Page 94 - PARAMETER E

Part 2 - Academic Manual

CHAPTER 3
BENEFITS, INCENTIVES, PRIVILEGES AND AWARDS

3.1. Benefits
3.1.1. GSIS Benefits
3.1.1.1. The Government Service Insurance System (GSIS) of the Philippines was created under
Commonwealth Act. No. 186 as amended by Presidential Decree No. 1146. It is a
Government Owned and Controlled Corporation and partly engaged in government
financial institution operations, acting as a trustee for government sector.
3.1.1.2. Government employees on permanent status are covered by the GSIS on compulsory
basis. On the other hand, non-permanent employees who have been in the service for
not less than sixty (60) days are also entitled to a term insurance renewable yearly.

3.1.2. Retirement
Retirement requires a specified age and a minimum number of years in service. Separation
from the service at the mandatory age of sixty-five (65) is called compulsory retirement A
.
.
retirement at an earlier age is referred to as optional retirement Both retirement schemes
require a minimum number of years of service rendered.

3.1.3. Separation
A cash payment of 18 times the basic monthly pension at the time of separation and a life
pension to start at age 60 will be given to those who separate from the service with at least 15
years service and are below 60 years of age.

3.1.4. Compulsory Life Insurance
3.1.4.1. A permanent faculty is entitled to an automatic endowment insurance based on the
following criteria:
Age at Issue Endowment Plan
Up to 30 years E-45
Over 30 to 40 years E-55
Over 50 to 59 years E-65
60 and above whole life
3.1.4.2. The amount of insurance is based on the member’s insurance plan, age and salary. If
the salary increases, the amount of insurance correspondingly increases effective on
the date of aforesaid salary increase. However, if the salary decreases, the member
has the option to maintain the amount of his/her insurance by paying the difference in
premium within ninety (90) days of such decrease. Otherwise, the amount is
automatically reduced.
3.1.4.3. If the employee is still in the service at the time of endowment plan, insurance
coverage is automatically renewed.

3.1.5. Sickness Income Benefits
This is for non-work connected sickness or injury that results in temporary or total
disability. It is available after a member has exhausted all his/her sick leave credits but not
earlier than the fourth day of sickness or injury. The member cannot avail himself/herself of the
sickness income benefits and sick leave simultaneously. Benefit of not less than four pesos
(P4.00) nor more than twenty pesos (P20.00) a day can be availed of by the member who has
paid at least six monthly contributions in the twelve-month period preceding the sickness or
injury.

81
IFSU Code