Preamble
WHEREAS, the Government Service Insurance System (GSIS) was established lo guarantee the well-being of all government employees through the effective and systematic administration of the laws granting social security and insurance benefits to its members; WHEREAS, Presidential Decree No. 1146 expanded and improved the social security and insurance programs being implemented by the GSIS; WHEREAS, there have been conflicting interpretations of certain provisions of Presidential Decree No. 1146, particularly as to: whether or not elective public officials are covered by the GSIS for the duration of their term of office: whether or not a public officer or employee who is separated for cause or considered resigned automatically forfeits his retirement benefits; and whether or not public officers and employees in the government service at the time Presidential Decree No. 1146 took effect have the option of retiring either under the said Decree or Commonwealth Act No. 186, as amended; WHEREAS, conflicting claims for benefits have invariably been filed under the different laws administered by the GSIS which have oftentimes resulted in unnecessary litigation, delay and inconvenience on the part of the GSIS and the rightful claimants; WHEREAS, the continued tax exemption of the GSIS is vita] to its actuarial solvency: WHEREAS, the GSIS Board of Trustees should be vested with powers and authority necessary or proper to ensure a fair and profitable return of the investments of the funds administered by the GSIS, and, for this purpose, the GSIS Board of Trustees should be given the full sole responsibility of controlling and monitoring insurant investments operations, and fixing and determining the terms and conditions of financial accommodations to its members, including the power to compromise or release any claim or settled liability to the GSIS; WHEREAS, it has thus become necessary to amend Presidential Decree No. 1146 to clarify some of its provisions to make it more responsive to the needs of the members of the GSIS and to assure the actuarial solvency of the Fund administered by the GSIS during these times of grave economic crisis affecting the country; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following amendments to Presidential Decree No. 1146: