It is a common notion nowadays that ‘you won’t get rich or paid fairly if you work for the government’. This has been the belief many upholds then. But do you know that there are other perks which you can only get when you work for the government? Well, among the many benefits, is being a member of the well-known institution, GSIS.
Facts about GSIS!
- Government Service Insurance System, is the social insurance institution mandated by the Commonwealth Act to secure the future undertakings of all government employees.
- There is an automatic membership for all government employees. You don’t have to apply once you signed for a contract under any government institutions. Except if you work for the Armed Forces, Philippine National Police, Judiciary and under those government groups which have their own retirement schemes.
- Although membership is only limited to government employees alone, dependents of those employees can also receive some benefits. Like survivorship pension of the surviving spouse of the member, allowance for the dependents below 18 years of age, and 20k Burial/Death Benefit which will be given to the family of the member who passed away.
- The GSIS collects a total of 9% of the monthly salary for a member’s contribution. 2 % of which is the contribution for the life insurance and the remaining 7% is for the retirement fund.
- The Government agency also contributes to GSIS funds, not just the members. The agency allots 2 % for life insurance contribution and another 10% for the retirement fund contribution.
- GSIS, as an institution also have to wisely manage its funds to secure the future of its benefactors in the future. So, to be avail to increase the institution’s values, it make use of wise budgeting. 2.5 % of total collection goes to the GSIS personnel expenses, 15-16% goes to investments in the local stock market, 45% on government bonds, 25% on loan programs for the members, 4% is on real estate investments and the remaining 5 % is a readily available cash on hand.
- GSIS even tried investing in the global stock market in 2008. The institution risked so much in the process, but eventually gained better. But upon realizing in 2011 that the country’s own economy is improving and is steadily on the rise, the institution decided that it would be better to just invest the funds locally.
- There are three main benefits and services that GSIS offers to its members and these includes: retirement benefits, insurance benefits and loan benefits.
Benefits and Services that GSIS Offers
2.Before a member could avail of this, he/she must have completed 15 years of service on the aforementioned government agencies.
3.The retirement pay is equal to a factor of 2.5 % and the average of the member’s last 36 months salary in government.
4.You can choose when to retire. The optional retirement age is 60 and the mandatory age is at 65 years old.
5.If you retire before 60, you can get a lump sum then wait until you’re 60 to get the monthly pension.
6.You can also choose a 60-month lump sum and then get monthly pension starting at age 65.
7.If you did not last this long under government service, but has worked for the government for at least 3 years, you are entitled to receive a separation pay.
8.A separation pay is equal to the number of years in service multiplied to your last monthly salary in the government.
9.You can only receive the separation pay when you reached the age of 60.
11.Mandatory Life Enhancement Policy
- This policy if for those who became a member of the institution before 2004.
- This policy is basically a whole life policy for it involves all the aspects of a member’s life.
- This includes death benefits, savings and payments during certain life milestones.
12. Enhanced Life Policy
- This policy includes no savings but endorses a larger pay out if something happens to you while you are working in the government or is is working for a government service.
- The payout under this policy is equal to 18x the current monthly salary of the member.
13. Loan Benefits
14.The amount of loan which a member can file is subjected to his or her total contribution.
15.Basically, the loan is a function of the member’s income so there is a required years of membership for a particular desired amount. If you are a member and want to know the exact amount of loan you can have, visit the nearest GSIS center near you.
16.There are emergency loans available to the members, including calamity and educational loans.
So from the above statements, government employees aren’t really lagged behind the private employees, for they are also entitled to a government-secured insurance policy. Hope this helps!
*Note: We do not own any media (unless otherwise stated) and no copyright infringement is intended. This summary is only to provide a textual version of the video and an easier medium to understand the GSIS as an institution.The original video is from ANC’s On the Money: GSIS. To view full episode, go to https://www.youtube.com/watch?v=UeKNNu5dsu0
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