RDC 6 seeks to restore rescinded GSIS benefits
If the Regional Development Council had its way, the benefits of government workers rescinded by GSIS Board Resolution Nos. 173, 188 and 285 July 23, dated August 13, Nov. 19 all of 2003, respectively, should all be restored immediately.
This was the stand adopted by the Council when it approved the resolution calling for the restoration of the benefits in support of RDC II's resolution No. 02042 series of 2006.
According to the RDC, the GSIS resolutions rescinded employee benefits which had to do with computation of length of service, survivorship claims, rate of pension increases for retirement, computation of loan interest upon retirement, life insurance and housing loans.
Before, the computation of the length of service was based on actual service but after the passage of the GSIS resolution it is now based on the premiums paid.
Another example cited was that survivorship pension used to provide for life and is computed as 50% of the basic monthly pension for members who have rendered at least 3-14 years of service and who died while in service. In addition the members received a cash payment computed as total service x average monthly compensation for the last three years. Now survivorship pension is no longer provided except for the cash payment only.
The GSIS resolution also decreed that the families of those who had less than three years service and who die in service would no longer receive a survivorship pension.
Under the new set-up, survivors are also no longer entitled to the annual bonus declared by GSIS. Also, members entering the service effective September 1, 2003 are issued Life Policies (LP) and those with existing CM Policies are given the option to convert such policy to LP. A closer scrutiny would show that under the LP, members are only entitled to two benefits - loanable amount equivalent of the seed money and burial benefits. Thus members are deprived of the maturity claim, permanent total disability claim and accidental death benefits offered before.
It was the contention of the Development Administration Committee that presented the resolution that this was most unfair to the members and strongly moved for the restoration of the rescinded benefits.
(PIA 6)