Gsis 583x3j

(Policy and Procedural Guidelines No. 244-13) 1. What are the Study Now, Pay Later (SNPL) and Fly PAL, Pay Later (FPPL) programs of the GSIS? SNPL is an educational assistance program implemented by the Government Service Insurance System, together with the Social Security System, the Philippine National Bank, Development Bank of the Philippines, and the Land Bank of the Philippines, in compliance with Presidential Decree (PD) No. 932 dated 13 May 1976 (Educational Assistance Act of 1976). The program later evolved into the Educational Assistance Loan (EAL), which was approved under Republic Act (RA) 6728 in 1988 and amended by RA 8545 in 1998. A similar credit facility for travel assistance was offered by the GSIS under the Fly PAL, Pay Later (FPPL) Program, which was approved by the Board under Board Resolution No. 637 dated 29 August 1978 and implemented under Policies and Procedural Guidelines (PPG) No. 48-78 (a) dated 7 December 1978 and No. 48-78 (b) dated 31 October 1979. The program was implemented from 1978 to 1989.

2. What is the one-time condonation program for outstanding SNPL and FPPL s that the GSIS offers? This is a program offered to SNPL student-grantees (and their co-makers) and FPPL member-borrowers who have remaining outstanding balance in their s as of 31 May 2013. Under Board Resolution No. 76 dated 25 July 2013, those who will pay their s in full, not later than the set deadline (July 24, 2014), will enjoy 100% condonation of penalties.

3. What is the deadline in applying for the condonation program? July 24, 2014.

4. What s are not covered by the condonation program?

1. The SNPL of a deceased student-availee and co-maker 2. The FPPL of a deceased member-borrower

5. What is the form of payment for this condonation program? Can the borrower pay in instalment? Full settlement of the is required for the borrower to be able to enjoy the 100% condonation of surcharges. The payment should be made within three (3) months from the time the application form for condonation is submitted. In case the full amount was not settled within three (3) months, a resubmission may be allowed provided that it is made before July 24, 2014.

6. Are penalties condoned under the program? Yes, all unpaid penalties of the outstanding SNPL and FPPL obligation are condoned but only upon full settlement of the . Penalties are not therefore condoned in partial settlement of .

7. What are the required documents for the condonation program? 1. Duly accomplished and signed application form 2. Copy of then GSIS eCard or UMID eCard 3. In case the applicant is not a GSIS member, a copy of any two (2) of the following: 1. SSS ID 2. Company ID 3. port 4. Driver's license 5. Professional Regulation Commission ID 6. Integrated Bar of the Philippines ID 7. Senior citizen ID 8. Voter's ID

8. How are grantees and borrowers informed of the condonation program? Letters are sent to all SNPL student-grantees (and their co-makers) and all FPPL member-borrowers in their last recorded address.

9. What will happen if a borrower would not avail of this one-time condonation? Failure of the borrower to avail of this condonation program will result in the whole outstanding balance of the becoming due and demandable. The outstanding balance is composed of the principal, accrued interests and surcharges of the loan. As a matter of policy, the GSIS will deduct all due and demandable s from the future benefits and loan proceeds of a borrower, in case he/ she is a GSIS member or pensioner. In case the borrower is not a GSIS member, extrajudicial collection of the will commence.

10. Does GSIS have a dedicated unit to cater to the specific queries of the borrowers? Yes. The GSIS Central Office and branch offices shall entertain all queries of SPNL and FPPL borrowers concerning their s and the and conditions of the condonation program. For further details on both programs, borrowers can call the GSIS center at 847.4747.

Frequently Asked Questions on the Home Emergency Loan Program (HELP) Print this Page

1. What is HELP? The Home Emergency Loan Program (HELP) is a special loan program of the Government Service Insurance System (GSIS) that seeks to enable GSIS to rebuild their homes and resume productive livelihood and employment activities in communities hard-hit by typhoon Yolanda. HELP is available to all GSIS active who are working and/or residing in the worst- hit calamity areas which were identified in the grant of emergency loans to Yolanda victims.

2. How much is the loan amount in HELP? The maximum loan amount in HELP is based on the member's total length of service (TLS).The maximum loanable amount of with less than five years of service is P30,000 while those with five years or more but less than 10 years may borrow up to P100,000. On the other hand, the maximum loan amount of with a TLS of 10 years and above is P200,000. The loanable amount that may be availed of shall be in multiples of P10,000, i.e. P10,000; P20,000; P30,000 and so on.

3. Who are qualified to avail of HELP? Qualified to avail of HELP are identified as working or residing in the worst-hit calamity areas as of November 15, 2013, including employees of suspended agencies. The list of worst- hit areas are posted here.

4. When can apply for HELP? Application forms shall be accepted from January 2, 2014 to March 31 2014 under the "file anywhere" policy. Application forms will be accepted in any GSIS office nationwide.

5. Is HELP a renewable No, HELP may be availed only once.

loan

program?

6. What are the requirements in availing of HELP? Interested are required to submit fully-accomplished HELP application form over the counter. The application should be approved by the ’ Agency Authorized Officer (AAO). The AAO should strictly observe the minimum net take-home pay prescribed under the General Appropriations Act.

7. How much is the interest rate and loan term of HELP? The interest rate in HELP is six per cent compounded annually based on a diminishing balance. A fraction of a month is considered one month.

8. How much is the net proceeds of the loan? The net proceeds of HELP will be arrived at after deducting from the gross amount the processing fee, which is computed at 1% of the gross loan amount.

9. How much is the total monthly amortization of HELP? The monthly amortization for various loan amounts (multiples of P10,000), payable in ten years, is below.

Monthly Amortization Loan Amount Prin. & Int.

RI

Total

10,000.00

110.22

3.80

114.02

20,000.00

220.45

7.60

228.05

30,000.00

330.67

11.40

342.07

40,000.00

440.90

15.20

456.10

50,000.00

551.12

19.00

570.12

60,000.00

661.34

22.80

684.14

70,000.00

771.57

26.60

798.17

80,000.00

881.79

34.20

1,026.22

90,000.00

992.02

34.20

1,026.22

100,000.00

1,102.24

38.00

1,140.24

110,000.00

1,212.46

41.80

1,254.26

120,000.00

1,322.69

45.60

1,368.29

130,000.00

1,432.91

49.40

1,482.31

140,000.00

1,543.14

53.20

1,596.34

150,000.00

1,653.36

57.00

1,710.36

160,000.00

1,763.58

60.80

1,824.38

170,000.00

1,873.81

64.60

1,938.41

180,000.00

1,984.03

68.40

2,052.43

190,000.00

2,094.26

72.20

2,166.46

200,000.00

2,204.48

76.00

2,280.48

10. When will the borrower pay the first due month of HELP? The monthly amortization of HELP will start in July 2014 and the first monthly amortization must be remitted to the GSIS on or before August 10, 2014. The succeeding amortizations must be paid every 10th of the month until the loan is fully paid.

11. What will happen if the borrower fails to pay the monthly amortizations under HELP? A HELP which incurs arrearages equivalent to more than six (6) months of amortization will become due and demandable and will be charged an interest rate of 12% per annum compounded monthly. The borrower's failure to pay six (6) monthly instalments will make the in-default. Once the loan is declared in default, the redemption insurance coverage will be automatically lapsed or cancelled In such case, the outstanding balance of the loan shall be due and payable without need of demand or further notice, all of which the borrower expressly waives. On the other hand, as a matter of GSIS collection and remedial policies, arrearages will be deducted from other loans which the member may avail.

12. If the borrower dies after taking out the HELP loan, will the be covered by the loan redemption insurance? If the member dies and the loan payment is up-to-date, the loan shall be deemed fully paid by virtue of the redemption insurance coverage. In case the loan is in arrears, only the theoretical balance of the loan shall be considered fully paid while the arrearages shall be deducted from whatever benefits that may be due the deceased. The redemption insurance coverage will be deemed lapsed or cancelled once the loan is declared in default. In such case, the outstanding balance and unpaid interests immediately prior to death will be due and demandable and shall be deducted from whatever benefits that may be due the deceased. The insurance coverage will be automatically terminated once the borrower pays the loan in full or upon expiration of the term of the loan, whichever comes first.

13. What will happen to the HELP if the borrower resigns, retires or leaves government service? The loan shall be due and demandable upon the resignation, retirement, or

separation from service of the member. In case of retirement, the outstanding principal and unpaid interests shall be collected in accordance with the Choice of Loan Amortization Schedule for Pensioners (CLASP).

14. Can a member pre-terminate a HELP ? The loan may be pre-terminated without penalties by paying the outstanding balance of the loan before the end of the loan term.

15. Can the borrower cancel the loan after it has been credited in the GSIS eCard ? Once the loan is approved and the loan proceeds have been credited in the GSIS eCard , the member has no more option to cancel the loan but only to pre-terminate it without any right to demand for reimbursements of the fees deducted (i.e. processing fee).

16. Can a member refund any overpayment in HELP? The refund of loan overpayment will be facilitated by the GSIS in accordance with the existing policy guidelines on the treatment of excess loan payments.

17. How do we compute the loanable amount? The loanable amount is computed by determining first the amount available for loan amortization under HELP. This amount is arrived at by adding the basic monthly salary and the allowance. Then, the following are deducted: the mandatory monthly deductions (tax withheld, GSIS contribution, PhilHealth contribution, and HDMF/Pag-Ibig monthly contribution); the net take-home pay as provided under the General Appropriations Act; loan amortizations for other authorized loan providers; and the GSIS loan amortizations under moratorium. Note that monthly amortizations pertaining to newly availed/renewed loans that are not yet reflected in the payslip/payroll at the time of granting of HELP loan should likewise be deducted from the Total Monthly Earnings for the Month. The resulting amount is compared with the Table of Monthly Amortization,

to determine the loan amount that can be amortized by the amount available for loan amortization under HELP.

18. Are the AAOs properly informed about the computation? Yes, the Guidelines in the Computation of Loanable Amount and Approval of Application under HELP has been ed in the AAO website.

19. How much is the net take-home pay provided under the General Appropriations Act of 2014? As provided for in RA 10633, the employee's net take home pay should not be lower than P3,000.00

GSIS's Six-Month Interest-Free Loan Moratorium for and Pensioners Severely Affected by Typhoon Yolanda 1. What is the loan moratorium program that the Government Service Insurance System (GSIS) has recently implemented? The latest GSIS loan moratorium is an automatic deferment of loan payment, without interest and penalties, that the GSIS has granted to its and pensioners in areas that were hit hardest by supertyphoon Yolanda. (Here is the list of affected areas). The GSIS Board of Trustees approved the moratorium program under Resolution No. 129 on November 28, 2013 to enable GSIS and pensioners to use the fund in recovering and rebuilding their lives.

2. What period is covered by the moratorium? It covers six months from November 2013 to April 2014. The loan payment term is therefore extended by a maximum of six months, including emergency loans that were granted from November 15, 2013 to December 31, 2013.

3. Who are covered by the moratorium? All active and pensioners who are residing or working in the worst-hit calamity areas are entitled to the benefits of the program. To determine the eligibility of borrowers, the GSIS will refer to the addresses of and pensioners (places of residence and work) as recorded in the GSIS hip database as of October 31, 2013. To identify the worst-hit calamity areas, the following parameters or criteria were considered: 1. The city or municipality should be within the typhoon path based on the report of the National Disaster Risk Reduction Management Council (NDRRMC); 2. The city or municipality should have been declared as worst or hardest hit calamity area through a resolution issued by the Sangguniang Panlalawigan or Panlungsod, or by the appropriate city or municipal council certified by the Office of the Provincial Governor or , or through a certification issued by the provincial governor or .

4. What loans are covered under the moratorium? 1. Active loan s as of October 31, 2013 All active loan s - whether or not the has arrears as of October 31, 2013 - are covered under this program. These are the following: 1. Consolidated loan 2. eCard cash advance 3. Pension loan 4. Pensioner's restructured loan 5. Policy loan 6. Emergency loan 7. Enhanced salary loan 8. Educational assistance loan 9. Summer one-month salary loan 10. Housing loan (deed of conditional sale and real estate loan) 2. Loans granted from November 1, 2013 to December 31, 2013 All loans granted within the above-mentioned period, including those under the newly offered Pensioners' Emergency Loan, are covered under this program. The payment of the first amortization is deferred up to April 30, 2014, and the corresponding amortization will be included in the May 2014 billing, which will be due on or before June 10, 2014.

5. What loans are not covered by the moratorium? All loans granted beginning January 1, 2014 are not be covered by this program.

6. Should file a request or application to be covered by the moratorium? No, qualified borrowers will be electronically identified based on the qualifications or parameters prescribed in No. 3 above. Thus, and pensioners in the worst-hit calamity areas are automatically covered by the moratorium and need not file a request or application to the GSIS. The GSIS will also notify in writing qualified borrowers, along with their respective istrative or finance officers and authorized istrative officers (AAOs), regarding their entitlement to the moratorium, as well as

provide them the prescribed guidelines and other information materials about the program.

7. How will the loan deduction be stopped? For borrowers whose payment of monthly amortization is through payroll deduction The istrative or finance officer will immediately cause the temporary stoppage of deduction upon effectivity of this program. Any remittance made during the moratorium period will be applied to the outstanding balance of the loan following the order of priority in application of payments (that is, penalties or surcharges first; insurance; interest; and principal). For borrowers of housing loan whose payment of monthly amortization is through postdated checks (PDCs) The GSIS will inform them in writing that they should retrieve their PDCs from the GSIS Treasury Unit and replace the PDCs they retrieved not later than April 1, 2014.

8. When will the loan deduction resume? After the end of the moratorium period on April 30, 2014, the istrative or finance officer, without need of notice from the GSIS, will resume the deduction of the monthly loan amortization in the May 2014 payroll, and will remit the same not later than June 10, 2014. Housing loan borrowers who are paying "over-the-counter" should likewise resume paying the required monthly amortization starting May 2014. The existing policy on declaring s in default should apply after the end of the moratorium period.

9. What happens to the billing and collection activities during the moratorium period? The system generation of monthly amortization billing for the covered loan s, and the sending of the monthly billing, demand letters, and collection notices to the qualified borrowers are suspended during the moratorium period.

10. What happens if a member retires or is separated within the moratorium period? The Choice of Loan Amortization Schedule for Pensioners (CLASP) would still be offered to qualified borrowers who will be retiring or separated from the service within the moratorium period.

11. How about the insurance cover during the moratorium period? The fire insurance (FI) and loan redemption insurance (LRI) coverage will continue to be enforced during the moratorium period. s due during the moratorium period should be paid in full on or before June 10, 2014. In case of retirement, resignation, or separation from the service, or demise of the borrower during the moratorium period, the proportionate FI and LRI will be deducted from any claims or benefits of the insured.

12. What happens to loan payments the GSIS received during the moratorium period? Any payment or remittance received during the moratorium period that are intended to settle amortizations for a qualified loan will be applied directly to the outstanding balance of the loan. Application of payment should follow the order of priority below, on a monthly basis and starting from the oldest month to the current month, as follows: 1st : Penalties or surcharges, if any 2nd: LRI 3rd : Interest 4th : Principal

Frequently Asked Questions and Answers on the GSIS Housing Remedial and Restructuring Program: Print this Page

1. What is the first step in availing of the GSIS Housing Restructuring Program? Applicants must set an appointment by calling telephone numbers 4793548, 479-3583, or 479-3587 for Central Office s, or the telephone numbers of the handling branch office. The list of numbers of branch offices is in the Us. A confirmation ticket number, together with the date of appointment, will be given to the applicant-caller. 2. Who are qualified to avail of the restructuring program? The program is open to: (1) s that are current or overdue; (2) s with cancelled deeds of conditional sale (DCS) but are not yet sold; (3) s under foreclosure proceedings; (4) buyers of rights; and (5) heirs of deceased borrowers who will be able to meet the eligibility criteria and documentary requirements. 3. Can borrowers of properties that have been auctioned still avail of the program? No, borrowers whose properties have been auctioned and have been issued Certificate of Sheriff Sale can no longer avail of the program. However, "foreclosable s" that have not yet been auctioned may still apply for the program. The auction of the property shall be postponed and the foreclosure case withdrawn. Any foreclosure expenses incurred will be added to the outstanding balance of the to be restructured. 4. What documents are required from a buyer of rights in applying for the restructuring program? 1. Deed of Transfer of Rights and Special Power of Attorney (SPA). If the original awardee who executed the SPA is out of the country, the documents should through the Philippine Consulate for authentication. 2. Personal appearance of the original borrower/awardee and the buyer of rights for g of Application for Subrogation and Certificate of Appearance. If the original borrower can no longer be located, the following documents should be submitted:

1. Barangay Certification as proof of residency; and 2. Proof of Billing under their name addressed in the property being acquired.

5. Can the heirs of a deceased borrower apply for remedial and restructuring program? Yes, subject to the submission of the following documents: 1. Deed of Adjudication of Sole Heir (for a sole surviving heir) or Deed of Extrajudicial Settlement (for two or more surviving heirs), plus SPA from co-heirs authorizing the applicant-heir to file the application for restructuring/condonation under this program; 2. NSO-issued death certificate of the borrower; 3. NSO-issued marriage contract of the borrower/surviving spouse. 4. NSO-issued birth certificate of heirs; and 5. Identification cards of all heirs.

6. What are the requirements in applying for the program? 1. Duly accomplished Application Form signed by the applicant and spouse; 2. Photocopy of GSIS eCard or UMID. If none, any two (2) of the following identification cards: 1. SSS, company, PRC, or IBP ID 2. port or driver's license 3. Senior citizen ID or voter's ID 3. For legal heirs: 1. Extrajudicial Settlement among heirs and SPA from co-heirs 2. NSO-issued death certificate; marriage contract; and birth certificate of heirs 4. For assignees, transferees, or buyer of rights: Personal appearance of the original awardee and buyer of rights, together with their spouse.

Original copies of documents should be presented for authentication.

7. What rates will apply for the restructured s? Interest rate of 6% per annum compounded annually and penalty rate of half of 1 percent per month (0.5%) for unpaid obligations will apply.

8. What is the maximum term for restructuring? The term will depend on status of loan at the time of application. The table below indicates the term based on the status of the .

Status

Term of Restructured Obligation (not to exceed age 70)

A. NO ARREARS OR UP-TO-DATE (UTD)

10 years or remaining term, whichever is longer, provided the term will not exceed age 70 of borrower

B. IN DEFAULT (WITH ARREARS OF 6-MONTH AMORTIZATIONS AND BELOW)

10 years or remaining term, whichever is longer

C. DUE AND DEMANDABLE S:

1. With payments of at least 50% of the Total Expected Payment (TEP) 2. With payments of less than 50% of the TEP 3. No payment since takeout (NPSTO)

10 years, provided the term will not exceed age 70 of borrower 5 years, provided the term will not exceed age 70 of borrower Not qualified to restructuring but may FULLY PAY

9. Are there incentives if borrowers will fully pay their ? Yes, the following incentives will be given to borrowers who will fully pay their :

Loan Status

A. NO ARREARS OR UP-TO-DATE (UTD)

Discount benefits if will PAY IN FULL

If will pay in full, no interest and penalty discount benefit. (No unpaid interest and penalties on current .)

B. IN DEFAULT (WITH ARREARS OF 100% discount on unpaid interest, plus 100% 6-MONTH AMORTIZATIONS AND BELOW) discount on unpaid penalties and surcharges. C. DUE AND DEMANDABLE S:

1. With payments of at least 50% of the Total Expected Payment (TEP) 2. With payments of less than 50% of the TEP 3. No payment since takeout (NPSTO)

80% discount on unpaid interest (if TMAP is 80% or more than TEP); or 50% discount on unpaid interest (if TMAP is 50% to 79% of TEP) 40% discount on unpaid interest plus 100% discount on unpaid penalties/surcharges 40% discount on unpaid interest plus 100% discount on unpaid penalties/surcharges computed.

10. What will happen if borrowers/awardees defaulted in paying their restructured ? 1. Real Estate Loan (REL) s that defaulted on the loan will become due and demandable and will be subject to foreclosure. 2. DCS s that default on the loan will become due and demandable and will be cancelled in accordance with law.

11. Are down payments required? Down payments are not required for applicants who are qualified to avail of the restructuring program. However, if the borrower/awardee would opt to give a down payment, the amount will be deducted from the balance to arrive at the amount to be restructured.

12. Is application No, application fee is NOT required.

fee

required?

13. When will the GSIS accept application for restructuring? Acceptance of application is extended until June 30, 2014.

When does GSIS give dividends? According to Section 25 of RA 8291, the GSIS Act of 1997, "An annual dividend may be granted to all of the GSIS whose life insurance is in force for at least one (1) year in accordance with a dividend allocation formula to be determined by the GSIS."Â

Who are entitled/qualified to receive dividends? Only with active policies are entitled to dividends. The following are not entitled to dividends: 1. whose policies (LEP) matured during the year; 2. whose policies lapsed during the year; 3. whose policies were terminated due to death, retirement or separation from service during the year; 4. who have defaulted in their salary and consolidated loans for at least twelve (12) months and/or have unpaid s for at least twelve (12) months as of the date of reckoning; and 5. Employees of suspended agencies as of the date of reckoning.

Is the grant of dividends dependent on the financial performance of the fund? Yes. The grant of dividends is dependent on the financial performance of the Social Insurance Fund. The amount of dividends declared for the compulsory life insurance policyholders for this year is P 930 million, an increase of almost 14% over the P 818 million declared last year. ANNEX

COMPULSORY LIFE INSURANCE COVERAGE FOR GSIS There are two (2) types of compulsory life insurance coverages for GSIS : the Life Endowment Policy (LEP) and the Enhanced Life Policy (ELP). 1. The GSIS started with the LEP program. Designed to provide with life insurance coverage while still in active service, the LEP provides

maturity benefits to policy holders upon reaching the maturity of their policy. 2. ELP on the other hand took effect last August 1, 2003. The following are covered under this program: - Those who entered the service starting August 1, 2003; - Those whose policies matured on or after July 31, 2003, and who will continue to be active after the maturity date; and - Those who opted or will opt to convert their LEP into ELP. ELP provides an automatic yearly insurance coverage to new of GSIS based on their monthly compensation. The objective of ELP is to provide an enhanced death benefit for the member's family. The following are the policy features of LEP and ELP: Particular

LEP

ELP

Implementation Date

Up to July 31, 2003

August 1, 2003 onwards

Plan Type

Age Bracket

Insurance Plan

30 years old and below

E-45

Yearly Renewable Term Insurance

E-55 31 years to 40 41 years to 59

E-65 OL

60 years and over Amount of Insurance (AOI)

1. Insurance Plan 2. Age at Issue 3. Basic Salary An Insurance Factor is applied

Last Monthly Salary x 12 x 1.5

to the Annual Salary to get AOI. Policy Loan

50% of the Cash Value

90% of the Termination Value

Maturity Value

Original Amount of Insurance plus Supplementaries

Not Applicable

Dividends

Based on the Policy Reserves*

Based on the Accumulated Termination Value**

Reserves represent the ideal amount that must be set aside for the policy to provide the promised benefits. Termination value represents the value earned by ELP, which accumulates at a rate equivalent to 25% for every monthly life insurance due and paid in full.

What is the Enhanced Optional Exit Mechanism (EOEM) being offered to GSIS memorial planholders? It is an option given to GSIS memorial planholders to enjoy their investments now by allowing them to refund at least 100% of their plan’s contract price instead of availing of the memorial service or cash component at a future date.

Who are qualified to apply for the EOEM? Planholders who have fully paid their s and have not availed of any benefit under any of the following memorial plans are qualified to apply for the exit mechanism:  Genesis Plan;  Genesis Plus Plan;  Genesis Flexi Plan; and  Genesis Special.

Why should planholders apply for the EOEM? By choosing the exit mechanism, planholders reduce the risk of losing their hardearned money should the memorial service provider fail to meet its obligations, given the financial difficulty being faced by the preneed industry. More importantly, they get their investments either in full or even higher than the contract price.

How much of the contract price can planholders refund? The refund will depend on their plan type, as follows: Plan Type

Genesis Plan

Enhanced Optional Exit Mechanism

100% of contract price

Genesis Plus Plan

125% of contract price

Genesis Flexi Plan

150% of contract price

Genesis Special

100% of contract price

When can they apply for the EOEM? The application period is from 1 March 2013 to 31 August 2013.

How soon can they receive the proceeds of their EOEM applications? Provided that all the requirements have been submitted, planholders can receive the proceeds within 30 work days from the date of application.

Will planholders be notified once the refund has been processed? Yes. GSIS will mail a copy of the voucher to them.

What is the mode of payment for the refund? The refund will be paid through a check payable to planholders.

What happens to planholders' memorial plan agreements if they avail of the EOEM? Once they avail of the EOEM, their memorial plan agreements will be automatically terminated.

What happens to the GSIS memorial plan agreements of planholders who choose not to avail of the EOEM? They can still avail of the memorial services and cash component depending on the plan type. There is no assurance, however, that memorial services under the Prudential Life Plan Inc. (PLPI) may be restored in the near future in light of the Insurance Commission's stay order for the said memorial service provider. Converting to cash the memorial plans under the PLPI is therefore highly encouraged.

What are the requirements in applying for the EOEM and where should the planholders submit the application? Planholders who wish to apply for the EOEM may visit the nearest GSIS branch and bring the following documents: For presentation

For submission

Fully accomplished application form for the Enhanced Optional Exit Mechanism Genesis Plus Plan

125% of contract price

Original GSIS Memorial Plan Agreement Photocopy of the GSIS Memorial Plan or, in case of loss, original affidavit of Agreement or the affidavit of loss loss Planholder's two original valid government-issued IDs. The following IDs are accepted:  GSIS eCard

Photocopy of the planholder's two valid government-issued IDs

 Government agency ID  Senior citizen's ID  Postal ID  port  Driver's license  Voter's ID  Social Security System (SSS) ID  Philhealth ID  Professional Regulation Commission (PRC) ID  Bureau of Internal Revenue Tax Identification Number (BIR TIN) ID Certificate of full payment, if any

Where can the planholders get the application form for the EOEM? Planholders can get a copy from any GSIS branch. They can also a copy under theEnhanced Optional Exit Mechanism for GSIS Memorial Plandholders.

What are the requirements in claiming the refund check? If the planholder (payee) will claim the refund check, he/she must bring the following: For presentation

For submission

GSIS eCard or two valid government-  Photocopy of the IDs presented issued IDs  Fully accomplished GSIS Memorial Quit Claim Form

If a representative will claim the refund check, he/she must bring the following: For presentation

Photocopy of the payee's IDs

Two valid government-issued IDs of  Photocopy of the representative's IDs the representative  Payee's authorization letter  GSIS Memorial Quit Claim Form fully accomplished by the payee

What is the Family Hospitalization Plus Plan (FHPP) and the Hospitalization Insurance Plan (HIP) of the Government Service Insurance System (GSIS)? The FHPP and HIP are term insurance products of the GSIS that offer medical benefits in case of hospitalization due to sickness or injury. These hospitalization insurance packages are among the preneed products that were introduced and marketed by the GSIS more than 10 years ago. Similar to the Philippine Health Insurance Corporation (PhilHealth) plan, FHPP and HIP cover future services, particularly payment of medical expenses, at the time of actual need. Like the PhilHealth hospitalization policy, the payment of monthly is indispensable to ensure continuous coverage under the FHPP and HIP.

Why did the GSIS terminate the FHPP and HIP? As the of social insurance for government workers, the GSIS is primarily mandated to provide defined benefits to , especially when they retire from the service and can no longer earn for themselves or their families. It also insures its in the event of certain contingencies, such as sickness, disability, or death. Consistent with its mandate, the GSIS management reviewed its optional and preneed products. The review sought to assess if these products continue to supplement the subscribing ' insurance needs. The review showed that the private insurance industry, as well as the government-managed PhilHealth, have developed over the years better benefits and servicing capacity for hospitalization insurance at a cost of higher (rates). It was also found out that since the rates of its hospitalization insurance packages were kept in modest amounts, the GSIS has retained the same set of benefits it had offered 10 years ago. After evaluating the responsiveness of the FHPP and HIP, the GSIS management has acknowledged that PhilHealth has the mandate to provide all Filipinos with accessible, available, acceptable, and affordable health care services. It can therefore institute the GSIS hospitalization programs more

effectively, as it also has the right number of people to manage these insurance s. Alongside the review and in preparation for the termination of the programs, the GSIS undertook a massive cleansing of its FHPP and HIP s to determine how many policies have payments and how many have lapsed.

What is the effectivity date of the FHPP and HIP termination? Effective 1 January 2013, the GSIS has terminated the implementation of the HIP and FHPP. Hence, policies that were active as of 31 December 2012 will no longer be renewed and payments for those policies will not be accepted.

What is the effect of the termination to all active FHPP and HIP s? The termination means that policyholders with active plans are covered only until 31 December 2012 subject to the payment of corresponding s. For policies that will remain in force until 31 December 2012, the GSIS will accept and process claims as long as they are filed within 60 calendar days from the last day of confinement, as stipulated in the policy contracts. The GSIS shall accept and process claims covered by the FHPP and HIP policies until 30 June 2013 only.

Have the member-policyholders' agencies been informed of the FHPP and HIP termination? What will happen to the s that their agency will remit? Yes, all authorized agency officers were duly informed of the FHPP and HIP termination as early as October 2012. As mentioned above, no payments will be accepted after 31 December 2012.

Will the GSIS refund s that policyholders have paid? Since the payment of monthly s is necessary to be covered for the corresponding month, the failure of policyholders to use or avail of the medical services under the plan on a particular month or period - when they actually should - does not entitle them to refund s they have paid. FHPP s, however, may be refunded only if all of the following conditions are strictly met:  Payment of s is continuous. This means that the policy is not lapsed or there are no unpaid s. (It must be underscored that FHPP contracts provide for automatic lapsation of policy in case of nonpayment of even a single or one-month .)  No claim was made on the FHPP plan in any period within 10 years.  The policyholder is not above age 59.

For HIP policyholders, there is no such provision for refund of s.

1. What is the DOLI policy? The Directors' and Officers' Liability Insurance (DOLI) policy is an insurance cover designed to protect the government-owned and -controlled corporation (GOCC), government financial institution (GFI), agency, or commission - and its directors/trustees and officers - against the cost of litigation and liability in the course of performing the official acts of its governing Board and Management.

2. Why do GOCC directors/trustees and officers need the DOLI? GOCC directors/trustees and officers can be held personally liable for the actions they perform in relation to their duties in the corporation. Thus, they have to be protected from costly and lengthy lawsuits that could otherwise drain their personal resources.

3. Who are covered by the DOLI policy? Directors/Trustees. These include ex officio and appointive directors [GCG Memorandum Circular (MC) No. 2012-10 dated 28 August 2012; taken from Section 1 (Definition of ) of the Code of Corporate Governance for GOCCs, Republic Act 10149.]:  Appointive directors - (1) All of the Board of Directors and Trustees of chartered GOCCs (those created and vested with corporate functions by special laws) who are not ex officio; (2) of the Board of Directors/Trustees of nonchartered GOCCs (those organized under the Corporation Code of the Philippines), whom the State nominates or is entitled to nominate, to the extent of its percentage shareholdings in the GOCC; and (3) of the Board of Directors/Trustees of s (corporations owning 50% or less of outstanding capital stock either directly or indirectly), whom the GOCC nominates or is entitled to nominate to the extent of its percentage shareholdings in such .  Ex officio Board - any individual who sits or acts as a member of the Board of Directors/Trustees by virtue of one's title to another office, without further appointment.

 Alternates of ex officio Board - representatives of ex officio whose acts are considered acts of their principals.

Officers. These include both Board and executive officers.  Board Officers refer to the chairman, vice chairman, corporate secretary, or other officers who are primarily tasked to serve the Board or pursue its immediate functions.  Executive Officers refer to the chief executive officer, or whoever is the highest ranking officer in the GOCC, and such other corporate officers under its charter or bylaws, and other senior officers, such as the vice president, chief financial officer, chief investment officer, and general manager, whose positions are equivalent to the rank of director, assistant secretary, or undersecretary in the national government sector.

4. Does the DOLI cover retired or separated officers? Yes. The insured, in the context of the DOLI, means any natural person who was, is, or shall become a director or officer of an agency. It is required, however, that the acts complained of against the retired or separated director/trustee or officer must have been committed not earlier than the continuity or retroactive date indicated in the Policy Schedule. This date confirms that the policyholder has maintained an uninterrupted insurance cover.

5. What is the basis of GOCCs to provide the DOLI? The authority to provide the DOLI for of GOCCs' governing Boards and officers is stipulated under Section 32 of the Code of Corporate Governance, which states that "it is equitable that when the GOCC itself and/or the of the Board and Management are sued before tribunals on matters that are within the official functions and capacity and on matters where business judgment has been exercised in good faith, that there be proper recovery of the costs and litigation and the judgment liability imposed."

6. What are the and conditions governing the authority of GOCCs to obtain the DOLI?  s on DOLI coverage should form part of the annual corporate operating budget of the GOCC, or of its supplementary budget, if needed;  Procurement of DOLI coverage should be consistent with applicable procurement laws, rules and regulations, RA 9184 (Government Procurement Reform Act), and istrative Order 33 (Prescribing Guidelines for the Insurance of All Properties, Contracts, Rights of Action and Other Insurance Risks of the Government); and  A GOCC may provide for 'self-insurance' by creating a Directors' and Officers' Liability Fund based on actuarial and feasibility studies commissioned by the Board.

7. What are the acts covered by the DOLI? Act/s covered means any act or omission committed in good faith by the insured in their respective capacities as a director/trustees or officer of the GOCC, or any matter claimed against them solely because of their status as a director or officer, which gives rise to a cause of action against them and the GOCC in any court, tribunal, or istrative agency exercising quasijudicial functions.

8. What are considered valid and reimbursable expenses under the DOLI?  DOLI with GOCC as beneficiary. Reimbursement from the litigation costs incurred and damages suffered due to or arising from the breach of a director/trustee/officer of his fiduciary duties. Under Section 19 of RA 10149, the of the Boards of Directors/Trustees and the officers of GOCCs are designated as "fiduciaries of the State with the legal obligation and duty to always act in the best interest of the GOCC, with utmost good faith in all its dealings with the property and monies of the GOCC (GCG MC No. 2012-10 dated 28 August 2012)."

 DOLI with Directors/Trustees and Officers as beneficiaries. Reimbursement from the litigation costs incurred and damages suffered due to acts or omissions committed in good faith by the insured in their respective capacities as directors/trustees or officers of the GOCC, or any complaint filed against them solely because of their positions, giving rise to a lawsuit or regulatory action.

In particular, these claims may arise from:  Suits or proceedings brought by employees who have been the proper subject of disciplinary actions;

 Unwarranted or nonmeritorious complaints filed with the Ombudsman or other disciplinary agencies for the purpose merely of taking defensive measures to compel settlement; and  Costly litigations brought about by disgruntled clients or desperate borrowers seeking to evade foreclosure or repossession of their mortgaged assets.

9. What are considered invalid expenses under the DOLI? These are payments made for any claim against the insured:  Where the court, tribunal, or istrative agency finds that the GOCC, acting through its Board of Directors or Management, has violated its charter or caused unreasonable damage to its identified stakeholders.  Where the DOLI is used as 'indemnity benefit' for directors/trustees and officers of a GOCC, as they are public officials for whom government funds cannot be expended by way of insurance payment for their personal benefit.  Where liabilities arise from the director's/trustee's or officer's fraud, breach of fiduciary duties, or unethical conduct.

10. Are criminal cases that reach the Sandiganbayan covered by the DOLI? Yes. If the insured director/trustee or officer is found not liable for the allegation of fraud or breach of fiduciary duties, the GSIS shall reimburse the director/trustee or officer the amount spent related to the case. However, if found guilty by the Sandiganbayan, the advances made to the insured director/trustee or officer shall be converted to a personal loan, which must be paid as indicated in the Loan and Trust Agreement.

11. Is a countersuit filed by the insured against the complainant covered by the DOLI? No. A claim, as defined under the DOLI policy, specifically refers to any suit or proceeding brought by any person or organization against the insured. Thus, countersuits as defensive moves are not covered by the DOLI.

12. Does the DOLI policy cover cases where the insured is acquitted? Yes. Per GCG MC 2012-10, a judgment acquitting the director/trustee or officer validated the expenses paid or reimbursed as legitimate company expense.

13. Is arbitration proceeding applicable under the DOLI? Yes, if the trial court has referred the case for arbitration prior to full trial in court.

14. Will an application for DOLI coverage be denied due to frequent DOLI claims? No. However, losses may affect the computation of the s. For example, the deductible/participation of the GOCC for each and every claim on the renewal will be adjusted upward as a result of the frequency of claims. Unless there are remedial measures adopted by the agency to mitigate those potential claims, the System will increase the deductible, and, if necessary, s as well.

15. Should there be a separate coverage for s? No, if the duties of the director/trustee or officer of the insured GOCC in the company are related to his/her duties in the principal GOCC. Yes, if the duties of the director/trustee or officer in the are entirely unrelated to his/her duties in the insured GOCC.

16. How does a GOCC secure DOLI coverage? Procurement of DOLI coverage is subject to bidding pursuant to all applicable procurement laws, rules and regulations, RA 9184, and AO 33.

17. How long is the procurement process for DOLI reinsurance? Procurement of reinsurance for DOLI ranges from 28 days (the earliest possible time) to 124 calendar days (latest allowable time), under RA 9184.

18. Can an agency secure DOLI coverage from private insurance companies? Yes. Under Section 6 of the GCG MC 2012-10, the GOCC or GFI may obtain DOLI coverage from a provider accredited by the Insurance Commission who either offers better than what the GSIS can provide or which the GSIS is unwilling to match. Further, the non-GSIS DOLI coverage should be pursuant to Section 5 of RA 656 (Property Insurance Law), which, among others, requires GSIS's refusal to accept insurance coverage and obtaining a letter from the GSIS declining the invitation to participate as insurance provider.

19. How does the GSIS determine the rate for the DOLI? The GSIS considers the DOLI as a high-risk insurance. As such, the GSIS Insurance Group evaluates all the required documents that are submitted, the nature of business of the agency, and the cases filed against the agency, if any, to determine the proper rate. As to the limit of liability, the GSIS will allow the limit proposed by the agency. However, the amount should not exceed the net financial contracting capacity, which is defined as current assets minus current liabilities.

20. What is the limit of GSIS liability per director/trustee and officer? It is determined based on the assessment or evaluation of documents submitted by the agency pertaining to the risks taken by the GOCC.

21. What is the limit for an attorney's fee? It would depend on the assessment of the Underwriting Department of the GSIS.

22. What is the total sum or maximum insurance for a GOCC? It varies. It would depend on the assessment of the Underwriting Department of the GSIS.

23. If the entire Board of Trustees is charged in court by a complainant with one type of suit, will the limit for lawyer's fees be applied to each individual board member or to the entire Board as a corporate group? The limit for lawyer's fees applies to any one claim arising out of a single act covered, whether it is individual or corporate reimbursement. Thus, even if each Board member decides to get his or her own legal counsel, the limit will still be the aggregate limit because there is only one case filed.

24. If the insured is charged with a civil case, and parties agreed to a settlement, can the claim be filed with the GSIS? What if the case is criminal? Yes, a claim may be filed since settlement is allowed in civil cases but not in criminal cases.

25. How long is the processing of a DOLI claim? Upon submission of complete documents, reimbursement of initial defense costs for a particular claim per insured takes 15 working days on the average to process.

Mga Tanong at Sagot Ukol sa GSIS Housing Restructuring Program Print this Page

1. Ano ang unang dapat gawin sa pag-a-apply sa GSIS Housing Restructuring Program? Dapat munang mag-set ng appointment sa GSIS. Tumawag lamang sa mga sumusunod na telepono kung ang housing ay nasa Central Office: 479-3548, 479-3583, o 479-3587. Kung ang ay nasa handling GSIS branch office, ang mga telepono ay makikita sa Us. Sa pagtawag, ang aplikante ay bibigyan ng confirmation ticket number at ng petsa ngappointment, kung kailan siya nakatakdang magtungo sa GSIS.

2. Sinu-sino ang maaaring mag-apply sa restructuring program? Ang programa ay bukas sa mga sumusunod: (1) na tuluy-tuloy na nababayaran(current) o dapat nang bayaran (overdue); (2) na ang deed of conditional sale(DCS) ay nakansela pero hindi pa naisusubasta (not yet auctioned); (3) na sumasailalim sa foreclosure proceedings; (4) buyers of rights; at (5) anak o tagapagmana(heir) ng namatay na borrower, kung papasa siya sa mga itinakdang pamantayan (eligibility criteria) at makakapagsumite sa GSIS ng mga kailangang dokumento (documentary requirements).

3. Kung ang property ng borrower ay naisubasta na (auctioned), maaari pa ba siyang mag-apply sa programa? Hindi na. Kapag ang property ay naisubasta na at nabigyan na angborrower ng Certificate of Sheriff Sale, hindi na siya maaaring mag-apply sa programa. Gayunman, kung ang ay "foreclosable" pa lamang at hindi pa naisusubasta, maaari pang mag-apply ang borrower. Sa ganitong kaso, maaaring maipagpaliban ang pagsusubasta ng property o maiurong ang foreclosure case. Ang anumang gastusin(expenses) sa foreclosure ay idaragdag sa natitirang utang (outstanding balance) na ire-restructure.

4. Anu-anong dokumento ang kailangang isumite ng buyer of rights kung mag-a-apply siya sa programa? 1. Deed of Transfer of Rights at Special Power of Attorney (SPA). Kung nasa labas ng bansa ang nag-execute ng SPA, ang dalawang dokumentong nabanggit ay kailangang maauthenticate ng Philippine Consulate. 2. Application for Subrogation at Certificate of Appearance, na kailangang personal na pirmahan sa GSIS ng original borrower/awardee at ng buyer of rights. Kung wala ang original borrower, kailangang isumite ang mga sumusunod na dokumento: 1. Barangay Certification - bilang patunay ng paninirahan (proof of residency); at 2. Proof of Billing na nakapangalan sa awardee at ang address ay angproperty na binibili o hinuhulugan.

5. Maaari bang mag-apply sa programa ang anak o tagapagmana (heirs) ng namatay naborrower? Oo, kung maisususmite ang mga sumusunod na dokumento: 1. Deed of Adjudication of Sole Heir (kung iisa ang surviving heir) o Deed of Extrajudicial Settlement (kung dalawa o higit pa ang surviving heirs), kasama ang SPA mula sa co-heirs na nagpapahintulot sa nag-a-apply na heir upang ifile angapplication sa restructuring/ condonation program; 2. Death certificate ng borrower mula sa National Statistics Office (NSO); 3. Marriage contract ng borrower o ng surviving spouse mula sa NSO; 4. Birth certificate ng heirs mula sa; at 5. Identification cards ng lahat ng heirs.

6. Anu-ano ang dokumentong kailangan sa pag-a-apply sa programa? 1. Duly accomplished Application Form na pinirmahan ng aplikante at kanyang asawa; 2. Photocopy ng GSIS eCard or UMID. Kung wala, alinmang dalawa (2) sa sumusunod na identification cards:

1. SSS, company, PRC, o IBP ID 2. port o driver's license 3. Senior citizen ID o voter's ID 3. Para sa legal heirs: 1. Extrajudicial Settlement ng heirs at SPA ng co-heirs 2. Death certificate, marriage contract, at birth certificate ng heirs na mula sa NSO. 4. Para sa assignees, transferees, o buyer of rights: Kailangang personal na magtungo sa GSIS ang original awardee at buyer of rights, kasama ang kani-kanilang asawa.

Kailangang ipakita ang orihinal na mga dokumentong nabanggit sa itaas para saauthentication. 7. Ano ang rates sa restructured s? May interest rate ito na 6% per annum compounded annually at penalty rate na kalahati ng 1percent (0.5%) kada buwan sa unpaid obligations.

8. Ano ang maximum term sa restructuring? Depende sa status ng loan kapag nag-apply sa restructuring. Tingnan ang sumusunod:

Status

Term of Restructured Obligation (not to exceed age 70)

A. NO ARREARS OR UP-TO-DATE (UTD)

10 years or remaining term, whichever is longer, provided the term will not exceed age 70 of borrower

B. IN DEFAULT (WITH ARREARS OF 6-MONTH AMORTIZATIONS AND BELOW)

10 years or remaining term, whichever is longer

C. DUE AND DEMANDABLE S:

1. With payments of at least 50% of the Total Expected Payment 10 years, provided the term will not exceed

(TEP) 2. With payments of less than 50% of the TEP 3. No payment since takeout (NPSTO)

age 70 of borrower 5 years, provided the term will not exceed age 70 of borrower No payment since takeout (NPSTO)

9. 10. Kung babayaran nang buo ang , may incentives ba ang borrower? Oo. Tingnan ang sumusunod:

Loan Status

A. NO ARREARS OR UP-TO-DATE (UTD)

Discount benefits if will PAY IN FULL

If will pay in full, no interest and penalty discount benefit. (No unpaid interest and penalties on current .)

B. IN DEFAULT (WITH ARREARS OF 100% discount on unpaid interest, plus 100% 6-MONTH AMORTIZATIONS AND BELOW) discount on unpaid penalties and surcharges. C. DUE AND DEMANDABLE S:

1. With payments of at least 50% of the Total Expected Payment (TEP) 2. With payments of less than 50% of the TEP 3. No payment since takeout (NPSTO)

80% discount on unpaid interest (if TMAP is 80% or more than TEP); or 50% discount on unpaid interest (if TMAP is 50% to 79% of TEP) 40% discount on unpaid interest plus 100% discount on unpaid penalties/surcharges 40% discount on unpaid interest plus 100% discount on unpaid penalties/surcharges computed.

11. Ano ang mangyayari kung hindi pa rin mabayaran ng borrowers/awardees angrestructured ? 1. Kung ito ay Real Estate Loan (REL) , ang loan ay magiging due and demandable, na maaaring mauwi sa foreclosure.

2. Kung ito ay DCS , ang loan loan ay magiging due and demandable, na maaaring mauuwi sa cancellation alinsunod sa batas.

12. Kailangan ba ang down payment? Hindi ito kailangan sa kwalipikadong aplikante. Gayunman, kung magbibigay angborrower/awardee ng down payment, ibabawas ito sa balanse ng utang at ang lalabas naamount ang ire-restructure.

13. May application Wala.

fee ba?

14. Kailan tatanggap ang GSIS ng application sa restructuring? Ang pagtanggap ng application ay hanggang Hunyo 30, 2014.