GSIS reforms bring benefits to members

Messy and suffering from financial haemorrhage due to faulty investments. That was the Government Service Insurance System (GSIS) three years ago. Barely two years after, thanks to the reformist-administration headed by chairman Daniel Lacson Jr.  and president and general manager Robert Vergara, the ailing state-owned fund is out of sick bay and now financially sound. In 2011, it posted a whopping total comprehensive income of P74.09 billion.

With its computer-related problems over and the windfall of profits in 2011, the GSIS today operates like a well-oiled machine. Responsive to the needs and concerns of its 1.7 million members and pensioners, the agency implemented some policy changes and adjustment measures aimed at improving further its services to its stakeholders. These are: revoking the personal appearance requirement for pensioners or the Annual Renewal of Active status (ARAS), deployment of GSIS wireless automated processing system (GWAPS) kiosks nationwide, renewing the survivorship benefit of deceased members’ qualified survivors, relaxing the policy on the four-year prescription period for claiming survivorship benefit, reviving the payment of proportionate pension, providing less burdensome settlement of loan balance for retiring members, engaging the services and expertise of the Pag-IBIG Fund in home-lending program, working out an agreement with the Department of Budget and Management (DBM) and Department of Education (DepEd) for the settlement of the outstanding arrears of more than 587,000 DepEd personnel in the Central Office, liberalizing the terms of the Emergency Loan Program, implementing the Educational Assistance Fund Program for all active members regardless of salary grade and the scholarship program for children of low-income members, increasing the minimum monthly pension to P5,000 and settling the claims of GSIS members-planholders of the Paz Memorial Sevices, Inc.

The expected benefits from the new management reform-initiatives are now enjoyed by the stakeholders, particularly the age-old and sickly pensioners, some of whom wrote and thanked the new management profusely for the increase in their monthly pensions. “The increase,” they said, “is a big help in defraying their maintenance expenses and other needs.” As what President Aquino said during the GSIS’s 75th year anniversary celebration, “the fresh winds of change is now being felt in the pension fund.” Judging from the blooming good relationship between the GSIS and its stakeholders, the former has fully regained the trust and confidence of the latter that was lost during the last administration.

Meanwhile , (as reported in the Philippine STAR), to generate more income and help the government in funding its infrastructure-building program, the GSIS has scrapped its $670 million global investment program. It may be recalled that during the preceding administration, the GSIS had invested heavily in questionable projects and shady undertakings, procurement of unnecessary expensive paintings, fat allowances and other handsome perks that badly shook the agency’s financial stability. To avoid this blunder of the past, the GSIS now exercises extra care and prudence in handling and disbursing of its fund. Its new policy thrust of investing locally its $670-million foreign investment fund is a step in the right direction that will bring greater benefits to the stakeholders and stimulate further our county’s expanding economy. —VOLTAIRE MAGPAYO,  former GSIS consultant on assets management, Quezon City