policy and procedural guidelines no · in line with the gsis vision and mission to continuously...

POLICY AND PROCEDURAL GUIDELINES NO. 275-14 FUNCTIONAL AREA : Pension Administration DISTRIBUTION : All Senior Vice Presidents

All Vice Presidents Department / Branch Office Managers NCR Operations Group Luzon Operations Group Visayas Mindanao Operations Group

Actuarial Services Group Controller Group Financial Management Group

Legal Services Group Information Technology Services Group Corporate Services Group Internal Audit Services Office Corporate Communications Office

SUBJECT : Revised PPG on Pension Administration

I. BACKGROUND/RATIONALE:

Pension administration is one of the crucial programs of social security being administered by the GSIS. It reflects the System’s capability to service its pensioners and their surviving legal heirs, especially in the light of the growing number of our pensioners that has increased 26.27% in the past 12 years, (from 171,596 pensioners in 2001 to 216,677 in 2012) and the amount of monthly pension and other benefits being disbursed. Over the past years, the GSIS instituted programs, monitoring systems and procedural control points to minimize, if not eradicate, the unauthorized and unqualified receipt of pension by GSIS pensioners which, if left unchecked, will result in the accumulation of losses and manpower costs for the System. While we are primarily mandated by law to look after the needs of the nation’s public servants after they retire from their careers in government and can no longer earn for themselves or their families, we are likewise obligated by the law to protect their interests by preserving the solvency and sustainability of the pension fund – which – in essence, is for the benefit of both the present and future pensioners.

In line with the GSIS vision and mission to continuously improve services to pensioners while ensuring the financial solvency of the pension fund, existing

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policies on pension administration must be updated and integrated to define the appropriate actions and responsibilities of the operating units to ensure the timely and correct payment of pension. Lastly, with systems in place at tracking the status of GSIS pensioners, the GSIS is now able to identify those who continue to unlawfully receive pensions from the GSIS due to unreported cases of death, re-marriage or emancipation (i.e. minor dependent has reached the age of majority). Consequently, the monthly pensions credited to these accounts are considered overpayments and due for collection by the GSIS. This PPG likewise defines the collection mechanism that will facilitate the recovery of pension overpayments.

The Board approved the Policies and Procedural Guidelines on Pension Administration on 23 May 2013 under Resolution No. 45. The PPG provided the policies on pension administration, including the collection mechanisms to facilitate the recovery of pension overpayments and other amounts due from deceased pensioners, remarried or cohabiting survivorship pensioners and guardians of emancipated minors. The Legal Services Group, in their opinions dated 08 April 2014 and 27 August 2014, urged the review and amendment of the policy pertaining to the recovery of pension overpayment, stating that the deceased pensioner and his or her surviving spouse have separate and distinct legal personalities with respect to employment and the respective benefits arising thereon. Thus, compensation1 or set-off cannot take place. Compensation shall take place only when two (2) persons, in their own right, are creditors and debtors of each other.2 Guided by the LSG opinions, the Operations Groups reviewed the existing policies on the recovery of pension overpayments (and outstanding receivables) of deceased pensioners. The Operations Groups, in particular, recognized that there is a need to limit the scope of recovery of pension overpayments to the survivorship benefit (of the surviving spouse) and, if insufficient, a claim shall be made against the estate of the deceased pensioner. This is consistent with the pertinent provisions of the Civil Code of the Philippines, and would ensure that the surviving spouse, if he or she also happens to be a GSIS member who is a distinct and separate contributor to the social insurance fund, will enjoy the benefits that are rightfully his or hers.

II. OBJECTIVES

1 Article 1231, par. 5, Civil Code of the Philippines 2 Article 1278, Civil Code of the Philippines

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A. To ensure that there is a uniform interpretation, understanding and implementation of the policies on pension administration; and,

B. To provide a collection mechanism that will facilitate the recovery of

amounts due from deceased pensioners, remarried or cohabiting survivorship pensioners, and guardians of emancipated minors.

III. POLICIES

A. Coverage This PPG covers all existing and future old-age, survivorship and/or disability pensioners under RA 660, PD 1146, RA 8291, or RA 7699, residing in the Philippines or abroad.

B. Creation of Pension Record

1. All requests for creation of pension record shall be referred to the Claims Unit, Frontline Services Division for verification of retirement record in SAP and of the retiree’s eligibility to receive pension.

2. A pension record shall be created by the Membership Department for

old-age, survivorship, disability pensioner or guardian of dependent pensioner/s only upon request by the Claims Unit, Frontline Services Division.

3. Specifically, a pension record shall be created for the following3:

a. A retiree who is already entitled to receive old-age or disability

pension under RA 660, PD 1146, RA 8291 or RA 7699 if applicable;

b. Surviving legal spouse of a deceased active member, retiree or

pensioner who is qualified to receive survivorship pension benefit;

c. Guardian of the dependent child/ren who is/are qualified to receive dependent’s pension, who can be either of the following:

c.1 Surviving spouse; or, c.2 In the absence of parents, the person so named in the

submitted Affidavit of Guardianship and supported by a

3 Adopted from the 2010 Manual of Operations of the Membership Group and 2011 Functional Charts of the Operations Groups

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certification from Department of Social Welfare and Development (DSWD) or Barangay Certificate4.

4. A pension record shall be created for an old-age, disability or

survivorship pensioner with an existing loan deficiency but who did not avail of the Choice of Loan Amortization Schedule for Pensioners (CLASP). However, the actual payment of pension shall be put on hold until after full settlement of all outstanding loan obligations and other receivables, except housing loan5.

a. All outstanding loan obligations and other receivables that remain

unpaid prior to the commencement of pension shall be deducted from the unclaimed pensions (or pension accruals).

b. The order of priority of deduction from unclaimed pensions shall

be as follows:

b.1 Due and Demandable (DnD) loan accounts (e.g. PPD Osteo, Fly PAL, Pay Later)

b.2 Active service loans (e.g. Consoloan, Policy Loan-Regular or Optional)

c. Any outstanding receivable from the existing housing loan of the

retiree shall be collected through a separate collection mechanism.

d. The deduction of outstanding obligations and other receivables

from unclaimed pensions shall continue until such time that these have been fully paid.

e. The Claims Unit shall notify the pensioner in writing of his or her

outstanding loan obligations and other receivables, and that the same shall be deducted from his or her pension benefit until fully paid.

5. For an old-age pensioner who availed of the CLASP, a pension record

shall be created after the Pensioner Restructured Loan (PRL) account has been set-up.

6. For members qualified to receive immediate pension upon retirement:

4 Adopted from Section III (F), items 1.b to 1.c of PPG No. 207-11 on the Survivorship Benefits approved on February 16, 2011 5 Adopted from Section III (C) of PPG No. 209-11 on the Choice of Loan Amortization Schedule for Pensioners (CLASP) approved on May 18, 2011

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a. The pension benefit of members who retired from government service and opted for immediate pension shall commence right after the date of separation from the service but the payment thereof shall be given after the retirement records have been verified as processed and recorded in the SAP by the Claims Unit, Frontline Services Division.

b. For disability pensioners, pension benefit shall commence only

after the approval of the disability claim in accordance with the existing law, policies, rules and regulations under RA 8291.

7. For members qualified to receive pension benefit at a future date:

a. The pension benefit of members who retired from government

service but are qualified to pension benefits at a future date shall commence only after:

a.1 the guaranteed period has expired, or; a.2 the member has reached the age 60.

b. Requests for change in retirement / separation date, mode and/or

benefit option under R.A. No. 8291 shall be processed in accordance with the policies under Board Resolution No. 69 dated 11 June 2014.

c. The retiree shall be required to make a personal appearance in

the nearest GSIS Office not earlier than two (2) months before the date of pension commencement, to apply for the pension benefit and for enrollment in the GSIS UMID eCard, if applicable.

d. During the personal appearance, the retiree must present the

GSIS eCard/Unified Multi-Purpose Identification Card, or any two (2) of the valid acceptable IDs listed below for verification purposes6:

d.1 Passport; d.2 Senior Citizen’s card; d.3 Pag-IBIG card; d.4 Social Security System (SSS) ID; or d.5 Comelec or Voter’s ID

In cases where further verification of the retiree’s identity is

warranted, the GSIS frontline personnel may require the presentation of other IDs not included in the above list.

6 Adopted from Office Order No. 174-12 dated December 6, 2012 on the ID Requirements for One-Time Payment of Funeral Benefits

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e. If the retiree cannot travel to the nearest GSIS Office because of

his/her physical or medical condition (e.g. bedridden or is suffering from dreadful illness, which renders him/her immobile), he/she shall request, in writing, for pension commencement and enrollment in the GSIS eCard through home visit.

f. If the retiree is living abroad, he/she shall email GSIS at

[email protected] to request for pension commencement and enrollment in the GSIS UMID eCard.

f.1 The request for pension commencement shall be forwarded

to the Claims Unit, Frontline Services Division for verification of retirement records.

f.2 The actual enrollment in the GSIS UMID eCard shall be

made through personal appearance at the GSIS Office or through home visit at a valid Philippine address.

8. For survivorship pensioner qualified to receive pension benefit:

a. The pension benefit of qualified surviving spouse of a deceased

member who was in the service at the time of his death with at least fifteen (15) years of service, or of an old-age pensioner who died7, shall be processed upon submission of application for commencement of survivorship pension benefit.

b. The pension benefit of the surviving spouse of a retired member

qualified to pension benefits at a future date shall commence only after the guaranteed period has expired.

c. The survivorship pensioner shall be required to make a personal

appearance in the nearest GSIS Office to apply for the pension benefit and for enrollment in the GSIS UMID eCard, if applicable, and must present any two (2) of the acceptable IDs below for verification purposes8: c.1 Passport; c.2 Senior Citizen’s card; c.3 Pag-IBIG card; c.4 Social Security System (SSS) ID; or c.5 Comelec or Voter’s ID

7 Revised Survivorship Benefits as approved under Board Resolution No. 188 dated August 13, 2003 8 Adopted from Office Order No. 174-12 dated December 6, 2012 on the ID Requirements for One-Time Payment of Funeral Benefits

mailto:[email protected]

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9. For the guardian of dependent child/ren qualified to receive dependent

child/ren pension benefit:

a. If the guardian is also the surviving spouse, there shall be no need to file a separate application for survivorship pension for dependent children, including those who are mentally incapacitated (qualified dependent child over the age of majority who is incapacitated or incapable of self-support due to a mental or physical defect acquired prior to age of majority)9.

b. If the guardian is other than the parent or surviving spouse, he/she

shall be required to personally file the application for dependent child/ren pension in the nearest GSIS Office and for enrollment in the GSIS UMID eCard, if applicable, together with the following documentary requirements10:

b.1 Affidavit of Legal/Certified Guardianship of Minor / Mentally-

Incapacitated Dependent Child; and, b.2 Court Order or Certification for Guardianship issued by the

Department of Social Welfare and Development (DSWD) or its devolved units (e.g. City Social Welfare and Development Office or CSWDO for cities), or Certificate of Residency issued by the Barangay Captain/Official where the dependent child is residing.

c. For mentally-incapacitated dependent children, their survivorship

pension benefit shall commence after the GSIS Medical Officer has evaluated the mentally-incapacitated child and confirmed his or her eligibility to the said benefit.

C. Updating of Retiree-Pensioner and/or Survivorship Pension Record

1. The updating of retiree-pensioner or survivorship record shall be

undertaken by the Membership Department of the Operations Group within five (5) working days upon receipt of the prescribed and duly accomplished request form from the operating unit concerned.

2. The updating of retiree-pensioner or survivorship record is required in

case of, but not limited to, the following:

9 Adopted from Section 1.19 of the Revised Implementing Guidelines of Republic Act No. 8291 approved on June 24, 2010 10 Adopted from Section (F) of PPG No. 207-11 on Survivorship Benefits approved on February 16, 2011

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a. Increase in the amount of pension, on the basis of the percentage increase of pension as approved by the Board;

b. Updating of status of the pensioner (i.e. deceased, suspended,

active, remarried, etc.), to be requested by the Operating Unit / Branch Office;

c. Updating of status of the pensioner included in the NSO list of

deceased or remarried pensioners;

d. Change in address within the Philippines, to be requested by the Operating Unit / Branch Office or pensioner; or,

e. Change in address from foreign to local (and vice versa), to be

requested by the Operating Unit / Branch Office concerned only after the location of the pensioner has been verified through home visit.

D. Updating of Dependent Children’s Pension Record

1. The updating of guardian’s record shall be required in case of, but not limited to, the following:

a. Change of guardian, in case of deceased original guardian, upon

submission of the Affidavit of Guardianship and supported by a certification from Department of Social Welfare and Development (DSWD) or its devolved units (e.g. City Social Welfare and Development Office or CSWDO for cities), or Barangay Certificate.

b. Updating of status of the dependent child/ren (i.e. has reached

the age of majority), as requested by the Operating Unit / Branch Office:

b.1 In case the dependent child was reported as being incapable

of self-support due to mental or physical defect after reaching the age of majority, the Operating Unit / Branch Office shall request for medical evaluation by the GSIS Medical Officer to establish when the mental or physical defect was acquired.

b.2 The results of the medical evaluation shall be the basis in

updating the status of the dependent child/ren, if qualified for lifetime pension.

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c. Change in address, as requested by the Operating Unit / Branch Office.

E. Payment of Pension Benefit

1. The monthly pension of old-age, disability or survivorship pensioner (including dependent child/ren) shall be paid every 8th day of the month through the GSIS eCard11. In case the 8th day of the month falls on a holiday or a weekend, payment shall be made before the 8th day of a given month.

2. All pensioners who applied for and were issued an eCard and a bank account number up to the last working day of the current month, whether initial issuance of GSIS eCard / UMID eCard or its replacement, shall be included in the regular run of monthly pension beginning the following month12.

3. The dependent’s pension for minor and/or incapacitated child/ren shall be credited to the account of the designated guardian.

4. Deductions shall be made from the monthly pension of old-age,

disability or survivorship pensioner to cover the following obligations:

a. Due and Demandable (DnD) loan accounts that remained unpaid after resumption of pension

b. Active service loans that remained unpaid after resumption of pension

c. Pension Overpayment d. Pension Loan

5. The Claims Unit shall notify the pensioner in writing of his or her outstanding loan obligations and other receivables and that the same shall be deducted from the pension benefit already being received, until fully paid.

F. Payment of Pension Accrual

1. Pension accrual refers to the amount of pension payments (old-age,

survivorship and disability pension), including any proportion thereof, that will be paid on the account of the pensioner as a result of the following:

11 Section (A) Item 18.1 under Office Order No. 24-09: ILMAAAMS and ROPOA Policies and Implementing Guidelines dated October 22, 2008 12 Section (A) 18.2 under Office Order No. 24-09: ILMAAAMS and ROPOA Policies and Implementing Guidelines dated October 22, 2008

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a. Late commencement of pension (due to late request made by the

retiree-pensioner), in the case of old-age or survivorship pensioner; b. Upon activation of pensioner status (from “suspended” to “active”);

and,

c. Exclusion from the monthly pension run due to system limitations.

2. The computation of pension accrual resulting from the late application for commencement of pension shall be based on the original Basic Monthly Pension (BMP) of the pensioner, and shall not include any pension increases that have been previously approved by the Board because he/she was not receiving pension at the time of approval13.

3. Pension accrual shall be processed by the Claims Unit, Frontline

Services Division (FSD) of the NCR, Luzon and VisMin Operations Groups.

G. Payment of Pension Adjustment

Pension adjustment refers to the amount due the pensioner that arises from the following:

1. Correction/adjustment made on his/her periods with premium

payments (PPP) that resulted in a higher amount of pension from what was originally computed and paid;

2. Adjustments due to annual pension increase, if qualified; and,

3. Adjustments due to increase in the minimum pension, if qualified.

The pensioner shall be informed by the Claims Unit, Frontline Services Division of the pension adjustment arising from item no. 1 above.

H. Home Visit

1. Home visit shall be mandatory for the following pensioners:

a. Old-age, survivorship or disability pensioners 80 years old and above, as part of the regular monitoring of pensioners for continued receipt of their pension;

13 Adopted policies on the entitlement of pensioners to pension increases as approved under Board Resolution No. 229 dated December 8, 2009.

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b. Old-age, survivorship or disability pensioners included in the NSO list of Deceased Pensioners that are without death or funeral benefit claim filed with the GSIS, for validation of their status; and,

c. Survivorship pensioners included in the NSO list of Remarried

Pensioners. 2 Home visits shall be conducted by the Frontline Services Division in

the Central and Branch Offices. 3. In cases where the pensioner cannot be located in the given address,

was located but entry was refused by the pensioner or his/her companions, or for any other reason wherein his or her location or status cannot be ascertained during home visit, another home visit shall be scheduled not more than one (1) month after the initial visit.

4. In case the pensioner still cannot be located during the third visit, or

was located but the visiting GSIS personnel was still refused entry, the pensioner shall be tagged as “Suspended”.

I. Suspension of Pension Benefit

1. The pension benefit shall be suspended, without need of Board

approval14, upon validation of the pensioner’s status, as follows:

a. Death of the pensioner, even if no funeral claim or death certificate has been filed, that was discovered through:

a.1 Home visit a.2 Validated report from NSO a.3 Validated report from relative

a.4 Other modes of discovery (e.g. verified newspaper obituaries or media write-ups)

b. When the survivorship pensioner has remarried, as reported by

NSO, or co-habiting through receipt of a notarized affidavit. c. Non-renewal of active status of pensioners residing abroad and in

the Autonomous Region of Muslim Mindanao (ARMM) region, after the two (2) months grace period.

d. Dependent child/ren with pension have reached the age of majority.

14 Board Resolution No. 107 dated June 28, 2012 on the Amendment to Resolution No. 71 with respect to the Automatic Suspension of Pension Benefits for Overpayment due to Erroneous Computation

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e. When the pensioner, as a result of mandatory home visit, was found to have moved out from his/her given address and has not left any forwarding address, or cannot be located in the given address, or any other reason where his/her location or status cannot be ascertained after three (3) home visits have been conducted.

f. Receipt of an executory and final decision from Court on forfeiture

of benefits of a member who is now a pensioner.

2. Pension benefits shall also be suspended, without need of Board approval, when pension overpayments are incurred as a result of the continued receipt of pension despite the existence of the aforementioned instances.

3. The following circumstances shall be referred to the Corporate

Governance Committee of the Board of Trustees, for approval of suspension of pension.

a. Erroneous computation of retirement / pension proceeds which

resulted in overstated amount of pension benefit being paid due to the following reasons:

a.1 incorrect interpretation of existing policies and procedures

(e.g. the minimum pension of P2,400.00 was still applied to those who commenced pension after August 1, 2003 when the Premium-Based Policy was implemented, resulting in overpayment)

a.2 system limitation or error (e.g. no automatic suspension of pension for dependents who have reached the age of majority)

a.3 procedural lapses (e.g. payment of pension for periods later verified as with records of LWOP)

b. Correction in the pension benefits being paid as a result of

adjustments made in the periods with paid premiums (PPP) of the pensioner (e.g. the DepEd-GSIS MOA which updated the premium payments of DepEd personnel for prior years will have an effect in the teachers’ PPP) that will consequently result in upward adjustments in the pension amount already being received by them.

4. The Claims Unit, Frontline Services Division shall inform the pensioner,

in writing, of the suspension of pension benefit and the reason/s thereof, including the applicable mechanisms in case of appeal of the suspension of pension benefit.

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5. The suspension of pension benefit may be appealed through personal appearance at the GSIS Branch Office for validation of identity of the pensioner and re-activation of “Active” status in the GSIS Wireless Automated Processing System (GWAPS).

a. In the case of re-married/co-habiting survivorship pensioner who

will dispute the NSO report/notarized affidavit, he or she shall be required to submit proof to dispute the fact that he or she contracted marriage/has been co-habiting after the death of the old-age pensioner or member.

b. In the case of dependent child pensioner who was reported as

being incapable of self-support due to mental or physical defect after reaching the age of majority, the guardian shall be required to submit proof of the medical condition of the pensioner.

J. Renewal of Active Status of Pensioner (in line with the “No ARAS”

Policy)15

1. The annual renewal of active status (ARAS) for local pensioners was discontinued beginning May 2011. Hence, starting May 1, 2011, pensioners whose birth months are from May to December are no longer required to report to the GSIS Office for ARAS.

2. Pensioners whose birth months are from January to April, or those

suspended as of April 2011 who have not yet renewed their active status, shall be required to undergo the ARAS for the last time (otherwise, suspended pension will remain as such), but thereafter, it shall no longer be required.

3. The renewal of active status for pensioners abroad shall continue

through Skype. Pensioners who have requested for change in their address or place of residence from foreign to a local one shall be home visited, prior to the processing of the request.

4. Non-renewal of active status by the pensioner shall result in the

following16: a. Suspension of payment of monthly pension. b. Non-entitlement to cash gift if status is suspended at the time of

declaration.

15 Office Order No. 78-11 dated April 25, 2011 re Policy on the Implementation of the Non Annual Renewal of Active Status 16 Section 20.13.3 of the Revised Implementing Guidelines of Republic Act No. 8291 approved last June 24, 2010

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c. Non-entitlement to pension increases if status is suspended at the

time of declaration.

5. The renewal of active status for pensioners residing in the Autonomous Region of Muslim Mindanao (ARMM) shall also continue, in view of the failure of the NSO to provide GSIS with accurate and updated data on marriages and deaths from the region.

K. Pension Overpayment

1. Overpayment shall refer to pension benefit and Cash Gift disbursed in

favor of the pensioner after his/her death, remarriage, cohabitation or engagement in a common-law relationship or emancipation (i.e. minor has reached the age of majority). It may also result from the erroneous computation of retirement/pension proceeds.

2. In case a survivorship pensioner was reported to be cohabiting or

engaging in a common-law relationship, the GSIS shall require the submission of a notarized affidavit from the person who reported the same.

3. The reckoning date in determining pension overpayment shall be as

follows: a. In case of death: Date of death as indicated in the Death

Certificate issued by the National Statistics Office (NSO). However, the tagging for the suspension of pension benefits shall be based on the NSO-certified Death Certificate, the local registry copy of Death Certificate submitted to the GSIS or as reported by relatives, whichever comes first.

b. In case of remarriage: Date of remarriage as indicated in the NSO-

certified or local registry copy of Marriage Certificate, whichever becomes available first.

c. In case of emancipation: Date the minor has reached the age of

majority.

d. In case of cohabitation: Date of the Notarized Affidavit or Court Order as submitted to the GSIS.

L. Recovery of Pension Overpayment and Outstanding Receivables of

Deceased Pensioners

1. All pension overpayments and outstanding receivables of deceased pensioners shall be recovered from the following:

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a. Survivorship benefit;

b. Funeral benefit (only if the surviving spouse is not qualified to

survivorship pension or if there is no surviving spouse); and

c. Estate of the deceased pensioner

2. The surviving spouse and/or the legal heirs are not precluded from voluntarily entering into an arrangement with the GSIS for the settlement of the deceased pensioner’s outstanding liabilities. For this purpose, a notarized Affidavit of Undertaking in favor of the GSIS or, in case the surviving spouse and/or legal heir or both is/are GSIS member/s, Authority to Deduct (from their GSIS benefit the amount of outstanding liabilities) shall be submitted by the surviving spouse and/or the legal heirs, for approval by the Senior Vice President, Operations Group.

3. Pension overpayments shall not be subject to any interest or penalty

charges.

4. In no case shall the pension of a dependent child be affected as a result of the recovery of pension overpayment on survivorship pension.

5. The GSIS shall automatically collect the amount of overpayment and

other outstanding receivables, in the following order:

a. Remaining balance in the eCard;

b. Benefits payable by the System, as follows:

If the deceased old-age pensioner has no surviving spouse:

Pensioner Overpayment / Outstanding

Receivable shall be deducted from:

Deceased was an Old-Age (OA) Pensioner only

1. Funeral Benefit 2. Estate of the Deceased

Pensioner

Deceased was an OA Pensioner and Active Member at the same time

1. Life (Death Claim) 2. Funeral Benefit 3. Estate of the Deceased

Pensioner

Deceased was an OA and 1. Funeral Benefit

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a Survivorship Pensioner (SP) at the same time

2. Estate of the Deceased Pensioner

Deceased was an OA, SP and Active Member all at the same time

1. Life (Death Claim) 2. Funeral Benefit 3. Estate of the Deceased

Pensioner

If the deceased old-age pensioner has a surviving spouse:

Overpayment / Outstanding Receivable shall be deducted from the following benefits of the surviving spouse: 1. Funeral Benefit (of OA pensioner), if not qualified to

survivorship benefit 2. Survivorship Pension (Transfer of Pension or TOP), if qualified 3. Estate of the Deceased Pensioner

If the deceased old-age pensioner (who is also an Active Member) has a surviving spouse:

Overpayment / Outstanding Receivable shall be deducted from the following benefits of the surviving spouse: 1. Life (Death Claim) 2. Funeral Benefit (of OA pensioner), if not qualified to

survivorship benefit 3. Survivorship Pension (Transfer of Pension or TOP), if qualified 4. Estate of the Deceased Pensioner

5. If pension overpayment was due to remarriage, cohabitation or

engagement in a common-law relationship, emancipation (i.e. minor has reached the age of majority), the GSIS shall collect the amount of overpayment (determined in accordance with Section III, Item K.3 of this PPG), as follows:

Type of Pensioner Mode of Collection

(of pension overpayment)

Survivorship Pensioner Only Sending of collection letter for the 100% recovery of pension overpayment

Dependent Pensioner Only (who has reached the age of

Automatic deduction from the survivorship pension of surviving

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Type of Pensioner Mode of Collection

(of pension overpayment)

majority)

spouse, until fully paid. Sending of collection letter for the 100% recovery of pension overpayment (in the absence of surviving spouse)

Dual Status Pensioner (Surviving Spouse and Old-Age Pensioner at the same time)

Sending of collection letter for the 100% recovery of pension overpayment

Surviving Spouse who is an active GSIS member


Dual Status Pensioner and Active Member at the same time


6. The Claims Unit in the Central/Branch Office shall immediately identify

the legal heirs of the deceased old-age/survivorship pensioner through NSO records submitted by the claimants, and notify the same in writing of the pension overpayment, stating the following:

a. The amount of pension overpayment, the reason for such, and that

the same shall be recovered following the order of priority enumerated under Item No. 4 of this Section.

b. The bank account of the deceased or remarried survivorship

pensioner shall be restricted up to the amount of overpayment.

7. The sending of collection letters for the recovery of the full amount of pension overpayment shall be undertaken in case of non-payment, as follows:

a. The collection letter shall be prepared and sent by the Claims Unit

of the Central or Branch Office thirty (30) days after receipt of the letter notification by the legal heirs / remarried survivorship pensioner.

b. The first and final demand letter shall be prepared and sent by the Legal Services Group within thirty (30) days from receipt of the

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preceding collection letters by the legal heirs / remarried survivorship pensioner.

8. After applying all benefits due from GSIS and exhausting all collection

remedies, any remaining overpayment shall be reported by the LSG to the Controller Group for the setting up of Allowance for Doubtful Accounts, subject to the policies on the matter. However, if the remaining overpayment is equal to or below the threshold of P10,000.00, the same shall no longer be referred to the Legal Services Group (LSG) for litigation and instead shall be referred to the Controller Group for the setting up of allowance for doubtful account.

9. If the overpayment was due to erroneous computation of retirement / pension benefit, the GSIS shall collect the overpayment from the monthly pension through installment.

a. The basic monthly pension (BMP) shall be adjusted to reflect the

correct monthly pension. b. The amount of overpayment shall be collected, without interest,

from the monthly pension, net of deductions from existing pension loan (PNL) and/or Pensioner’s Restructured Loan (PRL-CLASP), but must not be less than fifty percent (50%) of the net pension amount. However, the pensioner shall have the option to increase the amount of overpayment to be deducted from his net pension amount, subject to the submission of a written request to the GSIS.

10. The deduction of overpayment shall continue until such time that the

overpayments are fully recovered.

M. Recovery of Pension Overpayment from the Balance of the eCard Account17 1. The Treasury Operations Office (TOO) shall coordinate with the

servicing bank to restrict the bank account of the deceased old-age pensioner, deceased survivorship pensioner, or survivorship pensioner who has remarried, cohabited or engaged in a common-law relationship, until such time that the full amount of pension and Cash Gift overpayment has been recovered.

2. After the bank has credited back the required amount, whether in part

or in whole, the reverted amount shall be used to clear the open item/debit pertaining to the overpayment. In case the amount credited

17 Adopted from the procedures on the Crediting Back of Excess Payments from the 2010 Manual of Operations – Treasury Office

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back to GSIS is less than the amount to be recovered, the restriction shall be lifted provided that the remaining balance in the eCard account has been exhausted. The unrecovered amount shall be deducted from the benefits due the surviving spouse, if any, following this order of priority:

a. Pension overpayment (from the deceased old-age pensioner) b. Cash gift overpayment (from the deceased old-age pensioner) c. Outstanding balance from the existing pension loan (if availed prior

to the inception of the Revised Pension Loan Program) d. Outstanding balances from existing service loan/s of deceased

members, based on the order of prioritization set under Office Order No. 99-06 and MIG 08-2010.

N. Lifting of Suspension of Pension Benefit

1. The lifting of suspension of pension benefit by the Division Chief (DC)

Officer I or Manager, Membership Department of the Operations Groups shall be due to the following reasons:

a. Settlement in full of pension overpayment, as recommended by the

Department or Branch Manager concerned and approved by the Vice President, Operations Group.

b. Updating of pensioner status from “Deceased” to “Active” or “Hold” to “Active”, as recommended by the Team Leader or Officer I concerned and approved by Department or Branch Manager concerned.

c. Updating of pensioner status from “Terminated (due to Remarriage)” to “Active”, upon presentation of the Certificate of No Marriage or CENOMAR from NSO, as recommended by the Team Leader or Officer I concerned and approved by Department or Branch Manager concerned.

2. The lifting of suspension of pension benefit shall be undertaken by the

Officer I or the Manager (as alternate) of the Membership Department – NCR/Luzon/VisMin Operations Group.

O. Deletion of Pension Record

1. A pension record erroneously created or migrated in the system shall

be recommended for deletion by the Department or Branch Manager,

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and approved by the concerned Senior Vice President (SVP) or Vice President (VP), Operations Group.

2. The deletion of erroneous or invalid pension record shall be

undertaken by the Officer I or the Manager (as alternate) of the Membership Department – NCR/Luzon/VisMin Operations Group, upon approval by the SVP or VP, Operations Group.

IV. General Procedures

A. Creation of Pension Record

Activity Responsible

1. Check completeness of the filled-up Member’s Request Form (MRF) for pension commencement from the retiree, survivorship pensioner or guardian of dependent pensioner.

a. If the request was filed by

authorized representative because the retiree cannot travel to the GSIS Office, advise the authorized representative to submit request for pension commencement and enrollment in the GSIS eCard through home visit.

b. If the retiree is living abroad, advise

authorized representative to require the retiree to email GSIS at [email protected] to request for pension commencement and enrollment in the GSIS UMID eCard.

Frontline Services Unit (CO/BO)

2. Validate identity of retiree, survivorship pensioner or guardian through the IDs and documents presented. Request for additional IDs, if warranted.


3. Stamp-receive completely filled-up MRF and advise retiree, survivorship pensioner or guardian to proceed to the Claims Unit for pre-processing of pension.


mailto:[email protected]

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4. Pre-process request for commencement of pension, as follows:

a. If retiree is qualified for immediate

pension after retirement, verify if retirement record has been created or uploaded in SAP-CPAS.

b. If retiree is qualified to receive

pension benefit at future date, verify if retiree-pensioner is already qualified to receive pension.

c. If surviving spouse, validate

eligibility to survivorship pension benefit.

d. If guardian, validate submitted proof

of guardianship and the eligiblity of dependent child/ren to receive the dependent’s pension.

Claims Unit (CO/BO)

5. If qualified, prepare Certified Instruction to Create Record (CICR) and endorse to Membership Department through TMS.

Claims Unit (CO/BO)

6. Create pension record.

Membership Department (NCR, Luzon, VisMin)

a. Once pension record is created, advise retiree or survivorship pensioner to proceed to the Pensioner’s Lounge for enrollment to the GSIS UMID eCard.


b. Inform Claims Unit of the creation of pension record through TMS.


7. If not qualified for pension, or qualified but with outstanding obligations and receivables to settle through deduction from unpaid pension (pension accrual), advise retiree or survivorship pensioner accordingly.

Claims Unit (CO/BO)

22


End of Process

B. Updating of Retiree-Pensioner/ Survivorship Record


1. Prepare Certified Instruction to Update Record (CIUR) and endorse to Membership Department through TMS.

Claims Unit (CO/BO)

2. Check completeness of CIUR Membership Department (NCR, Luzon, VisMin)

3. Update Pension Record


4. Inform Claims Unit of the updating of pension record through TMS


5. Determine if there is a pension accrual to be paid. [Proceed to the procedures on the Payment of Pension Accrual]

Claims Unit (CO/BO)

End of Process

C. Payment of Pension Accrual


1. Advise the Claims Unit of any pension accrual due for payment to the old-age or survivorship pensioner.


a. For walk-in retirees with application for payment of pension accrual, request filling up of a Member’s Request Form (MRF) and endorse to the Claims Unit through TMS.


2. Verify the eligibility of the old-age or survivorship pensioner to the pension accrual benefit.

a. If the pensioner is eligible, the

accrued pension is computed and approved for payment.

b. If not qualified, the payment of

Claims Unit (CO/BO)

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accrued pension is disapproved and the pensioner is duly informed of the cause of said disapproval.

3. Process the pension accrual and transmit the disbursement file to UBP/LBP for e-crediting of the amount in the pensioner’s eCard account.

a. If the pensioner has not yet enrolled

in the GSIS eCard, advise the pensioner to enroll for the GSIS eCard. Only upon activation of the GSIS eCard shall pension accrual be processed by the Claims Unit.

Claims Unit (CO/BO)

End of Process

D. Payment of Pension Adjustment (due to recomputation of retirement

benefit)


1. Receive the letter or request of pensioners for adjustment in pension benefit from the Frontline Services Division, Members’ Assistance Counter (MAC) or through email.

Claims Unit (CO/BO)

2. Verify from the database if BMP of pensioner has not yet been adjusted as a result of the recomputation of retirement benefit.

a. If not yet adjusted, advise the

Membership Department – NCR/Luzon/Vismin of the pension adjustment for updating of basic monthly pension (BMP). Proceed to Activity No. 3.

b. If already adjusted, the application

for pension adjustment is disapproved and the pensioner is duly informed of the cause of said disapproval.

Claims Unit (CO/BO)

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3. Update BMP of pensioner and inform the Claims Unit of adjustment.


4. Compute the amount of pension adjustment, reckoning from the date the adjusted BMP was due and approve for payment.

Claims Unit (CO/BO)

5. Inform the member of the pension adjustment.

Claims Unit (CO/BO)

End of Process

E. Recovery of Pension Overpayment


1. Inform the Claims Unit of pension overpayment for collection.


2. Set-up receivable in the account of the old-age or survivorship pensioner.

a. If pension overpayment was due to

remarriage, cohabitation / engagement in common law relationship or emancipation, set-up the whole amount of overpayment as receivable.

b. If pension overpayment was due to

erroneous computation of retirement / pension benefit by the GSIS, set-up the overpayment as receivable on installment basis.

The installment amount of overpayment must not exceed 50% of the net pension amount, i.e. net of deduction from existing pension loan (PNL) and/or Pensioner’s Restructured Loan (PRL-CLASP).

Claims Unit (CO/BO)

25


3. Notify in writing the legal heirs of the deceased pensioner or the remarried survivorship pensioner of the overpayment, which shall be recovered from the following:

b. Survivorship Benefit; c. Funeral benefit (only if the surviving

spouse is not qualified to survivorship pension or there is no surviving spouse); and

d. Estate of the deceased pensioner

Claims Unit (CO/BO)

4. In case of non-payment, prepare collection letter to be sent thirty (30) days after receipt of the letter notification by the legal heirs or remarried survivorship pensioner.

Claims Unit (CO/BO)

5. In case of non-payment after receipt of the collection letter:

a. If the amount of overpayment is

below or equal to P10,000.00, proceed to Step 8.

b. If the amount of overpayment is more than P10,000.00, refer to Legal Services Group (LSG) for the sending of demand letters.

Claims Unit (CO/BO)

6. Prepare First and Final demand letter, to be sent thirty (30) days after receipt of the collection letter by the legal heirs or remarried survivorship pensioner.

a. If notification for payment was

received from the legal heirs or remarried survivorship pensioner, inform Reconciliation Units for reconciliation.

b. If no payment was received, file collection case against the legal heirs or remarried survivorship

LSG

26


pensioner.

7. Reconcile payments against the set-up receivable on the account of the old-age or survivorship pensioner.

Reconciliation Units (CO/BO)

8. Report to the Controller Group any overpayment that can no longer be collected for the setting up of Allowance for Doubtful Accounts.

Claims Unit (CO/BO)

or LSG

End of Process

F. Lifting of Suspension of Pension Benefit


1. Receive request for the lifting of suspension of pension benefit, as approved by the Department/Branch Manager or Vice President, Operations Group, through TMS.


2. Update the pensioner status to “Active”.

Office I or Manager (as alternate),


3. Inform the Requesting Unit / Branch Office of the action taken, through TMS.


4. Determine if there is a pension accrual to be paid. [Proceed to the procedures on the Payment of Pension Accrual]

Claims Unit (CO/BO)

End of Process

G. Deletion of Pension Record


1. Receive request for the deletion of pension record, as approved by the SVP or VP, Operations Group, through TMS.


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2. Delete pension record. Office I or Manager (as alternate),


3. Inform the requesting Unit / Branch Office of the action taken, through TMS.


End of Process

V. Data and System Requirements

1. The Controller Group shall provide the proper accounting entries to

record all transactions contained in this PPG.

2. The Operations Groups shall prepare the necessary consolidated user requirements (CUR) and undertake user acceptance testing (UAT) to implement this PPG.

3. The Information Technology Services Group (ITSG) shall ensure that the necessary program for system adjustments and reportorial requirements are made to conform to this PPG.

4. The Internal Audit Services Office (IASO) and Information Security Office (ISO) shall review the CUR and ensure that all internal controls are in place in the system.

VI. Information Drive

The Corporate Communications Office shall prepare the necessary internal and external communication plan to communicate the implementation of this PPG.

The Policy and Procedural Guidelines on Pension Administration, as approved under BR No. 43 dated 23 May 2013, and all other Policy and Procedural Guidelines, Office Orders, and Circulars that are inconsistent herewith, in whole or in part, are hereby superseded, modified or repealed accordingly. This PPG shall take effect immediately after Board approval. ORIGINAL SIGNED ROBERT G. VERGARA President and General Manager Date Signed: 11 December 2014

policy and procedural guidelines no · in line with the gsis vision and mission to continuously...

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