GSIS to lift waiver on penalties

  • Page Views 2594
  • 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

    • Nathan Longchallon
      18 September 2020
      19 hours ago No comment

      Missing Man in Burnaby: Nathan Longchallon, 26

      The Burnaby RCMP is requesting the public’s assistance in locating 26-year-old Nathan Longchallon. Nathan was last seen walking north bound on Patterson Avenue near Victory Street in Burnaby at 3:30 p.m. on Tuesday, September 8, 2020. Nathan is described as 5 feet 8 inches tall, with a slender build, ...

    • 17 September 2020
      2 days ago No comment

      B.C. election looms, while chance of federal election lessens

      B.C.’s next provincial election is scheduled to happen on October 16, 2021. But it could take place earlier if the B.C. NDP government of Premier John Horgan decides to call an election earlier. Or if the Horgan government loses the confidence of the legislative assembly. By many indications, Horgan ...

    • 17 September 2020
      2 days ago No comment

      Dr. Theresa Tam’s update on COVID-19 

      Ottawa, ON – Public Health Agency of Canada In lieu of an in-person update to the media, Dr. Theresa Tam, Canada’s Chief Public Health Officer, issued the following statement: “There have been 138,803 cases of COVID-19 in Canada, including 9,188 deaths. 88% of people have now recovered. Labs across ...

    • 17 September 2020
      2 days ago No comment

      Prime Minister announces next steps for Safe Restart Agreement

      As we move into the fall and the world continues to deal with the impacts of COVID-19, the Government of Canada remains focused on keeping Canadians safe and healthy, while continuing to ensure they have the supports needed during this global health and economic crisis. The Prime Minister, Justin ...

    • 17 September 2020
      2 days ago No comment

      Amal Clooney urges PH to protect press freedom, honor international commitments

      International human rights lawyer Amal Alamuddin-Clooney on Tuesday urged the Philippine government to protect the free press and honor its international commitments on human rights. Speaking before Philippine business leaders in an online forum, Clooney said, “if you want to have a functioning democracy, protect the press. To protect ...

    %d bloggers like this: