Increase in the Average Monthly Compensation Limit and the Funeral Benefit and the Revised Schedule of Contributions

January 12, 2000 BLGF MEMORANDUM CIRCULAR NO. 002-00 TO : All Bureau Officials and Personnel; Regional Directors for Local Government Finance; District Treasurers and Assessors of Metropolitan Manila; Provincial, City and Municipal Treasurers; Provincial, City and Municipal Treasurers; Provincial, City and Municipal Assessors; and Others Concerned SUBJECT : Increase in the Average Monthly Compensation Limit and the Funeral Benefit and the Revised Schedule of Contributions For the information and guidance of all concerned, attached is a copy of Memorandum Circular No. 3-99, dated December 1, 1999, of the Government Service Insurance System (GSIS) increasing the Average Monthly Compensation (AMC) limit, funeral benefit and the monthly contributions under RA 8291, otherwise known as the GSIS Act of 1999, effective January 1, 2000. aHTEIA As provided, the average monthly compensation limit of P11,000.00 effective January 1, 1999 is increased to P12,000.00 effective January 1, 2000, computation shown below: MONTHLY COMPENSATION (MC) EMPLOYEE EMPLOYER P12,000.00 & below 9.0% of MC 12% of MC Over P12,000.00 9% of P12,000.00 12% of MC + 2% of (MC-P12,000.00) Likewise, effective January 1, 2000, the funeral benefit of P15,000.00 is also increased to P18,000.00 pursuant to Board Resolution No. 132 dated May 4, 1999. Strict observance and compliance with the provisions of the aforesaid Memorandum Circular No. 3-99 are hereby enjoined. The District Treasurers and Assessors of Metropolitan Manila and all Provincial Treasurers and Assessors are hereby instructed to disseminate the contents of this Circular, including the attachments, to all Municipal Treasurers and Assessors within their respective jurisdictions. SDTIHA (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-In-Charge ATTACHMENT December 1, 1999 GSIS MEMORANDUM CIRCULAR NO. 003-99 TO : All Heads of Departments and Commissions, Presidents of State Universities and Colleges, Chiefs of Bureaus and Offices, Managing Heads of Government-Owned and Controlled Corporations, Accounting, Finance, and Collecting and/or Disbursing Officers Thereof, Auditors, Metro Manila/Provincial Governors, City and Municipal Mayors and Treasurers, All GSIS Members and Others Concerned SUBJECT : Increase in the Average Monthly Compensation (AMC) Limit and the Funeral Benefit and the Revised Schedule of Contributions under R.A. 8291 Effective January 1, 2000 A. INCREASE IN THE AVERAGE MONTHLY COMPENSATION (AMC) LIMIT AND THE REVISED SCHEDULE OF CONTRIBUTIONS UNDER R.A. 8291 EFFECTIVE JANUARY 1, 2000 The GSIS Board of Trustees approved under its Board Resolution No. 272 dated September 7, 1999 the increase in the average-monthly compensation (AMC) limit under R.A. 8291 to P12,000 00 from P11,000.00 effective January 1, 2000. This is in line with the authority vested by R.A. 8291 to the Board of Trustees to set the AMC limit and adjust the rate of premium contribution (specifically under Section 2 and Section 41, paragraph e of R.A. 8291). As a result, the maximum pension benefits are increased as follows: 1. the maximum basic monthly pension is increased to P10,800 from P9,900.00 llcd 2. the maximum basic survivorship pension is increased to P5,400.00 from P4,950.00; and 3. the maximum dependent's pension is increased to P1,080.00 from P990.00. Consequently, Rule III, Section 3.1 of the Implementing Rules and Regulations of R.A. 8291, is hereby amended as follows: SECTION 3.1. Amount of Contributions . It shall be mandatory for the covered employee and the employer to pay the monthly contributions specified in the following schedule: (a) For all Employers and Employees, except for the Members of the Judiciary and the Constitutional Commissioners: (i) Effective June 24, 1997 until December 31, 1998: Monthly Compensation Employee's Employer's (MC) Share Share P10,000.00 and 9% of MC 12% of MC below 9% of P10,000.00 Over P10,000.00 +2% of (MC- 12% of MC P10,000.00) (ii) [Starting] FROM JANUARY 1, 1999 TO DECEMBER 31, 1999: Monthly Compensation Employee's Employer's (MC) Share Share P11,000.00 and 9% of MC 12% of MC below 9% of P11,000.00 Over P11,000.00 +2% of (MC- 12% of MC P11,000.00) (iii) STARTING JANUARY 1, 2000: Monthly Compensation Employee's Employer's (MC) Share Share P12,000.00 and 9% of MC 12% of MC below 9% of P12,000.00 Over P12,000.00 +2% of (MC- 12% of MC P12,000.00) (b) For members of the Judiciary and the Constitutional Commissioners, effective June 24, 1997: Monthly Compensation Employee's Employer's (MC) Share Share Regardless of 3% 3% Amount B. INCREASE IN THE FUNERAL BENEFIT Likewise, the GSIS Board of Trustees also approved the increase in the funeral benefit to P18,000.00 from P15,000.00 effective January 1, 2000 under Board Resolution No. 132 dated May 4, 1999. prcd Please be guided accordingly. (SGD.) FEDERICO C. PASCUAL President and General Manager