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.
