, despite which the member is
able to pursue a gainful occupation. "(c) It shall be mandatory and compulsory for all employers to include the payment of
contributions in their annual appropriations. Penal sanctions shall be imposed upon
"B. MEMBERSHIP IN THE GSIS employers who fail to include the payment of contributions in their annual
appropriations or otherwise fail to remit the accurate/exact amount of contributions on
time, or delay the remittance of premium contributions to the GSIS. The heads of
"SEC. 3. Compulsory Membership. - Membership in the GSIS shall be compulsory
offices and agencies shall be administratively liable for non-remittance or delayed
for all employees receiving compensation who have not reached the compulsory
remittance of premium contributions to the GSIS.
retirement age, irrespective of employment status, except members of the Armed
Forces of the Philippines and the Philippine National Police, subject to the condition
that they must settle first their financial obligation with the GSIS, and contractuals "SEC. 6. Collection and Remittance of Contributions. - (a) The employer shall report
who have no employer and employee relationship with the agencies they serve. to the GSIS the names of all its employees, their corresponding employment status,
positions, salaries and such other pertinent information, including subsequent
changes therein, if any, as may be required by the GSIS; the employer shall deduct
"Except for the members of the judiciary and constitutional commissions who shall
each month from the monthly salary or compensation of each employee the
have life insurance only, all members of the GSIS shall have life insurance,
contribution payable by him in accordance with the schedule prescribed in the rules
retirement, and all other social security protections such as disability, survivorship,
and regulations implementing this Act.
separation, and unemployment benefits.
"(b) Each employer shall remit directly to the GSIS the employees and employers
"SEC. 4. Effect of Separation from the Service. - A member separated from the
contributions within the first ten (10) days of the calendar month following the month
service shall continue to be a member, and shall be entitled to whatever benefits he
to which the contributions apply. The remittance by the employer of the contribution
has qualified to in the event of any contingency compensable under this Act.
to the GSIS shall take priority over and above the payment of any and all obligations, "For the purpose of this section, the term service shall include full-time service with
except salaries and wages of its employees. compensation: Provided, that part-time and other services with compensation may be
included under such rules and regulations as may be prescribed by the GSIS.
"SEC. 7. Interest on Delayed Remittances. - Agencies which delay the remittance of
any and all monies due the GSIS shall be charged interests as may be prescribed by "SEPARATION BENEFITS
the Board but not less than two percent (2%) simple interest per month. Such interest
shall be paid by the employers concerned. "SEC. 11. Separation Benefits. - The separation benefits shall consist of: (a) a cash
payment equivalent to one hundred percent (100%) of his average monthly
"SEC. 8. Government Guarantee. - The government of the Republic of the compensation for each year of service he paid contributions, but not less than Twelve
Philippines hereby guarantees the fulfillment of the obligations of the GSIS to its thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon
members as and when they fall due. separation, whichever comes later: Provided, that the member resigns or separates
from the service after he has rendered at least three (3) years of service but less than
"D. BENEFITS fifteen (15) years; or

"SEC. 9. Computation of the Basic Monthly Pension. - (a) The basic monthly pension "(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at
is equal to: the time of resignation or separation, plus an old-age pension benefit equal to the
basic monthly pension payable monthly for life upon reaching the age of sixty
(60): Provided, that the member resigns or separates from the service after he has
"1) thirty-seven and one-half percent (37.5%) of the revalued average monthly
rendered at least fifteen (15) years of service and is below sixty (60) years of age at
compensation; plus
the time of resignation or separation.
"2) two and one-half percent (2.5%) of said revalued average monthly compensation
for each year of service in excess of (15) years: Provided, That the basic monthly "SEC. 12. Unemployment or Involuntary Separation Benefits. - Unemployment
pension shall not exceed ninety percent (90%) of the average monthly compensation. benefits in the form of monthly cash payments equivalent to fifty percent (50%) of the
average monthly compensation shall be paid to a permanent employee who is
involuntarily separated from the service due to the abolition of his office or position
"(b) The basic monthly pension may be adjusted upon the recommendation of the usually resulting from reorganization: Provided, That he has been paying integrated
President and General Manager of the GSIS and approved by the President of the contributions for at least one (1) year prior to separation. Unemployment benefits
Philippines in accordance with the rules and regulations prescribed by the shall be paid in accordance with the following schedules:
GSIS: Provided, however, that the basic monthly pension shall not be less than One
thousand and three hundred pesos (P1,300.00): Provided, further, that the basic
"Contributions Made Benefit Duration
monthly pension for those who have rendered at least twenty (20) years of service
after the effectivity of this Act shall not be less than Two thousand four hundred
pesos (P2,400.00) a month. 1 year but less than 3 years 2 months

"SEC. 10. Computation of Service. - (a) The computation of service for the purpose 3 or more years but less than 6 years 3 months
of determining the amount of benefits payable under this Act shall be from the date of
original appointment/election, including periods of service at different times under one 6 or more years but less than 9 years 4 months
or more employers, those performed overseas under the authority of the Republic of
the Philippines, and those that may be prescribed by the GSIS in coordination with 9 or more years but less than 11 years 5 months
the Civil Service Commission.
11 or more years but less than 15 years 6 months
"(b) All service credited for retirement, resignation or separation for which
corresponding benefits have been awarded under this Act or other laws shall be
"The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7)
excluded in the computation of service in case of reinstatement in the service of an
waiting period shall be imposed on succeeding monthly payments.
employer and subsequent retirement or separation which is compensable under this
Act.
"All accumulated unemployment benefits paid to the employee during his entire "SEC. 15. General Conditions for Entitlement. - A member who suffers permanent
membership with the GSIS shall be deducted from voluntary separation benefits. disability for reasons not due to his grave misconduct, notorious negligence, habitual
intoxication, or willful intention to kill himself or another, shall be entitled to the
"The GSIS shall prescribe the detailed guidelines in the operationalization of this benefits provided for under Sections 16 and 17 immediately following, subject to the
section in the rules and regulations implementing this Act. corresponding conditions thereof.

"RETIREMENT BENEFITS "SEC. 16. Permanent Total Disability Benefits. - (a) If the permanent disability is total,
he shall receive a monthly income benefit for life equal to the basic monthly pension
effective from the date of disability:Provided, That:
"SEC. 13. Retirement Benefits. - (a) Retirement benefits shall be:

(1) he is in the service at the time of disability; or

"(1) the lump sum payment as defined in this Act payable at the time of
retirement plus an old-age pension benefit equal to the basic monthly
pension payable monthly for life, starting upon expiration of the five-year (5) (2) if separated from the service, he has paid at least thirty-six (36) monthly
guaranteed period covered by the lump sum; or contributions within the five (5) year period immediately preceding disability,
or has paid a total of at least one hundred eighty (180) monthly contributions,
prior to his disability: Provided, further, That if at the time of disability, he was
"(2) cash payment equivalent to eighteen (18) months of his basic monthly
pension plus monthly pension for life payable immediately with no five-year in the service and has paid a total of at least one hundred eighty (180)
(5) guarantee. monthly contributions, in addition to the monthly income benefit, he shall
receive a cash payment equivalent to eighteen (18) times his basic monthly
pension: Provided, finally, That a member cannot enjoy the monthly income
"(b) Unless the service is extended by appropriate authorities, retirement shall be benefit for permanent disability and the old-age retirement simultaneously.
compulsory for an employee of sixty-five (65) years of age with at least fifteen (15)
years of service: Provided, That if he has less than fifteen (15) years of service, he
may be allowed to continue in the service in accordance with existing civil service "(b) If a member who suffers permanent total disability does not satisfy conditions (1)
and (2) in paragraph (a) of this section but has rendered at least three (3) years of
rules and regulations.
service at the time of his disability, he shall be advanced the cash payment
equivalent to one hundred percent (100%) of his average monthly compensation for
"SEC. 13-A. Conditions for Entitlement. - A member who retires from the service shall each year of service he paid contributions, but not less than Twelve thousand pesos
be entitled to the retirement benefits enumerated in paragraph (a) of Section 13 (P12,000.00) which should have been his separation benefit.
hereof: Provided, That:
"(c) Unless the member has reached the minimum retirement age, disability benefit
(1) he has rendered at least fifteen years of service; shall be suspended when:

(2) he is at least sixty (60) years of age at the time of retirement; and "(1) he is reemployed; or

(3) he is not receiving a monthly pension benefit from permanent total "(2) he recovers from his disability as determined by the GSIS, whose
disability. decision shall be final and binding; or

"SEC. 14. Periodic Pension Adjustment. - The monthly pension of all pensioners "(3) he fails to present himself for medical examination when required by the
including all those receiving survivorship pension benefits shall be periodically GSIS.
adjusted as may be recommended by the GSIS actuary and approved by the Board
in accordance with the rules and regulations prescribed by the GSIS.
"(d) The following disabilities shall be deemed total and permanent:
"PERMANENT DISABILITY BENEFITS
"(1) complete loss of sight of both eyes;
 "(2) loss of two (2) limbs at or above the ankle or wrist; exceeding one hundred twenty (120) days in one calendar year after exhausting all
his sick leave credits and collective bargaining agreement sick leave benefits, if any,
"(3) permanent complete paralysis of two (2) limbs; but not earlier than the fourth day of his temporary total disability: Provided, That:

"(4) brain injury resulting in incurable imbecility or insanity; and "(1) he is in the service at the time of his disability; or

"(5) such other cases as may be determined by the GSIS. "(2) if separated, he has rendered at least three (3) years of service and has
paid at least six (6) monthly contributions in the twelve-month period
"SEC. 17. Permanent Partial Disability Benefits. - (a) If the disability is partial, he immediately preceding his disability.
shall receive a cash payment in accordance with a schedule of disabilities to be
prescribed by the GSIS: Provided, That he satisfies either conditions (1) or (2) of "Provided, however, That a member cannot enjoy the temporary total disability
Section 16 (a); benefit and sick leave pay simultaneously: Provided, further, That if the disability
requires more extensive treatment that lasts beyond one hundred twenty (120) days,
the payment of the temporary total disability benefit may be extended by the GSIS
"(b) The following disabilities shall be deemed permanent partial:
but not to exceed a total of two hundred forty (240) days.
"(1) complete and permanent loss of the use of:
"(b) The temporary total disability benefit shall in no case be less than Seventy pesos
(P70.00) a day.
(i) any finger
"(c) The notices required of the member and the employer, the mode of payment,
(ii) any toe and the other requirements for entitlement to temporary total disability benefits shall
be provided in the rules and regulations to be prescribed by the GSIS.
(iii) one arm
"SEC. 19. Non-scheduled Disability. - For injuries or illnesses resulting in a disability
(iv) one hand not listed in the schedule of partial/total disability provided herein, the GSIS shall
determined the nature of the disability and the corresponding benefits therefor.
(v) one foot
"SURVIVORSHIP BENEFITS
(vi) one leg
"SEC. 20. Survivorship Benefits. - When a member or pensioner dies, the
(vii) one or both ears beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22
hereunder subject to the conditions therein provided for. The survivorship pension
(viii) hearing of one or both ears shall consist of:

(ix) sight of both eyes (1) the basic survivorship pension which is fifty percent (50%) of the basic
monthly pension; and
"(2) such other cases as my be determined by the GSIS.
(2) the dependent childrens pension not exceeding fifty percent (50%) of the
basic monthly pension
"TEMPORARY DISABILITY BENEFITS
"SEC. 21. Death of a Member. - (a) Upon the death of a member, the primary
"SEC. 18. Temporary Total Disability Benefits. - (a) A member who suffers temporary
beneficiaries shall be entitled to:
total disability for reasons not due to any of the conditions enumerated in Section 15
hereof shall be entitled to seventy-five percent (75%) of his current daily
compensation for each day or fraction thereof of temporary disability benefit not (1) survivorship pension: Provided, That the deceased:
 (i) was in the service at the time of his death; or (2) in the absence of secondary beneficiaries, the benefits under this
paragraph shall be paid to his legal heirs.
(ii) if separated from the service, has at least three (3) years of
service at the time of his death and has paid thirty-six (36) monthly (d) For purposes of the survivorship benefits, legitimate children shall include legally
contributions within the five-year period immediately preceding his adopted and legitimated children.
death; or has paid a total of at least one hundred eighty (180)
monthly contributions prior to his death; or "SEC. 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
(2) the survivorship pension plus a cash payment equivalent to one hundred beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this
percent (100%) of his average monthly compensation for every year of Act, subject to the provisions of paragraph (b) of Section 21 hereof. When the
service: Provided, That the deceased was in the service at the time of his pensioner dies within the period covered by the lump sum, the survivorship pension
death with at least three (3) years of service; or shall be paid only after the expiration of the said period.

(3) a cash payment equivalent to one hundred percent (100%) of his average "FUNERAL BENEFITS
monthly compensation for each year of service he paid contributions, but not
less than Twelve thousand pesos (P12,000.00): Provided, That the deceased "SEC. 23. Funeral Benefits. - The amount of the funeral benefits shall be determined
has rendered at least three (3) years of service prior to his death but does and specified by the GSIS in the rules and regulations but shall not be less than
not qualify for the benefits under item (1) or (2) of this paragraph. 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
(b) The survivorship pension shall be paid as follows: death of:

(1) when the dependent spouse is the only survivor, he/she shall receive the (a) an active member as defined under Section 2 (e) of this Act; or
basic survivorship pension for life or until he/she remarries;
(b) a member who has been separated from the service, but who may be
(2) when only dependent children are the survivors, they shall be entitled to entitled to future benefit pursuant to Section 4 of this Act; or
the basic survivorship pension for as long as they are qualified, plus the
dependent childrens pension equivalent to ten percent (10%) of the basic (c) a pensioner, as defined in Section 2 (o) of this Act; or
monthly pension for every dependent child not exceeding five (5), counted
from the youngest and without substitution;
(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.
(3) when the survivors are the dependent spouse and the dependent
children, the dependent spouse shall receive the basic survivorship pension
"LIFE INSURANCE BENEFITS
for life or until he/she remarries, and the dependent children shall receive the
dependent childrens pension mentioned in the immediately preceding
paragraph (2) hereof. "SEC. 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
(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be
compulsorily covered with life insurance, which shall automatically take effect as
entitled to:
follows:

(1) the cash payment equivalent to one hundred percent (100%) of his (1) for those employed after the effectivity of this Act, their insurance shall
average monthly compensation for each year of service he paid take effect on the date of their employment;
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) for those whose insurance will mature after the effectivity of this Act, their respective evidence and filed their last pleading. The Board shall decide the case
insurance shall be deemed renewed on the day following the maturity or within thirty (30) days from the receipt of the hearing officers findings and
expiry date of their insurance; 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.
(3) for those without any life insurance as of the effectivity of this Act, their
insurance shall take effect following said effectivity. "SEC. 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
"SEC. 25. Dividends. - An annual dividend may be granted to all members of the Supreme Court on April 8, 1997 which will take effect on July 1, 1997: Provided, That
GSIS whose life insurance is in force for at least one (1) year in accordance with a pending cases and those filed prior to July 1, 1997 shall be governed by the
dividends allocation formula to be determined by the GSIS. applicable 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.
"SEC. 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 The appeal shall not stay the execution of the order or award unless ordered by the
be designed by the GSIS, for himself and/or his dependents. Any employer may Board, by the Court of Appeals or by the Supreme Court and the appeal shall be
likewise apply for group insurance coverage for its employees. The payment of the without prejudice to the special civil action of certiorari when proper.
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. "SEC. 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
"SEC. 27. Reinsurance. - The GSIS may reinsure any of its interests or part thereof or award of the Board shall be enforced and executed in the same manner as
with any private company or reinsurer whether domestic of foreign: Provided, That decisions of the Regional Trial Court. For this purpose, the Board shall have the
the GSIS shall submit an annual report on its reinsurance operations to the Insurance power to issue to the city or provincial sheriff or its appointed sheriff such writs of
Commission. 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
"E. ADJUDICATION OF CLAIMS AND DISPUTES
punished for contempt.
"SEC. 28. Prescription. - Claims for benefits under this Act except for life and
"SEC. 33. Oaths, Witnesses, and Production of Records. - When authorized by the
retirement shall prescribe after four (4) years from the date of contingency.
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
"SEC. 29. Facility of Payment. - The GSIS shall prescribe rules and regulations to testificandum and subpoena duces tecum to compel the attendance of witnesses and
facilitate payment of benefits, proceeds, and claims under this Act and any other laws the production of books, papers, correspondences, and other records deemed
administered by the GSIS. Payments made by the GSIS prior to its receipt of an necessary as evidence in connection with any question arising under this Act. Any
adverse claim, to a beneficiary or claimant subsequently found not entitled thereto, case of contumacy shall be dealt with in accordance with the provisions of Section
shall not bar the legal and eligible recipient to his right to demand the payment of 580 of the Revised Administrative Code.
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.
"F. FUNDS OF THE GSIS
"SEC. 30. Settlement of Disputes. - The GSIS shall have original and exclusive
"SEC. 34. Funds. - All contributions payable under Section 5 of this Act together with
jurisdiction to settle any disputes arising under this Act and any other laws
the earnings and accruals thereon shall constitute the GSIS Social Insurance Fund.
administered by the GSIS.
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
The Board may designate any member of the Board, or official of the GSIS who is a insurance coverage described in Section 26 hereof, the Employees Compensation
lawyer, to act as hearing officer to receive evidence, make findings of fact and submit Insurance Fund created under P.D. 626, as amended, General Insurance Fund
recommendations, together with all documentary and testimonial evidence to the created under Act No. 656, as amended, and such other special funds existing or
Board within thirty (30) working days from the time the parties have closed their
that may be created for special groups or persons rendering services to the (e) in real estate property including shares of stocks involving real state
government. The GSIS shall maintain the required reserves to guarantee the property and investments secured by first mortgages on real estate or other
fulfillment of its obligations under this Act. collaterals acceptable to the GSIS: Provided, That such investment shall, in
the determination of the Board, redound to the benefit of the GSIS, its
The funds of the GSIS shall not be used for purposes other than what are provided members as well as the general public;
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 (f) in debt instruments and other securities traded in the secondary markets;
subdivisions, instrumentalities and other agencies including government-owned and
controlled corporations except as may be allowed under this Act. (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
"SEC. 35. Deposits and Disbursements. - All revenues collected and all accruals of the Philippines;
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 (h) in common and preferred stocks of any solvent corporation or financial
sources may be disbursed for administrative and operational expenses except as institution created or existing under the laws of the Philippines listed in the
may be otherwise approved by the President of the Philippines on the basis of stock exchange with proven track record of profitability over the last three (3)
actuarial and management studies. years and payment of dividends at least once over the same period;

"SEC. 36. Investment of Funds. - The funds of the GSIS which are not needed to (i) in domestic mutual funds including investments related to the operations
meet the current obligations may be invested under such terms and conditions and of mutual funds; 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
(j) in foreign mutual funds and in foreign currency deposits or foreign
the actuarial solvency of the funds of the GSIS: Provided, further, That the GSIS shall
currency-denominated debts, non-speculative equities and other financial
submit an annual report on all investments made to both Houses of Congress of the instruments or other assets issued in accordance with existing laws of the
Philippines, to wit: countries where such financial instruments are issued: Provided, That these
instruments or assets are listed in bourses of the respective countries where
(a) in interest-bearing bonds or securities or other evidence of indebtedness these instruments or assets are issued: Provided, further, That the issuing
of the Government of the Philippines; company has proven track record of profitability over the last three (3) years
and payment of dividends at least once over the same period.
(b) in interest-bearing deposits or securities in any domestic bank doing
business in the Philippines: Provided, That in the case of such deposits, "SEC. 37. Records and Reports. - The GSIS shall keep and cause to keep such
there shall not exceed at any time the unimpaired capital and surplus or total records as may be necessary for the purpose of making actuarial studies,
private deposits of the depository bank, whichever is smaller: Provided, calculations and valuations of the funds of the GSIS including such data needed in
further, That the said bank has prior designation as a depository for the the computation of rates of disability, mortality, morbidity, separation and retirement
purpose by the Monetary Board of the Central Monetary Authority; 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
(c) in direct housing loans to members and group housing projects secured record its assets, liabilities, income, expenses, receipts and disbursement of funds
by first mortgage, giving priority to the low income groups and in short and and other financial transactions and operations.
medium term loans to members such as salary, policy, educational,
emergency stock purchase plan and other similar loans: Provided, That no "SEC. 38. Examination and Valuation of the Funds. - The GSIS shall make a periodic
less than forty percent (40%) of the investible fund of the GSIS Social actuarial examination and valuation of its funds in accordance with accepted actuarial
Insurance Fund shall be invested for these purposes; principles.

(d) in bonds, securities, promissory notes or other evidence of indebtedness "SEC. 39. Exemption from Tax, Legal Process and Lien. - It is hereby declared to be
of educational or medical institutions to finance the construction, the policy of the State that the actuarial solvency of the funds of the GSIS shall be
improvement and maintenance of schools and hospitals; 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 authorize such capital and operating expenditures and disbursements of the
burden the members of the GSIS and their employers. Taxes imposed on the GSIS GSIS as may be necessary and proper for the effective management and
tend to impair the actuarial solvency of its funds and increase the contribution rate operation of the GSIS;
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 (c) to invest the funds of the GSIS, directly or indirectly, in accordance with
benefits paid, shall be exempt from all taxes, assessments, fees, charges, or duties the provisions of this Act;
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 (d) to acquire, utilize or dispose of, in any manner recognized by law, real or
hereby considered paid. Consequently, all laws, ordinances, regulations, issuances, personal property in the Philippines or elsewhere necessary to carry out the
opinions or jurisprudence contrary to or in derogation of this provision are hereby
purposes of this Act;
deemed repealed, superseded and rendered ineffective and without legal force and
effect.
(e) to conduct continuing actuarial and statistical studies and valuations to
determine the financial condition of the GSIS and taking into consideration
"Moreover, these exemptions shall not be affected by subsequent laws to the such studies and valuations and the limitations herein provided, re-adjust the
contrary unless this section is expressly, specifically and categorically revoked or
benefits, contributions, premium rates, interest rates or the allocation or re-
repealed by law and a provision is enacted to substitute or replace the exemption
allocation of the funds to the contingencies covered;
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. (f) to have the power of succession;

"The funds and/or the properties referred to herein as well as the benefits, sums or (g) to sue and be sued;
monies corresponding to the benefits under this Act shall be exempt from
attachment, garnishment, execution, levy or other processes issued by the courts, (h) to enter into, make, perform and carry out contracts of every kind and
quasi-judicial agencies or administrative bodies including Commission on Audit description with any person, firm or association or corporation, domestic or
(COA) disallowances and from all financial obligations of the members, including his foreign;
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 (i) to carry on any other lawful business whatsoever in pursuance of, or in
with his position or work except when his monetary liability, contractual or otherwise, connection with the provisions of this Act;
is in favor of the GSIS.
(j) to have one or more offices in and outside of the Philippines, and to
"G. ADMINISTRATION 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
"SEC. 40. Implementing Body. - The Government Service Insurance System as and territories: Provided, That the GSIS shall maintain a branch office in
created under Commonwealth Act No. 186 shall implement the provisions of this Act. every province where there exists a minimum of fifteen thousand (15,000)
membership;
"SEC. 41. Powers and Functions of the GSIS. - The GSIS shall exercise the following
powers and functions: (k) to borrow funds from any source, private or government, foreign or
domestic, only as an incident in the securitization of housing mortgages of
(a) to formulate, adopt, amend and/or rescind such rules and regulations as the GSIS and on account of its receivables from any government or private
may be necessary to carry out the provisions and purposes of this Act, as entity;
well as the effective exercise of the powers and functions, and the discharge
of duties and responsibilities of the GSIS, its officers and employees; (l) to invest, own or otherwise participate in equity in any establishment, firm
or entity;
(b) to adopt or approve the annual and supplemental budget of receipts and
expenditures including salaries and allowances of the GSIS personnel; to
(m) to approve appointments in the GSIS except appointments to positions (u) any provision of law to the contrary notwithstanding, to authorize the
which are policy determining, primarily confidential or highly technical in payment of extra remuneration to the officials and employees directly
nature according to the Civil Service rules and regulations: Provided, That all involved in the collection and/or remittances of contributions, loan
positions in the GSIS shall be governed by the compensation and position repayments, and other monies due to the GSIS at such rates and under such
classification system and qualifications standards approved by the GSIS conditions as it may adopt: Provided, That the best interest of the GSIS shall
Board of Trustees based on a comprehensive job analysis and audit of actual be observed thereby;
duties and responsibilities: Provided, further, That the compensation plan
shall be comparable with the prevailing compensation plans in the private (v) to determine, fix and impose interest upon unpaid premiums due from
sector and shall be subject to the periodic review by the Board no more than employers and employees;
once every four (4) years without prejudice to yearly merit reviews or
increases based on productivity and profitability;
(w) to ensure the collection or recovery of all indebtedness, liabilities and/or
accountabilities, including unpaid premiums or contributions in favor of the
(n) to design and adopt an Early Retirement Incentives Plan (ERIP) and/or GSIS arising from any cause or source whatsoever, due from obligors,
financial assistance for the purpose of retirement for its own personnel; 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
(o) to fix and periodically review and adjust the rates of interest and other obligation becomes due, and in the event of failure or refusal of the obligor or
terms and conditions for loans and credits extended to members or other debtor to comply with the demand, to initiate or institute the necessary or
persons, whether natural or juridical; proper actions or suits, criminal, civil or administrative or otherwise, before
the courts, tribunals, commissions, boards, or bodies of proper jurisdiction
(p) to enter into agreement with the Social Security System or any other within thirty (30) days reckoned from the expiry date of the period fixed in the
entity, enterprise, corporation or partnership for the benefit of members demand within which to pay or settle the account;
transferring from one system to another subject to the provisions of Republic
Act No. 7699, otherwise known as the Portability Law; (x) to design and implement programs that will promote and mobilize savings
and provide additional resources for social security expansion and at the
(q) to be able to float proper instrument to liquefy long-term maturity by same time afford individual members appropriate returns on their
pooling funds for short-term secondary market; savings/investments. The programs shall be so designed as to spur socio-
economic take-off and maintain continued growth; and
(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 (y) to exercise such powers and perform such other acts as may be
in the administration and enforcement of this Act during the preceding year necessary, useful, incidental or auxiliary to carry out the provisions of this
including information and recommendations on board policies for the Act, or to attain the purposes and objectives of this Act.
development and perfection of the programs of the GSIS;
"SEC. 42. The Board of Trustees; its Composition; Tenure and Compensation. - The
(s) to maintain a provident fund, which consists of contributions made by both corporate powers and functions of the GSIS shall be vested in and exercised by the
the GSIS and its officials and employees and their earnings, for the Board of Trustees composed of the President and General Manager of the GSIS and
payments of benefits to such officials and employees or their heirs under eight (8) other members to be appointed by the President of the Philippines, one (1)
such terms and conditions as it may prescribe; of whom shall be either the President of the Philippine Public School Teachers
Association (PPSTA) or the President of the Philippine Association of School
(t) to approve and adopt guidelines affecting investments, insurance Superintendents (PASS), another two (2) shall represent the leading organizations or
associations of government employees/retirees, another four (4) from the banking,
coverage of government properties, settlement of claims, disposition of
finance, investment, and insurance sectors, and one (1) recognized member of the
acquired assets, privatization or expansion of subsidiaries, development of
legal profession who at the time of appointment is also a member of the GSIS. The
housing projects, increased benefit and loan packages to members, and the
Trustees shall elect from among themselves a Chairman while the President and
enforcement of the provision of this Act;
General Manager of the GSIS shall automatically be the vice-chairman.
The Trustees, except the President and General Manager who shall cease as trustee "(g) to approve and adopt guidelines affecting investments, insurance
upon his separation, shall hold office for six (6) years without reappointment, or until coverage of government properties, settlement of claims, disposition of
their successors are duly appointed and qualified. Vacancy, other than through the acquired assets, development of housing projects, increased benefit and
expiration of the term, shall be filled for the unexpired term only. The members of the loan packages to members, and the enforcement of the provisions of this
Board shall be entitled to a per diem of Two thousand five hundred pesos Act;
(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 "(h) to determine, fix, and impose interest upon unpaid or unremitted
representation allowances as may be fixed by the Board. premiums and/or contributions; and

"SEC. 43. Powers and Functions of the Board of Trustees. - The Board of Trustees "(i) to do and perform any and all acts necessary, proper or incidental to the
shall have the following powers and functions: attainment of the purposes and objectives of this Act.

"(a) to formulate the policies, guidelines and programs to effectively carry out "SEC. 44. Appointment, Qualifications, and Compensation of the President and
the purposes of this Act; 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
"(b) to promulgate such rules and regulations as may be necessary or proper of the Philippines. He shall be a person with management and investments expertise
for the effective exercise of the powers and functions as well as the necessary for the effective performance of his duties and functions under this Act.
discharge of the duties and responsibilities of the GSIS, its officers and
employees; "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
"(c) upon the recommendation of the President and General Manager, to usual supervisory and rank-and-file positions who shall be appointed and removed by
approve the annual and supplemental budget of receipts and expenditures of the President and General Manager with the approval of the Board, in accordance
the GSIS, and to authorize such operating and capital expenditures and with the existing Civil Service rules and regulations.
disbursements of the GSIS as may be necessary or proper for the effective
management, operation and administration of the GSIS; "SEC. 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
"(d) upon the recommendation of the President and General Manager, to policies and resolutions approved by the Board and direct and supervise the
approve the GSIS organizational and administrative structure and staffing administration and operations of the GSIS. The President and General Manager,
pattern, and to establish, fix, review, revise and adjust the appropriate subject to the approval of the Board, shall appoint the personnel of the GSIS,
compensation packages for the officers and employees of the GSIS and remove, suspend or otherwise discipline them for cause, in accordance with the
reasonable allowances, incentives, bonuses, privileges and other benefits as existing Civil Service rules and regulations, and prescribe their duties and
may be necessary or proper for the effective management, operation and qualifications to the end that only competent persons may be employed.
administration of the GSIS, which shall be exempt from Republic Act No.
6758, otherwise known as the Attrition Law; "SEC. 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
"(e) to fix and periodically review and adjust the rates of interest and other in the performance of his duties.
terms and conditions for loans and credits extended to its members or other
persons, whether natural or juridical; "(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
"(f) the provision of any law to the contrary notwithstanding, to compromise statement showing the financial condition and progress of the GSIS for the calendar
or release, in whole or in part, any claim or settle liability to the GSIS, year just ended.
regardless of the amount involved, under such terms and conditions as it
may impose for the best interest of the GSIS; "SEC. 47. Legal Counsel. - The Government Corporate Counsel shall be the legal
adviser and consultant of the GSIS, but the GSIS may assign to the Office of the
Government Corporate Counsel (OGCC) cases for legal action or trial, issues for
legal opinions, preparation and review of contracts/agreements and others, as the "No injunction or restraining order issued by any court, commission, tribunal or office
GSIS may decide or determine from time to time: Provided, however, That the shall bar, impede or delay the sale and disposition by the GSIS of its acquired assets
present legal services group in the GSIS shall serve as its in-house legal counsel. except on questions of ownership and national or public interest.

"The GSIS may, subject to approval by the proper court, deputize any personnel of "SEC. 51. Government Assistance to the GSIS. - The GSIS may call upon any
the legal service group to act as special sheriff in the enforcement of writs and employer for such assistance as may be necessary in the discharge of its duties and
processes issued by the court, quasi-judicial agencies or administrative bodies in functions.
cases involving the GSIS.
"I. PENAL PROVISIONS
"SEC. 48. Powers of the Insurance Commission. - The Insurance Commissioner or
his authorized representatives shall make an examination of financial condition and "SEC. 52. Penalty. - (a) Any person found to have participated directly or indirectly in
methods of transacting business of the GSIS at least once every three (3) years and the commission of fraud, collusion, falsification, or misrepresentation in any
the report of said examination shall be submitted to the Board of Trustees and copies transaction with the GSIS, whether for him or for some other persons, shall suffer the
thereof be furnished the Office of the President of the Philippines and the two houses penalties provided for in Article 172 of the Revised Penal Code.
of the Congress of the Philippines within five (5) days after the close of
examination: Provided, however, That for each examination, the GSIS shall pay the
"(b) Whoever shall obtain or receive any money or check invoking any provision of
office of the Insurance Commissioner an amount equal to the actual expenses
this Act or any agreement thereunder, without being entitled thereto with the intent to
incurred by the said office in the conduct of examination, including the salaries of the defraud any member, any employer, the GSIS, or any third party, shall be punished
examiners and of the actuary of such examination for the actual time spent. by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty
thousand pesos (P20,000.00) or by imprisonment of not less than six (6) years and
"H. GENERAL PROVISION one (1) day to twelve (12) years, or both, at the discretion of the court.

"SEC. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall pay the "(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules
retirement benefits to the employee on his last day of service in the and regulations adopted by the GSIS, shall be punished by a fine of not less than
government: Provided, That all requirements are submitted to the GSIS within a Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos
reasonable period prior to the effective date of the retirement; (P20,000.00) or imprisonment of not less than six (6) years and one (1) day to twelve
(12) years, or both, at the discretion of the court.
"(b) The GSIS shall discontinue the processing and adjudication of retirement claims
under R.A. No. 1616 except refund of retirement premium under R. A. No. 910. "(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other
Instead, all agencies concerned shall process and pay the gratuities of their official or employee who fails to include in the annual budget the amount
employees. The Board shall adopt the proper rules and procedures for the corresponding to the employer and employee contributions, or who fails or refuses or
implementation of this provision. delays by more than thirty (30) days from the time such amount becomes due and
demandable, or to deduct the monthly contributions of the employee shall, upon
"SEC. 50. Development and Disposition of Acquired Assets. - The GSIS shall have conviction by final judgment, suffer the penalties of imprisonment from six (6) months
the right to develop and dispose of its acquired assets obtained in the ordinary and one (1) day to six (6) years, and a fine of not less than Three thousand pesos
course of its business. To add value to, improve profitability on, and/or enhance the (P3,000.00) but not more than Six thousand pesos (P6,000.00), and in addition, shall
marketability of an acquired asset, the GSIS may further develop/renovate the same suffer absolute perpetual disqualification from holding public office and from
either with its own capital or through a joint venture arrangement with private practicing any profession or calling licensed by the government.
companies or individuals.
"(e) Any employee or member who receives or keeps fund or property belonging,
"The GSIS may sell its acquired assets in accordance with existing Commission on payable or deliverable to the GSIS and appropriates the same, or takes or
Audit (COA) rules and regulations for an amount not lower than the current market misappropriates or uses the same for any purpose other than authorized by this Act,
value of the property. For this purpose, the GSIS shall conduct an annual appraisal of or permits another person to take, misappropriate or use said fund or property by
its property or acquired assets to determine its current market value. All notices of expressly consenting thereto, or through abandonment or negligence, or is otherwise
sale shall be published in newspapers of general circulation. guilty of the misappropriation of said fund or property, in whole or in part, shall suffer
the penalties provided in Article 217 of the Revised Penal Code, and in addition, shall "SEC. 53. Implementing Rules and Regulations. - The implementing rules and
suffer absolute perpetual disqualification from holding public office and from regulations to carry out the provisions of this Act shall be adopted and promulgated
practicing any profession or calling licensed by the government. by the GSIS not later than ninety (90) days after the approval of this Act.

"(f) Any employee who, after deducting the monthly contribution or loan amortization "SEC. 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges,
from a members compensation, fails to remit the same to the GSIS within thirty (30) Functions and Activities. -Nothing in this Act shall be construed to repeal, amend or
days from the date they should have been remitted under Section 6(a), shall be limit any provision of existing laws, Presidential Decrees and Letters of Instructions,
presumed to have misappropriated such contribution or loan amortization and shall not otherwise specifically inconsistent with the provisions of this Act.
suffer the penalties provided in Article 315 of the Revised Penal Code, and in
addition, shall suffer absolute perpetual disqualification from holding public office and "SEC. 55. Exclusiveness of Benefits. - Whenever other laws provide similar benefits
from practicing any profession or calling licensed by the government. for the same contingencies covered by this Act, the member who qualifies to the
benefits shall have the option to choose which benefits will be paid to him. However,
"(g) The heads of the offices of the national government, its political subdivisions, if the benefits provided by the law chosen are less than the benefits provided under
branches, agencies and instrumentalities, including government-owned or controlled this Act, the GSIS shall pay only the difference.
corporations and government financial institutions, and the personnel of such offices
who are involved in the collection of premium contributions, loan amortization and "SEC. 56. Appropriations. - The amount necessary to carry out the provisions of this
other accounts due the GSIS who shall fail, refuse or delay the payment, turnover, Act shall be included in the respective budgets of the agencies in the national
remittance or delivery of such accounts to the GSIS within thirty (30) days from the government obligation program of the year following its enactment into law and
time that the same shall have been due and demandable shall, upon conviction by thereafter."
final judgment, suffer the penalties of imprisonment of not less than one (1) year nor
more than five (5) years and a fine of not less than Ten thousand pesos (P10,000.00) Section 2. Separability Clause. - Should any provision of this Act or any part thereof be
nor more than Twenty thousand pesos (P20,000.00), and in addition, shall suffer
declared invalid, the other provisions, so far as they are separable from the invalid ones, shall
absolute perpetual disqualification from holding public office and from practicing any
remain in force and effect.
profession or calling licensed by the government.
Section 3. Repealing Clause. - All laws and any other law or parts of law specifically
"(h) The officers and/or personnel referred to in paragraph (g) of this section shall be inconsistent herewith are hereby repealed or modified accordingly: Provided, That the rights
liable not only criminally but also civilly to the GSIS or to the employee or member
under the existing laws, rules and regulations vested upon or acquired by an employee who
concerned in the form of damages, including surcharges and interests. is already in the service as of the effectivity of this Act shall remain in force and
effect: Provided, further, That subsequent to the effectivity of this Act, a new employee or an
"(i) For the charges or complaints referred to in paragraph (g) of this section, the employee who has previously retired or separated and is reemployed in the service shall be
liabilities therein set forth shall be construed as waiver of the State of its immunity covered by the provisions of this Act.
from suit, hence, the above-mentioned officials and/or personnel may not invoke the
defense of non-suability of the State. Section 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation.
"(j) Failure of the Members of the GSIS Board, including the chairman and the vice-
chairman, to comply with the provisions of paragraph (w) of Section 41 hereof, shall
This Act, which is a consolidation of Senate Bill No. 2013 and House Bill No. 8561, was
subject them to imprisonment of not less than six (6) months nor more than one (1)
finally passed by the Senate and the House of Representatives on May 29, 1997 and May
year or a fine of not less than Five thousand pesos (P5,000.00) nor more than Ten 28, 1997, respectively.
thousand pesos (P10,000.00) without prejudice to any civil or administrative liability
which may also arise therefrom.
Approved: May 30, 1997.
"(k) Criminal actions arising from violations of the provisions of this Act may be
commenced by the GSIS or by the aggrieved member, either under this Act or, in
appropriate cases, under the Revised Penal Code.