Government Service Insurance System (GSIS)
GSIS President and General Manager Robert G. Vergara, said the pension fund will revisit the policies which have been the cause of much ire and clamor among members and pensioners particularly the Premium-Based Policy, the Claims and Loans Interdependency Policy (CLIP), the Automatic Premium Loan (APL) and the grant of survivorship pension.
"The GSIS management, together with the Board of Trustees will undertake to review all policies, particularly those deemed burdensome by our members. We want to restore the social mission of the fund, that is, to provide a basic safety net for government retirees in their old age. Clearly, throughout this process, we need to strike a balance between the needs of our members and the actuarial solvency of the fund,” Mr. Vergara said.
The GSIS chief said the review is also in line with recent resolutions filed in both Houses of Congress, calling for an investigation on the Premium-based policy (PBP), the CLIP, and the APL. These policies have been met with resistance by members and pensioners, on allegations that they are unjust to stakeholders.
The President and General Manager further informed that management is "taking a second look at our organizational structure to complement the policy review to ensure that it promotes a customer-service orientation.”
Upon assumption into office last September, Vergara announced that under his stewardship of the GSIS, he only has one goal as chief of the pension fund would be "to position GSIS as the foremost service-oriented organization in the country—one that is responsive to the needs of our members and pensioners with the requisite financial strength and corporate integrity.”
He, however, appeals for patience at this time as the review is being undertaken in phases to cover the different areas of GSIS’ operations. "I assure our members we are doing everything we can to resolve these matters but this will take some time.”
In 2003, the GSIS implemented the CLIP, the APL and the PBP to restore the actuarial solvency of the GSIS fund.
The CLIP involves the collection of outstanding balances of defaulting loan accounts from the proceeds of a new or renewed loan. The APL requires the automatic deduction of any default in the payment of the life insurance premiums, with interest, from the accumulated cash surrender or termination value of a member’s life policy. And the PBP means that the level of benefits that members get depends on their actual premium contributions to the System.