Most members of the Government Service Insurance System will receive a total of P818 million in cash dividends by Christmas Day.
The GSIS said in a statement that its board of directors approved the grant of cash dividends because the agency posted a surplus in revenues from its Social Insurance Fund.
More than 1.37 million members are entitled to the payout, including holders of the compulsory life insurance policy, life endowment policy (LEP) and enhanced life policy (ELP).
To be entitled to the dividend, compulsory life insurance policyholders—including those working in the judiciary and constitutional offices—must have active status and their policies have been in force for at least one year as of Dec. 31, 2010.
The same cut off period is in effect for active GSIS members that hold LEPs and ELPs.
“Active members whose LEP matured after Dec. 31, 2010, and [who renewed and converted their policy into an ELP] are likewise entitled to cash dividends based on their LEP,” the GSIS said.
“In addition, active members who [chose] to convert their LEP into ELP after Dec. 31, 2010, are qualified to receive the cash dividends,” it added.
However, GSIS members who have defaulted in their consolidated loans and salary loans for at least 12 months or have unpaid premiums for at least 12 months are not entitled to the dividend.
The same goes for those whose policies lapsed or matured in 2010 and those whose policies were ended because of death, retirement and separation from the agency they were employed in as well as those working for agencies that the GSIS suspended as of end-2010.
“The dividends will be paid through the members’ GSIS eCard [account] on or before Christmas day,” the pension fund said.
The announcement of the cash dividend follows that of the grant of Christmas cash gifts totaling P1.62 billion.
GSIS president and general manager Robert G. Vergara said earlier this week that some 200,000 GSIS pensioners would receive up to P12,600 each.
Vergara said the cash gift was to be credited to the pensioners’ accounts by December 15.