P21B in GSIS loans released

The continuing full steam processing operations in the Government Service Insurance System (GSIS) has so far resulted in a record performance of 32,500 emergency applications approved and released daily since Oct. 13.

The GSIS has so far released P20.94 billion for payment of loans and claims over a period of two months, invalidating reports that the pension fund has been unable to provide service to its members.

"We are not deterred by certain quarters who have not stopped orchestrating the vilification of the GSIS in the hope that their personal interests will prevail," GSIS president and general manager Winston Garcia said. "I am confident that our reforms are in the right direction. The results are now bearing us out," the GSIS chief added.

Now releasing an average of P327 million daily in loans and claims, the GSIS has paid P3.26 billion in retirement claims, P3.08 billion in life insurance claims, P4.834 billion in salary loan applications and P2.076 in policy loan applications. It has also granted P7.474 billion in emergency loans in only 23 working days.

"We have been able to attain financial and operating gains that even surpass results of normal operations," explained Garcia.

The system temporarily suspended its operations sometime in the third quarter of the year to give way to a computerization program. With technology in place, the pension fund is now coordinating with member-agencies to complete database updating.

It is likewise strictly enforcing the Premium-based policy and the Claims and Loans Interdependency Policy (CLIP) in efforts to protect the long-term solvency of the fund.

"The Premium-based policy ensures that the amount of social security benefits paid to a member is properly matched with the number of amount of premiums actually received by the System in his behalf, while the CLIP ensures that arrearages or unpaid amortization of a member on other loan windows of the GSIS are deducted from the proceeds of new loan," explains Garcia. "Both policies will contribute significantly to the lengthening and strengthening of the pension fund."

Under Garcia, the GSIS attained the highest gross and net revenues ever and improved the efficiency level of its services.

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