GSIS Sells P313-M in Housing Units under GMA HeLPS

The Government Service Insurance System (GSIS) has sold house and lot units worth P313.91 million last year through its asset disposition program dubbed as Garantisadong Mababang Amortization na House En Lot Para Sa’yo or GMA HeLPS.

Launched in May 2007, GMA HeLPS offers one of the lowest interest rates in the market at six percent, compounded annually. But unlike the programs of other institutions, the six percent interest rate under GMA HeLPS is fixed throughout the term of the loan, thus, not subject to re-pricing.

In addition, unlike other GSIS programs, GMA HeLPS is open to both members and non-members.

The GSIS was able to sell more than 344 house and lot units last year under this program.
Installment buyers will be entitled to a maximum repayment term of 30 years but not to exceed the difference between 70 and the buyer’s age at the time of filing the application.

“With the help of GMA HeLPS, which offers the most attractive interest rate there is in the local market, dreams of owning a house is no longer far-fetched,” GSIS President and General Manager Winston F. Garcia said. “This is in line with the vision of President Gloria Macapagal-Arroyo of making owning a house very affordable for everybody.”

Majority of the housing units under the program are livable and located in subdivisions with complete amenities and with existing communities in over 70 locations, including key cities in Metro Manila, Bulacan, Rizal, Leyte, Western Samar, and South Cotabato.

GMA HeLPS also has easy and multiple payment options, allowing home buyers to squeeze in a few luxuries into their budget. Options include over-the-counter payments, post-dated checks, and salary deductions for members. A three-month grace period is also given before payment of the first monthly amortization.

Unlike banks which have imposed stricter requirements, the GSIS has also waived the application fee for interested parties and demands minimal documentary requirements.

Any individual or corporate entity who has the legal capacity to acquire real property in the Philippines may acquire these foreclosed properties either in cash or installment basis. Cash buyers will be entitled to a 10-percent discount on the selling price of the property.

The individual buyer must not be more than 65 years old at the time of filing of the Offer to Buy; has no delinquent loan account with the GSIS; and not an employee of the GSIS directly involved in the disposition of acquired assets.

On the other hand, for institutional buyers, they must be a domestic corporation, provident fund, association, local government unit, and the like; must be allowed by its by-laws to purchase a real property in the Philippines; and must have a specific authority to acquire real properties from the GSIS.

The maximum loanable amount shall be the selling price of the property less the P5,000 reservation fee and five percent down payment.

To get a listing of the inventory of properties for sale under this program, a prospective buyer may simply visit the GSIS website at www.gsis.gov.ph or inquire from the nearest GSIS servicing office.

GSIS gets Partner-Hospital in Iloilo under GHSP

Over 100,000 members and pensioners of the Government Service Insurance System (GSIS) in Western Visayas can now avail of as much as 40 percent in discount in their hospital bills after the GSIS named the West Visayas State University Medical Center (WVSUMC) in Iloilo City as its latest partner-hospital under the GSIS Hospitalization Support Program (GHSP).

WVSUMC is a five-storey, 300-bed hospital for service and pay patients. It is about a five to 10-minute walk from the main campus of West Visayas State University, which is located at Luna St., La Paz, Iloilo City. WVSUMC became the 7th accredited hospital under the GHSP.

The other partner-hospitals of the GSIS under this program include Davao Medical School Foundation Hospital in Bajada, Davao City; University of Santo Tomas Hospital in Manila; Capitol Medical Center in Quezon City; Lorma Medical Center in San Fernando, La Union; Perpetual Succour Hospital in Cebu; and the Angeles University Foundation Medical Center in Pampanga.

Launched in 2004, the GHSP works like an exchange deal between the GSIS and the partner-hospitals wherein the pension fund buys medical equipment and lends these to the select hospitals. In exchange, the partner-hospitals provide discounts to GSIS members and pensioners. The medical equipment remain the property of the GSIS.

Those covered by the discounts are members, their dependents and old-age pensioners.
Among the benefits offered to them under the GHSP include discounts in medical services including outpatient services and emergency cases, medicines as well as discounts in professional fees of select physicians.

Patients can avail of a 40-percent discount if they undergo special diagnostic procedures, 35 percent for common procedures, 30 percent on room rates, and 10 percent on professional fees including consultation fees.

If the patient has an eCard, he may just present this card to the GSIS coordinator in the partner-hospital upon admission to avail of the discounts. If the patient does not have an eCard, he should present his office ID and verify with the coordinator if his name is included in the list of eligible recipients of the GHSP benefits contained in a CD.

If the patient has no eCard and is also not included in the CD list, he should go to the Medical Services Group of the GSIS and get a certificate of eligibility. The patient can use this certificate to avail of the GHSP discounts in any partner-hospital.The GHSP can also be used in combination with the Philhealth card and health maintenance organization (HMO) card of the patient. In availing of the hospitalization discount, Philhealth will be applied first, followed by the HMO and finally the GHSP.

GSIS says 2008 dividends based on 2007 earnings

The Government Service Insurance System (GSIS) said the 2008 dividends it has recently declared and distributed to eligible members were based on the earnings from its life insurance fund in 2007.The GSIS issued this clarification in light of the queries from some members on why, based on the text message they have received from the GSIS, the “2007 dividends” have been distributed only recently.

“The 2008 dividends were the ones distributed recently, not 2007. The standard practice is if in a given year we post a surplus in our life insurance, that surplus will be reflected in the form of dividends the following year,” explained GSIS President and General Manager Winston F. Garcia.

The earnings in life insurance are principally derived from two sources: investment income and the so-called mortality gains or savings.

The System has allotted a budget of P950 million for its 2008 cash dividends, a six-percent increase from the allocation of P900 million the year before.

Those deemed eligible to receive the cash dividend include all active members including members of the Judiciary and Constitutional Offices whose life insurance coverages have been in force for at least one year as of December 31, 2007 and are still active as of declaration date.
Those who are also eligible include active members issued with Life Endowment Policy (LEP) or with new or converted Enhanced Life Policy (ELP) provided their policies have been in force for at least one year as of December 31, 2007.

Active members whose LEP matured after December 31, 2007 and who were issued a renewal policy under the ELP shall also be entitled to cash dividends based on their LEP. In addition, active members who opted to convert their LEP into ELP after December 31, 2007 shall also be entitled to receive the cash dividends based on their LEP.

Furthermore, members who have made payments on their respective loan accounts sometime in 2007 are also eligible to receive the cash dividends.

On the other hand, those not entitled to receive the cash dividends are active members who have defaulted in their Consolidated Loans and Salary Loans for at least 12 months and/or have unpaid premiums for at least 12 months; those with lapsed policies in calendar year 2007; and members under suspended agencies.

eCard Plus Availment Rises to 98.12%

The Government Service Insurance System (GSIS) targets a hundred percent roll-out of the eCard Plus this year, as more than 98 percent of GSIS active members and pensioners have already availed of the all-in-one utility card as of end-2008.

Records from the GSIS showed that out of the 1.6 million GSIS active members and pensioners as of end-December last year, 1.57 million (1.24 million active members, 325,377 pensioners) have already enrolled in the eCard Plus.

Combined eCard Plus enrollees in Luzon and the National Capital Region (NCR) now total 821,866, while the Visayas and Mindanao each contributed 255,046 and 293,705, respectively, the GSIS said.

The GSIS eCard Plus is a smart card that combines the functions of an identification card, a discount card, a savings account, and even a debit card in VISA-accredited merchant stores. It also functions as an ATM card and can be used at any Bancnet, Megalink or Expressnet ATMs in the county.

Moreover, pensioners abroad who have an eCard Plus can already withdraw their monthly pension from any ATM under the VISA PLUS network at the currency of the country they’re in.
The eCard Plus can also be used in point-of-sale terminals in selected M. Lhuillier branches to withdraw pensions, for online banking and to access the GSIS Wireless Automated Processing System kiosk or GWAPS.

It can also facilitate loan transactions and the annual renewal of active status (ARAS) of survivorship pensioners through the G-W@PS. The ARAS is a requirement set by the GSIS to all its pensioners—whether old-age or survivorship—to ensure the guaranteed receipt of their monthly pension.

Adding to these benefits, the new eCard Plus is also honored as a discount card by GSIS partner-hospitals, such as University of Santo Tomas Hospital in Manila, Capitol Medical Center in Quezon City, Lorma Medical Center in San Fernando, La Union, Perpetual Help Succour Hospital in Cebu, and the Angeles University Foundation Medical Center in Pampanga, and the Davao Medical School Foundation Hospital (DMSF) in Davao.

Under the GSIS Hospitalization Support Program (GHSP), active GSIS members and old-age pensioners get a 30-percent discount on room rates, medicines and supplies and a 10-percent discount on doctors’ fees, on top of their PhilHealth benefits from GSIS’ partner-hospitals. They also get up to 40 percent discount on other medical procedures, as well as a 50-percent discount when using the state of the art medical equipment provided by the GSIS.

Soon, the eCard Plus will also be honored as a discount card in Iloilo.

“We are happy with the turn-out of our eCard Plus, an ambitious project we launched in 2006. This is part of our commitment to bring faster and efficient service to our members and pensioners,” GSIS President and General Manager Winston F. Garcia said.

GSIS to Pensioners: Renew Active Status to Ensure Receipt of Monthly Pension

The Government Service Insurance System (GSIS) is reminding its old-age and survivorship pensioners to renew their active status on their birth month to ensure the receipt of their monthly pension.

The System mandates all its pensioners to comply with this requirement, dubbed as the annual renewal of active status or ARAS, to avoid suspension of their pension.

To renew their active status, pensioners must bring their eCard Plus to the nearest GSIS servicing office or the nearest government establishment installed with a GSIS Wireless Automated Processing System kiosk or G-W@PS kiosk on their birth month.

Then, they must place their eCard Plus on the card reader of the kiosk. Afterwards, they must choose the “Annual Reporting” icon using the kiosk’s touch screen and then select any pre-registered finger. Finally, they must lightly scan their finger using the fingerprint scanner of the kiosk to complete the process which takes only a few seconds to accomplish.

“The ARAS requirement is a mechanism by which the pensioners themselves control their pension. Their continuous receipt of pension depends on their dutiful compliance with this requirement,” said GSIS President and General Manager Winston F. Garcia.

For the past decade, GSIS pensioners have remained the highest earning retirees among all pension funds in the country. The GSIS has continuously increased its pension since 2000, and has implemented another increase starting this January.

With this increase, the average monthly pension of GSIS pensioners has further increased to around P7,600, more than a hundred percent more than what other pension funds disburse.
Last December, the GSIS allotted P1.18 billion in Christmas cash gift to its pensioners, a growth of 27.6 percent from the P923 million budget allocated for the Christmas cash gift in 2007.

Meanwhile, for the first 10 months of 2008, the GSIS recorded an increase of 12 percent in the amount of claims and benefits it has disbursed to its pensioners to P28.6 billion from P25.5 billion during the same period of the previous year.

GSIS reaffirms commitment to members & pensioners, local market

The Government Service Insurance System (GSIS) said it remains committed in uplifting the welfare of its members and pensioners, as well as maintaining its presence in the local capital market.

Reacting to statements by some lawmakers recently, GSIS Spokesperson Atty. Estrella Elamparo said the GSIS has been consistent in providing an increase in the claims benefits it disburses to its pensioners over the past decade.

“The GSIS is the only pension fund in the country that has continuously increased its pension since 2000, and has implemented another increase starting this month. In fact, with this increase, the average monthly pension of GSIS pensioners has further increased to around P7,800, more than a hundred percent more than what other pension funds disburse,” she said.

The GSIS has also recently increased the amount of Christmas cash gift it gave to its pensioners last December by 27.6 percent to P1.18 billion from the P923 million budget allocated for the Christmas cash gift in 2007.

Meanwhile, for the first 10 months of 2008, the GSIS recorded an increase of 12 percent in the amount of claims and benefits it has disbursed to its pensioners to P28.6 billion from P25.5 billion the previous year.

On the other hand, as of December 17, 2008, the total value of service loans disbursed by the GSIS to its members through the Consolidated Loan Program reached P34.01 billion for some 336,965 availing GSIS members.

In addition, a total of P1.62 billion was disbursed for the P10,000 cash advance facility availed by members who enrolled their eCard Plus in 2008, while regular and optional policy loans granted to 109,669 members amounted to P1.82 billion.

The GSIS also disbursed P1.62 billion in emergency loan proceeds to 80,730 eligible members working in government offices heavily hit by typhoons like “Cosme” and “Frank” in 2008. The loan bears an interest rate of eight percent per annum and is payable in equal monthly installments for a term of three years.

“The figures speak for themselves. The amount of claims and loans the GSIS disburses every year clearly shows that the System has never, ever wavered from its commitment to its members and pensioners,” said Atty. Elamparo.

The GSIS has also condoned P7.7 billion in surcharges and penalties of members’ loans that have been declared in default as of end-2007. The condonation was applied automatically on the GSIS members’ loan accounts.

Meanwhile, Atty. Elamparo said the System remains an active player in the local capital market, even if it has decided to tap investment opportunities overseas.

“When the GSIS launched its global investment program (GIP), it does not mean that the System has abandoned the Philippine capital market. In fact, we remain to be an active player in the local bourse, specifically in a number of blue chip stocks,” Atty. Elamparo, also the chief legal counsel of the GSIS, pointed out.

In 2007, the GSIS tapped the services of Metropolitan Bank and Trust Co., Bank of the Philippine Islands and Banco De Oro Universal Bank to manage P6 billion in net investible funds for a period of three years. The three banks were assigned to be the local fund managers of the GSIS with a mandate of P2 billion each.

The GIP is a program by the GSIS to diversify its loans and investments portfolio and improve its overall risk profile by tapping investment opportunities abroad in the form of financial securities through the hiring of global fund managers and a global custodian.

“Right now, the GSIS portfolio is already fairly diversified per asset class. But these assets are all domestic and highly correlated with the performance of the local capital market,” said Atty. Elamparo. “Through the GIP, the GSIS hopes to expand its investment horizon and capitalize on the opportunities offered by other capital markets.”

The GIP was launched in January 2008. In March of the same year, the GSIS named ING Investment Management and Credit Agricole Asset Management (Singapore) Ltd. as global fund managers for the GIP, with each given a mandate of $300 million each. Citibank, N.A. was named as the global custodian.

Five months into the program, the GIP posted an impressive growth in the total value of investments of five percent to P1.245 billion.

Total claims disbursed up 12% for Jan-Oct 2008

The total claims and benefits the Government Service Insurance System (GSIS) has disbursed to its pensioners during the first 10 months of the year grew 12 percent to P28.6 billion from P25.5 billion during the same period last year, a big indication that stakeholders of the pension fund continue to benefit from the policies it has been implementing.

Bulk of the total claims and benefits disbursed during the period came from retirement benefits wherein P25.6 billion were released from January to October 2008, representing a 15.8-percent increase from P22.1 billion given out in the same period last year.

For the whole of 2007, the total value of claims and benefits the GSIS has granted to its pensioners reached P32.8 billion.

The GSIS chief also noted that he expects the numbers to further increase by the end of the year when cash gifts are given out.

The state-pension fund recently approved the release of P1.18 billion as Christmas cash gifts to pensioners this year. The amount is an improvement from last year’s budget of P923 million.

“This year has been full of good news for the GSIS community, especially the pensioners. On top of the cash gift, benefits, and claims, pensioners are also looking at an increased monthly pension next year,” GSIS President and General Manager Winston F. Garcia said.

For the tenth year in a row, the GSIS has increased its monthly pension, a feat unmatched in the country. If compounded, the pension fund has increased its monthly pension benefit by as much as 84 percent over the last ten years.

“The GSIS exists for its members and pensioners. We strive hard to improve our operations and remain financially sound so we could give back what is due them,” Mr. Garcia added.

The state-pension fund expects another year of record-breaking disbursements of claims and benefits this year and the next, as it continues to improve its financial standing. The GSIS expects to hit P50-billion in net revenues this year, 25 percent higher than last year’s P41.2 billion bottomline.

“We are happy to give more to our pensioners. This, we are able to do by tightening our belts, implementing more efficient policies, and making prudent investment decisions,” Mr. Garcia added.

GSIS Museum Visitors up 61% in Jan-Nov ‘08

The number of visitors to the Government Service Insurance System (GSIS) Museo ng Singing during the first 11 months of 2008 increased by 61 percent to 112,132 visitors from 69, 658 visitors recorded during the same period in 2007.

GSIS President and General Manager Winston F. Garcia expressed elation over the robust growth figure.

“We are happy with the increasing number of visitors to the Museo as this shows a heightened awareness on our thrust to promote and insure our cultural heritage through the arts,” he said.

Based on the data provided by the Public Relations and Facilities Department (PRFD) of the GSIS, patrons of the Museo came from provinces like Iloilo, Benguet, Baguio, La Union, and Pangasinan. As in previous years, majority of the visitors of the Museo were elementary students.

“At an early age, we want our kids to appreciate our cultural heritage because these tangible works of art we inherited reflect who we are at different points in our history,” added Mr. Garcia.

The Museo houses a significant number of paintings and other art pieces, the most highly prized being Juan Luna’s “Parisian Life.” One of the country’s national treasures, this painting was done in 1892 and the very first Filipino painting that won a silver medal at the St. Louis Exposition (World Fair) in 1904.

Paintings of national artist Fernando Amorsolo are also exhibited at the Museo. Best known for his illuminated techniques, Amorsolo’s paintings often portrayed Filipino customs, culture, fiestas and occupations. As part of efforts to preserve Amorsolo’s paintings, the Museo launched the restoration of his painting titled “Awit” last October.

Works of other national artists such as Carlos “Botong” Francisco, Vicente Manansala and Hernando Ocampo are also displayed at the Museo.

The Museo also holds monthly exhibits of visual art works of contemporary artists. Next year, artists like Dexter Bigayan, Raul Dumawal Jr., Jason Samson, and Tony de Zuñiga, among others, will showcase their creative outputs.

In addition, the Museo spearheads an annual Painting Competition that serves as a venue for the discovery of future national and world-class artists.

This year, a record 649 entries vied for the top prize which eventually went to Antonio Ylanan from Cebu for his oil-on-canvas painting dubbed “Likod Likod.” Nine other entries in different categories were likewise awarded. Several of these winning pieces are also in display at the Museo.

Admission to the Museo is free. For large groups who are interested to take a visit, they may call the GSIS-PRFD at 891-6161 local 4859.

GSIS Celebrates Banner Year, Bullish in 2009

The Government Service Insurance System (GSIS) looks forward to a stronger year ahead, banking on the numerous milestones it achieved in 2008.

The GSIS, still the top earning government enterprise in the country, expects this year’s net income to increase by 25 percent, reaching P50 billion.

“This has been a very difficult year not only for the GSIS but also for the rest of the world. There has been so much economic meltdown. The GSIS, however, defied all these hurdles and now the future looks bright for us,” said GSIS President and General Manager Winston F. Garcia.

The pension fund cushioned the effects of this year’s global economic meltdown by taking advantage of great opportunities in 2008, including the sale of its 27 percent stake in Manila Electric Company (Meralco) to food and beverage conglomerate San Miguel Corporation.

GSIS stands to earn around P13 billion from the sale of the Meralco shares. The shares were sold at 102 percent premium or a total of P27 billion.

“The sale of our Meralco shares was one of our achievements during the year. We refuse to pass up on great opportunities like this. We sold the shares at a very high premium and in the end, it would be our members and pensioners who will benefit from these kinds of investment decisions,” Mr. Garcia said.

“The GSIS exists for its members and pensioners. We strive hard to improve our operations, think of better policies, and remain financially sound so we could give back what is due them,” he added.

The pension fund recently announced an increase in monthly pension starting next year. This is the tenth consecutive year that the GSIS hiked monthly pension benefits for qualified pensioners. If compounded, the pension fund has increased its monthly pension benefit by as much as 84 percent over the last ten years.

January to October 2008 data from the GSIS showed the pension fund has already disbursed P28.6-billion worth of claims and benefits to pensioners, 12 percent higher than the P25.5 billion released during the same period last year.

Bulk of the total claims and benefits disbursed during the period came from retirement benefits wherein P25.6 billion were released from January to October 2008, representing a 15.8-percent increase from P22.1 billion given out in the same period last year.

On top of this, the pension fund also approved the release of P1.18 billion as Christmas cash gifts to pensioners this year. The amount is an improvement from last year’s budget of P923 million. The state-pension fund expects another year of record-breaking disbursements of claims and benefits this year and the next, as it continues to improve its financial standing.

“We are happy to give more to our pensioners. This, we are able to do by tightening our belts, implementing more efficient policies, and making prudent investment decisions,” Mr. Garcia added.