GSIS cancels policy on suspension of members

State pension fund Government Service Insurance System (GSIS) today announced that beginning July 2013, government employees working in agencies who are delayed or deficient in their premium payments will not have their loan privileges suspended anymore. The new policy also provides remedial guidelines for agencies already suspended so that their employees’ GSIS privileges can be restored. On April 25, the GSIS Board approved a new policy which addressed agencies’ non-remittance of premium contributions, without resorting to the suspension of the loan privileges of its employees.

CLASP

CLASP (Choice of Loan Amortization Schedule for Pensioners) In June 2011, GSIS implemented the Choice of Loan Amortization Schedule for Pensioners (CLASP), which empowers retiring members and make it less burdensome for them to settle their outstanding obligations. Retiring GSIS members now have the options to settle their loan balances, either in whole (100%), or in part (75%, 50% and 25%), through a restructured loan payable in equal installments for a maximum period of three years. More importantly, housing loan balance is no longer unilaterally deducted from retirement and separation benefit. The settlement of GSIS housing loan balance is now...