The Government Service Insurance System ( GSIS) is a government-owned and controlled corporation of the Philippines. Moreover, it is a social insurance institution that provides benefit schemes under the law.
The GSIS covers all government workers irrespective of their employment status. The types of GSIS members are:
Active Members – government employees at present who are working in any government agency or government office;
Old Age Pensioners – these are retired government employees or officials who are already receiving pension from GSIS; and;
Survivorship Pensioners – these are beneficiaries or dependents of deceased GSIS member or old age pensioner. To give you an example, the spouse of a deceased pensioner or member or a minor child of the deceased member.
It is not possible for non-government employees, self-employed or non-working persons to become members of the GSIS. Instead, Social Security System (SSS) is the institution to cover them.
Read: List of SSS Benefits Available for their Members
Here’s the complete mandated benefits GSIS offers to its members which is the government employees:
Compulsory Life Insurance All members of GSIS have compulsory life insurance coverage. It is classified into two types:
1. Life Endowment Policy (LEP) GSIS started with the LEP program. What it does is to provide members with life insurance coverage while still in active service. LEP provides maturity benefits to policy holders upon reaching the maturity of their policy.
2. Enhanced Life Policy (ELP) The ELP took effect on August 1, 2003. It provides an automatic yearly insurance coverage to new members of GSIS based on their monthly compensation. Thus, it is to provide enhanced death benefit for the family of the deceased member.
Retirement Benefits Every month, the GSIS requires each government employee to pay their contributions; it is being deducted from the salary they are receiving. The GSIS contributions will accrue and appreciate in value. Thus, employees receive dividends when the board made them available depending on the revenue the whole GSIS is earning. Each employee is entitled to a retirement or pension benefits in the future.
The GSIS offers various retirement programs that retiring members may choose from depending on their age and length of service; these include:
Retirement under RA 8291 (5 year lump-sum cash payment or instant pension + monthly pension for life) – This is the most common type of retirement plan and pension chosen by many government retirees in the Philippines because you will get a lump-sum amount of money and monthly pension for life.
There are two options when you avail and qualify for this retirement plan:You must have been able to render at least 15 years of service and must be at least 60 years old upon retirement. Your last 3 years of service must also be continuous.
Retirement under RA 660 (Also called Magic 87 – annuity + lifetime pension) – If your age + years of service = 87, then you can avail of this retirement plan.
Unlike RA 8291, this offers three options: Automatic pension; initial 3-year lump sum and; 5-year lump sum.
Retirement under RA 1616 – In this plan, you can refund all your GSIS premiums + gratuity payment from your employer.
Furthermore, this option requires that you must have rendered at least 20 years of service regardless of age and employment status
Portability Law RA 7699 – Combining GSIS + SSS Creditable Years of Service periods with premiums to qualify for retirement programs offered by both pension funds
Retirement under Presidential Decree 1146 (Basic monthly Pension or Cash Payment) – This retirement plan is for those who have been working in the government after May 31, 1977 but before June 24, 1997 . Members fit for this category have the option if they want to receive pension every month and if it is in cash payment.
Disability Benefits These benefits refer to any loss or impairment of the normal functions of the physical and/or mental faculties of members. Furthermore, catastrophic occurrences that permanently or temporarily prevent them to continue work or engage in any other gainful occupation, resulting in loss of income.
The GSIS bases these disability benefits on the duration of the members’ incapability to work and loss of income.
Read Also: How to Compute SSS Maternity Benefits
There are three kinds of disability determined by GSIS based on established medical standards:
Permanent Total Disability (PTD) – This refers to the disability due to injury or disease causing complete, irreversible and permanent incapacity that will permanently disable a member to work or to engage in any gainful occupation resulting to loss of income.
The following disabilities are deemed total and permanent:
Complete loss of sight for both eyes; Loss of two limbs at or above the ankle or wrists; Permanent complete paralysis of two limbs; Brain injury resulting in incurable imbecility or insanity; and Other cases; the GSIS will check if the cases can be considered in this criteria Eligibilities
Members who will have these disabilities permanent and total disabled are eligible for the PTD benefits if:
In the service at the time of disability; or If separated from the service and was able to pay at least 36 months of contributions within the five year period immediately preceding the disability; or have paid a total of at least 180 months contributions prior to the disability; Provided, however, that the following conditions are met:
Gainfully employed prior to the commencement of disability resulting in loss of income; Not a registered member of any social insurance institution; and Not receiving any other pension either from GSIS or another local or foreign institution or organization Benefit
Members who become permanently and totally disabled are entitled to the monthly income benefits for life equivalent to the basic monthly pension (BMP) effective from the date of disability. In addition to the monthly income benefits for life, a cash payment equivalent to 18 times the basic monthly pension (BMP), will be paid to members who were in the service at the time of the permanent total disability and who have paid a total of 180 monthly contributions. Separated members who have at least three years of service and become permanently and totally disabled but have not paid a total of at least 180 monthly contributions prior to the disability are entitled only to cash payment equivalent to 100% of their average monthly compensation for each year of service with paid contributions but not less than twelve thousand pesos (Php12,000.00). Permanent Partial Disability (PPD) – This on the other hand is the situation which arises due to the complete and permanent loss of the use of any of the following resulting to the disability to work for a limited period of time: any finger, one arm, one foot, any toe, one hand, one leg, one or both ears, hearing of one or both ears, sight of one eye and such other cases; the GSIS is the one to determine its criteria
Eligibilities
Members whose disability is partial are entitled to PPD benefit when:
In the service at the time of disability; or If separated from the service and were able to pay at least 36 months of contributions within the five-year period immediately preceding the disability; or have paid a total of at least 180 months contributions prior to the disability. Provided, however, that the following conditions are met:
Gainfully employed prior to the commencement of disability resulting in loss of income as evidenced by any incontrovertible proof thereof; Not a registered member of any social insurance institution; and Not receiving any other pension either from GSIS or another local or foreign institution or organization. Benefit:
The period of entitlement to PPD benefit is determined after due medical evaluation; but such period of entitlement to the benefit will not exceed 12 months for the same contingency. Only the leave of absence/s without pay incurred during the period of entitlement, duly certified by the authorized officer of the agency where members are employed, is compensable. The amount of PPD benefit is computed by dividing the BMP by 30 days and multiplying the quotient by the number of compensable calendar days of leave of absence without pay (LWOP). Temporary Total Disability (TTD) – Lastly, this accrues when the diagnosis of the physical and/or mental faculties can be rehabilitated and/or restored to their normal functions. However, with such disability, this will result in temporary incapacity to work or to engage in any gainful occupation.
Eligibilities
Members are entitled to the TTD benefit when:
In the service at the time of disability; or If separated from the service, have paid at least 36 months contributions within the five year period immediately preceding the disability; or have paid a total of at least 180 months contributions prior to the disability; Provided, however, that the following conditions will be met:
Gainfully employed prior to the commencement of disability resulting in loss of income; Not a registered member of any social insurance institution; and Not receiving any other pension either from GSIS or another local or foreign institution or organization. The payment of TTD benefit may be extended by GSIS up to a maximum of 240 days, subject to medical evaluation.
The period of entitlement to TTD benefit is determined after due medical evaluation and proof of actual loss of work resulting in loss of income by way of the incurred actual number of days of leave of absence/s without pay duly certified by the authorized officer of the agency where members are employed; but such period of entitlement to the benefit should not exceed 120 days in one calendar year.
However, if the disability requires more extensive treatment that lasts beyond 120 days, the payment of TTD may be extended by GSIS but not to exceed a total of 240 days. Only the leave of absence/s without pay incurred during the period of entitlement is compensable.
Entitlement, however, starts from the fourth day of the disability. The amount of TTD benefit is computed by multiplying 75% of the daily salary of members by the number of days of disability based on the medical evaluation but not to exceed 240 days for the same contingency. However, the computed daily salary shall not be less than Php70.00 but not to exceed Php340.00 per day.
GSIS Loan Benefits Like any other, members of the GSIS also have available loans and benefits which bear interests payable.
Here’s the list of the different types of loans GSIS offers to its members:
Consolidated Loan – Commonly known as Conso-Loan . This type of loan is payable in 6 years . It is a consolidation of 5 loans into 1, namely:
Salary Loan; Restructured Salary Loan; Enhanced Salary Loan; Emergency Loan Assistance; and Summer One-month Salary Loan Conso-loan is so easy to apply; all you have to do is place your GSIS eCard Plus in the G-W@ps Kiosk and follow through the screen. The amount you can avail in this loan depends upon your Record of Creditable Service (RCS). Check out the data below:
RCS Maximum Loan Amount Less than 20 months None 20 months or more x3 Basic Monthly Salary (BMS) 40 months or more x4 BMS 5 years or more x7 BMS 10 years or more x10 BMS
Policy Loan – The best thing is every member in the GSIS is covered with life insurance policy. Thus, automatically, the member also have this policy loan benefit. The member can apply for this loan if he/she have been insured at least one year provided he/she have updated premium payments and has an active policy. It bears compounded 8% interest per annum.
Emergency Loan – This kind of loan can be available only by members who are residents of a declared calamity area. Your place must be declared under “State of Calamity ” by the city council. In addition, the GSIS needs to approve this and it should be done by the GSIS Board of Trustees.
Death Benefits GSIS Funeral Benefits – Funeral benefits are given to GSIS retiree’s survivors or any person who shouldered the funeral expenses of the deceased GSIS member.
GSIS provides a Php30,000 funeral benefit to the following:
An active member; A member who has been separated from the service but who is entitled to future separation or retirement benefit; Members who are an old-age pensioner; A retiree who at the time of his retirement was of pensionable age under RA 8291 but who opted to retire under RA 1616; and A member who retired under RA 1616 prior to the effectivity of RA 8291 with at least 20 years of service, regardless of age. The benefit is payable to the members of the family of the deceased, according to the following priorities:
Legitimate spouse Legitimate child who spent for the funeral services, or Any other person who can show unquestionable proof of his having borne the funeral expenses of the deceased. Requirements
If claimant is the legal spouse:
Original copy of Death Certificate of the member from the National Statistics Office (NSO) now PSA. Original copy of Marriage Contract from PSA Two valid IDs (original to be shown, photocopy to be submitted) Original copy of PSA-certified Birth Certificate of the claimant (if there will be claims for death and survivorship benefits). If not registered, may apply for late registration. For immediate full payment of the benefits, and in the absence of NSO/PSA Birth Certificate, valid passport or visa; driver’s license; PRC ID with record of birth may be submitted
Claimant’s birth certificate is not required if the claimant is either a GSIS member or pensioner.
If claimant is other than the legal spouse (application will be accepted only if the legal spouse is already deceased. In this case, priority is given to legitimate children)
Original copy of Death Certificate of the member from PSA. GSIS Affidavit of Funeral Expense Form Original & Xerox copy of Official Receipt under the claimant’s name or if a Funeral Plan was used, a Certification from the memorial service provider that the plan was availed of. Two valid IDs (original to be shown; submit the photocopies) Birth certificate of the claimant or valid ID (issued by the government) indicating his/her date of birth. GSIS Affidavit of Funeral Expense Form Original & Xerox copy of Official Receipt under the claimant’s name or if a Funeral Plan was used, a Certification from the memorial service provider that the plan was availed of. Two valid ID’s (original to be shown, photocopy to be submitted) Birth certificate of the claimant or valid ID (issued by the government) indicating his/her date of birth. Read Also: Filing and Claiming SSS Death Benefits
GSIS Survivor Benefits These are cash and/or pension benefits provided for the surviving legal spouse as long as he/she doesn’t remarry, dependent minor children, or incapacitated beneficiary, when a member or a pensioner dies.
The new basic survivorship pension (BSP) was implemented in December 2010, payable to the surviving spouse is equivalent to 50% of the basic minimum pension received by the deceased member or pensioner.
The dependent’s pension for the children of the deceased member is equivalent to 10% of the basic minimum pension payable until the age of majority. Payment of BSP to the dependent spouse shall be discontinued in case the latter remarries, cohabits, or engages in a common-law relationship.
When members or pensioners die, their beneficiaries are entitled to cash and/or pension benefits, subject to the existing rules and regulations on survivorship and policies on the maximum amount of survivorship pension.
Coverage
All primary and secondary beneficiaries residing in the Philippines or abroad who are existing survivorship pensioners or claiming for survivorship benefit; Those who were receiving survivorship benefits but were suspended when the policy on the same was amended and implemented in August 2009; and Those who applied for survivorship benefits but were disapproved due to the issuance/approval of Management Implementing Guidelines (MIG) 01-2009 dated October 22, 2009 that took effect as early as August 2009, and MIG 04-2010 dated April 26, 2010. Eligibility Requirements
When a member or pensioner dies, the primary beneficiaries (surviving legal spouse and dependent children) or secondary beneficiaries, as the case may be, shall be eligible to the applicable survivorship benefits.
The primary beneficiaries shall be the following:
The legitimate spouse, until s/he re-marries, or co-habits/engages in common-law relationship; and The dependent legitimate, legally adopted or legitimated children, including illegitimate children, who have not reached the age of majority, or, have reached the age of majority but incapacitated and incapable of self-support due to a mental or physical defect acquired prior to age of majority. The secondary beneficiaries shall be the dependent parents and, subject to the restrictions on dependent children, the legitimate descendants. The secondary beneficiaries shall only be entitled to survivorship benefits if there are no primary beneficiaries.
GSIS Separation Benefits The Separation benefit is given to employees who are not in the retirement age of 60 but have been separated from the service. The benefit can either be in the form of cash payment or both cash payment or pension.
Eligibility and Benefit:
If the member has been in the service for at least three years but less than 15 years, and below 60 years of age:
Cash payment equivalent to 100% of the Average Monthly Compensation (average salary in the last three years) for every year of service payable upon reaching age 60.
If the member has been in the service for at least 15 years and is below 60 years of age:
Cash payment equivalent to 18 times the Basic Monthly Pension (BMP) payable upon separation and monthly pension for life starting at age 60.
Computation: BMP= (.025) x (AMC +700) x Period with Paid Premiums
GSIS EC Benefits EC benefit is known as Employee’s Compensation benefit. It is another disability benefit provided for public and private sector workers and their dependents in the event of work-related injury, sickness, disability, or death.
Unemployment or Involuntary Separation
The unemployment benefit is paid when permanent government employees who have paid the required 12 months integrated contributions under RA 8291 are involuntarily separated from the service as a result of the abolition of their office or position usually resulting from reorganization. The benefit is in the form of monthly cash payments equivalent to 50% of the average monthly compensation (AMC). The duration of the benefit depends on the length of service and ranges from two months to a maximum of six months.
The unemployment benefit shall be paid in accordance with the following schedule:
If the contributions have been made for a period of one year but less than three years, the benefit duration is for two months; The contributions have been made for a period of three or more years but less than six years, the benefit duration is for three months; The contributions have been made for a period of six years or more but less than nine years, the benefit duration is for four months; If the contributions have been made for a period of nine years or more but less than 11 years, the benefit duration is for five months; and If the contributions have been made for a period of 11 years or more but less than 15 years, the benefit duration is for six months. GSIS Housing Benefits Their acquired assets are available for cash basis and “as is where is” policy for interested members.
GSIS General Insurance Benefits GSIS also offers very cheap insurance products such as personal accident insurance coverage, fire, comprehensive insurance for vehicles, and other traditional insurance products like aviation, bonds, property floater, marine cargo, and marine haul.
GSIS Scholarship Benefits The GSIS also offers scholarship program every academic year for children of low-income GSIS members. The selected qualified scholars will receive up to P 200,000 tuition and miscellaneous fees per semester plus monthly allowance of P2000.
From this simple article, you might have learned about the benefits that GSIS has to offer to its members. It is only one-way of giving the employees one good thing they deserve for a job well-done.
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Sources: GSIS
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Is retirement under RA 660 still be enjoyed by any members or still existing? Please give us some development or any changes, thanks in advance. . . .
My father remarry when my mother passed away. But before he died, they have been separated(not legally) cause my stepmother went abroad and didn’t came back until now.. I am the one who spent for the funeral of my father, can I claim the funeral benefit?
My mother has passed away last January 29, 2010 we had tried to apply her benefits, burials. However, according to the customer care Claims Department at your main office GSIS-Pasay Branch my mother still had unpaid loan and that she does not have any more left to claim her GSIS benefits. May I informed you that she has been in the government service for thirty four (34) years and that we even did not claimed the BURIAL BENEFITS. Kindly clarify this matter along with a copy/list of her remittances and send it to my email [email protected]. I look forward to your promt reply.
My mother’s name: PURIFICACION STA MONICA ORTEGA
Employer: National Parks Development Committee
I have worked in a national government office in years back (1980-195) and paid continuously my contributions for 5 years until I resigned and left the country. Will there be any entitlement claim due for me on my paid contributions? I will be truly grateful to receive your advice.
Much thanks.