GSIS Resolution No. 98 (2013)

(NAR) VOL. 25 NO. 1 / JANUARY - MARCH 2014

[ GSIS RESOLUTION NO. 98, September 26, 2013 ]

AMENDMENTS TO SECTION III OF PPG NO. 201-09

WHEREAS, the Senior Vice President, Luzon Operations Group, in her Memorandum dated 24 September 2013, proposed the following amendments to

Section III of Policy and Procedural Guidelines (PPG) No. 201-09 on the GSIS Consolidated Salary Loan Plus (Conso-Loan Plus) Program.

FROM TO

Third Paragraph, Item No. 4, Consolidation of Loan and Waiver of Penalties No penalties/surcharges shall be collected on the succeeding It shall be a ‘one-time’ waiver of renewal and/or restructuring of outstanding penalties applicable only the Conso-loan account. on the initial consolidation of loans. Penalties and surcharges incurred on the succeeding renewal and/or restructuring of Conso-loan shall not be waived. Item No. 15, Penalty Charges For Active Member: Arrearages on the amount due for the No penalties/surchargers shall month shall be charged 1% per month, be collected on the Conso-loan compounded monthly, until the arrears account while the member is in are paid. active service. The amount due for the month is the A loan account that is already monthly amortization including due and demandable shall not arrearages from previous month/s and earn penalty/surcharge for as corresponding penalties, if any. The long as the member is in active arrearages for the month is the service. difference between the amount due for the month and the actual amount paid. For Retiring/Separating Member: 15.1 A fraction of a month of delay is considered as one (1) month. There Penalty/surcharge shall be shall be a three (3) month grace period computed if the last Conso-loan from the due date. account of the member is due and demandable (i.e. with six For purposes of the Statement of [6] months arrearages). Account (SOA), penalty shall be computed after end of the third month The amount due and grace period, regardless of whether demandable shall be charged a through direct payment or payroll penalty/surcharge of six percent deduction. (6%) per annum, compounded monthly.For example, a loan is granted on Penalty/surcharge shall form January 9m the first due date is on or part of the outstanding before April 10. obligations of the retiring/separating member, If payment is received on April 15, no deductible from proceeds of the penalty shall be charged. retirement or separation benefit, as provided under PPG If payment is received on June 30, no No. 209-11 on the Choice of penalty shall be charged. Loan Amortization Schedule for Pensioners (CLASP). If payment is received on July 15, penalty shall be computed from end of 3-month grace period, which is July 10. The payment is delayed for 5 days but a fraction of a month delay is considered one month, thus, the account shall be penalized for one (1) month. 15.2 Penalty on arrears for the month shall be imposed: (1) for delays in payment; (2) underpayments; and (3) for no payments received. RESOLVED, to APPROVE and CONFIRM the amendments to Section III of PPG No. 201-09 on the waiver of penalty charges on the Conso-Loan accounts of active members, as proposed by the Senior Vice President, Luzon Operations Group, in her Memorandum dated 24 September 2013; RESOLVED FINALLY, that with the exception of the above revisions, all provisions of PPG No. 201-09 dated 17 September 2009, shall continue to have full force and effect.