TRENDS (22 January 2010)

GSIS disburses P53.33 billion in loan proceeds in 2009

The Government Service Insurance System (GSIS) released around P53.33-billion in loan proceeds in 2009, a 30.16 percent improvement from the P40.97-billion it disbursed in 2008.

The GSIS said 877,502 of its members benefited from the various loan programs of the pension fund. These loan windows include the Consolidated Loan or Conso-loan, the Policy loan the Pension Loan, Cash Advance, and the Emergency loan, which is extended to members who have become victims to calamities.

The GSIS managed to disburse another record amount in loans despite the difficulties it had with its systems, particularly the system slowdowns and shutdowns due to the reportedly defective database management software of IBM.

Records show that in 2009, P4.83 billion in emergency loans was disbursed by the GSIS, P4.47 billion of which went to the 223,496 victims of tropical storms Ondoy and Pepeng.

The amount of emergency loan released last year by the pension fund increased almost three-fold from P 1.6 billion in 2008.

Meanwhile, a total of 56,270 GSIS members availed of the one-time Cash Advance Plus loan program through the GSIS Wireless Automated Processing System (G-W@PS) kiosk. The GSIS loaned P562.7 million in Cash Advance last year.

In addition, the GSIS also released in 2009 around P1.21 billion in pension loan, which benefited 26,838 pensioners, P 2.75 billion in Policy loan (regular and optional) which went to 168,324 members, and P43.98 billion ConsoLoan proceeds, which was availed by 384,728 members.

Today, GSIS members can apply for these loan programs through any of the GSIS Wireless Automated Processing System (G-W@PS) kiosks deployed nationwide. These kiosks are deployed in all GSIS servicing offices and selected government agencies.

Members can also apply for these loan programs via over-the-counter at any GSIS servicing office.

The GSIS extended to its members and pensioners P40.97-billion in loan proceeds in 2008. Of the total, P34.70 billion were Consolidated Loan proceeds, P1.47 billion were policy loans, P1.6 billion were emergency loans, P1.37 million were pension loans and P1.28 billion were cash advance.


Changes in GSIS’s hospitalization program looms

The Government Service Insurance System (GSIS) has decided to part ways with University of Santo Tomas Hospital as its partner in the pension fund’s acclaimed Corporate Social Responsibility program dubbed as GSIS Hospitalization Support Program (GHSP), after the España, Manila-based hospital did not renew its GHSP memorandum of agreement with the GSIS.

This developed as the pension fund said it is now exploring the possibility of accrediting new hospitals in Metro Manila.

The MOA between the GSIS and UST Hospital expired on May 21, 2009 and the medical institution has ceased giving discounts under the program since last July 10, 2009.

On the other hand, the GSIS is still in the midst of negotiations with Capitol Medical Center in Quezon Avenue, Quezon City even as the hospital has stopped giving discounts for their services, save for the 50-percent discount rate given to patients who use the GSIS’s medical equipment, since June 30, 2009 pending a renewal of its MOA.

Other partner-hospitals of the GSIS under this program—including Lorma Medical Center in San Fernando, La Union; Perpetual Succour Hospital in Lahug, Cebu City; Angeles University Foundation Medical Center in Angeles City, Pampanga; Davao Medical School Foundation Hospital in Bajada, Davao City; and West Visayas State University Medical Center in Jaro District, Iloilo City—have either extended their respective GHSP MOAs or are still operating under their existing agreements.

Under the GHSP, GSIS members, their dependents and old-age pensioners can avail of discounts in medical services from partner-hospitals, including outpatient services and emergency cases, medicines, as well as discounts in professional fees of select physicians.

The program works like an exchange deal between the GSIS and the partner-hospitals wherein the pension fund buys medical equipment and lends these to the select hospitals. In exchange, the affiliate hospitals provide discounts to GSIS members and pensioners. The medical equipment remain the property of the GSIS.

Patients can avail of a 50-percent discount if they use the medical equipment lent by the GSIS to the hospital; 40-percent discount if they undergo special diagnostic procedures; 35 percent for common procedures; 30 percent on room rates; and 10 percent on professional fees including consultation fees. Dependents of members get a flat discount rate of 10 percent.

If the patient has an eCard, he may just present this card to the GSIS coordinator in the partner-hospital upon admission to avail of the discounts.

The GHSP can also be used in combination with the Philhealth card and health maintenance organization (HMO) card of the patient. In availing of the hospitalization discount, Philhealth will be applied first, followed by the HMO and finally the GHSP.


GSIS reminds agencies to submit list of early retirees The Government Service Insurance System (GSIS) is reminding agencies to submit the names of employees who will avail of early retirement 60 days prior to their preferred retirement date to ensure the judicious settlement of their retirement benefits.

The pension fund said the early notification mechanism is also meant to facilitate the reconciliation of the members’ accounts.

GSIS President and General Manager Winston F. Garcia said the full compliance of all agencies concerned is crucial in ensuring the success of the program, especially in meeting the GSIS’s aforementioned objectives.

“The success of this activity would require the cooperation and full support of all agencies by providing us the names of their employees below 65 years old who intend to avail of early retirement,” he said.

On the other hand, names of employees who will retire at age 65, or the compulsory age of retirement, need not be submitted since the reconciliation of their accounts shall be done 60 days prior their 65th birthday.

Garcia added that the GSIS is prioritizing the reconciliation of premium and loan payments of prospective retirees to facilitate the timely and accurate computation of their benefits.

For further details on this program, the pension fund has advised the Authorized Agency Officers of different agencies to coordinate with the Membership Group of the GSIS.

The GSIS has four retirement modes, namely: Republic Act 660 that took effect on June 16, 1951; R.A. 1616 which took effect on May 31, 1957; Presidential Decree 1146 which took effect on June 1, 1977; and R.A. 8291 which took effect on June 24, 1997.

Under R.A. 660, the so-called Magic 87 is used, wherein the age of the member and the years in service he has rendered will be added. If the sum is 87, he will be qualified to retire under R.A. 660 with pension. This mode is applicable only to employees who entered government service before June 1, 1977.

For R.A. 1616, the retiree must have rendered at least 20 years of service regardless of age and employment status. His last three years of service prior to retirement must also be continuous, except in cases of death, disability, abolition or phase out of position due to reorganization.

On the other hand, P.D. 1146 involves the pension benefit from the amended R.A. 660. Under this mode, a member can retire if he is 60 years old, a permanent employee, and has rendered at least 15 years in service.

Meanwhile, under R.A. 8291, there are two options: the 5-year lump sum and the 18-month cash payment and pension. The requirements under this mode include a minimum years in service of 15 years and the retiree must be at least 60 years old.


New GSIS office to rise in Koronadal City

The Government Service Insurance System (GSIS) will finally have a regional office in Koronadal City, the capital of South Cotabato, to provide service to its members and pensioners in Region XII.

This after the Koronadal City Government Office (CGO) donated a 3,140-square meter lot located in the Prime Regional Center of Region XII to the GSIS for the pension fund to construct its regional office.

The property is strategically located in front of the main highway traversing the General Santos- Koronadal route.

“I am proud to say that the GSIS is now in Koronadal,” said Koronadal City Mayor Fernando Q. Miguel during the Memorandum of Agreement and Deed of Donation signing ceremony held at the GSIS Head Office in Manila. “With the coming of the GSIS in our city, we expect the influx of people which will eventually add to the economic activities of Koronadal.”

He added that Koronadal City has been designated as the Regional Center and Seat of SOCCKSARGEN based on Executive Order Number 304. Through this EO, government operations and services in the area will be improved.

For his part, GSIS President and General Manager Winston F. Garcia thanked Koronadal City for the lot donation.

“We thank you for your generosity, not only in welcoming us in the city, but more importantly in giving us a free lot. We hope that through this building, we can better serve our constituents in your area,” Garcia said.

The GSIS chief added that the donation is very timely since the GSIS has been looking for a lot for its regional office currently based in General Santos City. Of the 14 regional offices of the GSIS, only its office in GenSan is leasing office space.

“The building of the GSIS office in Koronadal City is an agreement that is bound to happen. When I first reported as the PGM in 2001, we were already looking for a lot in General Santos City but we encountered problems in the transactions so we did not push through,” Garcia recalled.

Last year, the project was revived. The GSIS management committee was appraising real estate properties in the area when the letter of intent to donate a parcel of land from the Koronadal CGO came.

The GSIS will transfer its regional office from General Santos to Koronadal City once the building is finished, tentatively set in May 2010.

Currently, the GenSan Regional Office, which has under its jurisdiction the Cotabato Branch Office, covers a total of 45,046 active members, 3,401 old-age pensioners, 2,520 survivorship pensioners, and 464 government offices.

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