With drop in GSIS income in 2015, cash benefit down in 2016
As state-run Government Service Insurance System’s profit dropped in 2015, its over one million members will have to divide among themselves a lower total amount of cash benefit for 2016.
In a statement, the GSIS said a total of P185 million would be distributed to members this month, starting Jan. 6.
“The total cash benefit this year is far lower than the P848 million that GSIS released last year due to the decreased net income from P140 billion in 2014 to P47 billion in 2015,” said Nora Malubay-Saludares, GSIS officer in charge and concurrent senior vice president for National Capital Region operations.
Saludares blamed the drop in GSIS’ profit in 2015 to the decline in the stock market that year.
Former GSIS president and general manager Robert G. Vergara had said that the 2014 financial performance was “a tough act to follow,” noting that the bond and stock markets did well that year.
The GSIS said entitled to the cash benefit were members whose compulsory life insurance policies have been in force for at least a year as of Dec. 31, 2015; active members whose policies matured in 2015; as well as those whose employers were suspended as of Dec. 31, 2015.
To recall, the GSIS in 2013 restored the cash benefit and loan privileges to those who work in suspended agencies.
However, the GSIS said the following would be ineligible for the cash benefit: members whose policies lapsed in 2015; and policyholders whose policies were terminated due to death, retirement or separation as of December 2015.
Also, members who have outstanding consolidated loan balances or unpaid premiums for at least 12 months as of Dec. 31, 2015, cannot avail themselves of the cash benefit, the GSIS added.
“GSIS has begun electronically crediting the cash benefit of qualified GSIS members to their GSIS eCard or unified multipurpose identification (UMID) card, which is expected to be completed by Jan. 31, 2017. Crediting of the benefit is done by batch or cluster to maintain orderly withdrawals,” it said.
