Bill allowing former gov’t employees to contribute to GSIS approved

MANILA, Philippines — Former government employees in the non-career service may soon be allowed to continue their membership with the Government Service Insurance System (GSIS) by making voluntary premium contributions, as the House approved a bill seeking to amend a 1997 law.

During the session on Tuesday, the House Bill (HB) No. 10744 was approved on third and final reading after 220 members present voted in the affirmative, with zero negative votes and abstentions.

HB No. 10744 seeks to amend Republic Act No. 8291, or the Government Service Insurance System Act of 1997, by inserting phrases into Section 13, which deals with retirement benefits.

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If enacted, Section 13 will include a phrase which states that “members in the non-career service, as defined in Section 9, Chapter 2, Subtitle a, Title I, Book V, of Executive Order (EO) No. 292 […] may continue paying premium contributions to the GSIS” so that they may be qualified for “retirement and other applicable benefits.”

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The Civil Service Commission has said on its site that Section 9 of EO No. 292 states that individuals in the non-career service are characterized as:

• those who enter on bases other than those of the usual tests of merit and fitness utilized for the career service
• those whose tenure is limited to a period specified by law, or which is coterminous with that of the appointing authority or subject to his pleasure, or which is limited to the duration of a particular project for which purpose employment was made.

A new subsection in Section 13 will also be created if the bill is signed into law, which sets guidelines on how former employees in the non-career service can qualify for a continuing membership with GSIS.

“A former or separated member in the non-career service who has not completed the required fifteen (15) years of service to qualify for retirement benefits under this act may be allowed to continue paying the full premium contributions, representing both the personal and government shares, until such member has completed the minimum creditable service required for retirement benefits,” the proposed Section 13-B read.

“The payment of voluntary contributions under this section shall be subject to actuarial, administrative, and documentary requirements as may be prescribed by

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the GSIS. Provided, however, that the GSIS may allow a member to pay premiums based on a lower salary grade or compensation rate, under reasonable terms and conditions, to provide flexibility and affordability on the part of the member,” it added.

The call to allow GSIS members who have not completed the minimum service requirement due to the nature of their work to continue making contributions — so that they can receive benefits upon retirement—is not new.

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In February 2023, former Senator Aquilino “Koko” Pimentel called for a change in the policy in terms of availing pensions for retired local officials and their staff who did not meet the GSIS’ 15-year minimum service requirement.

Pimentel highlighted the disparity between the minimum requirement and the term limits of elected officials, as he revealed that many temporary and co-terminus government officials and employees retire without a pension program due to the 15-year minimum service requirement of the social insurance institution.

Co-terminus officials fall under the category of non-career service employees.

READ: Pimentel appeals for adjustment in GSIS rule on pension eligibility

“I appeal for our local officials and their staff who have served nine years in government but cannot qualify for the pension program due to the 15-year minimum service requirement under Republic Act 8291,” he said in a statement on February 26, 2023.

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“I am saddened to learn that there are so many elected officials and public servants holding temporary and co-terminus status on the national and local levels who would retire without a retirement fund and pension only because they have not met the 15-year minimum service requirement,” he added. /cb