GSIS distributes life insurance’s dividends

Published December 27, 2019, 12:00 AM

by manilabulletin_admin

Chino Leyco

State-run Government Service Insurance System (GSIS) has begun the distribution of the cash benefit given to qualified compulsory policy holders of the pension fund’s life insurance program.


In a statement, Rolando Ledesma Macasaet, GSIS chairman and acting president and general manager said they started last December 23 the distribution of the 2018 cash benefit, or dividend, that amounted to P174 million.

“We will automatically credit the cash benefit of our members to their eCard or Unified Multipurpose Identification (UMID) card,” Macasaet said.

Entitled to the 2018 cash benefit are GSIS members whose compulsory life insurance policies have been in force for at least one year as of December 31, 2018. Members whose compulsory policies matured last year will receive a proportionate amount.

Not eligible to receive the cash benefit are members whose compulsory insurance policies lapsed in 2018.

Likewise, holders of compulsory life insurance policies that were terminated due to death, retirement or separation in 2018, as well as members with unpaid salary and consolidated loans and/or premiums for at least 12 months as of December 31, 2018, are not qualified to receive the benefit.

The grant of cash benefit or dividend is mandated under Section 25 of the GSIS Charter or Republic Act 8291 which specifically provides that “An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least one (1) year in accordance with a dividend allocation formula to be determined by the GSIS.”

The amount of cash benefit is dependent on the financial performance of the Social Insurance Fund.

Meanwhile, the pension fund has extended the deadline in applying for GSIS Financial Assistance Loan (GFAL) until July 26 next year for employees of the Department of Education (DepEd).

“More than half of GSIS membership are DepEd personnel. So they are given more time to take advantage of GFAL benefits until July 2020 instead of the earlier announced December 2019 deadline,” Macasaet said.

GFAL is a program that enables GSIS members to consolidate and transfer to GSIS their outstanding loan balance from lending institutions that charge high interests.

GFAL’s low interest and longer payment term yields higher take-home pay for members and protects their future retirement benefit.