kLU8LIC AC1 NC 8291

AN AC1 AMLNDING kLSIDLN1IAL DLCkLL NC 1146 AS AMLNDLD LkANDING AND INCkLASING

1nL CCVLkAGL AND 8LNLII1S CI 1nL GCVLkNMLN1 SLkVICL INSUkANCL SS1LM INS1I1U1ING
kLICkMS 1nLkLIN AND ICk C1nLk UkCSLS
SLC1ICN 1 resldenLlal uecree no 1146 as amended oLherwlse known as Lhe 8evlsed CovernmenL
Servlce lnsurance AcL of 1977 ls hereby furLher amended Lo read as follows
SLC1ICN 1 1lLle 1he shorL LlLle of Lhls AcL shall be 1he CovernmenL Servlce lnsurance SysLem AcL of
1997
A uLllnl1lCnS
SLC1ICN 2 ueflnlLlon of 1erms unless Lhe conLexL oLherwlse lndlcaLes Lhe followlng Lerms shall
mean
(a) CSlS 1he CovernmenL Servlce lnsurance SysLem creaLed by CommonwealLh AcL no 186
(b) 8oard 1he 8oard of 1rusLees of Lhe CovernmenL Servlce lnsurance SysLem
(c) Lmployer 1he naLlonal governmenL lLs pollLlcal subdlvlslons branches agencles or
lnsLrumenLallLles lncludlng governmenLowned or conLrolled corporaLlons and flnanclal lnsLlLuLlons
wlLh orlglnal charLers Lhe consLlLuLlonal commlsslons and Lhe [udlclary
(d) Lmployee or Member Any person recelvlng compensaLlon whlle ln Lhe servlce of an employer as
deflned hereln wheLher by elecLlon or appolnLmenL lrrespecLlve of sLaLus of appolnLmenL lncludlng
barangay and sanggunlan offlclals
(e) AcLlve Member A member who ls noL separaLed from Lhe servlce
(f) uependenLs uependenLs shall be Lhe followlng (a) Lhe leglLlmaLe spouse dependenL for supporL
upon Lhe member or pensloner (b) Lhe leglLlmaLe leglLlmaLed legally adopLed chlld lncludlng Lhe
llleglLlmaLe chlld who ls unmarrled noL galnfully employed noL over Lhe age of ma[orlLy or ls over Lhe
age of ma[orlLy buL lncapaclLaLed and lncapable of selfsupporL due Lo a menLal or physlcal defecL
acqulred prlor Lo age of ma[orlLy and (c) Lhe parenLs dependenL upon Lhe member for supporL
(g) rlmary beneflclarles 1he legal dependenL spouse unLll he/she
remarrles and Lhe dependenL chlldren
(h) Secondary beneflclarles 1he dependenL parenLs and sub[ecL Lo Lhe resLrlcLlons on dependenL
chlldren Lhe leglLlmaLe descendanLs
(l) CompensaLlon 1he baslc pay or salary recelved by an employee pursuanL Lo hls
elecLlon/appolnLmenL excludlng per dlems bonuses overLlme pay honorarla allowances and any
oLher emolumenLs recelved ln addlLlon Lo Lhe baslc pay whlch are noL lnLegraLed lnLo Lhe baslc pay
under exlsLlng laws
([) ConLrlbuLlon 1he amounL payable Lo Lhe CSlS by Lhe member and Lhe employer ln accordance wlLh
SecLlon 3 of Lhls AcL
(k) CurrenL ually CompensaLlon 1he acLual dally compensaLlon or Lhe acLual monLhly compensaLlon
dlvlded by Lhe number of worklng days ln Lhe monLh of conLlngency buL noL Lo exceed LwenLyLwo (22)
days
(l) Average MonLhly CompensaLlon (AMC) 1he quoLlenL arrlved aL afLer dlvldlng Lhe aggregaLe
compensaLlon recelved by Lhe member durlng hls lasL LhlrLyslx (36) monLhs of servlce precedlng hls
separaLlon/reLlremenL/dlsablllLy/deaLh by LhlrLyslx (36) or by Lhe number of monLhs he recelved such
compensaLlon lf he has less Lhan LhlrLyslx (36) monLhs of servlce rovlded 1haL Lhe average monLhly
compensaLlon shall ln no case exceed Lhe amounL and raLe as may be respecLlvely seL by Lhe 8oard
under Lhe rules and regulaLlons lmplemenLlng Lhls AcL as deLermlned by Lhe acLuary of Lhe CSlS
rovlded furLher 1haL lnlLlally Lhe average monLhly compensaLlon shall noL exceed 1en Lhousand pesos
(1000000) and premlum shall be nlne percenL (9) and Lwelve percenL (12) for employee and
employer coverlng Lhe AMC llmlL and below and Lwo percenL (2) and Lwelve percenL (12) for
employee and employer coverlng Lhe compensaLlon above Lhe AMC llmlL
(m) 8evalued average monLhly compensaLlon An amounL equal Lo one hundred sevenLy percenL
(170) of Lhe flrsL Cne Lhousand pesos (1000) of Lhe average monLhly compensaLlon plus one
hundred percenL (100) of Lhe average monLhly compensaLlon ln excess of Cne Lhousand pesos
(1000)
(n) Lump sum 1he baslc monLhly penslon mulLlplled by slxLy (60)
(o) ensloner Any person recelvlng oldage or permanenL LoLal dlsablllLy penslon or any person who
has recelved Lhe lump sum excludlng one recelvlng survlvorshlp penslon beneflLs as deflned ln SecLlon
20 of Lhls AcL
(p) Calnful CccupaLlon Any producLlve acLlvlLy LhaL provlded Lhe member wlLh lncome aL leasL equal
Lo Lhe mlnlmum compensaLlon of governmenL employees
(q) ulsablllLy Any loss or lmpalrmenL of Lhe normal funcLlons of Lhe physlcal and/or menLal faculLy of
a member whlch reduces or ellmlnaLes hls/her capaclLy Lo conLlnue wlLh hls/her currenL galnful
occupaLlon or engage ln any oLher galnful occupaLlon
(r) 1oLal ulsablllLy CompleLe lncapaclLy Lo conLlnue wlLh hls presenL employmenL or engage ln any
galnful occupaLlon due Lo Lhe loss or lmpalrmenL of Lhe normal funcLlons of Lhe physlcal and/or menLal
faculLles of Lhe member
(s) ermanenL 1oLal ulsablllLy Accrues or arlses when recovery from Lhe lmpalrmenL menLloned ln
SecLlon 2(C) ls medlcally remoLe
(L) 1emporary 1oLal ulsablllLy Accrues or arlses when Lhe lmpalred physlcal and/or menLal faculLles
can be rehablllLaLed and/or resLored Lo Lhelr normal funcLlons
(u) ermanenL arLlal ulsablllLy Accrues or arlses upon Lhe lrrevocable loss or lmpalrmenL of cerLaln
porLlon/s of Lhe physlcal faculLles desplLe whlch Lhe member ls able Lo pursue a galnful occupaLlon
8 MLM8L8SPl ln 1PL CSlS
SLC1ICN 3 Compulsory Membershlp Membershlp ln Lhe CSlS shall be compulsory for all employees
recelvlng compensaLlon who have noL reached Lhe compulsory reLlremenL age lrrespecLlve of
employmenL sLaLus excepL members of Lhe Armed lorces of Lhe hlllpplnes and Lhe hlllpplne naLlonal
ollce sub[ecL Lo Lhe condlLlon LhaL Lhey musL seLLle flrsL Lhelr flnanclal obllgaLlon wlLh Lhe CSlS and
conLracLuals who have no employer and employee relaLlonshlp wlLh Lhe agencles Lhey serve
LxcepL for Lhe members of Lhe [udlclary and consLlLuLlonal commlsslons who shall have llfe lnsurance
only all members of Lhe CSlS shall have llfe lnsurance reLlremenL and all oLher soclal securlLy
proLecLlon such as dlsablllLy survlvorshlp separaLlon and unemploymenL beneflLs
SLC1ICN 4 LffecL of SeparaLlon from Lhe Servlce A member separaLed from Lhe servlce shall
conLlnue Lo be a member and shall be enLlLled Lo whaLever beneflLs he has quallfled Lo ln Lhe evenL of
any conLlngency compensable under Lhls AcL
C SCu8CLS Cl lunuS
SLC1ICN S ConLrlbuLlons (a) lL shall be mandaLory for Lhe member and Lhe employer Lo pay Lhe
monLhly conLrlbuLlons speclfled ln Lhe followlng schedule
MonLhly CompensaLlon ercenLage of MonLhly
CompensaLlon ayable by
Member Lmployer
l Maxlmum Average
MonLhly CompensaLlon
(AMC) LlmlL and 8elow 90 120
ll Cver Lhe Maxlmum AMC LlmlL
lll
up Lo Lhe Maxlmum AMC LlmlL 90 120
ln Lxcess of Lhe AMC LlmlL 20 120
Members of Lhe [udlclary and consLlLuLlonal commlssloners shall pay Lhree percenL (3) of Lhelr
monLhly compensaLlon as personal share and Lhelr employers a correspondlng Lhree percenL (3) share
for Lhelr llfe lnsurance coverage
(b) 1he employer shall lnclude ln lLs annual approprlaLlon Lhe necessary amounLs for lLs share of Lhe
conLrlbuLlons lndlcaLed above plus any addlLlonal premlums LhaL may be requlred on accounL of Lhe
hazards or rlsks of lLs employees occupaLlon
(c) lL shall be mandaLory and compulsory for all employers Lo lnclude Lhe paymenL of conLrlbuLlons ln
Lhelr annual approprlaLlons enal sancLlons shall be lmposed upon employers who fall Lo lnclude Lhe
paymenL of conLrlbuLlons ln Lhelr annual approprlaLlons or oLherwlse fall Lo remlL Lhe accuraLe/exacL
amounL of conLrlbuLlons on Llme or delay Lhe remlLLance of premlum conLrlbuLlons Lo Lhe CSlS 1he
heads of offlces and agencles shall be admlnlsLraLlvely llable for nonremlLLance or delayed remlLLance
of premlum conLrlbuLlons Lo Lhe CSlS
SLC1ICN 6 CollecLlon and 8emlLLance of ConLrlbuLlons (a) 1he employer shall reporL Lo Lhe CSlS Lhe
names of all lLs employees Lhelr correspondlng employmenL sLaLus poslLlons salarles and such oLher
perLlnenL lnformaLlon lncludlng subsequenL changes Lhereln lf any as may be requlred by Lhe CSlS Lhe
employer shall deducL each monLh from Lhe monLhly salary or compensaLlon of each employee Lhe
conLrlbuLlon payable by hlm ln accordance wlLh Lhe schedule prescrlbed ln Lhe rules and regulaLlons
lmplemenLlng Lhls AcL
(b) Lach employer shall remlL dlrecLly Lo Lhe CSlS Lhe employees and employers conLrlbuLlons wlLhln
Lhe flrsL Len (10) days of Lhe calendar monLh followlng Lhe monLh Lo whlch Lhe conLrlbuLlons apply 1he
remlLLance by Lhe employer of Lhe conLrlbuLlons Lo Lhe CSlS shall Lake prlorlLy over and above Lhe
paymenL of any and all obllgaLlons excepL salarles and wages of lLs employees
SLC1ICN 7 lnLeresLs on uelayed 8emlLLances Agencles whlch delay Lhe remlLLance of any and all
monles due Lhe CSlS shall be charged lnLeresLs as may be prescrlbed by Lhe 8oard buL noL less Lhan Lwo
percenL (2) slmple lnLeresL per monLh Such lnLeresL shall be pald by Lhe employers concerned
SLC1ICN 8 CovernmenL CuaranLee 1he governmenL of Lhe 8epubllc of Lhe hlllpplnes hereby
guaranLees Lhe fulflllmenL of Lhe obllgaLlons of Lhe CSlS Lo lLs members as and when Lhey fall due
u 8LnLll1S
SLC1ICN 9 CompuLaLlon of Lhe 8aslc MonLhly enslon (a) Lhe baslc monLhly penslon ls equal Lo
1) LhlrLyseven and onehalf percenL (373) of Lhe revalued average monLhly compensaLlon plus
2) Lwo and onehalf percenL (23) of sald revalued average monLhly compensaLlon for each year of
servlce ln excess of flfLeen (13) years rovlded 1haL Lhe baslc monLhly penslon shall noL exceed nlneLy
percenL (90) of Lhe average monLhly compensaLlon
(b) 1he baslc monLhly penslon may be ad[usLed upon Lhe recommendaLlon of Lhe resldenL and Ceneral
Manager of Lhe CSlS and approved by Lhe resldenL of Lhe hlllpplnes ln accordance wlLh Lhe rules and
regulaLlons prescrlbed by Lhe CSlS rovlded however 1haL Lhe baslc monLhly penslon shall noL be less
Lhan Cne Lhousand and Lhree hundred pesos (130000) rovlded furLher 1haL Lhe baslc monLhly
penslon for Lhose who have rendered aL leasL LwenLy (20) years of servlce afLer Lhe effecLlvlLy of Lhls AcL
shall noL be less Lhan 1wo Lhousand four hundred pesos (240000) a monLh
SLC1ICN 10 CompuLaLlon of Servlce (a) 1he compuLaLlon of servlce for Lhe purpose of deLermlnlng
Lhe amounL of beneflLs payable under Lhls AcL shall be from Lhe daLe of orlglnal appolnLmenL/elecLlon
lncludlng perlods of servlce aL dlfferenL Llmes under one or more employers Lhose performed overseas
under Lhe auLhorlLy of Lhe 8epubllc of Lhe hlllpplnes and Lhose LhaL may be prescrlbed by Lhe CSlS ln
coordlnaLlon wlLh Lhe Clvll Servlce Commlsslon
(b) All servlce credlLed for reLlremenL reslgnaLlon or separaLlon for whlch correspondlng beneflLs have
been awarded under Lhls AcL or oLher laws shall be excluded ln Lhe compuLaLlon of servlce ln case of
relnsLaLemenL ln Lhe servlce of an employer and subsequenL reLlremenL or separaLlon whlch ls
compensable under Lhls AcL
lor Lhe purpose of Lhls secLlon Lhe Lerm servlce shall lnclude full Llme servlce wlLh compensaLlon
rovlded 1haL parL Llme and oLher servlces wlLh compensaLlon may be lncluded under such rules and
regulaLlons as may be prescrlbed by Lhe CSlS
SLAkA1ICN 8LNLII1S
SLC1ICN 11 SeparaLlon 8eneflLs 1he separaLlon beneflL shall conslsL of (a) a cash paymenL
equlvalenL Lo one hundred percenL (100) of hls average monLhly compensaLlon for each year of servlce
he pald conLrlbuLlons buL noL less Lhan 1welve Lhousand pesos (12000) payable upon reachlng slxLy
(60) years of age or upon separaLlon whlchever comes laLer rovlded 1haL Lhe member reslgns or
separaLes from Lhe servlce afLer he has rendered aL leasL Lhree (3) years of servlce buL less Lhan flfLeen
(13) years or
(b) A cash paymenL equlvalenL Lo elghLeen (18) Llmes hls baslc monLhly penslon payable aL Lhe Llme of
reslgnaLlon or separaLlon plus an oldage penslon beneflL equal Lo Lhe baslc monLhly penslon payable
monLhly for llfe upon reachlng Lhe age of slxLy (60) rovlded 1haL Lhe member reslgns or separaLes
from Lhe servlce afLer he has rendered aL leasL flfLeen (13) years of servlce and ls below slxLy (60) years
of age aL Lhe Llme of reslgnaLlon or separaLlon
SLC1ICN 12 unemploymenL or lnvolunLary SeparaLlon 8eneflLs unemploymenL beneflLs ln Lhe form
of monLhly cash paymenLs equlvalenL Lo flfLy percenL (30) of Lhe average monLhly compensaLlon shall
be pald Lo a permanenL employee who ls lnvolunLarlly separaLed from Lhe servlce due Lo Lhe abollLlon of
hls offlce or poslLlon usually resulLlng from reorganlzaLlon rovlded 1haL he has been paylng lnLegraLed
conLrlbuLlons for aL leasL one (1) year prlor Lo separaLlon unemploymenL beneflLs shall be pald ln
accordance wlLh Lhe followlng schedule
ConLrlbuLlons Made 8eneflL uuraLlon
1 year buL less Lhan 3 years 2 monLhs
3 or more years buL less Lhan 6 years 3 monLhs
6 or more years buL less Lhan 9 years 4 monLhs
9 or more years buL less Lhan 11 years 3 monLhs
11 or more years buL less Lhan 13 years 6 monLhs
1he flrsL paymenL shall be equlvalenL Lo Lwo (2) monLhly beneflLs A sevenday (7) walLlng perlod shall
be lmposed on succeedlng monLhly paymenLs
All accumulaLed unemploymenL beneflLs pald Lo Lhe employee durlng hls enLlre membershlp wlLh Lhe
CSlS shall be deducLed from volunLary separaLlon beneflLs
1he CSlS shall prescrlbe Lhe deLalled guldellnes ln Lhe operaLlonallzaLlon of Lhls secLlon ln Lhe rules and
regulaLlons lmplemenLlng Lhls AcL
8L1l8LMLn1 8LnLll1S
SLC1ICN 13 8eLlremenL 8eneflLs (a) 8eLlremenL beneflL shall be
(1) Lhe lump sum paymenL as deflned ln Lhls AcL payable aL Lhe Llme of reLlremenL plus an oldage
penslon beneflL equal Lo Lhe baslc monLhly penslon payable monLhly for llfe sLarLlng upon explraLlon of
Lhe flveyear (3) guaranLeed perlod covered by Lhe lump sum or
(2) cash paymenL equlvalenL Lo elghLeen (18) monLhs of hls baslc monLhly penslon plus monLhly penslon
for llfe payable lmmedlaLely wlLh no flveyear (3) guaranLee
(b) unless Lhe servlce ls exLended by approprlaLe auLhorlLles reLlremenL shall be compulsory for an
employee aL slxLyflve (63) years of age wlLh aL leasL flfLeen (13) years of servlce rovlded 1haL lf he has
less Lhan flfLeen (13) years of servlce he may be allowed Lo conLlnue ln Lhe servlce ln accordance wlLh
exlsLlng clvll servlce rules and regulaLlons
SLC1ICN 13A CondlLlons for LnLlLlemenL A member who reLlres from Lhe servlce shall be enLlLled Lo
Lhe reLlremenL beneflLs ln paragraph (a) of SecLlon 13 hereof rovlded 1haL
(1) he has rendered aL leasL flfLeen (13) years of servlce
(2) he ls aL leasL slxLy (60) years of age aL Lhe Llme of reLlremenL and
(3) he ls noL recelvlng a monLhly penslon beneflL from permanenL LoLal dlsablllLy
SLC1ICN 14 erlodlc enslon Ad[usLmenL 1he monLhly penslon of all pensloners lncludlng all Lhose
recelvlng survlvorshlp penslon beneflLs shall be perlodlcally ad[usLed as may be recommended by Lhe
CSlS acLuary and approved by Lhe 8oard ln accordance wlLh Lhe rules and regulaLlons prescrlbed by Lhe
CSlS
L8MAnLn1 ulSA8lLl1? 8LnLll1S
SLC1ICN 1S Ceneral CondlLlons for LnLlLlemenL A member who suffers permanenL dlsablllLy for
reasons noL due Lo hls grave mlsconducL noLorlous negllgence hablLual lnLoxlcaLlon or wlllful lnLenLlon
Lo klll hlmself or anoLher shall be enLlLled Lo Lhe beneflLs provlded for under SecLlons 16 and 17
lmmedlaLely followlng sub[ecL Lo Lhe correspondlng condlLlons Lherefor
SLC1ICN 16 ermanenL 1oLal ulsablllLy 8eneflLs (a) lf Lhe permanenL dlsablllLy ls LoLal he shall
recelve a monLhly lncome beneflL for llfe equal Lo Lhe baslc monLhly penslon effecLlve from Lhe daLe of
dlsablllLy rovlded 1haL
(1) he ls ln Lhe servlce aL Lhe Llme of dlsablllLy or
(2) lf separaLed from Lhe servlce he has pald aL leasL LhlrLyslx (36) monLhly conLrlbuLlons wlLhln Lhe flve
(3) year perlod lmmedlaLely precedlng hls dlsablllLy or has pald a LoLal of aL leasL one hundred elghLy
(180) monLhly conLrlbuLlons prlor Lo hls dlsablllLy rovlded furLher 1haL lf aL Lhe Llme of dlsablllLy he
was ln Lhe servlce and has pald a LoLal of aL leasL one hundred elghLy (180) monLhly conLrlbuLlons ln
addlLlon Lo Lhe monLhly lncome beneflL he shall recelve a cash paymenL equlvalenL Lo elghLeen (18)
Llmes hls baslc monLhly penslon rovlded flnally 1haL a member cannoL en[oy Lhe monLhly lncome
beneflL for permanenL dlsablllLy and Lhe oldage reLlremenL slmulLaneously
(b) lf a member who suffers permanenL LoLal dlsablllLy does noL saLlsfy condlLlons (1) and (2) ln
paragraph (a) of Lhls secLlon buL has rendered aL leasL Lhree (3) years servlce aL Lhe Llme of hls dlsablllLy
he shall be advanced Lhe cash paymenL equlvalenL Lo one hundred percenL (100) of hls average
monLhly compensaLlon for each year of servlce he pald conLrlbuLlons buL noL less Lhan 1welve
1housand pesos (12000) whlch should have been hls separaLlon beneflL
(c) unless Lhe member has reached Lhe mlnlmum reLlremenL age dlsablllLy beneflL shall be suspended
when
(1) he ls reemployed or
(2) he recovers from dlsablllLy as deLermlned by Lhe CSlS whose declslon shall be flnal and blndlng or
(3) he falls Lo presenL hlmself for medlcal examlnaLlon when requlred by Lhe CSlS
(d) 1he followlng dlsablllLles shall be deemed LoLal and permanenL
(1) compleLe loss of slghL of boLh eyes
(2) loss of Lwo (2) llmbs aL or above Lhe ankle or wrlsL
(3) permanenL compleLe paralysls of Lwo(2) llmbs
(4) braln ln[ury resulLlng ln lncurable lmbeclllLy or lnsanlLy and
(3) such oLher cases as may be deLermlned by Lhe CSlS
SLC1ICN 17 ermanenL arLlal ulsablllLy 8eneflLs (a) lf Lhe dlsablllLy ls parLlal he shall recelve a cash
paymenL ln accordance wlLh a schedule of dlsablllLles Lo be prescrlbed by Lhe CSlS rovlded 1haL he
saLlsfles elLher condlLlons (1) or (2) of SecLlon 16(a)
(b) 1he followlng dlsablllLles shall be deemed permanenL and parLlal
(1) compleLe and permanenL loss of Lhe use of
(l) any flnger
(ll) any Loe
(lll) one arm
(lv) one hand
(v) one fooL
(vl) one leg
(vll) one or boLh ears
(vlll) hearlng of one or boLh ears
(lx) slghL of one eye
(2) such oLher cases as may be deLermlned by Lhe CSlS
1LMC8A8? ulSA8lLl1? 8LnLll1S
SLC1ICN 18 1emporary 1oLal ulsablllLy 8eneflL (a) A member who suffers Lemporary LoLal dlsablllLy
for reasons noL due Lo any of Lhe condlLlons enumeraLed ln SecLlon 13 hereof shall be enLlLled Lo
sevenLyflve percenL (73) of hls currenL dally compensaLlon for each day or fracLlon Lhereof of
Lemporary dlsablllLy beneflL noL exceedlng one hundred LwenLy (120) days ln one calendar year afLer
exhausLlng all hls slck leave credlLs and collecLlve bargalnlng agreemenL slck leave beneflLs lf any buL
noL earller Lhan Lhe fourLh day of hls Lemporary LoLal dlsablllLy rovlded 1haL
(1) he ls ln Lhe servlce aL Lhe Llme of hls dlsablllLy or
(2) lf separaLed he has rendered aL leasL Lhree (3) years of servlce and has pald aL leasL slx (6) monLhly
conLrlbuLlons ln Lhe LwelvemonLh perlod lmmedlaLely precedlng hls dlsablllLy
rovlded however 1haL a member cannoL en[oy Lhe Lemporary LoLal dlsablllLy beneflL and slck leave
pay slmulLaneously rovlded furLher 1haL lf Lhe dlsablllLy requlres more exLenslve LreaLmenL LhaL lasLs
beyond one hundred LwenLy (120) days Lhe paymenL of Lhe Lemporary LoLal dlsablllLy beneflL may be
exLended by Lhe CSlS buL noL Lo exceed a LoLal of Lwo hundred forLy (240) days
(b) 1he Lemporary LoLal dlsablllLy beneflL shall ln no case be less Lhan SevenLy pesos (7000) a day
(c) 1he noLlces requlred of Lhe member and Lhe employer Lhe mode of paymenL and Lhe oLher
requlremenLs for enLlLlemenL Lo Lemporary LoLal dlsablllLy beneflLs shall be provlded ln Lhe rules and
regulaLlons Lo be prescrlbed by Lhe CSlS
SLC1ICN 19 nonscheduled ulsablllLy lor ln[urles or lllnesses resulLlng ln a dlsablllLy noL llsLed ln Lhe
schedule of parLlal/LoLal dlsablllLy as provlded hereln Lhe CSlS shall deLermlne Lhe naLure of Lhe
dlsablllLy and Lhe correspondlng beneflLs Lherefor
Su8vlvC8SPl 8LnLll1S
SLC1ICN 20 Survlvorshlp 8eneflLs When a member or pensloner dles Lhe beneflclarles shall be
enLlLled Lo survlvorshlp beneflLs provlded ln SecLlons 21 and 22 hereunder sub[ecL Lo Lhe condlLlons
Lhereln provlded for 1he survlvorshlp penslon shall conslsL of
(1) Lhe baslc survlvorshlp penslon whlch ls flfLy percenL (30) of Lhe baslc monLhly penslon and
(2) Lhe dependenL chlldrens penslon noL exceedlng flfLy percenL (30) of Lhe baslc monLhly penslon
(3)
SLC1ICN 21 ueaLh of a Member (a) upon Lhe deaLh of a member Lhe prlmary beneflclarles shall be
enLlLled Lo
(1) survlvorshlp penslon rovlded 1haL Lhe deceased
(l) was ln Lhe servlce aL Lhe Llme of hls deaLh or
(ll) lf separaLed from Lhe servlce has aL leasL Lhree (3) years of servlce aL Lhe Llme of hls deaLh and has
pald LhlrLyslx (36) monLhly conLrlbuLlons wlLhln Lhe flveyear perlod lmmedlaLely precedlng hls deaLh
or has pald a LoLal of aL leasL one hundred elghLy (180) monLhly conLrlbuLlons prlor Lo hls deaLh or
(2) Lhe survlvorshlp penslon plus a cash paymenL equlvalenL Lo one hundred percenL (100) of hls
average monLhly compensaLlon for every year of servlce rovlded 1haL Lhe deceased was ln Lhe servlce
aL Lhe Llme of hls deaLh wlLh aL leasL Lhree (3) years of servlce or
(3) a cash paymenL equlvalenL Lo one hundred percenL (100) of hls average monLhly compensaLlon for
each year of servlce he pald conLrlbuLlons buL noL less Lhan 1welve Lhousand pesos (1200000)
rovlded 1haL Lhe deceased has rendered aL leasL Lhree (3) years of servlce prlor Lo hls deaLh buL does
noL quallfy for Lhe beneflLs under Lhe lLem (1) or (2) of Lhls paragraph
(b) 1he survlvorshlp penslon shall be pald as follows
(1) when Lhe dependenL spouse ls Lhe only survlvor he/she shall recelve Lhe baslc survlvorshlp penslon
for llfe or unLll he/she remarrles
(2) when only dependenL chlldren are Lhe survlvors Lhey shall be enLlLled Lo Lhe baslc survlvorshlp
penslon for as long as Lhey are quallfled plus Lhe dependenL chlldrens penslon equlvalenL Lo Len
percenL (10) of Lhe baslc monLhly penslon for every dependenL chlld noL exceedlng flve (3) counLed
from Lhe youngesL and wlLhouL subsLlLuLlon
(3) when Lhe survlvors are Lhe dependenL spouse and Lhe dependenL chlldren Lhe dependenL spouse
shall recelve Lhe baslc survlvorshlp penslon for llfe or unLll he/she remarrles and Lhe dependenL
chlldren shall recelve Lhe dependenL chlldrens penslon menLloned ln Lhe lmmedlaLely precedlng
paragraph (2) hereof
(c) ln Lhe absence of prlmary beneflclarles Lhe secondary beneflclarles shall be enLlLled Lo
(1) Lhe cash paymenL equlvalenL Lo one hundred percenL (100) of hls average monLhly compensaLlon
for each year of servlce he pald conLrlbuLlons buL noL less Lhan 1welve Lhousand pesos (12000)
rovlded 1haL Lhe member ls ln Lhe servlce aL Lhe Llme of hls deaLh and has aL leasL Lhree (3) years of
servlce or
(2) ln Lhe absence of secondary beneflclarles Lhe beneflLs under Lhls paragraph shall be pald Lo hls legal
helrs
(d) lor purposes of Lhe survlvorshlp beneflLs leglLlmaLe chlldren shall lnclude legally adopLed and
leglLlmaLe chlldren
SLC1ICN 22 ueaLh of a ensloner upon Lhe deaLh of an oldage pensloner or a member recelvlng
Lhe monLhly lncome beneflL for permanenL dlsablllLy Lhe quallfled beneflclarles shall be enLlLled Lo Lhe
survlvorshlp penslon deflned ln SecLlon 20 of Lhls AcL sub[ecL Lo Lhe provlslons of paragraph (b) of
SecLlon 21 hereof When Lhe pensloner dles wlLhln Lhe perlod covered by Lhe lump sum Lhe
survlvorshlp penslon shall be pald only afLer Lhe explraLlon of Lhe sald perlod
lunL8AL 8LnLll1S
SLC1ICN 23 luneral 8eneflL 1he amounL of funeral beneflL shall be deLermlned and speclfled by Lhe
CSlS ln Lhe rules and regulaLlons buL shall noL be less Lhan 1welve Lhousand pesos (1200000)
rovlded 1haL lL shall be lncreased Lo aL leasL LlghLeen Lhousand pesos (1800000) afLer flve (3) years
and shall be pald upon Lhe deaLh of
(a) an acLlve member as deflned under SecLlon 2(e) of Lhls AcL or
(b) a member who has been separaLed from Lhe servlce buL who may be enLlLled Lo fuLure beneflL
pursuanL Lo SecLlon 4 of Lhls AcL or
(c) a pensloner as deflned ln SecLlon 2(o) of Lhls AcL or
(d) a reLlree who aL Lhe Llme of hls reLlremenL was of penslonable age under Lhls AcL buL who opLed Lo
reLlre under 8epubllc AcL no 1616
LllL lnSu8AnCL 8LnLll1S
SLC1ICN 24 Compulsory Llfe lnsurance All employees excepL for Members of Lhe Armed lorces of
Lhe hlllpplnes (Al) and Lhe hlllpplne naLlonal ollce (n) shall under such Lerms and condlLlons as
may be promulgaLed by Lhe CSlS be compulsorlly covered wlLh llfe lnsurance whlch shall auLomaLlcally
Lake effecL as follows
(1) for Lhose employed afLer Lhe effecLlvlLy of Lhls AcL Lhelr lnsurance shall Lake effecL on Lhe daLe of
Lhelr employmenL
(2) for Lhose whose lnsurance wlll maLure afLer Lhe effecLlvlLy of Lhls AcL Lhelr lnsurance shall be
deemed renewed on Lhe day followlng Lhe maLurlLy or explry daLe of Lhelr lnsurance
(3) for Lhose wlLhouL any llfe lnsurance as of Lhe effecLlvlLy of Lhls AcL Lhelr lnsurance shall Lake effecL
followlng sald effecLlvlLy
SLC1ICN 2S ulvldends An annual dlvldend may be granLed Lo all members of Lhe CSlS whose llfe
lnsurance ls ln force for aL leasL one (1) year ln accordance wlLh a dlvldend allocaLlon formula Lo be
deLermlned by Lhe CSlS
SLC1ICN 26 CpLlonal lnsurance Sub[ecL Lo Lhe rules and regulaLlons prescrlbed by Lhe CSlS a
member may apply for lnsurance and/or preneed coverage embraclng llfe healLh hosplLallzaLlon
educaLlon memorlal plans and such oLher plans as may be deslgned by Lhe CSlS for hlmself and/or hls
dependenLs Any employer may llkewlse apply for group lnsurance coverage for lLs employees 1he
paymenL of Lhe premlums/lnsLallmenLs for opLlonal lnsurance and preneed producLs may be made by
Lhe lnsured or hls employer and/or any person accepLable Lo Lhe CSlS
SLC1ICN 27 8elnsurance 1he CSlS may relnsure any of lLs lnLeresLs or parL Lhereof wlLh any prlvaLe
company or relnsurer wheLher domesLlc or forelgn rovlded 1haL Lhe CSlS shall submlL an annual
reporL on lLs relnsurance operaLlons Lo Lhe lnsurance Commlsslon
L Au!uulCA1lCn Cl CLAlMS Anu ulSu1LS
SLC1ICN 28 rescrlpLlon Clalms for beneflLs under Lhls AcL excepL for llfe and reLlremenL shall
prescrlbe afLer four (4) years from Lhe daLe of conLlngency
SLC1ICN 29 laclllLy of aymenL 1he CSlS shall prescrlbe rules and regulaLlons Lo faclllLaLe paymenL
of beneflL proceeds and clalms under Lhls AcL and any oLher laws admlnlsLered by Lhe CSlS aymenLs
made by Lhe CSlS prlor Lo lLs recelpL of an adverse clalm Lo a beneflclary or clalmanL subsequenLly
found noL enLlLled LhereLo shall noL bar Lhe legal and ellglble reclplenL Lo hls rlghL Lo demand Lhe
paymenL of beneflLs proceeds and clalms from Lhe CSlS who shall however have a rlghL Lo lnsLlLuLe
Lhe approprlaLe acLlon ln a courL of law agalnsL Lhe lnellglble reclplenL
SLC1ICN 30 SeLLlemenL of ulspuLes 1he CSlS shall have orlglnal and excluslve [urlsdlcLlon Lo seLLle
any dlspuLe arlslng under Lhls AcL and any oLher laws admlnlsLered by Lhe CSlS
1he 8oard may deslgnaLe any member of Lhe 8oard or offlclal of Lhe CSlS who ls a lawyer Lo acL as
hearlng offlcer Lo recelve evldence make flndlngs of facL and submlL recommendaLlons Lhereon 1he
hearlng offlcer shall submlL hls flndlngs and recommendaLlons LogeLher wlLh all Lhe documenLary and
LesLlmonlal evldence Lo Lhe 8oard wlLhln LhlrLy (30) worklng days from Lhe Llme Lhe parLles have closed
Lhelr respecLlve evldence and flled Lhelr lasL pleadlng 1he 8oard shall declde Lhe case wlLhln LhlrLy (30)
days from Lhe recelpL of Lhe hearlng offlcers flndlngs and recommendaLlons 1he cases heard dlrecLly by
Lhe 8oard shall be declded wlLhln LhlrLy (30) worklng days from Lhe Llme Lhey are submlLLed by Lhe
parLles for declslon
SLC1ICN 31 Appeals Appeals from any declslon or award of Lhe 8oard shall be governed by 8ules 43
and 43 of Lhe 1997 8ules of Clvll rocedure adopLed by Lhe Supreme CourL on Aprll 8 1997 whlch wlll
Lake effecL on !uly 1 1997 rovlded 1haL pendlng cases and Lhose flled prlor Lo !uly 1 1997 shall be
governed by Lhe appllcable rules of procedure rovlded furLher 1haL Lhe appeal shall Lake precedence
over all oLher cases excepL crlmlnal cases when Lhe penalLy of llfe lmprlsonmenL or deaLh or recluslon
perpeLua ls lmposable
1he appeal shall noL sLay Lhe execuLlon of Lhe order or award unless ordered by Lhe 8oard by Lhe CourL
of Appeals or by Lhe Supreme CourL and Lhe appeal shall be wlLhouL pre[udlce Lo Lhe speclal clvll acLlon
of cerLlorarl when proper
SLC1ICN 32 LxecuLlon of ueclslon When no appeal ls perfecLed and Lhere ls no order Lo sLay by Lhe
8oard by Lhe CourL of Appeals or by Lhe Supreme CourL any declslon or award of Lhe 8oard shall be
enforced and execuLed ln Lhe same manner as declslons of Lhe 8eglonal 1rlal CourL lor Lhls purpose
Lhe 8oard shall have Lhe power Lo lssue Lo Lhe clLy or provlnclal sherlff or lLs appolnLed sherlff such wrlLs
of execuLlon as may be necessary for Lhe enforcemenL of such declslon or award and any person who
shall fall or refuse Lo comply wlLh such declslon award wrlL or process afLer belng requlred Lo do so
shall upon appllcaLlon by Lhe CSlS be punlshed for conLempL
SLC1ICN 33 CaLhs WlLnesses and roducLlon of 8ecords When auLhorlzed by Lhe 8oard an offlclal
or employee of Lhe CSlS shall have Lhe power Lo admlnlsLer oaLh and afflrmaLlon Lake deposlLlons
cerLlfy Lo offlclal acLs and lssue subpoena ad LesLlflcandum and subpoena duces Lecum Lo compel Lhe
aLLendance of wlLnesses and Lhe producLlon of books papers correspondences and oLher records
deemed necessary as evldence ln connecLlon wlLh any quesLlon arlslng under Lhls AcL Any case of
conLumacy shall be dealL wlLh ln accordance wlLh Lhe provlslons of SecLlon 380 of Lhe 8evlsed
AdmlnlsLraLlve Code
l lunuS Cl 1PL CSlS
SLC1ICN 34 lunds All conLrlbuLlons payable under SecLlon 3 of Lhls AcL LogeLher wlLh Lhe earnlngs
and accruals Lhereon shall consLlLuLe Lhe CSlS Soclal lnsurance lund 1he sald lund shall be used Lo
flnance Lhe beneflLs admlnlsLered by Lhe CSlS under Lhls AcL ln addlLlon Lhe CSlS shall admlnlsLer Lhe
opLlonal lnsurance fund for Lhe lnsurance coverage descrlbed ln SecLlon 26 hereof Lhe employees
CompensaLlon lnsurance lund creaLed under u 626 as amended Lhe Ceneral lnsurance lund creaLed
under AcL no 636 as amended and such oLher speclal funds exlsLlng or LhaL may be creaLed for speclal
groups or persons renderlng servlces Lo Lhe governmenL 1he CSlS shall malnLaln Lhe requlred reserves
Lo guaranLee Lhe fulflllmenL of lLs obllgaLlons under Lhls AcL
1he funds of Lhe CSlS shall noL be used for purposes oLher Lhan whaL are provlded for under Lhls AcL
Moreover no porLlon of Lhe funds of Lhe CSlS or lncome Lhereof shall accrue Lo Lhe Ceneral lund of Lhe
naLlonal governmenL and lLs pollLlcal subdlvlslons lnsLrumenLallLles and oLher agencles lncludlng
governmenLowned and conLrolled corporaLlons excepL as may be allowed under Lhls AcL
SLC1ICN 3S ueposlLs and ulsbursemenLs All revenues collecLed and all accruals LhereLo shall be
deposlLed admlnlsLered and dlsbursed ln accordance wlLh Lhe law A maxlmum expense loadlng of
Lwelve percenL (12) of Lhe yearly revenues from all sources may be dlsbursed for admlnlsLraLlve and
operaLlonal expenses excepL as may be oLherwlse approved by Lhe resldenL of Lhe hlllpplnes on Lhe
basls of acLuarlal and managemenL sLudles
SLC1ICN 36 lnvesLmenL of lunds 1he funds of Lhe CSlS whlch are noL needed Lo meeL Lhe currenL
obllgaLlons may be lnvesLed under such Lerms and condlLlons and rules and regulaLlons as may be
prescrlbed by Lhe 8oard rovlded 1haL lnvesLmenLs shall saLlsfy Lhe requlremenLs of llquldlLy
safeLy/securlLy and yleld ln order Lo ensure Lhe acLuarlal solvency of Lhe funds of Lhe CSlS rovlded
furLher 1haL Lhe CSlS shall submlL an annual reporL on all lnvesLmenLs made Lo boLh Pouses of Congress
of Lhe hlllpplnes Lo wlL
(a) ln lnLeresLbearlng bonds or securlLles or oLher evldence of lndebLedness of Lhe CovernmenL of Lhe
hlllpplnes
(b) ln lnLeresLbearlng deposlLs or securlLles ln any domesLlc bank dolng buslness ln Lhe hlllpplnes
rovlded 1haL ln Lhe case of such deposlLs Lhese shall noL exceed aL any Llme Lhe unlmpalred caplLal
and surplus or LoLal prlvaLe deposlLs of Lhe deposlLory bank whlchever ls smaller rovlded furLher
1haL sald bank has prlor deslgnaLlon as a deposlLory for Lhe purpose by Lhe MoneLary 8oard of Lhe
CenLral MoneLary AuLhorlLy
(c) ln dlrecL houslng loans Lo members and group houslng pro[ecLs secured by flrsL morLgage glvlng
prlorlLy Lo Lhe low lncome groups and ln shorLandmedlumLerm loans Lo members such as salary
pollcy educaLlonal emergency sLock purchase plan and oLher slmllar loans rovlded 1haL no less Lhan
forLy percenL (40) of Lhe lnvesLable fund of Lhe CSlS Soclal lnsurance lund shall be lnvesLed for Lhese
purposes
(d) ln bonds securlLles promlssory noLes or oLher evldence of lndebLedness of educaLlonal or medlcal
lnsLlLuLlons Lo flnance Lhe consLrucLlon lmprovemenL and malnLenance of schools and hosplLals
(e) ln real esLaLe properLy lncludlng shares of sLocks lnvolvlng real esLaLe properLy and lnvesLmenLs
secured by flrsL morLgages on real esLaLe or oLher collaLerals accepLable Lo Lhe CSlS rovlded 1haL such
lnvesLmenLs shall ln Lhe deLermlnaLlon of Lhe 8oard redound Lo Lhe beneflL of Lhe CSlS lLs members as
well as Lhe general publlc
(f) ln debL lnsLrumenLs and oLher securlLles Lraded ln Lhe secondary markeLs
(g) ln loans Lo or ln bonds debenLures promlssory noLes or oLher evldence of lndebLedness of any
solvenL corporaLlon creaLed or exlsLlng under Lhe laws of Lhe hlllpplnes
(h) ln common and preferred sLocks of any solvenL corporaLlon or flnanclal lnsLlLuLlon creaLed or exlsLlng
under Lhe laws of Lhe hlllpplnes llsLed ln Lhe sLock exchange wlLh proven Lrack record or proflLablllLy
over Lhe lasL Lhree (3) years and paymenL of dlvldends aL leasL once over Lhe same perlod
(l) ln domesLlc muLual funds lncludlng lnvesLmenLs relaLed Lo Lhe operaLlons of muLual funds and
([) ln forelgn muLual funds and ln forelgn currency deposlLs or forelgn currencydenomlnaLed debLs non
speculaLlve equlLles and oLher flnanclal lnsLrumenLs or oLher asseLs lssued ln accordance wlLh exlsLlng
laws of Lhe counLrles where such flnanclal lnsLrumenLs are lssued rovlded 1haL Lhese lnsLrumenLs or
asseLs are llsLed ln bourses of Lhe respecLlve counLrles where Lhese lnsLrumenLs or asseLs are lssued
rovlded furLher 1haL Lhe lssulng company has proven Lrack record of proflLablllLy over Lhe lasL Lhree
(3) years and paymenL of dlvldends aL leasL once over Lhe same perlod
SLC1ICN 37 8ecords and 8eporLs 1he CSlS shall keep and cause Lo keep such records as may be
necessary for Lhe purpose of maklng acLuarlal sLudles calculaLlons and valuaLlons of Lhe funds of Lhe
CSlS lncludlng such daLa needed ln Lhe compuLaLlon of raLes of dlsablllLy morLallLy morbldlLy
separaLlon and reLlremenL among Lhe members and any oLher lnformaLlon useful for Lhe ad[usLmenL of
Lhe beneflLs of Lhe members 1he CSlS shall malnLaln approprlaLe books of accounLs Lo record lLs asseLs
llablllLles lncome expenses recelpLs and dlsbursemenLs of funds and oLher flnanclal LransacLlons and
operaLlons
SLC1ICN 38 LxamlnaLlon and valuaLlon of Lhe lunds 1he CSlS shall make a perlodlc acLuarlal
examlnaLlon and valuaLlon of lLs funds ln accordance wlLh accepLed acLuarlal prlnclples
SLC1ICN 39 LxempLlon from 1ax Legal rocess and Llen lL ls hereby declared Lo be Lhe pollcy of Lhe
SLaLe LhaL Lhe acLuarlal solvency of Lhe funds of Lhe CSlS shall be preserved and malnLalned aL all Llmes
and LhaL conLrlbuLlon raLes necessary Lo susLaln Lhe beneflLs under Lhls AcL shall be kepL as low as
posslble ln order noL Lo burden Lhe members of Lhe CSlS and Lhelr employers 1axes lmposed on Lhe
CSlS Lend Lo lmpalr Lhe acLuarlal solvency of lLs funds and lncrease Lhe conLrlbuLlon raLe necessary Lo
susLaln Lhe beneflLs of Lhls AcL Accordlngly noLwlLhsLandlng any laws Lo Lhe conLrary Lhe CSlS lLs
asseLs revenues lncludlng all accruals LhereLo and beneflLs pald shall be exempL from all Laxes
assessmenLs fees charges or duLles of all klnds 1hese exempLlons shall conLlnue unless expressly and
speclflcally revoked and any assessmenL agalnsL Lhe CSlS as of Lhe approval of Lhls AcL are hereby
consldered pald ConsequenLly all laws ordlnances regulaLlons lssuances oplnlons or [urlsprudence
conLrary Lo or ln derogaLlon of Lhls provlslon are hereby deemed repealed superseded and rendered
lneffecLlve and wlLhouL legal force and effecL
Moreover Lhese exempLlons shall noL be affecLed by subsequenL laws Lo Lhe conLrary unless Lhls secLlon
ls expressly speclflcally and caLegorlcally revoked or repealed by law and a provlslon ls enacLed Lo
subsLlLuLe or replace Lhe exempLlon referred Lo hereln as an essenLlal facLor Lo malnLaln or proLecL Lhe
solvency of Lhe fund noLwlLhsLandlng and lndependenLly of Lhe guaranLy of Lhe naLlonal governmenL Lo
secure such solvency or llablllLy
1he funds and/or Lhe properLles referred Lo hereln as well as Lhe beneflLs sums or monles
correspondlng Lo Lhe beneflLs under Lhls AcL shall be exempL from aLLachmenL garnlshmenL execuLlon
levy or oLher processes lssued by Lhe courLs quasl[udlclal agencles or admlnlsLraLlve bodles lncludlng
Commlsslon on AudlL (CCA) dlsallowances and from all flnanclal obllgaLlons of Lhe members lncludlng
hls pecunlary accounLablllLy arlslng from or caused or occasloned by hls exerclse or performance of hls
offlclal funcLlons or duLles or lncurred relaLlve Lo or ln connecLlon wlLh hls poslLlon or work excepL when
hls moneLary llablllLy conLracLual or oLherwlse ls ln favor of Lhe CSlS
C AuMlnlS18A1lCn
SLC1ICN 40 lmplemenLlng 8ody 1he CovernmenL Servlce lnsurance SysLem as creaLed under
CommonwealLh AcL no 186 shall lmplemenL Lhe provlslons of Lhls AcL
SLC1ICN 41 owers and luncLlons of Lhe CSlS 1he CSlS shall exerclse Lhe followlng powers and
funcLlons
(a) Lo formulaLe adopL amend and/or resclnd such rules and regulaLlons as may be necessary Lo carry
ouL Lhe provlslons and purposes of Lhls AcL as well as Lhe effecLlve exerclse of Lhe powers and funcLlons
and Lhe dlscharge of duLles and responslblllLles of Lhe CSlS lLs offlcers and employees
(b) Lo adopL or approve Lhe annual and supplemenLal budgeL of recelpLs and expendlLures lncludlng
salarles and allowances of Lhe CSlS personnel Lo auLhorlze such caplLal and operaLlng expendlLures and
dlsbursemenLs of Lhe CSlS as may be necessary and proper for Lhe effecLlve managemenL and operaLlon
of Lhe CSlS
(c) Lo lnvesL Lhe funds of Lhe CSlS dlrecLly or lndlrecLly ln accordance wlLh Lhe provlslons of Lhls AcL
(d) Lo acqulre uLlllze or dlspose of ln any manner recognlzed by law real or personal properLy ln Lhe
hlllpplnes or elsewhere necessary Lo carry ouL Lhe purposes of Lhls AcL
(e) Lo conducL conLlnulng acLuarlal and sLaLlsLlcal sLudles and valuaLlons Lo deLermlne Lhe flnanclal
condlLlon of Lhe CSlS and Laklng lnLo conslderaLlon such sLudles and valuaLlons and Lhe llmlLaLlons
hereln provlded read[usL Lhe beneflLs conLrlbuLlons premlum raLes lnLeresL raLes or Lhe allocaLlon or
reallocaLlon of Lhe funds Lo Lhe conLlngencles covered
(f) Lo have Lhe power of successlon
(g) Lo sue and be sued
(h) Lo enLer lnLo make perform and carry ouL conLracLs of every klnd and descrlpLlon wlLh any person
flrm or assoclaLlon or corporaLlon domesLlc or forelgn
(l) Lo carry on any oLher lawful buslness whaLsoever ln pursuance of or ln connecLlon wlLh Lhe
provlslons of Lhls AcL
([) Lo have one or more offlces ln and ouLslde of Lhe hlllpplnes and Lo conducL lLs buslness and exerclse
lLs powers LhroughouL and ln any parL of Lhe 8epubllc of Lhe hlllpplnes and/or ln any or all forelgn
counLrles sLaLes and LerrlLorles rovlded 1haL Lhe CSlS shall malnLaln a branch offlce ln every provlnce
where Lhere exlsLs a mlnlmum of flfLeen Lhousand (13000) membershlp
(k) Lo borrow funds from any source prlvaLe or governmenL forelgn or domesLlc only as an lncldenL ln
Lhe securlLlzaLlon of houslng morLgages of Lhe CSlS and on accounL of lLs recelvables from any
governmenL or prlvaLe enLlLy
(l) Lo lnvesL own or oLherwlse parLlclpaLe ln equlLy ln any esLabllshmenL flrm or enLlLy
(m) Lo approve appolnLmenLs ln Lhe CSlS excepL appolnLmenLs Lo poslLlons whlch are pollcy
deLermlnlng prlmarlly confldenLlal or hlghly Lechnlcal ln naLure accordlng Lo Lhe Clvll Servlce rules and
regulaLlons rovlded 1haL all poslLlons ln Lhe CSlS shall be governed by a compensaLlon and poslLlon
classlflcaLlon sysLem and quallflcaLlons sLandards approved by Lhe CSlS 8oard of 1rusLees based on a
comprehenslve [ob analysls and audlL of acLual duLles and responslblllLles rovlded furLher 1haL Lhe
compensaLlon plan shall be comparable wlLh Lhe prevalllng compensaLlon plans ln Lhe prlvaLe secLor and
shall be sub[ecL Lo Lhe perlodlc revlew by Lhe 8oard no more Lhan once every four (4) years wlLhouL
pre[udlce Lo yearly merlL revlews or lncreases based on producLlvlLy and proflLablllLy
(n) Lo deslgn and adopL an Larly 8eLlremenL lncenLlve lan (L8l) and/or flnanclal asslsLance for Lhe
purpose of reLlremenL for lLs own personnel
(o) Lo flx and perlodlcally revlew and ad[usL Lhe raLes of lnLeresL and oLher Lerms and condlLlons for
loans and credlLs exLended Lo members or oLher persons wheLher naLural or [urldlcal
(p) Lo enLer lnLo agreemenL wlLh Lhe Soclal SecurlLy SysLem or any oLher enLlLy enLerprlse corporaLlon
or parLnershlp for Lhe beneflL of members Lransferrlng from one sysLem Lo anoLher sub[ecL Lo Lhe
provlslon of 8epubllc AcL no 7699 oLherwlse known as Lhe orLablllLy Law
(q) Lo be able Lo floaL proper lnsLrumenL Lo llquefy longLerm maLurlLy by poollng funds for shorLLerm
secondary markeL
(r) Lo submlL annually noL laLer Lhan !une 30 a publlc reporL Lo Lhe resldenL of Lhe hlllpplnes and Lhe
Congress of Lhe hlllpplnes regardlng lLs acLlvlLles ln Lhe admlnlsLraLlon and enforcemenL of Lhls AcL
durlng Lhe precedlng year lncludlng lnformaLlon and recommendaLlons on broad pollcles for Lhe
developmenL and perfecLlon of Lhe programs of Lhe CSlS
(s) Lo malnLaln a provldenL fund whlch conslsLs of conLrlbuLlons made by boLh Lhe CSlS and lLs offlclals
and employees and Lhelr earnlngs for Lhe paymenL of beneflLs Lo such offlclals and employees or Lhelr
helrs under such Lerms and condlLlons as lL may prescrlbe
(L) Lo approve and adopL guldellnes affecLlng lnvesLmenLs lnsurance coverage of governmenL
properLles seLLlemenL of clalms dlsposlLlon of acqulred asseLs prlvaLlzaLlon or expanslon of
subsldlarles developmenL of houslng pro[ecLs lncreased beneflL and loan packages Lo members and
Lhe enforcemenL of Lhe provlslons of Lhls AcL
(u) any provlslon of law Lo Lhe conLrary noLwlLhsLandlng Lo auLhorlze Lhe paymenL of exLra
remuneraLlon Lo Lhe offlclals and employees dlrecLly lnvolved ln Lhe collecLlon and/or remlLLance of
conLrlbuLlons loan repaymenLs and oLher monles due Lo Lhe CSlS aL such raLes and under such
condlLlons as lL may adopL rovlded 1haL Lhe besL lnLeresL of Lhe CSlS shall be observed Lhereby
(v) Lo deLermlne flx and lmpose lnLeresL upon unpald premlums due from employers and employees
(w) Lo ensure Lhe collecLlon or recovery of all lndebLedness llablllLles and/or accounLablllLles lncludlng
unpald premlums or conLrlbuLlons ln favor of Lhe CSlS arlslng from any cause or source whaLsoever due
from all obllgors wheLher publlc or prlvaLe 1he 8oard shall demand paymenL or seLLlemenL of Lhe
obllgaLlons referred Lo hereln wlLhln LhlrLy (30) days from Lhe daLe Lhe obllgaLlon becomes due and ln
Lhe evenL of fallure or refusal of Lhe obllgor or debLor Lo comply wlLh Lhe demand Lo lnlLlaLe or lnsLlLuLe
Lhe necessary or proper acLlons or sulLs crlmlnal clvll or admlnlsLraLlve or oLherwlse before Lhe courLs
Lrlbunals commlsslons boards or bodles of proper [urlsdlcLlon wlLhln LhlrLy (30) days reckoned from
Lhe explry daLe of Lhe perlod flxed ln Lhe demand wlLhln whlch Lo pay or seLLle Lhe accounL
(x) Lo deslgn and lmplemenL programs LhaL wlll promoLe and moblllze savlngs and provlde addlLlonal
resources for soclal securlLy expanslon and aL Lhe same Llme afford lndlvldual members approprlaLe
reLurns on Lhelr savlngs/lnvesLmenLs 1he programs shall be so deslgned as Lo spur socloeconomlc Lake
off and malnLaln conLlnued growLh and
(y) Lo exerclse such powers and perform such oLher acLs as may be necessary useful lncldenLal or
auxlllary Lo carry ouL Lhe provlslons of Lhls AcL or Lo aLLaln Lhe purposes and ob[ecLlves of Lhls AcL
SLC1ICN 42 1he 8oard of 1rusLees lLs ComposlLlon 1enure and CompensaLlon 1he corporaLe
powers and funcLlons of Lhe CSlS shall be vesLed ln and exerclsed by Lhe 8oard of 1rusLees composed of
Lhe resldenL and Ceneral Manager of Lhe CSlS and elghL (8) oLher members Lo be appolnLed by Lhe
resldenL of Lhe hlllpplnes one (1) of whom shall be elLher Lhe resldenL of Lhe hlllpplne ubllc School
1eachers AssoclaLlon (S1A) or Lhe resldenL of Lhe hlllpplne AssoclaLlon of School SuperlnLendenLs
(ASS) anoLher Lwo (2) shall represenL Lhe leadlng organlzaLlons or assoclaLlons of governmenL
employees/reLlrees anoLher four (4) from Lhe banklng flnance lnvesLmenL and lnsurance secLors and
one (1) recognlzed member of Lhe legal professlon who aL Lhe Llme of appolnLmenL ls also a member of
Lhe CSlS 1he 1rusLees shall elecL from among Lhemselves a Chalrman whlle Lhe resldenL and Ceneral
Manager of Lhe CSlS shall auLomaLlcally be Lhe vlcechalrman
1he 1rusLees excepL Lhe resldenL and Ceneral Manager who shall cease as LrusLee upon hls separaLlon
shall hold offlce for slx (6) years wlLhouL reappolnLmenL or unLll Lhelr successors are duly appolnLed and
quallfled vacancy oLher Lhan Lhrough Lhe explraLlon of Lhe Lerm shall be fllled for Lhe unexplred Lerm
only 1he members of Lhe 8oard shall be enLlLled Lo a per dlem of 1wo Lhousand flve hundred pesos
(2300) for each board meeLlng acLually aLLended by Lhem buL noL Lo exceed 1en Lhousand pesos
(10000) a monLh and reasonable LransporLaLlon and represenLaLlon allowances as may be flxed by Lhe
8oard
SLC1ICN 43 owers and luncLlons of Lhe 8oard of 1rusLees 1he 8oard of 1rusLees shall have Lhe
followlng powers and funcLlons
(a) Lo formulaLe Lhe pollcles guldellnes and programs Lo effecLlvely carry ouL Lhe purposes of Lhls AcL
(b) Lo promulgaLe such rules and regulaLlons as may be necessary or proper for Lhe effecLlve exerclse of
Lhe powers and funcLlons as well as Lhe dlscharge of Lhe duLles and responslblllLles of Lhe CSlS lLs
offlcers and employees
(c) upon Lhe recommendaLlon of Lhe resldenL and Ceneral Manager Lo approve Lhe annual and
supplemenLal budgeL of recelpLs and expendlLures of Lhe CSlS and Lo auLhorlze such operaLlng and
caplLal expendlLures and dlsbursemenLs of Lhe CSlS as may be necessary or proper for Lhe effecLlve
managemenL operaLlon and admlnlsLraLlon of Lhe CSlS
(d) upon Lhe recommendaLlon of Lhe resldenL and Ceneral Manager Lo approve Lhe CSlS
organlzaLlonal and admlnlsLraLlve sLrucLures and sLafflng paLLern and Lo esLabllsh flx revlew revlse and
ad[usL Lhe approprlaLe compensaLlon package for Lhe offlcers and employees of Lhe CSlS wlLh
reasonable allowances lncenLlves bonuses prlvlleges and oLher beneflLs as may be necessary or proper
for Lhe effecLlve managemenL operaLlon and admlnlsLraLlon of Lhe CSlS whlch shall be exempL from
8epubllc AcL no 6738 oLherwlse known as Lhe Salary SLandardlzaLlon Law and 8epubllc AcL no 7430
oLherwlse known as Lhe ALLrlLlon Law
(e) Lo flx and perlodlcally revlew and ad[usL Lhe raLes of lnLeresL and oLher Lerms and condlLlons for
loans and credlLs exLended Lo lLs members or oLher persons wheLher naLural or [urldlcal
(f) Lhe provlslon of any law Lo Lhe conLrary noLwlLhsLandlng Lo compromlse or release ln whole or ln
parL any clalm or seLLle llablllLy Lo Lhe CSlS regardless of Lhe amounL lnvolved under such Lerms and
condlLlons as lL may lmpose for Lhe besL lnLeresL of Lhe CSlS
(g) Lo approve and adopL guldellnes affecLlng lnvesLmenLs lnsurance coverage of governmenL
properLles seLLlemenL of clalms dlsposlLlon of acqulred asseLs developmenL of houslng pro[ecLs
lncreased beneflL and loan packages Lo members and Lhe enforcemenL of Lhe provlslons of Lhls AcL
(h) Lo deLermlne flx and lmpose lnLeresL upon unpald or unremlLLed premlums and/or conLrlbuLlons
and
(l) Lo do and perform any and all acLs necessary proper or lncldenLal Lo Lhe aLLalnmenL of Lhe purposes
and ob[ecLlves of Lhls AcL
SLC1ICN 44 AppolnLmenL CuallflcaLlons and CompensaLlon of Lhe resldenL and Ceneral Manager and
of CLher ersonnel 1he resldenL and Ceneral Manager of Lhe CSlS shall be lLs Chlef LxecuLlve
Cfflcer and shall be appolnLed by Lhe resldenL of Lhe hlllpplnes Pe shall be a person wlLh
managemenL and lnvesLmenLs experLlse necessary for Lhe effecLlve performance of hls duLles and
funcLlons under Lhls AcL
1he CSlS resldenL and Ceneral Manager shall be asslsLed by one or more execuLlve vlcepresldenLs
senlor vlcepresldenLs vlcepresldenLs and managers ln addlLlon Lo Lhe usual supervlsory and rank and
flle poslLlons who shall be appolnLed and removed by Lhe resldenL and Ceneral Manager wlLh Lhe
approval of Lhe 8oard ln accordance wlLh Lhe exlsLlng Clvll Servlce rules and regulaLlons
SLC1ICN 4S owers and uuLles of Lhe resldenL and Ceneral Manager 1he resldenL and Ceneral
Manager of Lhe CSlS shall among oLhers execuLe and admlnlsLer Lhe pollcles and resoluLlons approved
by Lhe board and dlrecL and supervlse Lhe admlnlsLraLlon and operaLlons of Lhe CSlS 1he resldenL and
Ceneral Manager sub[ecL Lo Lhe approval of Lhe 8oard shall appolnL Lhe personnel of Lhe CSlS remove
suspend or oLherwlse dlsclpllne Lhem for cause ln accordance wlLh exlsLlng Clvll Servlce rules and
regulaLlons and prescrlbe Lhelr duLles and quallflcaLlons Lo Lhe end LhaL only compeLenL persons may be
employed
SLC1ICN 46 AudlLor (a) 1he Chalrman of Lhe Commlsslon on AudlL shall be Lhe ex offlclo audlLor of
Lhe CSlS lor Lhls purpose he may appolnL a represenLaLlve who shall be Lhe AudlLor of Lhe CSlS and
Lhe necessary personnel Lo asslsL sald represenLaLlve ln Lhe performance of hls duLles
(b) 1he Chalrman of Lhe Commlsslon on AudlL or hls auLhorlzed represenLaLlve shall submlL Lo Lhe 8oard
soon afLer Lhe close of each calendar year an audlLed sLaLemenL showlng Lhe flnanclal condlLlon and
progress of Lhe CSlS for Lhe calendar year [usL ended
SLC1ICN 47 Legal Counsel 1he CovernmenL CorporaLe Counsel shall be Lhe legal advlser and
consulLanL of Lhe CSlS buL Lhe CSlS may asslgn Lo Lhe Cfflce of Lhe CovernmenL CorporaLe Counsel
(CCCC) cases for legal acLlon or Lrlal lssues for legal oplnlons preparaLlon and revlew of
conLracLs/agreemenLs and oLhers as Lhe CSlS may declde or deLermlne from Llme Lo Llme rovlded
however 1haL Lhe presenL legal servlces group ln Lhe CSlS shall serve as lLs lnhouse legal counsel
1he CSlS may sub[ecL Lo approval by Lhe proper courL depuLlze any personnel of Lhe legal servlce group
Lo acL as speclal sherlff ln Lhe enforcemenL of wrlLs and processes lssued by Lhe courL quasl[udlclal
agencles or admlnlsLraLlve bodles ln cases lnvolvlng Lhe CSlS
SLC1ICN 48 owers of Lhe lnsurance Commlsslon 1he lnsurance Commlssloner or hls auLhorlzed
represenLaLlves shall make an examlnaLlon of Lhe flnanclal condlLlon and meLhods of LransacLlng
buslness of Lhe CSlS aL leasL once every Lhree (3) years and Lhe reporL of sald examlnaLlon shall be
submlLLed Lo Lhe 8oard of 1rusLees and coples Lhereof be furnlshed Lhe Cfflce of Lhe resldenL of Lhe
hlllpplnes and Lhe Lwo Pouses of Lhe Congress of Lhe hlllpplnes wlLhln flve (3) days afLer Lhe close of
examlnaLlon rovlded however 1haL for each examlnaLlon Lhe CSlS shall pay Lhe offlce of Lhe
lnsurance Commlssloner an amounL equal Lo Lhe acLual expenses lncurred by Lhe sald offlce ln Lhe
conducL of Lhe examlnaLlon lncludlng Lhe salarles of Lhe examlners and of Lhe acLuary of such
examlnaLlon for Lhe acLual Llme spenL
P CLnL8AL 8CvlSlCnS
SLC1ICN 49 ulspensaLlon of Soclal lnsurance 8eneflLs (a) 1he CSlS shall pay Lhe reLlremenL beneflLs
Lo Lhe employee on hls lasL day of servlce ln Lhe governmenL rovlded 1haL all requlremenLs are
submlLLed Lo Lhe CSlS wlLhln a reasonable perlod prlor Lo Lhe effecLlve daLe of Lhe reLlremenL
(b) 1he CSlS shall dlsconLlnue Lhe processlng and ad[udlcaLlon of reLlremenL clalms under 8A no 1616
excepL refund of reLlremenL premlum and 8A no 910 lnsLead all agencles concerned shall process
and pay Lhe graLulLles of Lhelr employees 1he 8oard shall adopL Lhe proper rules and procedures for Lhe
lmplemenLaLlon of Lhls provlslon
SLC1ICN S0 uevelopmenL and dlsposlLlon of Acqulred AsseLs 1he CSlS shall have Lhe rlghL Lo
develop and dlspose of lLs acqulred asseLs obLalned ln Lhe ordlnary course of lLs buslness 1o add value
Lo lmprove proflLablllLy on and/or enhance Lhe markeLablllLy of an acqulred asseL Lhe CSlS may furLher
develop/renovaLe Lhe same elLher wlLh lLs own caplLal or Lhrough a [olnL venLure arrangemenL wlLh
prlvaLe companles or lndlvlduals
1he CSlS may sell lLs acqulred asseLs ln accordance wlLh exlsLlng Commlsslon on AudlL (CCA) rules and
regulaLlons for an amounL noL lower Lhan Lhe currenL markeL value of Lhe properLy lor Lhls purpose
Lhe CSlS shall conducL an annual appralsal of lLs properLy or acqulred asseLs Lo deLermlne lLs currenL
markeL value All noLlces of sale shall be publlshed ln newspapers of general clrculaLlon
no ln[uncLlon or resLralnlng order lssued by any courL commlsslon Lrlbunal or offlce shall bar lmpede
or delay Lhe sale and dlsposlLlon by Lhe CSlS of lLs acqulred asseLs excepL on quesLlons of ownershlp and
naLlonal or publlc lnLeresL
SLC1ICN S1 CovernmenL AsslsLance Lo Lhe CSlS 1he CSlS may call upon any employer for such
asslsLance as may be necessary ln Lhe dlscharge of lLs duLles and funcLlons
L LnAL 8CvlSlCnS
SLC1ICN S2 enalLy (a) Any person found Lo have parLlclpaLed dlrecLly or lndlrecLly ln Lhe
commlsslon of fraud colluslon falslflcaLlon or mlsrepresenLaLlon ln any LransacLlon wlLh Lhe CSlS
wheLher for hlm or for some oLher persons shall suffer Lhe penalLles provlded for ln ArLlcle 172 of Lhe
8evlsed enal Code
(b) Whoever shall obLaln or recelve any money or check lnvoklng any provlslon of Lhls AcL or any
agreemenL Lhereunder wlLhouL belng enLlLled LhereLo wlLh Lhe lnLenL Lo defraud any member any
employer Lhe CSlS or any Lhlrd parLy shall be punlshed by a flne of noL less Lhan llve Lhousand pesos
(300000) nor more Lhan 1wenLy Lhousand pesos (2000000) or by lmprlsonmenL of noL less Lhan slx
(6) years and one (1) day Lo Lwelve (12) years or boLh aL Lhe dlscreLlon of Lhe courL
(c) Whoever falls or refuses Lo comply wlLh Lhe provlslons of Lhls AcL or wlLh Lhe rules and regulaLlons
adopLed by Lhe CSlS shall be punlshed by a flne of noL less Lhan llve Lhousand pesos (300000) nor
more Lhan 1wenLy Lhousand pesos (2000000) or by lmprlsonmenL of noL less Lhan slx (6) years and
one (1) day Lo Lwelve (12) years or boLh aL Lhe dlscreLlon of Lhe courL
(d) 1he Lreasurer flnance offlcer cashler dlsburslng offlcer budgeL offlcer or oLher offlclal or employee
who falls Lo lnclude ln Lhe annual budgeL Lhe amounL correspondlng Lo Lhe employer and employee
conLrlbuLlons or who falls or refuses or delays by more Lhan LhlrLy (30) days from Lhe Llme such amounL
becomes due and demandable or Lo deducL Lhe monLhly conLrlbuLlons of Lhe employee shall upon
convlcLlon by flnal [udgmenL suffer Lhe penalLles of lmprlsonmenL from slx (6) monLhs and one (1) day
Lo slx (6) years and a flne of noL less Lhan 1hree Lhousand pesos (300000) buL noL more Lhan Slx
Lhousand pesos (600000) and ln addlLlon shall suffer absoluLe perpeLual dlsquallflcaLlon from holdlng
publlc offlce and from pracLlclng any professlon or calllng llcensed by Lhe governmenL
(e) Any employee or member who recelves or keeps fund or properLy belonglng payable or dellverable
Lo Lhe CSlS and approprlaLes Lhe same or Lakes or mlsapproprlaLes or uses Lhe same Lo any purpose
oLher Lhan LhaL auLhorlzed by Lhls AcL or permlLs anoLher person Lo Lake mlsapproprlaLe or use sald
fund or properLy by expressly consenLlng LhereLo or Lhrough abandonmenL or negllgence or ls
oLherwlse gullLy of Lhe mlsapproprlaLlon of sald fund or properLy ln whole or ln parL shall suffer Lhe
penalLles provlded ln ArLlcle 217 of Lhe 8evlsed enal Code and ln addlLlon shall suffer absoluLe
perpeLual dlsquallflcaLlon from holdlng publlc offlce and from pracLlclng any professlon or calllng
llcensed by Lhe governmenL
(f) Any employee who afLer deducLlng Lhe monLhly conLrlbuLlon or loan amorLlzaLlon from a members
compensaLlon falls Lo remlL Lhe same Lo Lhe CSlS wlLhln LhlrLy (30) days from Lhe daLe Lhey should have
been remlLLed under SecLlon 6(a) shall be presumed Lo have mlsapproprlaLed such conLrlbuLlon or loan
amorLlzaLlon and shall suffer Lhe penalLles provlded ln ArLlcle 313 of Lhe 8evlsed enal Code and ln
addlLlon shall suffer absoluLe perpeLual dlsquallflcaLlon from holdlng publlc offlce and from pracLlclng
any professlon or calllng llcensed by Lhe governmenL
(g) 1he heads of Lhe offlces of Lhe naLlonal governmenL lLs pollLlcal subdlvlslons branches agencles and
lnsLrumenLallLles lncludlng governmenLowned or conLrolled corporaLlons and governmenL flnanclal
lnsLlLuLlons and Lhe personnel of such offlces who are lnvolved ln Lhe collecLlon of premlum
conLrlbuLlons loan amorLlzaLlon and oLher accounLs due Lhe CSlS who shall fall refuse or delay Lhe
paymenL Lurnover remlLLance or dellvery of such accounLs Lo Lhe CSlS wlLhln LhlrLy (30) days from Lhe
Llme LhaL Lhe same shall have been due and demandable shall upon convlcLlon by flnal [udgmenL suffer
Lhe penalLles of lmprlsonmenL of noL less Lhan one (1) year nor more Lhan flve (3) years and a flne of noL
less Lhan 1en Lhousand pesos (1000000) nor more Lhan 1wenLy Lhousand pesos (2000000) and ln
addlLlon shall suffer absoluLe perpeLual dlsquallflcaLlon from holdlng publlc offlce and from pracLlclng
any professlon or calllng llcensed by Lhe governmenL
(h) 1he offlcers and/or personnel referred Lo ln paragraph (g) of Lhls secLlon shall be llable noL only
crlmlnally buL also clvllly Lo Lhe CSlS or Lo Lhe employee or member concerned ln Lhe form of damages
lncludlng surcharges and lnLeresLs
(l) lor Lhe charges or complalnLs referred Lo ln paragraph (g) of Lhls SecLlon Lhe llablllLles Lhereln seL
forLh shall be consLrued as walver of Lhe SLaLe of lLs lmmunlLy from sulL hence Lhe abovemenLloned
offlclals and/or personnel may noL lnvoke Lhe defense of nonsuablllLy of Lhe SLaLe
([) lallure of Lhe Members of Lhe CSlS 8oard lncludlng Lhe chalrman and Lhe vlcechalrman Lo comply
wlLh Lhe provlslons of paragraph (w) of SecLlon 41 hereof shall sub[ecL Lhem Lo lmprlsonmenL of noL
less Lhan slx (6) monLhs nor more Lhan one (1) year or a flne of noL less Lhan llve Lhousand pesos
(300000) nor more Lhan 1en Lhousand pesos (1000000) wlLhouL pre[udlce Lo any clvll or
admlnlsLraLlve llablllLy whlch may also arlse Lherefrom
Crlmlnal acLlons arlslng from vlolaLlons of Lhe provlslons of Lhls AcL may be commenced by Lhe CSlS or
by Lhe aggrleved member elLher under Lhls AcL or ln approprlaLe cases under Lhe 8evlsed enal Code
SLC1ICN S3 lmplemenLlng 8ules and 8egulaLlons 1he lmplemenLlng rules and regulaLlons Lo carry
ouL Lhe provlslons of Lhls AcL shall be adopLed and promulgaLed by Lhe CSlS noL laLer Lhan nlneLy (90)
days afLer Lhe approval of Lhls AcL
SLC1ICN S4 nonlmpalrmenL of 8eneflLs owers !urlsdlcLlon 8lghLs rlvlleges luncLlons and
AcLlvlLles noLhlng ln Lhls AcL shall be consLrued Lo repeal amend or llmlL any provlslon of exlsLlng
laws resldenLlal uecrees and LeLLers of lnsLrucLlons noL oLherwlse speclflcally lnconslsLenL wlLh Lhe
provlslons of Lhls AcL
SLC1ICN SS Lxcluslveness of 8eneflLs Whenever oLher laws provlde slmllar beneflLs for Lhe same
conLlngencles covered by Lhls AcL Lhe member who quallfles Lo Lhe beneflLs shall have Lhe opLlon Lo
choose whlch beneflLs wlll be pald Lo hlm Powever lf Lhe beneflLs provlded by Lhe law chosen are less
Lhan Lhe beneflLs provlded under Lhls AcL Lhe CSlS shall pay only Lhe dlfference
SLC1ICN S6 ApproprlaLlons 1he amounL necessary Lo carry ouL Lhe provlslons of Lhls AcL shall be
lncluded ln Lhe respecLlve budgeLs of Lhe agencles ln Lhe naLlonal governmenL obllgaLlon program of Lhe
year followlng lLs enacLmenL lnLo law and LhereafLer
SLC1lCn 2 SeparablllLy Clause Should any provlslon of Lhls AcL or any parL Lhereof be declared
lnvalld Lhe oLher provlslons so far as Lhey are separable from Lhe lnvalld ones shall remaln ln force and
effecL
SLC1lCn 3 8epeallng Clause All laws and any oLher law or parLs of law speclflcally lnconslsLenL
herewlLh are hereby repealed or modlfled accordlngly rovlded 1haL Lhe rlghLs under exlsLlng laws
rules and regulaLlons vesLed upon or acqulred by an employee who ls already ln Lhe servlce as of Lhe
effecLlvlLy of Lhls AcL shall remaln ln force and effecL rovlded furLher 1haL subsequenL Lo Lhe
effecLlvlLy of Lhls AcL a new employee or an employee who has prevlously reLlred or separaLed and ls
reemployed ln Lhe servlce shall be covered by Lhe provlslons of Lhls AcL
SLC1lCn 4 LffecLlvlLy 1hls AcL shall Lake effecL flfLeen (13) days afLer lLs publlcaLlon ln Lhe Cfflclal
CazeLLe or ln aL leasL Lwo (2) newspapers of general clrculaLlon