By Benjamin Cuaresma
MANILA, Philippines — Former government workers in the non-career service may soon be given another route toward GSIS retirement benefits after the House of Representatives approved a measure allowing them to continue making voluntary contributions even after leaving government.
The House approved House Bill No. 10744 on third and final reading during Tuesday’s session, with all 220 members present voting in favor. There were no negative votes or abstentions.
The proposed law seeks to amend Republic Act No. 8291, or the Government Service Insurance System Act of 1997, by modifying Section 13, which governs retirement benefits.
If enacted, the measure would allow members of the non-career service, as defined under Executive Order No. 292, to continue paying GSIS premium contributions after their government employment ends so they can qualify for retirement and other applicable benefits.
The proposed amendment specifically addresses workers who leave government without completing the 15 years of service currently required under the GSIS law for retirement benefits.
Under a new Section 13-B, a former or separated non-career service member who has not reached the required 15 years could be allowed to continue paying the full premium contribution, covering both the personal and government shares, until the member completes the minimum creditable service required for retirement benefits.
The voluntary payments would remain subject to actuarial, administrative and documentary requirements to be set by the GSIS.
The bill would also give the GSIS authority to allow members to pay premiums based on a lower salary grade or compensation rate, subject to reasonable terms and conditions, to provide greater flexibility and affordability.
The measure refers to personnel classified under the non-career service pursuant to Section 9, Chapter 2, Subtitle A, Title I, Book V of Executive Order No. 292.
The classification includes individuals who enter government service through means other than the usual merit and fitness examinations used for career positions.
It also covers personnel whose tenure is limited by law, tied to the term of the appointing authority, subject to the appointing authority’s pleasure, or limited to the duration of a particular government project.
Co-terminus officials are likewise classified under the non-career service.
The proposed change follows earlier calls to provide a solution for government workers and officials who leave public service after failing to meet the 15-year GSIS service requirement.
In February 2023, then-Senator Aquilino “Koko” Pimentel III called for changes to the policy affecting retired local officials and their staff who could not qualify for GSIS pensions because they had not completed the required period of service.
Pimentel cited cases involving local officials and their staff who had served nine years in government but remained ineligible for the pension program because they fell short of the 15-year requirement under Republic Act No. 8291.
He also pointed to temporary and co-terminus government personnel who could reach retirement without a pension because the nature and duration of their appointments made it difficult to accumulate the required service years.
With House Bill No. 10744 now approved on third and final reading, the proposed mechanism would allow qualified former non-career government workers to continue their GSIS contributions after separation from government service and work toward completing the minimum service requirement for retirement benefits.
ia/xf
