Anyone working for the Philippine government is eligible to join the Government Service Insurance System (GSIS) as part of its many benefits. These include officers and employees of the government and their relatives up to the second degree of consanguinity (blood relationship), as well as other individuals employed in positions with a fixed monthly salary.
There are several benefits of joining GSIS, including health insurance for members and their families. This insurance coverage is also extended to dependents of government employees who died while in service or retired from the government. The GSIS also provides life insurance coverage for its members, which can be used as an investment option. If you’re considering joining GSIS, here’s what you need to know about this government-run insurance program.
What is the Meaning and Purpose of GSIS?
The GSIS or the Government Service Insurance System is a government-owned insurance company that provides a defined benefit program to its members. It is a part of the Philippine government’s controlled organization, which is known as the GOCC. Like other insurance plans, it provides its members with protection against certain events.
The GSIS provides various types of social security benefits to its members. These include retirement payments, life insurance, and disability benefits.
Overview
The GSIS was established in 1937 to provide insurance coverage for public sector workers. Initially, it was focused on providing life insurance. In 1951, it was expanded to include pension, old-age, disability, and invalidity benefits.
The GSIS was able to improve its services and provide better benefits under the Republic Act 8291 of 1997. This legislation was also aimed at enhancing the welfare of government employees.
All government employees are required to join the GSIS. This means that even if they have not reached the retirement age of 65, they are still entitled to benefits.
Although the GSIS provides insurance coverage for government employees, it excluded certain groups such as the armed forces of the Philippines and the Philippine National Police. It also did not cover the salaries of other government employees who do not have a fixed monthly compensation.
Functions and Responsibilities of the GSIS
The GSIS is responsible for identifying and providing insurance coverage for all government projects and properties. It also has the necessary operational and strategic capabilities to manage its risks.
When the funds owed to the GSIS become due, the organization should immediately collect them. It should also resolve all justified claims within the indicated timeframes.
The GSIS should also adopt the correct insurance policies and procedures. These should include the correct rates and terms.
- Education
Through its scholarship program, the GSIS provides financial assistance to qualified students who are from families with the lowest income. These students will be able to cover their tuition and other expenses up to a maximum of P40,000 per academic year.
The number of new scholars has doubled, which will allow more low-income individuals to pursue their education. In total, the GSIS has provided financial assistance to over 400 members. Some of these include disabled individuals, single parents, and indigenous elders.
Aside from the scholarship program, the GSIS also provides financial assistance to Brigada Eskwela. Through the Assistance to Schools Program (ASP), the GSIS provides financial assistance to selected public schools in the country’s poorest regions. This program, which started in 2014, has already helped 49 schools.
- Environmental Care and Preservation
The GSIS’ environmental care actions include the planting of trees and the cleaning of the coast. The pension fund’s Green Program is its most basic contribution to the country’s environment. In 2012, an oversight committee was formed to implement the NGP’s mandate, which urges government employees and students to plant at least 10 trees each year. The committee was tasked with ensuring that the program’s goals are achieved.
One of the government’s top priorities when it comes to preserving the environment is tree planting. This project is carried out to help the country become more sustainable.
Employees of the GSIS regularly clean Manila Bay. Their goal is to raise awareness about the importance of preserving the environment and promoting recycling. They also collect data related to the use of eco-friendly packaging.
- GSIS has Lectures of Special Interest and an Art Contest
Through these programs, the GSIS encourages its employees to improve their skills and knowledge by holding special interest lectures.
The GSIS Art Competition is also a platform for aspiring artists to exhibit their works. Since 2004, the event has been able to recognize multiple first, second, and third prizes in various categories.
What is Ginhawa for All (GFAL)?
The Ginhawa for All organization is a government agency that focuses on the welfare of the people. It provides various services and programs to its employees in the same manner that the government does. Since it was established, the GSIS has served over 1.7 million members. It also continues to grow and protect its pension fund.
The GSIS is additionally committed to becoming a more visible partner to its employees by providing them with various perks and services. These include loans and other financial assistance. Its goal is to provide its members with the necessary relief to make ends meet.
GFAL members receive packages based on their membership classification.
GFAL Active: Package for active service members.
GFAL Plus: Package for former government employees and members’ dependents.
GFAL Grand: Package for retirees and their surviving spouses.
The various services that are included in these packages are made available to the market through the GSIS. This ensures that the well-being of its members is maintained.
Ginhawa For All Housing Account Restructuring And Condonation Program
The Ginhawa for All Housing Account Restructuring and Condonation Program provides a chance for people who have previously held housing accounts to refinance or take advantage of the various incentives available to them. It allows them to reduce their balances by fully paying off their loans and avoiding penalties.
Benefits
– easier for housing buyers and borrowers to restructure or fully pay their housing obligations;
– unpaid interest will not be capitalized but will be spread equally over the term;
– partial discount on unpaid interest for those who will opt to fully pay;
– interest to as low as 6%;
– lower amortization through extended payment term of up to 10 years;
– waiver of penalties and surcharges; and
– grace period for accounts that has never been restructured with arrearages due to delayed remittance of the first monthly amortization.
Ginhawa for All – Lease with Option to Buy
Through the Ginhawa For All Lease With Option To Buy program, GSIS provides housing units to qualified individuals who are interested in purchasing them. The lease agreement is renewable for one year.
To qualify, the prospective lessee must:
- be a Filipino citizen who is legally authorized to enter into an agreement
- have a regular source of income
The GSIS will give priority to those who are currently occupying the residential property and will allow them to lease the unit with the option to buy it. On the other hand, if the property is vacant, it will be available for rent to anyone who will be qualified to participate in the program on an “as-is, wherever-is” basis.
GSIS Loans
- Multi-Purpose Loan – Plus – MPL Plus is an enhanced version of the MPL program that allows active members to manage their GSIS loan balances. It provides them with a credit line that will allow them to consolidate their loans.
- Policy Loan – This facility is available for people who have a GSIS life insurance policy. It can be used for a loan or for an enhancement of their life insurance policy. The loanable amount is based on the amount of accumulated cash surrender value and the type of policy you have. For instance, ELP will give you 90% of the accumulated value, while LEP will give you 50%.
- Emergency Loan – This loan program is offered by the Government Service Insurance Scheme (GSIS) to provide financial assistance to its members and pensioners in times of natural disasters and other emergencies.
- GSIS Financial Assistance-Educational Loan – The GSIS has launched a new program that provides financial assistance to children and relatives of its active members who are pursuing a college education.
Laws Enacted by the GSIS
REPUBLIC ACT NO. 8291
Otherwise known as the Government Service Insurance Act of 1997 which amended the 20-year-old revised charter of the GSIS, known as Presidential Decree No. 1146.
IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 8291
Instituted reforms to increase coverage and expand benefits given by the GSIS to all government employees.
PRESIDENTIAL DECREE NO. 1641
Further amended the Employee’s Compensation Program and State Insurance Fund of the Labor Code of the Philippines and upgraded the benefits structure for all covered employees.
PRESIDENTIAL DECREE NO. 1519
Revised the Philippine Medical Care Act to provide total medical services to the people of the Philippines through a comprehensive and coordinated medical care plan.
PRESIDENTIAL DECREE NO. 1368
Amended the Book Four of the Labor Code of the Philippines, in particular, defined the coverage of the Employee’s Compensation Program.
PRESIDENTIAL DECREE NO. 1146
Expanded, increased, and integrated the social security and insurance benefits of all government employees.
PRESIDENTIAL DECREE NO. 626
Amended the Presidential Decree No. 442 or the Labor Code of the Philippines to effect adjustments needed to coordinate grant of social security benefits.
REPUBLIC ACT NO. 7699
Also known as the Portability Law which allows the addition of all creditable services or periods of contributions made continuously or in the aggregate of a worker under either the GSIS or SSS for eligibility and computation of benefits.
REPUBLIC ACT NO. 6111
Established the Philippine Medical Care Plan and created the Philippine Medical Care Commission.
REPUBLIC ACT NO. 4968
Amended again Commonwealth Act No. 186 to further define life insurance, retirement insurance, compulsory membership, and rates of premium contributions.
REPUBLIC ACT NO. 3593
Amended Commonwealth Act No. 186 to provide immediate life insurance coverage and compulsory membership as well as increase additional life insurance coverage to all government employees.
REPUBLIC ACT NO. 1616
A retirement option of the GSIS popularly known as “The Take All” Option.
REPUBLIC ACT NO. 660
A retirement option of the GSIS which is also known as the “Magic 87”.
COMMONWEALTH ACT NO. 186
The GSIS is created as a social insurance fund for all employees of the Philippine government.
GSIS Retirement Benefits
The GSIS Retirement Benefit provides various types of retirement programs. See the list below for more information.
- Retirement Under Republic Act 8291 – It offers a five-year lump sum or cash payment with instant pension.
- Retirement Under Republic Act 660 or Magic 87 – This retirement program offers both lifetime pension and annuity to the retired member.
- Retirement Under Republic Act 1616 – According to GSIS, this program provides a refund of the premiums and gratuity payment from employers.
- Retirement Under Presidential Decree 1146 – This retirement program is open only for those who have worked in public service after May 31, 1977 but before June 24, 1997. The member may choose between cash payment or Basic Monthly Pension (BMP).
- Retirement Under Republic Act 7699 or Portability Law – Under this program, the GSIS and SSS periods with paid premiums are combined for members to avail the programs of both social insurance institutions.
General Insurance Products of GSIS
Aviation insurance covers direct physical loss or damage caused by an aircraft’s operation while in flight, taxiing, on the ground, or at rest. It also covers third-party liability, bodily harm to passengers, personal injury to pilots and crew, war, hijacking, and other risks.
Contracts of suretyship in which GSIS, as SURETY, guarantees the fulfilment of an obligation or undertaking in the government’s favour, as OBLIGEE. Bidders Bond, Performance Bond, Surety Bond, Haulers Bond, and Customs Bond are some of the bonds issued by GSIS.
GSIS protects all government commodities in transit by land, sea, or air against loss or damage caused by extreme weather, fire, lightning, explosion, grounding, stranding, collision, machinery damage, ranging, piracy, banditry, lawsuit, and labour.
Miscellaneous Insurance includes livestock insurance, fidelity guarantees, complete triple “D” (dishonesty, disappearance, and destruction), and Comprehensive General Liability. This comprises damages for death and care, loss of services as a consequence of bodily harm, and damages for loss of use of property as a result of property damage.
This sort of insurance protects mobile, heavy, or contractor’s equipment from direct physical loss or damage.
GSIS GCare Plans
G-Care has the most affordable car insurance, personal injury insurance, and fire insurance prices in the country.
- MyShield
The market’s lowest personal accident insurance premium rate, at around Php40 every Php50,000 in annual coverage. Minimum coverage might range from Php50,000 to Php5,000,000.
- HomeShield
Provides fire insurance coverage.
- AutoShield
Provides comprehensive auto insurance at a premium that is 20% less than the market average.
GSIS Online Services
- eGSISMO – This is a web-based service that allows GSIS members to view their service records and loan account statements. This facility will give our members direct access to their records, so empowering them. eGSISMO will also reduce their concerns and questions about the condition of their documents.
- GCG Whistleblowing Web Portal – This platform allows individuals to anonymously report their concerns. It also ensures that their reports are protected from unauthorized access.
- MYSHIELD Calculator
- AUTOSHIELD Calculator
- Electronic Citizen’s Charter (Guide to Transaction and Processes) – The GSIS’s online portal, known as the GTAP, provides members and pensioners with the latest information about the various processes that they need to complete when it comes to filing claims and loans. It also includes a checklist of procedures that are required to complete the process.
- Online Filing of Loans – The GSIS is now accepting applications for loans and benefits using a new method of payment that is more secure and easy to use. This eliminates the risk of exposing our members to viral infection and other health risks.
- Online of Claims
- G-HOP – The GSIS Housing Online Payment or G-HOP is a monthly housing loan amortization channel that allows people to pay their bills online. It is very simple to use and can be done through various devices, such as smartphones, tablets, and desktop computers.
Other Services of the GSIS
24/7 Call Center Facility – The GSIS provides a 24-hour hotline for all its members and pensioners. Its agents are available to answer all inquiries and service calls in Metro Manila and the provinces, as well as overseas. People can also use subscriptions from various companies such as TNT, Smart, and Globe.
Social Media Platforms – The GSIS has various platforms that it uses to reach its members, pensioners, and general clientele. These platforms help speed up the dissemination of information and provide a convenient way to communicate with its members.
GSIS Touch Mobile App – The GSIS Touch is a mobile application that allows Ginhawa Active and Grand members to access various services. It eliminates the need for them to go to the branches to view their accounts. It also brings together the APIR, eGSISMO, and GTAP in one app.
With the GSIS Touch app, you can access your records and perform various activities related to your loan. Some of these include: applying for a loan, getting your claims settled, posting notifications, and monitoring your loan status.
GSIS Wireless Automated System Kiosk – The GSIS’ automated wireless processing system, known as (GW@PS), is designed to make it easy for people to apply for loans and check their loan accounts. It also allows pensioners to renew their active status. With just a few clicks, you can start the process of your loan application without any paperwork.
UMID Card – The GSIS UMID Card is an embedded microchip that contains the user’s personal information. It can be used to access the GW@PS kiosk.
The GSIS UMID is a three-in-one card that serves as your:
- Identification Card
- ATM Card
- Debit Card
Ginhawa Payment Facilities – GSIS members can now pay their loans at any Bayad center that’s nearest to their home. This alternative payment channel is convenient for all GSIS members. Bayad has over 2,000 outlets across the country, and members can easily access this service.
The Bayad facility of the GSIS allows members to settle their debts without having to go through the usual process of paying. Those who have underpaid accounts or have delayed payments can avail of the facility. With arrears or accounts in default, members can also opt to pay more than what’s due.
Video: What You Need to Know as a GSIS Member
In this video, you will get to learn the answer to these questions. And as a bonus, you will also learn how GSIS has helped many Filipinos in the past and continue to do so today.
As you know, the government provides us with many benefits and services that we can avail of. One of these is the Government Service Insurance System (GSIS), an agency which aims to provide financial assistance and protection for its members.
The GSIS is important for Filipinos, especially those who are employed in the government, as it provides them with a pension that they can use when they retire. The GSIS also offers insurance benefits for its members.
Frequently Asked Questions
Here are some questions and answers about the GSIS government agency:
1. Who is qualified for GSIS membership?
Members of the judiciary and the country’s constitutional commissions are eligible for GSIS membership. Also, some members of the armed forces and police are also eligible for this service.
All GSIS members, except for those who belong to constitutional commissions and judiciary, are required to have life insurance. They are also entitled to retirement and other social security benefits.
2. Is GSIS membership compulsory?
Regardless of their employment status, employees of government agencies are required to join the GSIS. This service is mandatory for those who have not reached the mandatory retirement age.
3. Are Barangay Officials covered by GSIS?
In line with Republic Act 8291, all barangay officials are required to be GSIS members. To accommodate this requirement, the agency has to create special provisions.
4. How much will I get after retirement?
You can choose from two different retirement packages offered by the GSIS.
One of the most common retirement packages that retirees can choose from is a lump sum of five years. This type of pension is equivalent to 60 months of their basic monthly pension. After five years, the retirees will receive their monthly pension.
The other type of retirement package is a cash payment. This provides them with a cash payment of 18 times their basic monthly pension.
5. How much is the monthly contribution of GSIS?
Employees are required to pay 3% of their salary as part of their GSIS contribution. Their employers are also expected to contribute 3% of their salary for life insurance.
6. Does GSIS provide loans?
The GSIS provides various loans to its members, such as emergency loans, policy loans, and consolidated loans. These can be availed of by members and pensioners using their GSIS eCard at any of the agency’s branches or through its online applications.
7. How much money does GSIS give to deceased members?
GSIS grants P30,000 cash to the deceased members.
8. How long do you have to be in the military to retire under RA 1616?
A member who retired before the implementation of RA 8291 was complete was considered to have retired under RA 1616, regardless of their age.
9. What is an LEP policy?
The GSIS Life Enhancement Policy (LEP) is a type of insurance that allows members of social insurance institutions to have a life insurance policy while they are still in active service. After reaching the maturity of their policy, they can benefit from the maturity benefits.
10. When did the enhanced life policy start?
The GSIS’ enhanced life policy (ELP) was launched on August 1, 2003. It provides new members with a monthly insurance coverage based on their compensation. It also provides a death benefit to the family of the deceased member.
Final Thoughts
Although the GSIS mainly focuses on providing benefits to employees of government agencies, it also engages in various charitable activities. For instance, it provides scholarships to low-income individuals. In 2021, the agency has a total of over two million members and pensioners.
The total assets of the GSIS increased by 8 percent from December 2019 to 2020. This is a good sign that the organization’s family is growing. Employees of government agencies are also entitled to various perks until they retire.
We hope you learned something about the GSIS, one of the Philippines’ most important government agencies. If you have friends or relatives whom you think might benefit from the services of the GSIS, be sure to share this article with them.
Disclaimer: This post is for educational purposes only. The information provided is not intended as legal advice. To learn more about the agency, please refer to the following contact information.
READ NEXT: Civil Service Commission (CSC): What You Need to Know
Contact Information
GSIS Main Office
Address: 2302 Roxas Blvd, Pasay, Metro Manila
Telephone Number: (02) 8461-0500 local 605
Email: gsiscares@gsis.gov.ph
Website: https://www.gsis.gov.ph/
Facebook Page: https://facebook.com/gsis.ph
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