Updates on GSIS Policies and Reforms October 23, 2014 Atty. JASON C. TENG.

Updates onGSIS Policies and Reforms

October 23, 2014

Atty. JASON C. TENG

“Responsive service by providing adequate benefits to members and pensioners”

By instituting policy reforms that focus on the needs of members and pensioners

By reviewing and revising procedures to make it more convenient for members to apply for and claim their benefits

By focusing on its core function as a social insurance institution

By taking measures to ensure the financial sustainability of the Fund

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GSIS continues to institutepolicy reforms that focus on

the needs of its membersand pensioners

Restoration of Survivorship Benefits

• Surviving spouses now receive pension even if gainfully employed or have other sources of income or pension.

MEMBER-FOCUSED PROGRAMS AND POLICIES

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Pensioners no longer required to undergo ARAS


• Pensioners no longer required to visit GSIS for annual status renewal,except for:

• Pensioners living abroad• Pensioners living in the ARMM

• Partnership with NSO

• Pilot program with Philpost

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• Empowers retirees on how to settle outstanding obligations, in whole or in part

• No more forced deduction of housing loan from retirement benefits

Choice of Loan Amortization for Pensioners (CLASP) replaced Claims and Loans

Interdependency Policy (CLIP)


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Option to Change Retirement Date, Retirement Mode and/or Retirement Benefit Option

• Prospective Retirees can change the following even after submission of retirement application:

• Date of retirement (as long as below 65 years old)• Mode of retirement (RA 8291, RA 1616, RA 660,

etc.)• Retirement benefit option (5 years lump sum or

18x BMP plus immediate pension)

• Conditions:1. Retirement proceeds have not yet been paid or

eCredited by GSIS2. Member submits a written request to GSIS3. In case of change in retirement date, member has

continued his/her government service (no gaps)


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Adjustment of Minimum Monthly Pension

• Minimum monthly pension of PhP5,000for old-age GSIS retirees

• Effective January 2013


Revived payment of proportionate pension

• Retirees’ pension now computed proportionately from retirement date unlike before when pension was paid a month after retirement date

• Retroactive from September 2009• Disbursed more than PhP286M to over 45,000

pensioners8

Enhancement of Loan Terms to Make Them More Responsive to Needs of Members and Pensioners

1. Enhanced Emergency Loan

• Reduced interest Rate to 6%• No more service fee• Extended grace period (3 months before first amortization)• Special EL terms for members in areas repeatedly devastated by

calamities• Increase of credit limit for those with outstanding EL• Waiver of 12 months’ payment of amortization to renew

2. Pension Loan – Loan Redemption Insurance (LRI)

3. Special Loan Packages (one-time)• Moratorium on loan payments• Home Emergency Loan Program (HELP)


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• Condones all unpaid penalties, surcharges

• Grants extended payment terms

• Uses more systematic and orderly manner of accommodating interested borrowers (by appointment)

Condonation and Restructuring Programfor Delinquent Housing Loan Borrowers


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• Allows low-income members to send children to college

• Exclusive to children of GSIS members

• Php20,000/semester and Php2,000 monthly

stipend


GSIS Scholarship Program

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Enhanced the Optional Non-Life Insurance (ONLI) Program to benefit members

FIRE INSURANCE• Covers residential and commercial properties of GSIS members • Premium rates vary, depending on the location of the property

MOTOR VEHICLE INSURANCE• Comprehensive Insurance coverage• The lowest & most affordable motor vehicle insurance in the market• Available to GSIS members and relatives within the first degree of

affinity

PERSONAL ACCIDENT INSURANCE• 24 hour Worldwide Accident Insurance• Cover includes travelling abroad as a passenger in a commercial

airline


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GSIS is reviewing and revising procedures

to make it more convenient for members to apply for and

claim their benefits

• Streamlining of documentary requirements• Lesser number of documents to be submitted• Submission of Certificate of Pendency/Non-

Pendency (instead of separate clearances from the CSC, Ombudsman, and the Office of the President)

• Prior application for funeral benefit considered as constructive notice of application for survivorship claim

PROGRAMS FOR CONVENIENCE OF MEMBERS

Simplification of Procedures

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• Resumed engagement with Paz Memorial to render services to 1,800

fully-paid and active plan holders.

• Offered Prudential Life Plan holders an exit mechanism, to recover up to 150% of contract price.

Exit Mechanism for Memorial Plan Holders to recover investments


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GSIS expands service reach with LANDBANK’s 1,000 ATMs nationwide

Launch of GSIS-LBP partnershipin Batangas, February 2011

(updated as of 1 August 2014)


Renewed Partnership with Landbank

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Use of eCard in paying claims

• Claim proceeds now electronically credited via eCards instead of checks

• Ensures timely release of benefits

• Makes processing twice as fast than traditional check payment


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GSIS is focusing onits core function as a social

insurance institution

• Php5-B for home lending to GSIS members through Pag-IBIG Fund. Loan facility fully utilized by more than 8,500 government employees

• National Museum now manages more than 300 artworks of GSIS, including the renowned ‘Parisian Life’

Partnerships with Pag-IBIG Fund and National Museum

FOCUS ON CORE FUNCTION AS A SOCIAL INSURANCE INSTITUTION

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GSIS is continually taking measures to ensure the financial sustainability

of the Fund

Approval and periodic review of Investment Policy Guidelines

Provides parameters for GSIS investments Sets caps/limits on each type of

investment

Responsible Management of Investments

MEASURES TO ENSURE FINANCIAL SUSTAINABILITY

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• Policy on cash sale of real properties classified as big and medium ticket accounts

• Public bidding• Publication requirements• External appraisals in order to get best value

• Policy on Negotiated Sale

Responsible Management of Real Property Assets


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Basis for Granting Emergency Loans (EL/PEL)

• Declaration of a State of Calamity by the National Disaster Risk Reduction and Management Council (NDRRMC)

• Declaration of a State of Calamity through a resolution issued by the Sangguniang Panlalawigan or Panglungsod; or through Certification issued by the Provincial Governor or Administrator


Eligibility Requirements for Emergency Loan

• Member-Applicant must be a bona fide employee of an agency located in the declared calamity area or is a resident of the declared calamity area

• Member must be in active service and not on leave of absence without pay

• Member must have no arrearages in payment of mandatory social insurance contributions and no loans declared in default

• Agency of the Member-Applicant must not be on suspended status


Terms of Emergency Loan

• Amount – P20,000 for those with no EL account and P40,000 for those with existing EL account

• Interest rate – 6% per annum computed in advance

• Payment period – 3 years with 3 month grace period prior to 1st monthly installment

• Deductions• 1.2% Loan Redemption Insurance• Balance of existing EL account• No Service Fees


Eligibility Requirements for Pensioner’s EL

• Member-Applicant must be a bona fide employee of an agency located in the declared calamity area or is a resident of the declared calamity area

• Member must be in active service and not on leave of absence without pay

• Member must have no arrearages in payment of mandatory social insurance contributions and no loans declared in default

• Agency of the Member-Applicant must not be on suspended status


Terms of Pensioner’s Emergency Loan

• Amount – P20,000

• Interest rate – 6% per annum computed in advance

• Payment period – 3 years with 3 month grace period prior to 1st monthly installment

• Deductions• Loan Redemption Insurance (Rate

Depends on Age)• No Service Fees


Other Programs Offered by GSIS in the Past

• Moratorium on Loan Payment

• Home Emergency Loan Program

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Thank you!

Updates on GSIS Policies and Reforms October 23, 2014 Atty. JASON C. TENG.

Documents

Transcript of Updates on GSIS Policies and Reforms October 23, 2014 Atty. JASON C. TENG.