The Government Service Insurance System (GSIS) will be holding a public auction of shares of stock held by members who have outstanding Stock Purchase Loan accounts as of end-July this year.
The pension fund announced all shares of stocks corresponding to SPL accounts that remain unsettled after 15 December 2011 will be auctioned off at the Philippine Stock Exchange on 23 December 2011. Proceeds of the sale will be applied to the loan balances of the unsettled loan accounts, the GSIS said.
The sale of the shares is in line with the pension fund’s efforts to bring down its non-performing loan accounts (NPLs), while helping its members unload of liabilities that would prevent them from fully enjoying their retirement benefits.
To recall, the GSIS offered a Condonation Program for members whose SPL accounts remain unsettled. The Program, which was extended until end July this year allowed members to settle their loan obligations with zero penalties and surcharges and 50 percent less on interest charges.
For those who availed of the Condonation Program, stock Certificates were released upon full payment. Shares of stocks of unsettled loan accounts after the deadline will be sold and the proceeds applied to the loan balances.
In 1994, the GSIS introduced the Stock Purchase Financing Program (SPFP), in which an active member can apply for a loan equivalent to five times his monthly basic salary or such amount which can be amortized by his monthly paying capacity but not to exceed P100,000.00. A pensioner is entitled to a loan equivalent to six times his monthly pension but not more than P10,000.00.
Members and pensioners who availed of the SPL Program can repay their loans through sale of stocks, cash payment before maturity and deduction from any benefit due the member or pensioner in view of his separation or retirement from the service or death.
In case of separation or retirement from the service of an active member, the outstanding balance of the loan shall become due and demandable and shall be deducted from any benefit due the member.
As of December last year, a total of 2,596 members have outstanding stock purchase loan obligations valued at P273 million.
For inquiries about the public auction of the shares of stock, concerned members may visit the frontline services units in any GSIS office or call the GSIS hotline at 479.3645