DepEd employees gets P363M GSIS refunds
By Apipa P. Bagumbaran
CAGAYAN de Oro City – Employees of the Department of Education (DepEd) will receive refund of premiums from the Government Service and Insurance System (GSIS) starting this month.
Branch Manager Ma. Cecilia Vega of GSIS Cagayan de Oro said, they will refund premiums in arrears previously deducted from the life insurance benefits of more than 73,000 DepEd employees, including 28,279 active members, 35,759 pensioners and 9,329 separated members.
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 be released through the eCard or UMID card, but those without eCard or UMID card will receive the refund through checks.
According to Ms. Vega, the initial refund of P363 million was made possible by the payment of the Department of Budget and Management (DBM) of a 50 percent down payment of DepEd’s P6.92 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.
The GSIS, DBM and DepEd signed an agreement September of last year to address 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 in active service will enjoy a proportionate increase in loanable amounts and potentially increased retirement and life insurance benefits after the complete settlement of unpaid premiums.
GSIS will also 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. (GSIS/APB/PIA10/jdelpf)