I have been researching for three weeks now on the nature of members’ benefits from state pension funds Government Service Insurance System and the Social Security System. As you know, the times call for a more determined look into financial help people can tap in times of need, and state pension funds were created especially for that.
I was expecting the article to unfold as a helpful “what to do” story on how to tap benefits more aggressively; an educational foray if you will on benefits that are there anyway for the average worker.
A friend alerted me over the weekend, however, on a very disturbing matter. Many employees in the National Economic Development Authority (NEDA) who had applied for loans from the GSIS have been paying interest and principal far longer than the terms required under their loan. The reason? Computer records do not match. Their personal records of salary deductions to pay their loans do not match that of the GSIS. Some borrowers have been paying for more than 20 months for a loan that would have been paid in full for 12!
Infuriating? You betcha. That’s money out of your pocket, and what should have been a helpful exercise of borrowing from money that workers have been pooling together their entire employed life has become a source of much hair-pulling stress. My friend said someone in the news had a heart attack at a GSIS office because she could not make sense of what went wrong with her loan.
I have heard vaguely about public outcry from government retirees and there have been demonstrations left and right about GSIS benefits. Only now have I realized the depth of the problem. Any experiences out there you can share?
28 Responses to “The thing with GSIS member loans”
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Pages: [6] 5 4 3 2 1 » Show All
April 29th, 2009 at 10:16 am
[...] The thing with GSIS member loans [...]
February 27th, 2009 at 9:37 am
Read all the adverse comments about GSIS and they talked about the same things - loan repayments still unposted,
loooonnng processing time for benefits like retirement, lots of deductions in benefit claims computations, etc.
All this boils down to inefficient and incompetenet management. GSIS had been barking that they are still in the process of posting contributions and loan repayments covering the period 1997 to present. GSIS never cared to update its members about the posting. It is not the computers or the programs to be blamed but GSIS management.
If GSIS has the money, they can always opt to have a special project that will expedite the posting. Again, GSIS never cared to do this for the good of its members.
GSIS recently implemented its rationalization program where MANY of its employees availed. The program allowed the employees to leave GSIS and this compounded its prevailing problem - unposted loan repayments and contribution. It will take some time to fill up the gaps left by the employees.
I beg WINSTON GARCIA to humbly resign and give its member a breather. He is not capable of making positive things happened at GSIS for the good of its members.
KAHIT KAILAN, KAHIT SAAN
HINDI MAAASAHAN . . . if this is not true, I challenge Mr. Garcia to prove it.
Calling Social Weather Station (SWS) to conduct a survey if GSIS is doing its job.
February 24th, 2009 at 12:42 pm
Your story is soooo true. I have had officemates in the government before who until now were unable to get the excess amount that GSIS deducted from them. They always claim that the record from our Accounting department regarding payments made does not match their records. How long are they going to use this rotten excuse, anyway?
February 23rd, 2009 at 6:55 pm
[...] loan from the children (with interest but lower than 42%), loans from the Social Security System (I will not recommend borrowing from the Government Service Insurance System) or salary and personal loan from a thrift bank. Whatever you do, do NOT borrow from a loan shark [...]
February 22nd, 2009 at 4:18 pm
If gsis is really profitable why is it hard up in paying benefits on time? where is their money invested (rather, who is using it?). Pres Garcia has to be replaced with a straigt talking head. computerization has been ongoing for years yet until now they are not done yet. is this a smokescreen to hide the truth from the public-members specially, that gsis funds could have been misused. Can Commission On Audit tell us the real score at GSIS. Or should a private auditor like SGV conduct an independent examination to ferret the truth once and for all…confirm the truth of Pres Garcia’s media blitz about the profitability of gsis…or his lies. whatever, the member-public has to know.