GSIS to lift waiver on penalties

  • Page Views 871
  • The Government Service Insurance System (GSIS) starting October 1 will start collecting penalties and surcharges on past due loan accounts of members still in active service.

    The GSIS is urging its members to settle their past due loan accounts until September 30 this year to avoid further penalty charges.

    Jesus Clint Aranas, GSIS president and general manager, said one way of settling their loan accounts is by availing of the Enhanced Conso-loan Plus program which waives all penalties and surcharges on their existing salary loan accounts including additional interests.

    “Paying off your loan will also enable you to avail of other GSIS benefits which you could not otherwise enjoy if you have defaulted on your loans,” Arenas said.

    “If you will restructure your salary loan accounts through the Enhanced Conso-Loan Plus, you will avoid the unfailing predicament of having your retirement pay eaten up by your loan balance in due course,” Aranas said.

    He explained that when GSIS members fail to pay their amortization for more than six months, their loan accounts will become in default.

    Starting October 1, this will automatically set off the computation of pro-rated surcharges and penalties.

    These charges, which are originally intended to discourage borrowers from defaulting on their loans, will add up to their bill which may further swell if not abated early enough.

    At present, GSIS is not collecting penalties and surcharges on past due loan accounts if the member is in active service.

    In the long term, according to Aranas, this “automatic waiver” for penalties and surcharges will compound the forgone interest income from the pension fund’s loan investments which will eventually be disadvantageous to the social insurance fund.

    (Malaya)

    Share

    New Posts Recently publish post More

    • 19 November 2018
      19 hours ago No comment

      The Girl in the Spider’s Web

      Trapped! Danger lurks behind just about every door in Sony’s release of The Girl in the Spider’s Web. Sure this film is not as devastating as the original Swedish classic penned by Stieg Larsson that set the literary world ablaze but still this new version packs quite the wallop. ...

    • 17 November 2018
      3 days ago No comment

      PH wins cigarette case vs Thailand

      The World Trade Organization (WTO) last Monday issued a compliance panel report regarding Thai measures on imported cigarettes and concluded Thailand has failed to implement the recommendations and rulings of the DSB to bring its measures into conformity with its obligations under the customs valuation agreement (CVA) and the ...

    • 17 November 2018
      3 days ago No comment

      NorthPhil poised to shine at tourism expo in Clark

      The entire North Philippines – from Central Luzon to the Cordillera Administration Region – is poised to draw global interest as it top bills a grand and colorful tourism extravaganza on Nov. 16-18 in SM City Clark where the bests of the bests in the region go center stage ...

    • 17 November 2018
      3 days ago No comment

      Palay production seen going down in 2018

      The Philippines’ palay production is seen to go down within the last three months of the year amid the onslaught of typhoons in some of the country’s major rice producing areas. Based on the outlook released by Philippine Statistics Authority (PSA) on Tuesday, the probable rice production for October ...

    • 16 November 2018
      4 days ago No comment

      Businesses and communities across Canada to benefit from increased immigration

      Ottawa, ON—The Honourable Ahmed Hussen, Minister of Immigration, Refugees and Citizenship, announced the new multi-year immigration levels plan for 2019-2021. This new immigration plan will benefit all Canadians because immigrants contribute to Canada’s economic growth and help keep Canada competitive in a global economy. The new plan builds on ...

    %d bloggers like this: