National Government Agreements with GSIS on the Handling of Benefits and Premiums of the Employees of the Department of Finance

March 17, 2004 DOF DEPARTMENT ORDER NO . 014-04 SUBJECT : National Government Agreements with GSIS on the Handling of Benefits and Premiums of the Employees of the Department of Finance, its Bureaus and Attached Agencies 1. The Department of Finance (DOF) and the GSIS have reached agreement on how to resolve the current difficulties encountered by the personnel of the Department of Finance, its bureaus and attached agencies in accessing benefits from the state pension fund. This agreement is part of a larger four-point agreement involving all of the National Government. 2. Reconciliation of Member records In the agreement forged, GSIS will reconcile its records with that of DOF, its bureaus and attached agencies. This is to be done immediately. In case of any discrepancy, the service records of said offices will be used as the basis for the GSIS Membership Service Profiles. 2.1 GSIS will send each member a copy of their individual statement of accounts (SOAs) which contains the membership service profile (MSP), record of creditable service (RCS) and outstanding loan balances. 2.2 Members should review their individual statement of accounts and make corrections or notes if the records are not in order and reflect their corrections in the feedback sheet furnished them. 2.3 Members should submit the feedback sheets to their respective GSIS liaison officers and forward them to GSIS, 3. Unpaid 1997-98 premium differential (Government Share) As for the 1997-98 unpaid premium differential (when the government share to GSIS was increased from 9% to 12% but with no corresponding National Budget cover at that time), the National Government and GSIS are to present to Congress a proposal on how to address this deficiency. 3.1 Once transmitted, GSIS will recognize full credit for this unpaid premium differential in all members accounts. 'The member will not be charged for this unpaid premium differential. 3.2 Further, GSIS will lift the suspension on members loan privileges for as long as the agency has been remitting the personal share and loan repayments of their employees. 4. Enhanced Salary Loan Program (ESLP) Restructuring of outstanding salary loans with arrearages 4.1 The Enhanced Salary Loan Program (ESLP) will be available on 12 April 2004. 4.2 To avail of the ESLP, members must apply for the restructuring of previous loans. This is not automatic on the part of the GSIS. 4.3 Those who may qualify under this program will be allowed to restructure outstanding salary loans with arrearages capitalizing interest owed but waiving all penalties. The restructured loan shall be treated as a new loan and will be charged an effective interest rate of 12% per annum based on diminishing balance of the loan. 4.4 Under the "Enhanced Salary Loan Program", member borrowers can choose different repayment periods (12, 24, 36 or 49 months). 5 New Salary Loan Program GSIS is offering a "New Salary Loan Program" starting 15 March 2004. The new loan facility will allow members to borrow the equivalent of one month salary. 5.1 Members who have at least 36 months of government service can avail of this loan facility. 5.2 Members who have less than 36 months of government service are still eligible to borrow provided they have co-maker. A co-maker must be a permanent government employee who has rendered at least ten years of service. 6 Organization of Task Force for DOF, its bureaus and attached agencies To prepare for all of the above requirements, including the new loan programs, the DOF, its bureaus and attached agencies shall create their own Task Force to include the respective GSIS Liaison Officers to undertake the ff: 6.1 Liaison officers shall make sure that member documents are transmitted on a regular basis to the GSIS office concerned. 6.2 For the "Enhanced Salary Loan Program" and the "New Salary Loan Program", Liaison Officers shall receive loan applications, check them for completeness and submit the to GSIS. 6.2.1 All applications shall be received by the liaison officer not later than 3:00 p.m. daily. 6.2.2 Submission of ESLP and NSLP applications to GSIS shall be done the following day by 9 a.m. 6.3 The above daily schedule has been agreed with GSIS Management to: 6.3.1 Ensure that applications are acted on promptly; 6.3.2 Decongest GSIS offices so as to ensure efficient processing of applications; and 6.3.3 Develop stronger institutional working relationships with the DOF, its bureaus and attached agencies. 6.4 Liaison officers shall coordinate with GSIS for the expeditious release of employee benefits, loan applications, etc. 7. Heads of offices are enjoined to disseminate this Department Order from the Central Office down to the Regional Offices, if applicable. IEHaSc This Order takes effect immediately. (SGD.) JUANITA D. AMATONG Secretary