This article was first published on GSIS
State pension fund Government Service Insurance System (GSIS) today announced that beginning February, it will refund premium in arrears previously deducted from the life insurance benefits of more than 73,000 employees of the Department of Education (DepEd).
The initial refund of Php363 million was made possible by the payment of the Department of Budget and Management (DBM) of a 50% down payment of DepEd’s Php6.92 billion in unpaid compulsory premium contributions representing the government share of nearly 800,000 teaching and non-teaching employees of the DepEd from July 1, 1997 to December 31, 2010.
In September last year, GSIS, DBM and DepEd signed an agreement in Malacanang witnessed by President Benigno Aquino, which addressed the recurring concern on the non-remittance of premium contributions affecting the right of DepEd workers to avail themselves of their full GSIS benefits while in service and upon their retirement.
DepEd employees covered by the February refund are those whose Cash Surrender Value (amount paid to the policyholder upon separation from the service) or Maturity Benefit (benefit payable upon maturity of the endowment policy) were processed between 1997 to 2010. The refund will benefit 28,279 active members, 35,759 pensioners and 9,329 separated members.
The refund of DepEd members with existing eCard or UMID card will be released through their card; those without eCard or UMID card will be released through checks.
“The next batch of refund will be processed and released after February,” GSIS President and General Manager Robert G. Vergara said.
“After the complete settlement of unpaid premiums, DepEd employees in active service will enjoy a proportionate increase in loanable amounts and potentially, increased retirement and life insurance benefits,” Vergara said.
He said that GSIS will recalculate the benefits received by those who have already retired and will refund deducted amount representing premium in arrears that have already been paid by the DBM. Their pensions will likewise be adjusted.
For any question on the refund, DepEd employees may call the GSIS hotline number (02) 847.4747.
