RESOLVED, that by majority vote, to APPROVE the proposed Policy and Procedural Guidelines (PPG), as amended by the Board, in the Processing of Retirement Claims of Re-employed Government Officials/Employees Who Had Previously Received Retirement Benefits.

The highlights of the proposed PPG are as follows:

1. The modified policy shall cover only those members who had previously retired/resigned and re-entered government service before June 24, 1997;

2. The affected member/s shall have thirty (30) days, counted from the date of publication of this policy, within which to refund the applicable retirement benefits received by him from his previous retirements/separation;

3. The gross amount of retirement/separation benefits actually paid by the GSIS to the retiree in his previous retirement/resignation shall be assessed a corresponding simple interest at the rate of two percent (2%) per month;

4. The amount of gratuity benefit under R.A. 1616 paid by the agency shall not be imposed any interest;

5. Off-setting or deduction of the retirement/resignation benefits previously received from accrued retirement/resignation benefits due to subsequent retirement shall not be allowed; and

6. No refund of retirement/resignation benefits received from previous retirement/resignation shall be allowed to an employee/member who re-entered government service on or after June 24, 1997 since he is considered a new entrant and his previous services shall, therefore, no longer be considered in the computation of his service upon subsequent retirement under R.A. 8291.

All existing PPGs, Board Resolutions, Office Orders and other previous issuances by GSIS which are inconsistent herewith are hereby modified, superseded, or repealed accordingly.

Further, Trustee Daniel C. Gutierrez dissented insofar as the PPG denied the refund of retirement/resignation benefits to employee/member who re-entered government service on or after the enactment of Republic Act No. 8291. Trustee Esperanza S. Ocampo abstained on this issue, while Trustee Reynaldo P. Palmiery inhibited himself and left the room. Trustee Jesus I. Santos, who was not present during the voting held on December 21, 2005, was allowed to cast his vote in today ™s meeting. Trustee Santos voted in favor of the approval of the proposed PPG.

This PPG shall take effect after its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

A copy of the PPG^* is hereto attached and made an integral part of this Resolution.

Adopted: 4 Jan. 2006 (Board Meeting No. 1)

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^* Text Available at Office of the National Administrative Register, UP Law Complex, Diliman, Quezon City