The Government Service Insurance System has asked its memorial plan holders to convert their policies into cash as it aims to engage less in its noncore functions.
In a statement, the GSIS said memorial plan holders have until Dec. 31 to convert their policies into cash.
The GSIS decided to extend the deadline by four months to enable more members to surrender their memorial plans.
According to Robert Vergara, president and general manager of GSIS, the government pension believes that it may not be able to sustain its memorial plan business in the future, that is why it hopes to disengage from the trade.
The GSIS also thinks it prudent to focus on its core function, which is to provide pension plans to its members.
“The GSIS is implementing the exit mechanism to protect our memorial plan holders from problems that may arise in the future and to pay for their other expenses,” Vergara said in a statement.
According to the state firm, memorial plan holders may recover anywhere between 100 percent and 150 percent of the contract price of their plans depending on the type.
GSIS members who are qualified to avail themselves of the Enhanced Optional Exit Mechanism (EOEM) are policyholders who have fully paid their accounts, and who have not yet received memorial benefits.
A total of 3,981 plan holders have so far converted their memorial policies into cash.
Plan holders who wish to apply for the EOEM are required to submit a fully accomplished application form; photocopy of the GSIS Memorial Plan Agreement; photocopies of two valid government-issued IDs from the policyholder; and certificate of full payment, if any.
Application forms are available at any GSIS branch office. It may also be downloaded from the GSIS website at www.gsis.gov.ph.
Meantime, the GSIS likewise announced that active members who have not yet availed themselves of the one-time educational loan assistance (EAL) have until Dec. 27 to apply.
All active members, regardless of salary grade, length of service, and status of agency and member accounts, are entitled to apply for the EAL worth P4,000.
Eligible members may file their application for EAL over the counter or through their agency’s liaison officer.
EAL carries an interest rate 6 percent per annum, and is payable in 59 months for P20 a month or P240 qa year.
The GSIS said it has so far released P2.49 billion worth of educational loans since the EAL program started in 2012.