GSIS condones P698 million loan penalties

MANILA, Philippines — Government Service Insurance System (GSIS) has condoned almost P700 million in penalties under its loan restructuring program, helping inactive members pay off their outstanding debt with the state-run fund.

In a statement, GSIS chairman and acting president Rolando Macasaet said the pension fund’s program for restructuring and repayment of debts (PRRD) has condoned P698.42 million in loan penalties from its launch on Dec. 18, 2018 to Jan. 6, 2020.

He said a total of 7,450 loan accounts were restructured, which cumulatively amounted to P393.18 million.

Macasaet also reported that the GSIS, under the PRRD, has so far collected P144.41 million from 2,630 members who opted to settle their loan balances in full.

Another 2,195 members opted to pay on three-year installment bases, with a 10 percent interest per annum.

GSIS-PRRD is the pension fund’s one-time condonation and restructuring program, which seeks to help members already out of government service to settle their outstanding loan balances.

Under the program, all unpaid penalties on the outstanding loan balance of a member will be condoned. The remaining balance will be restructured, and can be paid in full or installments.

“The program has eased the burden of members who worry about paying their outstanding loan balances that have incurred interest and surcharges over time,” Macasaet said.

  The GSIS chief encouraged other qualified inactive members to avail of the program, as the state fund has extended the application deadline until Sept. 30.

Covered under the program are those with unsettled service loans, such as salary loans, Emergency Loan Assistance, Member’s Cash Advance, Conso-Loan, Home Emergency Loan Program (HELP), Study Now, Pay later and Fly Pal, Education Assistance Loan, Policy Loan and GSIS Financial Assistance Loan to Department of Education Personnel, among others.

The state pension fund also recently extended the deadline for the GSIS Financial Assistance Loan Program (GFAL) until July 26.

GFAL allows GSIS members to consolidate and transfer their existing loan balances amounting up to P500,000 from other lending institutions to the state pension fund.

The GSIS had already disbursed about P77 billion since it launched the program on May 15, 2018, benefiting 190,000 members.