To all government employees who will be affected by EO366, pls take note.
In the course of our dealings with GSIS as EO366 retirees, we personally and or collectively learned of the existing GSIS policies that are grossly biased against government employees and future pensioners.
We believe that the CSC is the guardian of all civil servants and as such is in the best position to stand for fair treatment of government employees.
In view thereof, we enumerate hereunder the GSIS policies that we deem unjust and unless corrected, will cause great pain and anguish to government employees availing of GSIS loans and pensions:
1. Interest and Penalties on Loan Balances
While the benefits due from GSIS are being processed, GSIS continues to charge interest and penalties on loan balances even beyond the effectivity of retirement. It is worthwhile to note that, payments for these loans will only be deducted from the proceeds of the retirement claims; since, they are already with GSIS.
2. Discrepancies on Premium Contributions
There is an apparent difference in the posting of employees’ premium contributions as against the ideal premiums on almost all the retirees’. Since the premium due is a function of the members’ monthly salary, TLRC has been conscientiously remitting the corresponding amount due based on the formula supplied by GSIS. Pending the reconciliation of records on the GSIS database, the employees are again being charged with penalties and interest charges.
3. Non-recognition of Overpayments
Overpayments are not recognized, but instead reflected as difference (underpayment), which further reduces the aggregate length of creditable service of the member. For the same reason, there is no way that overpayments can be refunded.
4. Charging of Interests, Penalties and Surcharges on Premiums for Previous Government Services other than Permanent/Casual Appointments (Temporary, Co-terminus, Contractual, etc)
The option to pay the corresponding premiums for previous services other than permanent/casual appointments is generally advantageous to the concerned employees. However, this option was communicated to us only very recently and we are willing to pay for the premiums and reasonable interests. However, the imposition of excessive interest (2% per month!!!) and surcharges makes it virtually impossible for most of the members to avail of this option.
5. Procedures and Requirements in the Processing of Retirement Benefits
As per procedure, after initial processing the Field Office shall send letters to affected employees, formally informing them of the options whether to pay their underpaid/unpaid premiums or waive such option prior to the final processing of their claims. Without this document, the processing will be withheld.
However, up to this date no letters are received. The retiring employees were advised only in the Field Office that there is a need to signify their option. In the meantime, interest and penalties are piling up, even as the reconciliation of premium contributions is still being done.
Furthermore, the concerned employees at this point are in a dilemma, on whether to sign or not the waiver in the payment of underpaid/unpaid premiums, because of the information that once the retirees receive the retirement checks, the process becomes irreversible.
6. Advance Interest on Loans
Loan balances deducted from claims appear to have been charged interest on the full term of the loan despite the fact that the loans are effectively pre-paid upon the retirement
7. Difficulties in Validation of Members’ Records
The information/schedules being provided to GSIS members/prospective retirees virtually make validation and /or reconciliation impossible. As such member/retirees end up with no choice but to accept the GSIS comp*tation even while fully aware that they may have been shortchanged.
In view of the above, we earnestly request your intervention for the GSIS to consider the following:
1. Stop the charging of interests and penalties after the effectivity date of the retirement.
We believe that this is meritorious in the sense that the payments for these loans will only be deducted from the proceeds of the retirement claims that are already with GSIS, and that the processing of the retirement claims was delayed due to some inaccuracies in the GSIS database.
Furthermore, the supposedly underpaid/unpaid premiums were already remitted to GSIS and only proper posting will set the records straight.
2. While we are amenable for the charging of interests, but in the interest of fair play, we are requesting for the reduction of interest rates and surcharges to enable the members to pay the corresponding premiums for previous services other than permanent appointments.
3. Re-comp*tation to take into consideration overpayments made. As earlier mentioned, overpayments are still erroneously recognized as underpayment, resulting in further reduction in the number of creditable years of service.
4. Refund/rebate of the interests charged after the effectivity of the retirement, which were deducted in advance for the 2nd and 3rd years of the term of the loan.
5. To allow the re-comp*tation and payment of incremental/additional benefits even after receipt of retirement benefits, when the reconciliation of premium payments of concerned retired employees are completed.
GSIS Thread
in Money, Finance, Investments, Crypto, Stocks, Banking, Business, Loans
Posted
To all government employees who will be affected by EO366, pls take note.
In the course of our dealings with GSIS as EO366 retirees, we personally and or collectively learned of the existing GSIS policies that are grossly biased against government employees and future pensioners.
We believe that the CSC is the guardian of all civil servants and as such is in the best position to stand for fair treatment of government employees.
In view thereof, we enumerate hereunder the GSIS policies that we deem unjust and unless corrected, will cause great pain and anguish to government employees availing of GSIS loans and pensions:
1. Interest and Penalties on Loan Balances
While the benefits due from GSIS are being processed, GSIS continues to charge interest and penalties on loan balances even beyond the effectivity of retirement. It is worthwhile to note that, payments for these loans will only be deducted from the proceeds of the retirement claims; since, they are already with GSIS.
2. Discrepancies on Premium Contributions
There is an apparent difference in the posting of employees’ premium contributions as against the ideal premiums on almost all the retirees’. Since the premium due is a function of the members’ monthly salary, TLRC has been conscientiously remitting the corresponding amount due based on the formula supplied by GSIS. Pending the reconciliation of records on the GSIS database, the employees are again being charged with penalties and interest charges.
3. Non-recognition of Overpayments
Overpayments are not recognized, but instead reflected as difference (underpayment), which further reduces the aggregate length of creditable service of the member. For the same reason, there is no way that overpayments can be refunded.
4. Charging of Interests, Penalties and Surcharges on Premiums for Previous Government Services other than Permanent/Casual Appointments (Temporary, Co-terminus, Contractual, etc)
The option to pay the corresponding premiums for previous services other than permanent/casual appointments is generally advantageous to the concerned employees. However, this option was communicated to us only very recently and we are willing to pay for the premiums and reasonable interests. However, the imposition of excessive interest (2% per month!!!) and surcharges makes it virtually impossible for most of the members to avail of this option.
5. Procedures and Requirements in the Processing of Retirement Benefits
As per procedure, after initial processing the Field Office shall send letters to affected employees, formally informing them of the options whether to pay their underpaid/unpaid premiums or waive such option prior to the final processing of their claims. Without this document, the processing will be withheld.
However, up to this date no letters are received. The retiring employees were advised only in the Field Office that there is a need to signify their option. In the meantime, interest and penalties are piling up, even as the reconciliation of premium contributions is still being done.
Furthermore, the concerned employees at this point are in a dilemma, on whether to sign or not the waiver in the payment of underpaid/unpaid premiums, because of the information that once the retirees receive the retirement checks, the process becomes irreversible.
6. Advance Interest on Loans
Loan balances deducted from claims appear to have been charged interest on the full term of the loan despite the fact that the loans are effectively pre-paid upon the retirement
7. Difficulties in Validation of Members’ Records
The information/schedules being provided to GSIS members/prospective retirees virtually make validation and /or reconciliation impossible. As such member/retirees end up with no choice but to accept the GSIS comp*tation even while fully aware that they may have been shortchanged.
In view of the above, we earnestly request your intervention for the GSIS to consider the following:
1. Stop the charging of interests and penalties after the effectivity date of the retirement.
We believe that this is meritorious in the sense that the payments for these loans will only be deducted from the proceeds of the retirement claims that are already with GSIS, and that the processing of the retirement claims was delayed due to some inaccuracies in the GSIS database.
Furthermore, the supposedly underpaid/unpaid premiums were already remitted to GSIS and only proper posting will set the records straight.
2. While we are amenable for the charging of interests, but in the interest of fair play, we are requesting for the reduction of interest rates and surcharges to enable the members to pay the corresponding premiums for previous services other than permanent appointments.
3. Re-comp*tation to take into consideration overpayments made. As earlier mentioned, overpayments are still erroneously recognized as underpayment, resulting in further reduction in the number of creditable years of service.
4. Refund/rebate of the interests charged after the effectivity of the retirement, which were deducted in advance for the 2nd and 3rd years of the term of the loan.
5. To allow the re-comp*tation and payment of incremental/additional benefits even after receipt of retirement benefits, when the reconciliation of premium payments of concerned retired employees are completed.