Updates on GSIS Policies and Reforms October 23, 2014 Atty. JASON C. TENG

“Responsive service by providing adequate benefits to members and pensioners”  By instituting policy reforms that focus on the needs of members and pensioners  By reviewing and revising procedures to make it more convenient for members to apply for and claim their benefits  By focusing on its core function as a social insurance institution  By taking measures to ensure the financial sustainability of the Fund 2

GSIS continues to institute policy reforms that focus on the needs of its members and pensioners

Restoration of Survivorship Benefits Surviving spouses now receive pension even if gainfully employed or have other sources of income or pension. MEMBER-FOCUSED PROGRAMS AND POLICIES 4

Pensioners no longer required to undergo ARAS MEMBER-FOCUSED PROGRAMS AND POLICIES Pensioners no longer required to visit GSIS for annual status renewal, except for: Pensioners living abroad Pensioners living in the ARMM Partnership with NSO Pilot program with Philpost 5

Empowers retirees on how to settle outstanding obligations, in whole or in part No more forced deduction of housing loan from retirement benefits Choice of Loan Amortization for Pensioners (CLASP) replaced Claims and Loans Interdependency Policy (CLIP) MEMBER-FOCUSED PROGRAMS AND POLICIES 6

Option to Change Retirement Date, Retirement Mode and/or Retirement Benefit Option Prospective Retirees can change the following even after submission of retirement application: Date of retirement (as long as below 65 years old) Mode of retirement (RA 8291, RA 1616, RA 660, etc.) Retirement benefit option (5 years lump sum or 18x BMP plus immediate pension) Conditions: 1.Retirement proceeds have not yet been paid or eCredited by GSIS 2.Member submits a written request to GSIS 3.In case of change in retirement date, member has continued his/her government service (no gaps) MEMBER-FOCUSED PROGRAMS AND POLICIES 7

Adjustment of Minimum Monthly Pension Minimum monthly pension of PhP5,000 for old-age GSIS retirees Effective January 2013 MEMBER-FOCUSED PROGRAMS AND POLICIES Revived payment of proportionate pension Retirees’ pension now computed proportionately from retirement date unlike before when pension was paid a month after retirement date Retroactive from September 2009 Disbursed more than PhP286M to over 45,000 pensioners 8

Enhancement of Loan Terms to Make Them More Responsive to Needs of Members and Pensioners 1.Enhanced Emergency Loan Reduced interest Rate to 6% No more service fee Extended grace period (3 months before first amortization) Special EL terms for members in areas repeatedly devastated by calamities Increase of credit limit for those with outstanding EL Waiver of 12 months’ payment of amortization to renew 2.Pension Loan – Loan Redemption Insurance (LRI) 3.Special Loan Packages (one-time) Moratorium on loan payments Home Emergency Loan Program (HELP) MEMBER-FOCUSED PROGRAMS AND POLICIES 9

Condones all unpaid penalties, surcharges Grants extended payment terms Uses more systematic and orderly manner of accommodating interested borrowers (by appointment) Condonation and Restructuring Program for Delinquent Housing Loan Borrowers MEMBER-FOCUSED PROGRAMS AND POLICIES 10

Allows low-income members to send children to college Exclusive to children of GSIS members Php20,000/semester and Php2,000 monthly stipend MEMBER-FOCUSED PROGRAMS AND POLICIES GSIS Scholarship Program 11

Enhanced the Optional Non-Life Insurance (ONLI) Program to benefit members FIRE INSURANCE Covers residential and commercial properties of GSIS members Premium rates vary, depending on the location of the property MOTOR VEHICLE INSURANCE Comprehensive Insurance coverage The lowest & most affordable motor vehicle insurance in the market Available to GSIS members and relatives within the first degree of affinity PERSONAL ACCIDENT INSURANCE 24 hour Worldwide Accident Insurance Cover includes travelling abroad as a passenger in a commercial airline MEMBER-FOCUSED PROGRAMS AND POLICIES 12

GSIS is reviewing and revising procedures to make it more convenient for members to apply for and claim their benefits

Streamlining of documentary requirements Lesser number of documents to be submitted Submission of Certificate of Pendency/Non- Pendency (instead of separate clearances from the CSC, Ombudsman, and the Office of the President) Prior application for funeral benefit considered as constructive notice of application for survivorship claim PROGRAMS FOR CONVENIENCE OF MEMBERS Simplification of Procedures 14

Resumed engagement with Paz Memorial to render services to 1,800 fully-paid and active plan holders. Offered Prudential Life Plan holders an exit mechanism, to recover up to 150% of contract price. Exit Mechanism for Memorial Plan Holders to recover investments PROGRAMS FOR CONVENIENCE OF MEMBERS 15

GSIS expands service reach with LANDBANK’s 1,000 ATMs nationwide Launch of GSIS-LBP partnership in Batangas, February 2011 (updated as of 1 August 2014) PROGRAMS FOR CONVENIENCE OF MEMBERS Renewed Partnership with Landbank 16

Use of eCard in paying claims Claim proceeds now electronically credited via eCards instead of checks Ensures timely release of benefits Makes processing twice as fast than traditional check payment PROGRAMS FOR CONVENIENCE OF MEMBERS 17

GSIS is focusing on its core function as a social insurance institution

Php5-B for home lending to GSIS members through Pag-IBIG Fund. Loan facility fully utilized by more than 8,500 government employees National Museum now manages more than 300 artworks of GSIS, including the renowned ‘Parisian Life’ Partnerships with Pag-IBIG Fund and National Museum FOCUS ON CORE FUNCTION AS A SOCIAL INSURANCE INSTITUTION 19

GSIS is continually taking measures to ensure the financial sustainability of the Fund

 Approval and periodic review of Investment Policy Guidelines  Provides parameters for GSIS investments  Sets caps/limits on each type of investment Responsible Management of Investments MEASURES TO ENSURE FINANCIAL SUSTAINABILITY 21

Policy on cash sale of real properties classified as big and medium ticket accounts Public bidding Publication requirements External appraisals in order to get best value Policy on Negotiated Sale Responsible Management of Real Property Assets MEASURES TO ENSURE FINANCIAL SUSTAINABILITY 22

MEASURES TO ENSURE FINANCIAL SUSTAINABILITY Basis for Granting Emergency Loans (EL/PEL) Declaration of a State of Calamity by the National Disaster Risk Reduction and Management Council (NDRRMC) Declaration of a State of Calamity through a resolution issued by the Sangguniang Panlalawigan or Panglungsod; or through Certification issued by the Provincial Governor or Administrator

MEASURES TO ENSURE FINANCIAL SUSTAINABILITY Eligibility Requirements for Emergency Loan Member-Applicant must be a bona fide employee of an agency located in the declared calamity area or is a resident of the declared calamity area Member must be in active service and not on leave of absence without pay Member must have no arrearages in payment of mandatory social insurance contributions and no loans declared in default Agency of the Member-Applicant must not be on suspended status

MEASURES TO ENSURE FINANCIAL SUSTAINABILITY Terms of Emergency Loan Amount – P20,000 for those with no EL account and P40,000 for those with existing EL account Interest rate – 6% per annum computed in advance Payment period – 3 years with 3 month grace period prior to 1 st monthly installment Deductions 1.2% Loan Redemption Insurance Balance of existing EL account No Service Fees

MEASURES TO ENSURE FINANCIAL SUSTAINABILITY Eligibility Requirements for Pensioner’s EL Member-Applicant must be a bona fide employee of an agency located in the declared calamity area or is a resident of the declared calamity area Member must be in active service and not on leave of absence without pay Member must have no arrearages in payment of mandatory social insurance contributions and no loans declared in default Agency of the Member-Applicant must not be on suspended status

MEASURES TO ENSURE FINANCIAL SUSTAINABILITY Terms of Pensioner’s Emergency Loan Amount – P20,000 Interest rate – 6% per annum computed in advance Payment period – 3 years with 3 month grace period prior to 1 st monthly installment Deductions Loan Redemption Insurance (Rate Depends on Age) No Service Fees

MEASURES TO ENSURE FINANCIAL SUSTAINABILITY Other Programs Offered by GSIS in the Past Moratorium on Loan Payment Home Emergency Loan Program

29 Thank you!