GSIS offers loan condonation-A A +A
Thursday, May 5, 2011
GOVERNMENT Service Insurance System members can now settle their loan obligations with zero penalties and surcharges after the GSIS Board approved the condonation of outstanding balances under the stock purchase loan (SPL) program.
SPL accounts paid on or before June 30, 2011 will enjoy a 100 percent condonation on penalties and surcharges and a 50 percent condonation on interest. Stock certificates will also be released upon full payment.
Shares of stocks of unsettled loan accounts after the June 30 deadline, meanwhile, will be sold and the proceeds applied to the loan balances, explained the GSIS in Wednesday’s advisory. “The new program forms part of the GSIS initiatives to continuously review all plans and programs to make them friendlier for members and pensioners.”
“We want those who have outstanding SPL accounts to have zero liabilities so they can enjoy their retirement benefits in full,” it added. The condonation program will also allow the GSIS to clean up its records and unload non-performing loans.
GSIS introduced the stock purchase financing program (SPFP) in 1994, 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 exceeding P100,000. A pensioner is entitled to a loan equivalent to six times his monthly pension but not more than P10,000.
“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,” the GSIS said.
In case of separation or retirement from the service of an active member, the outstanding loan balance shall become due and demandable and shall be deducted from any benefit due the member.
Records showed that as of December last year, a total of 2,596 members have outstanding stock purchase loan obligations valued at P273 million.
Concerned members are advised to visit the frontline services unit in any GSIS office with regard the condonation program. (CGC)
Published in the Sun.Star Bacolod newspaper on May 05, 2011.