GSIS Resolution No. 91 (2012)
REINSTATEMENT OF SECTION XVI – UNAVAILED COLLEGE EDUCATIONAL BENEFITS, OF THE EDU-CHILD PLAN AGREEMENT
[ GSIS RESOLUTION NO. 91, May 24, 2012 ]
REINSTATEMENT OF SECTION XVI – UNAVAILED COLLEGE EDUCATIONAL BENEFITS, OF THE EDU-CHILD PLAN AGREEMENT
WHEREAS, Section XVI of the Edu -Child Plan Agreement allows planholders to refund the contract price upon presentation of a valid cause such as illness or death of the scholar, migration of the scholar abroad, etc.;
WHEREAS, the Lump Sum Refund under Section XVI of the said agreement is the amount corresponding to the number of complete years that the plan has been fully paid less any amount of educational college benefits (ECB) already availed, and shall be determined as follows:
No. of Years after Lump Sum Refund Full (Gross of ECB Already Payment Availed) 1 55% of the Contract 2 Price 3 60% of the Contract 4 Price 5 65% of the Contract 6 Price 7 70% of-the Contract 8 Price 9 75% of the Contract 10 Price 11 80% of the Contract 12 Price 13 85% of the Contract 14 Price 15 and over 90% of the Contract Price 95% of the Contract Price 100% of the Contract Price 105% of the Contract Price 115% of the Contract Price 120% of the Contract Price 130% of the Contract Price150% of the Contract Price
WHEREAS, the GSIS discontinued implementing the Lump Sum Refund and offered the Optional Exit Mechanism (OEM), under Provision No. 7 of Office Order No. 13-06 dated 26 January 2006, wherein active or fully paid Edu-Child and Memorial plans are terminated and the total premiums paid are refunded to the planholder without interest;
WHEREAS, the Lump Sum Refund is more cost-efficient for the GSIS, as payment shall be based on the schedule provided therein net of ECB already availed, whereas the OEM provides for 100% refund of the total premiums paid; RESOLVED, to APPROVE and CONFIRM the reinstatement of Section XVI – Unavailed College Educational Benefits, of the Edu-Child Plan Agreement as recommended by the Vice President, NCR Area Il, in her Memorandum dated 17 May 2012; RESOLVED FINALLY, to REVOKE Provision No. 7 of Office Order No. 13-06 dated 26 January 2006 which approved the OEM.