House Approves Bill Allowing Former Gov’t Employees to Continue GSIS Membership

The Philippine House of Representatives has finally approved House Bill (HB) No. 10744 on third and final reading, with 220 members voting in favor and none against or abstaining. The bill seeks to amend Republic Act No. 8291, the Government Service Insurance System Act of 1997. If enacted, the amendment will allow former government employees in the non-career service to continue their membership with the Government Service Insurance System (GSIS) by making voluntary premium contributions. This amendment inserts a provision into Section 13 of the existing law, enabling these former employees to qualify for retirement and other applicable benefits. A new subsection, Section 13-B, will be created to outline the guidelines for former non-career service members who have not completed the required 15 years of service for retirement benefits. These individuals may be allowed to continue paying the full premium contributions, covering both personal and government shares, until they meet the minimum creditable service period for retirement. The GSIS will set actuarial, administrative, and documentary requirements for these voluntary contributions. However, the system may offer flexibility by allowing members to pay premiums based on a lower salary grade or compensation rate, under reasonable terms and conditions, to ensure affordability. The call to allow GSIS members who could not meet the minimum service requirement due to the nature of their work to continue contributions has been raised before. In February 2023, former Senator Aquilino “Koko” Pimentel highlighted the plight of retired local officials and their staff who often failed to meet the 15-year minimum service requirement, leading to them retiring without pensions. He pointed out the disparity between the minimum requirement and the term limits of elected officials, noting that many temporary and co-terminus government employees retire without a retirement fund solely because they fall short of the 15-year mark. This legislative move is expected to provide a crucial safety net for numerous former non-career government employees, enhancing their post-retirement financial security.