GSIS won't go into bankruptcy

CEBU, Philippines - The Government Service Insurance System assured the public that it will continue giving loans to its members this year, saying there’s no need for them to worry about the pension’s fund going into bankruptcy amidst the global financial crisis.

During the “Kapihan sa PIA,” top GSIS officials said that last year alone, they had given about P2.4 billion in loans to their members in Central Visayas.

The biggest loans were made in Cebu with about P1 billion, followed by Dumaguete City with P707 million and Bohol with P267 million.

Data from GSIS regional office showed that of the 81,083 members and nearly 25,000 pensioners in Central Visayas, a total of 39,176 have availed themselves of different loan packages last year.

Of the P2.4 billion worth of loans disbursed last year, P2.1 billion went to the Conso-loan program of nearly 24,000 members who received more than P88,000 each.

The Conso-loan program of GSIS enables members to borrow money equivalent to as much as ten times their monthly salary. The borrowed money is often used as start up capital.

Ella Valencerina, GSIS vice president for public relations and communications, said they were aware of the concerns of members that their office would be bankrupt due to the crisis. But he assured that GSIS is “financially very strong.”

In fact, GSIS records since 2002 showed that there has been an increase of assets from P205 billion in 2002 to 490 billion in 2008.

Robert Agustin, GSIS vice president for membership groups, said that most of their members and pensioners have been complaining about “inaccurateness of their records because they are not updated which leads to problems in acquiring their loans and pensions.”

But Agustin said that to solve this problem, they are closely coordinating with the agencies of their members and that updating of records is done on a regular basis.

Agustin also reminded pensioners to renew their membership on their birth month in order to prove their active status and to make sure that they received the receipt of their monthly pension. — AJ de la Torre/LPM   (THE FREEMAN)