The Government Service Insurance System (GSIS) is a Filipino government agency established to provide social security coverage specifically for public sector employees. Founded in 1937, GSIS offers a range of benefits including life insurance, retirement pensions, and disability support, ensuring financial assistance and security for government workers and their families during various life contingencies.
Takte GSIS Explained: Government Service Insurance System
The importance of GSIS lies in its role as a safety net for public employees, enhancing their welfare and contributing to the stability of the public service sector. By offering comprehensive insurance and pension plans, GSIS not only safeguards the financial future of its members but also promotes loyalty and commitment within the government workforce, ultimately benefiting the broader society through improved public service delivery.
Contents
What is GSIS?
GSIS stands for the Government Service Insurance System (GSIS), a social security institution in the Philippines dedicated to providing coverage for public sector employees. Established on May 31, 1937, GSIS initially focused on life insurance but evolved into a comprehensive social insurance program by 1951, offering benefits such as old-age pensions, invalidity, and survivor support. Significant legislative advancements, including Republic Act No. 8291 in 1997, have further enhanced its offerings, ensuring a robust safety net for government workers.
GSIS also administers the Employees’ Compensation Program, which provides support for work-related injuries, disabilities, and deaths, alongside the General Insurance Fund that covers government properties. Membership is mandatory for all government employees under 65 years of age, though certain groups, such as military and police personnel, are excluded. As of March 2024, GSIS serves over 2.6 million members and pensioners, demonstrating its critical role in the public sector’s social security landscape.
History
The GSIS started way back on May 31, 1937, by virtue of Commonwealth Act No. 186. It was originally designed to focus on life insurance for public sector employees. In 1951, it expanded its offerings to include old-age, disability, and survivorship benefits, transforming into a comprehensive social insurance program. Later on, legislative modifications, such as Republic Act 8291 in 1997, further enhanced the benefits for government workers, ensuring mandatory coverage for all eligible employees. GSIS also manages the Employees’ Compensation Program for work-related benefits and the General Insurance Fund for government properties. As of March 2024, GSIS membership has expanded to cover over 2.6 million members and pensioners, with its total assets now amounting to approximately Php 1.699 trillion.
Logo
The new GSIS logo embodies the values of service, integrity, new beginnings, and hope. It features a color palette of blue, green, and yellow, where blue signifies trust, green represents fresh starts and values, and yellow evokes intelligence and optimism. Central to the design are the sun rays, symbolizing the GSIS, its members and pensioners, and corporate partners, highlighting their interconnectedness. The logo, unveiled during the GSIS’s 75th anniversary in May 2012, reflects the organization’s commitment to providing dependable service, encapsulated in the slogan “Maaasahan ng Lingkod-bayan.”
Mission
The GSIS mission outlines its dedication to serving its members and pensioners effectively.
“GSIS commits to –
- Provide social security and insurance to members and pensioners;
- Maximize the non-life insurance coverage of the government;
- Strengthen the fund through sound fund management;
- Form and sustain enduring partnerships; and
- Uphold the highest standards of corporate governance.”
Vision
The GSIS vision outlines its aspirations for the future.
“By 2028, GSIS will be a world-class pension and insurance institution run by esteemed professionals, using digital platforms to provide excellent customer experience while contributing to nation-building.”
Core Values
To ensure the delivery of meaningful value to their stakeholders, the GSIS upholds the following core values:
- Professionalism: We maintain high standards of conduct and expertise in all our interactions.
- Integrity: We commit to honesty and transparency, fostering trust with our members and partners.
- Dedicated and Excellent Service: We strive to provide reliable, high-quality support to meet the needs of our members effectively.
Quality Policy
The GSIS is dedicated to delivering high-quality services for social security benefits and non-life insurance to its stakeholders. Their Quality Management System (QMS) is designed with the organizational context and strategic goals in mind, focusing on continuous improvement and compliance.
- Commitment to quality service delivery
- Continuous evaluation and enhancement of systems and processes
- Compliance with legal and regulatory standards
- Investment in ongoing professional development for staff
Mandate
The Government Service Insurance System (GSIS) was established by Commonwealth Act No. 186 and Republic Act No. 8291, serving as a social insurance institution offering a defined benefit scheme. Members contribute monthly premiums in exchange for various social security benefits.
- Provide life insurance benefits to members.
- Offer separation or retirement benefits.
- Grant disability benefits.
- Administer the General Insurance Fund under RA 656 (Property Insurance Law).
- Provide insurance coverage for government assets and properties with insurable interests.
Powers and Functions
The GSIS holds various powers and functions in order to fulfill its mandate listed under RA No. 8291. These functions encompass a range of administrative, financial, and operational responsibilities, including the following:
- Formulating rules and regulations to execute RA 8291.
- Approving budgets and authorizing expenditures for effective management.
- Investing funds in accordance with legal provisions.
- Acquiring and managing real and personal property as needed.
- Conducting actuarial studies to assess financial conditions.
- Adjusting benefits, contributions, and premium rates as necessary.
- Suing and being sued in legal matters.
- Entering into contracts with various entities.
- Establishing branch offices where membership warrants.
- Borrowing funds for housing mortgages and financing receivables.
- Participating in equity investments domestically or abroad.
- Approving personnel appointments within the GSIS.
- Designing early retirement incentive plans for staff.
- Reviewing and adjusting loan interest rates for members.
- Submitting annual reports to the President and Congress.
- Maintaining a Provident Fund for employee benefits.
- Authorizing extra remuneration for collection efforts.
- Ensuring recovery of all debts and contributions owed to the GSIS.
- Implementing programs to promote savings and social security expansion.
- Exercising any other lawful powers to achieve its objectives.
Organizational Structure
The GSIS organizational chart outlines its hierarchical structure, designed to facilitate efficient governance and management. At the top is the Board of Trustees, responsible for setting policies and overseeing the organization’s direction. Below the Board, the President and General Manager lead the executive team, which includes various vice presidents overseeing key operational areas such as investments, benefits, and member services. The organization is further divided into departments that handle specific functions, ensuring specialized focus on areas like finance, legal affairs, and human resources. This structured approach allows GSIS to effectively manage its diverse responsibilities while promoting accountability and operational efficiency.
Benefit
The Government Service Insurance System (GSIS) plays a vital role in supporting public sector employees in the Philippines. Its establishment offers several key benefits to the public, enhancing the overall welfare of government workers and their families.
- Social Security: Provides financial protection through pensions, insurance, and other benefits for employees and their beneficiaries.
- Loan Accessibility: Offers various loan programs, enabling government workers to secure funds for education, housing, and emergencies.
- Healthcare Support: Facilitates access to health services, ensuring members receive necessary medical care.
- Retirement Security: Ensures a stable income for retirees, contributing to their financial independence in old age.
- Investment Opportunities: Manages funds to generate returns, which can enhance the benefits available to members and pensioners.
Coverage
The GSIS provides mandatory coverage for all government employees receiving compensation, as long as they are below the retirement age of 65. However, certain groups are excluded from membership under RA 8291.
Beneficiaries and Membership
- Covered Members: All government employees (national and local), except for:
- Members of the Judiciary and Constitutional Commissions
- Contractual employees without an employer-employee relationship
- Uniformed personnel from the Armed Forces, Philippine National Police, Bureau of Jail Management and Penology, and Bureau of Fire Protection
- Barangay and Sanggunian officials not receiving fixed compensation
Classes of Membership
- Regular Members: Government employees required to remit contributions.
- Special Members: Constitutional commissioners and judiciary members who also remit contributions.
- Active Members: Currently employed and contributing members.
- Inactive Members: Individuals separated from service through various means such as retirement or resignation.
Programs and Services
The GSIS offers a variety of programs and services designed to support its members throughout their careers and into retirement. These benefits cover areas such as retirement, insurance, and financial assistance.
1. Retirement Benefits
Members aged 60 with at least 15 years of service can retire and choose between a lump sum payment or a monthly pension.
2. Separation Benefits
Members with 3 to 15 years of service receive a cash payment upon separation, while those with over 15 years can receive additional pension benefits.
3. Life Insurance Benefits
The GSIS also provides life insurance benefits through two main policies: the Life Endowment Policy (LEP) and the Enhanced Life Policy (ELP). These policies offer various financial protections and benefits for members.
Life Endowment Policy (LEP)
This policy is for members who joined the government service before August 1, 2003. Key features include:
- Maturity Benefits: Members receive a cash payout upon reaching the policy’s maturity date.
- Cash Surrender Value: Members can withdraw a portion of their insurance value if they decide to end the policy early.
- Permanent Total Disability: Coverage for members who become permanently disabled, providing financial support.
- Death Benefit: A payout to beneficiaries in the event of the member’s death.
- Accidental Death Benefit: Additional compensation for death due to accidents.
- Sickness Income Benefit: Financial assistance during periods of illness.
- Annual Dividend: Regular dividends based on the policy’s performance.
Enhanced Life Policy (ELP)
This policy is for members who joined on or after August 1, 2003, and for those who converted from LEP. Its features also include:
- Termination Value: Members receive a cash value if they terminate the policy.
- Death Benefit: A financial payout to beneficiaries upon the member’s death.
- Annual Dividend: Members benefit from dividends, similar to the LEP.
These life insurance benefits aim to provide financial security to GSIS members and their families, ensuring support in times of need.
GSIS offers Life Endowment Policies (LEP) for long-term members and Enhanced Life Policies (ELP) for newer entrants, providing various benefits such as cash value and death benefits.
4. Disability Benefits
Members with disabilities can receive benefits based on the severity of their condition, including monthly income or cash payments.
5. Survivorship Benefits
Qualified beneficiaries of deceased members may receive pensions, cash payments, and other financial support based on the member’s service history.
6. Funeral Benefit
A cash benefit of ₱30,000 is provided to cover funeral expenses for qualified deceased members.
7. Unemployment Benefit
Members involuntarily separated from service may receive monthly cash payments equal to 50% of their average monthly compensation.
8. Loan Privileges
GSIS offers various loan options for active members, including emergency loans and policy loans based on their contributions and needs. Here are the main types of loans available:
- Enhanced Consolidated Loan Plus: Active members with at least 20 months of paid premiums can borrow an amount equivalent to up to three months’ salary. The loanable amount increases with longer service, allowing members with 15 years of contributions to borrow up to 12 months’ salary, and those with 25 years or more to access up to 14 months’ salary.
- Policy Loan: Members can borrow against their GSIS life insurance policy, using the cash value of the policy as collateral.
- Enhanced Emergency Loan: This loan is available to members residing in areas declared under a state of calamity, providing immediate financial assistance during emergencies.
- Pension Loan: Open to old-age pensioners, this loan allows those with no outstanding service loans to access funds.
- Pensioners’ Emergency Loan: This is specifically for pensioners living in calamity-affected areas, offering them emergency financial support.
9. Additional Benefits
These include periodic pension adjustments, Christmas cash gifts, milestone benefits for senior pensioners, and annual cash benefits for insured members. These benefits include:
- Inflation Adjustment of Pensions: GSIS regularly adjusts pensions to keep up with inflation, ensuring that members’ monthly pensions remain sustainable and adequate over time.
- Christmas Cash Gift for Pensioners: During the holiday season, pensioners receive a cash gift equivalent to one month’s pension, up to a specified maximum amount, to help with their expenses.
- Milestone Benefits for Pensioners: Regular pensioners receive special cash benefits on significant birthdays: ₱20,000 for turning 90, ₱30,000 for 95, and ₱50,000 for 100 years old, recognizing their long service and contribution.
- Cash Benefit: An annual cash benefit may be granted to members whose life insurance is active for at least one year, based on employer-submitted records.
Video: GSIS Institutional Video
Watch this GSIS institutional video from GSIS Official Youtube channel for a comprehensive visual overview of the agency’s mission and role in supporting the public sector employees in the Philippines. The video also highlights the various benefits and services GSIS offers, from retirement pensions to life insurance, and how it helps ensure financial security and secure the well-being of its members and their families.
Summary
The GSIS is an institution that provides comprehensive social security and insurance benefits to Filipino public sector employees, ensuring their financial security throughout their lives. With a range of offerings from retirement pensions to loan privileges and additional benefits, GSIS supports government workers and their families during various life stages.
Contact Information
For more information on how GSIS can assist you or to explore your membership options, visit the official GSIS website or contact their office directly via the following contact information:
Government Service Insurance System (GSIS) Main Office Address: Financial Center, Pasay City, Metro Manila Contact Number (GSIS Call Center Numbers): For Calls within Metro Manila: (02) 8-847-4747 For International Calls: (632) 8-847-4747 For Provincial Calls: 1-800-8-847-4747 (for Globe subscribers) or 1-800-10-8474747 (for Smart subscribers) Email Address: gsiscares@gsis.gov.ph Official Website: https://www.gsis.gov.ph/ Official Social Media Pages Facebook: https://www.facebook.com/gsis.ph/ Youtube: https://www.youtube.com/user/GSISMembersHour/videos