Hazel Ann M.

Orteza BSBA FM 2-7s

WEEK16

Answer the following questions:

1. What are the different types of GSIS Loans? How it is being used by its members?
There are three (3) types of GSIS Loans: consolidated loan, policy loan and
emergency loan. Consolidated loan combines five different loan products into one—
Salary Loan, Restructured Salary Loan, Enhanced Salary Loan, Emergency Loan
Assistance, and Summer One-Month Salary Loan. Members availing of a conso-loan for
the first time receive a one-time automatic condonation from the outstanding penalties or
surcharges incurred from these loans. Policy loan is a loan program that a member may
avail from his/her GSIS life insurance policy. The loan, bearing an 8% interest rate, may
be paid either through monthly amortization or deduction from a member’s existing life
insurance policy contract. Lastly, emergency loan provides assistance to GSIS to
members affected by natural calamities.

2. What are the common benefits of GSIS and SSS?

Retirement benefits in GSIS is when a member who has reached the age of 60
years and who has at least 15 years of creditable service rendered may retire from
active service and receive the retirement benefits, provided the member is not receiving
a monthly pension from permanent total disability. The retirement benefit consists of a
monthly pension which is computed based on years of creditable service and AMC for
the last 3 years. In SSS, retirement benefit requires its members to be 60 years old and
unemployed and has paid at least 120 monthly contributions prior to the semester of
retirement; he/she is 65 years old, whether employed or not. If employed he/she should
have paid 120 monthly contributions prior to the semester of retirement, whether
employed or not.
In GSIS’ disability benefits, any disability or injury as a result of, or due to grave
misconduct, participation in riots, gross and inexcusable negligence, under the influence
of drugs or alcohol or willful intention to injure or kill himself or another, shall not be
compensable. If the member has two or more different contingencies during the same
period of benefit entitlement, he shall be compensated only once for the overlapping
periods. All injuries, disabilities, illnesses and all other infirmities compensable under PD
626 shall not be compensable under this Act. While the disability benefits in SSS, a
member who suffers partial or total permanent disability, with at least one (1)
contribution paid to the SSS prior to the semester of contingency, is qualified. A monthly
pension is paid to a disabled member who has paid at least 36 monthly contributions to
the SSS while a lump sum amount which is granted to those who have not paid the
required 36 monthly contributions.
The GSIS funeral benefit, in the amount P20,000, (for uniformed members of the
PNP, BJMP and BFP, the amount of funeral benefit is fixed at P10,000.00) is intended to
defray the expenses incident to the burial and funeral of the deceased member,
pensioner, or retiree under RA 660, RA 1616, PD 1146, and RA 8291. It is payable to
 the members of the family of the deceased, in the order which they appear: legitimate
spouse, legitimate child who spent for the funeral services, or any other person who can
show unquestionable proof of his having borne the funeral expenses of the deceased.
While in SSS, a cash is also paid to the beneficiaries of a deceased member. The
primary beneficiaries are the legitimate dependent spouse until he or she remarries and
legitimate, legitimated, legally adopted or illegitimate dependent children of the member.
In the absence of primary beneficiaries, the secondary beneficiaries are the dependent
parents of the member. In their absence, the person designated by the member as
beneficiary in his/her member’s record will be the recipient.”

Exercise # 11

1. How are GSIS and SSS different to each other? Explain in your own opinion.
GSIS was created to secure the future of all employees of the Philippine
government. It provides and administers a pension fund that has the following social
security benefits: compulsory life insurance, optional life insurance, retirement benefits,
and disability benefits for work-related accidents and death benefits. SSS on the other
hand, is a social insurance program that aims to provide protection to its members and
beneficiaries. It provides a package of benefits in the event of death, disability, sickness,
maternity, and old age. Basically, the Social Security System (SSS) provides for a
replacement of income lost on account of the aforementioned contingencies. It covers
private employee, whether permanent, temporary or provisional.

2. Do they have common functions in terms of retirement programs? Enumerate and

explain each.
No. GSIS offers various retirement programs that retiring members may choose
from depending on their age and length of service. Retirement under RA 8291 may be
availed by those who have rendered at least 15 years of service in government and must
be at least 60 years of age upon retirement. Also, they must not be permanent total
disability pensioners. Retirement under RA 660 (also known as ‘Magic 87’), may be
availed by members who are 52 years old for as long as they have already been in
government service for the past 35 years. Retirement under RA 1616 may be availed by
those who entered government service on or before May 31, 1977 and who rendered at
least 20 years of service regardless of age and employment status. Further, the last
three years of service prior to retirement must be continuous, except in cases of death,
disability, abolition or phase out of position due to reorganization. SSS on the other
hand, has two types of retirement benefit: the monthly pension which is a lifetime cash
benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior
to the semester of retirement: and lumpsum amount which is granted to a retiree who
has not paid the required 120 monthly contributions. It is equal to the total contributions
paid by the member and by the employer including interest. The monthly pension
depends on the member's paid contributions, his credited years of service (CYS), and
the number of his dependent minor children that must not exceed five. The retiree-
member has the option to receive the first 18 months' pension paid out in lumpsum, but
discounted at a preferential rate of interest to be determined by the SSS. The member
shall start receiving his pension on the 19th month, and every month thereafter. This
option for advance payment shall be exercised only when filing the first retirement claim.
It is only the advanced pension payments that are discounted on the date of payment;
the dependent's allowance and 13th month pension are excluded from the advanced 18-
month pension amount.