MANILA, Philippines—The Government Service Insurance System (GSIS) is in talks with the Pag-Ibig Fund on how to accommodate GSIS members’ housing loans needs after the latter suspended its own shelter financing program
Robert G. Vergara, GSIS president and general manager, said the suspension of the housing loan program (effective April 28) is aimed at streamlining the government pension fund operations.
“We want to synchronize our efforts in the implementation of the government’s housing loan program through closer partnership with the [agencies] whose core functions focus on housing,” Vergara said.
“With this new measure, we also avoid duplication with their functions,” he added. “GSIS is really not a housing institution, it is first and foremost a pension fund.”
Vergara said GSIS representatives will soon meet with officials of Pag-Ibig to “discuss how we can possibly use their lending structure for the housing needs of GSIS members.”
He said existing housing loans as well as applications submitted before April 28 will continue to be processed and serviced.
Vergara said the suspension of GSIS housing loan programs will enable the pension fund to focus on other types of loans it can offer to its members and pensioners.
Vergara assured its more than 1.7 million members and pensioners that the System is in a healthy financial position and “withdrawal from direct home lending will not adversely affect this standing.”
Earlier this week, Vergara said the GSIS is giving out P54.92 million in cash dividends for some 109,000 members after a “massive” project that reconciled and updated the pension fund’s records.
He said the cash payout was credited to the eCard accounts of 108,757 members who did not receive dividends from their compulsory and optional life policies in 2009.
Of the total, P29.65 million in cash dividends were released to 79,090 compulsory life insurance policyholders and P25.26 million were released to 29,667 optional life insurance policyholders.
The GSIS declares cash dividends based on the earnings from its life insurance fund in the preceding year derived from this fund’s investment income and the savings.