GSIS Act of 1997

Section 2

Unless the context otherwise indicates, the following terms shall mean: (a) GSIS- The Government Service Insurance System created by Commonwealth Act No. 186; (b) Board- The Board of Trustees of the Government Service Insurance System; (c) Employer- The national government, its political subdivisions, branches, agencies or instrumentalities, including government-owned or controlled corporations, and financial institutions with original charters, the constitutional commissions and the judiciary; (d) Employee or Member- Any person receiving compensation while in the service of an employer as defined herein, whether by election or appointment, irrespective of status of appointment, including barangay and Sanggunian officials; (e) Active Member- A member who is not separated from the service; (f) Dependents- Dependents shall be the following: (a) the legitimate spouse dependent for support upon the member or pensioner; (b) the legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried, not gainfully employed, not over the age of majority, or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical defect acquired prior to age of majority; and (c) the parents dependent upon the member for support; (g) Primary beneficiaries- The legal dependent spouse until he/she remarries and the dependent children; (h) Secondary beneficiaries- The dependent parents and, subject to the restrictions on dependent children, the legitimate descendants; (i) Compensation- The basic pay or salary received by an employee, pursuant to his election/appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to the basic pay which are not integrated into the basic pay under existing laws; (j) Contribution- The amount payable to the GSIS by the member and the employer in accordance with Section 5 of this Act; (k) Current Daily Compensation- The actual daily compensation or the actual monthly compensation divided by the number of working days in the month of contingency but not to exceed twenty-two (22) days; (l) Average Monthly Compensation (AMC)- The quotient arrived at after dividing the aggregate compensation received by the member during his last thirty-six (36) months of service preceding his separation/retirement/ disability/death by thirty-six (36), or by the number of months he received such compensation if he has less than thirty-six (36) months of service: Provided, That the average monthly compensation shall in no case exceed the amount and rate as may be respectively set by the Board under the rules and regulations implementing this Act as determined by the actuary of the GSIS: Provided, further, That initially the average monthly compensation shall not exceed Ten thousand pesos (P10,000.00), and premium shall be nine percent (9%) and twelve percent (12%) for employee and employer covering the AMC limit and below and two percent (2%) and twelve percent (12%) for employee and employer covering the compensation above the AMC limit; (m) Revalued average monthly compensation- An amount equal to one hundred seventy percent (170%) of the first One thousand pesos (P1,000.00) of the average monthly compensation plus one hundred percent (100%) of the average monthly compensation in excess of One thousand pesos (P1,000.00); (n) Lump sum- The basic monthly pension multiplied by sixty (60); (o) Pensioner- Any person receiving old-age permanent total disability pension or any person who has received the lump sum excluding one receiving survivorship pension benefits as defined in Section 20 of this Act; (p) Gainful Occupation- Any productive activity that provided the member with income at least equal to the minimum compensation of government employees; (q) Disability- Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other gainful occupation; (r) Total Disability- Complete incapacity to continue with his present employment or engage in any gainful occupation due to the loss or impairment of the normal functions of the physical and/or mental faculties of the member; (s) Permanent Total Disability- Accrues or arises when recovery from the impairment mentioned in Section 2 (Q) is medically remote; (t) Temporary Total Disability- Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions; (u) Permanent Partial Disability- Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical faculties, despite which the member is able to pursue a gainful occupation.