Dear PAO,

I was a government teacher in Cebu and a GSIS member for almost 10 years when I decided to seek teaching opportunities abroad. I was fortunate enough to get hired in Australia. So, without wasting time, I immediately processed my resignation and the requirements for my new employment. However, I did not know, nor was it explained to me, that I could claim my GSIS contributions through separation benefits. I only recently learned about this when a former co-teacher, who also resigned, mentioned to me that she was able to recover hers. If several years have already passed, am I barred from recovering my GSIS contributions? It will greatly help my family back home if I can claim my benefit. Please advise.

Ricardo

Dear Ricardo,

One of the many benefits provided for under Republic Act (RA) 8291, otherwise known as the Government Service Insurance System (GSIS) Act of 1997, is the grant of separation benefits to its members. It is worth mentioning that a GSIS member who is separated from the service shall continue to be so and shall be entitled to whatever benefits he or she has qualified to in the event of any contingency compensable under the Act. (Section 4, id).

In order for a GSIS member to be entitled to separation benefits upon resignation or separation from government employment, he or she must have accumulated a minimum of three years of creditable service. The benefit shall be granted under the following terms: (1) If the member has accumulated at least three years but less than 15 years of service, he or she is entitled to a cash payment equivalent to 100 percent of the average monthly compensation for every year of creditable service he or she has paid contributions, but not less than P12,000, payable upon reaching 60 years of age or upon separation, whichever comes later; (2) If the member has at least 15 years of service and he or she is less than 60 years of age upon separation, he or she is entitled to (a) a cash payment equivalent to 18 times the basic monthly pension, payable at the time of resignation or separation; and (b) an old-age pension benefit equal to the basic monthly pension, payable monthly for life upon reaching the age of 60. This is in line with Section 11 of RA 8291, which states:

“SEC. 11. Separation Benefits. – The separation benefits shall consist of:

(a) A cash payment equivalent to one hundred percent (100 percent) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon separation, whichever comes later: Provided, that the member resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years; or

(b) A cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or separation, plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided, that the member resigns or separates from the service after he has rendered at least fifteen years of service and is below sixty years of age at the time of resignation or separation.”

Corollary, you will be entitled to separation benefits if you fall within either of these categories and possess the necessary qualifications abovementioned. It will be best for you or your representative to visit the GSIS office/branch near you in order to have your membership credentials evaluated.

However, we wish to emphasize that the claim for benefits under RA 8291, including separation benefits, prescribes after four years from the occurrence of the contingency. To be certain, Section 28 of RA 8291 states:

“SEC. 28. Prescription. – Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years from the date of contingency.”

Contingencies, as defined under Section 1, par. 1.15, Rule I of the Implementing Rules and Regulations of RA 8291, refer to “Events such as separation from the service, retirement, disability or death which are payable under this Act.” (Emphasis supplied)

We hope that we are able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Thank you for your continued trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected].