DAVAO CITY — The Government Service Insurance System (GSIS) has given its members in the Davao Region until October 31 to settle past due loan accounts and avail of condonation of penalties and surcharges.
This developed after the state-run insurance heeded the appeal of the Department of Education (DepEd) to extend the deadline for teaching and non-teaching personnel to settle their accounts.
GSIS Davao branch manager Deity Manampan, however, said the condonation of penalties and surcharges under the Enhanced Consolidated Loan Program can also be availed of by other members with overdue accounts.
GSIS is advocating responsible borrowing by rewarding members who have good credit standing.
Members who have updated loan accounts as of September 30, 2018, will get a chance to win big prizes to be raffled off soon.
Manampan said the GSIS is currently not imposing penalties and surcharges for delinquent loan accounts of members in the active service.
However, he said, the pension fund will lift this “automatic waiver” for penalties and surcharges by November 1, 2018, to step up its call for members’ responsible borrowing.
Manampan said the last time that GSIS imposed penalties was in January 2010.
Although there are still other members from other government agencies with past due accounts, GSIS is focusing with DepEd because it has the most number of unpaid accounts.
“The longer that we do not impose penalties to past due accounts will affect the financial position of the GSIS. We are a social security institution and the money with us is for the pension fund of our retirees,” he said.
If the loan balances go unchecked for a longer period, the obligations will continue to add up and may severely impair the benefits due to the member and their family. (Digna D. Banzon/PNA)
