GSIS to hand out P1.19B in cash benefits

MANILA, Philippines - The Government Service Insurance System (GSIS) will be distributing about P1.19 billion in cash benefits to its compulsory life insurance policyholders, owing to gains from its social insurance fund.

Entitled to receive the cash benefit are active members whose life insurance coverage have been in force for at least one year as of Dec. 31, 2012.

“The payout this year is 28 percent higher than the P930 million released last year,” GSIS president and general manager Robert G. Vergara said.

Members whose policies lapsed, matured, or were terminated in 2012 and who have defaulted in their salary and consolidated loans for at least 12 months and unpaid premiums for at least 12 months as of Dec. 31, 2012 are ineligible to receive their cash benefit, the GSIS pointed out.

Those working in suspended agencies as of end-December last year are likewise unqualified to receive their cash benefit.

The cash benefit will be automatically credited to the accounts of qualified GSIS members through their GSIS eCards or UMID cards from Dec. 17 to 21.

“Our servicing banks requested that the release of cash benefit be staggered within the five-day period to ensure that our members receive them before Christmas day and to avoid further delays,” Vergara said.

GSIS booked a comprehensive income of more than P93 billion last year, up 27.3 percent from P73.2 billion in 2011. The growth was attributed to the pension fund’s heightened effort to collect premium payment as well as the improved performance of its  investments.