Date Posted: December 6, 2013
State pension fund Government Service Insurance System (GSIS) is granting an automatic six-month deferment of loan repayment, without interest and penalties, for its members and pensioners in areas worst-hit by super typhoon Yolanda.
The moratorium is being implemented side-by-side with the GSIS emergency loan program for active members of up to Php40,000 for those with outstanding emergency loan balance and pensioners’ emergency loan of Php20,000.
The program is also in line with Memorandum Circular No. 59 issued by President Aquino directing all government financial institutions to grant a moratorium on loan payments to individuals and entities directly affected by typhoon Yolanda.
The moratorium on GSIS loans has been implemented since November 2013 and will run until April next year. Automatically covered are members and pensioners who reside or work in 126 worst-hit calamity areas identified by the appropriate city or provincial councils. The complete list of worst-hit areas is posted at the GSIS website- www.gsis.gov.ph.
All active GSIS loans accounts as of October 31, 2013, even those with arrears, are covered by the moratorium. Also included are the emergency loan accounts granted for members and pensioners within November 1 to December 31, 2013.
The loan accounts covered by the moratorium include the following loan accounts: Conso-loan Loan; ecard Cash Advance; Pension Loan; Pensioners’ Restructured Loan; Policy Loan; Emergency Loan; Enhanced Salary Loan; Educational Assistance Loan; Summer One-Month Salary Loan; and Housing loan.
The accounts of pensioners who availed of the installment payment of loans after retirement or Choice of Loan Amortization Schedule Program (CLASP) are also covered by the moratorium.
Members and pensioners do not need to apply for the moratorium. The administrative officers in concerned government offices have been advised to stop all deductions starting November 2013. Housing loan borrowers who have issued post-dated checks have also been notified by the GSIS to retrieve and replace the checks from the GSIS Treasury Unit.
The resumption of the deduction of monthly loan amortizations will be in May next year. However, members and pensioners who renew any of their loan accounts before the end of the moratorium period will forego the benefit for the particular account that they will renew. The moratorium will still apply to other loan accounts that are not renewed.
As of December 5, 2013, GSIS already granted more than Php2.3 billion in emergency loans. In addition, the pension fund processed 1,886 applications for pension emergency loans (PEL) amounting to Php37.3 million as of yesterday. Sixty-four percent of the PEL applications were filed from the Bacolod Branch office.
For more information on the emergency assistance program, members and pensioners may either go to the nearest GSIS office or call the GSIS contact center at 847.4747.