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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
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

2
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

3
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

4
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

5
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


pensionglobal@gsis.gov.ph 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

6
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

7
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.

8
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

9
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.

10
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

11
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.

12
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

13
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:

14
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:


Overpayment / Outstanding
Pensioner Receivable shall be deducted
from:
Deceased was an Old- 1. Funeral Benefit
Age (OA) Pensioner only 2. Estate of the Deceased
Pensioner

Deceased was an OA 1. Life (Death Claim)


Pensioner and Active 2. Funeral Benefit
Member at the same time 3. Estate of the Deceased
Pensioner

Deceased was an OA and 1. Funeral Benefit

15
a Survivorship Pensioner 2. Estate of the Deceased
(SP) at the same time Pensioner

Deceased was an OA, SP 1. Life (Death Claim)


and Active Member all at 2. Funeral Benefit
the same time 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:

Mode of Collection
Type of Pensioner
(of pension overpayment)
Survivorship Pensioner Only Sending of collection letter for the
100% recovery of pension
overpayment

Dependent Pensioner Only Automatic deduction from the


(who has reached the age of survivorship pension of surviving

16
Mode of Collection
Type of Pensioner
(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 Sending of collection letter for the


(Surviving Spouse and Old-Age 100% recovery of pension
Pensioner at the same time) overpayment

Surviving Spouse who is an Sending of collection letter for the


active GSIS member 100% recovery of pension
overpayment

Dual Status Pensioner and Sending of collection letter for the


Active Member at the same 100% recovery of pension
time overpayment

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

17
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

18
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,

19
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 Frontline Services Unit
Member’s Request Form (MRF) for (CO/BO)
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
pensionglobal@gsis.gov.ph to
request for pension commencement
and enrollment in the GSIS UMID
eCard.

2. Validate identity of retiree, survivorship Frontline Services Unit


pensioner or guardian through the IDs (CO/BO)
and documents presented. Request
for additional IDs, if warranted.

3. Stamp-receive completely filled-up Frontline Services Unit


MRF and advise retiree, survivorship (CO/BO)
pensioner or guardian to proceed to the
Claims Unit for pre-processing of
pension.

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Activity Responsible
4. Pre-process request for Claims Unit
commencement of pension, as follows: (CO/BO)

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.

5. If qualified, prepare Certified Instruction Claims Unit


to Create Record (CICR) and endorse (CO/BO)
to Membership Department through
TMS.

6. Create pension record. Membership Department


(NCR, Luzon, VisMin)

a. Once pension record is created, Membership Department


advise retiree or survivorship (NCR, Luzon, VisMin)
pensioner to proceed to the
Pensioner’s Lounge for enrollment
to the GSIS UMID eCard.

b. Inform Claims Unit of the creation of Membership Department


pension record through TMS. (NCR, Luzon, VisMin)

7. If not qualified for pension, or qualified Claims Unit


but with outstanding obligations and (CO/BO)
receivables to settle through deduction
from unpaid pension (pension accrual),
advise retiree or survivorship pensioner
accordingly.

21
Activity Responsible
End of Process

B. Updating of Retiree-Pensioner/ Survivorship Record

Activity Responsible
1. Prepare Certified Instruction to Update Claims Unit
Record (CIUR) and endorse to (CO/BO)
Membership Department through TMS.
2. Check completeness of CIUR Membership Department
(NCR, Luzon, VisMin)

3. Update Pension Record Membership Department


(NCR, Luzon, VisMin)

4. Inform Claims Unit of the updating of Membership Department


pension record through TMS (NCR, Luzon, VisMin)

5. Determine if there is a pension accrual Claims Unit


to be paid. [Proceed to the procedures (CO/BO)
on the Payment of Pension Accrual]

End of Process

C. Payment of Pension Accrual

Activity Responsible
1. Advise the Claims Unit of any pension Membership Department
accrual due for payment to the old-age (NCR, Luzon, VisMin)
or survivorship pensioner.

a. For walk-in retirees with application Frontline Services Unit


for payment of pension accrual, (CO/BO)
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 Claims Unit


survivorship pensioner to the pension (CO/BO)
accrual benefit.

a. If the pensioner is eligible, the


accrued pension is computed and
approved for payment.

b. If not qualified, the payment of

22
Activity Responsible
accrued pension is disapproved and
the pensioner is duly informed of
the cause of said disapproval.

3. Process the pension accrual and Claims Unit


transmit the disbursement file to (CO/BO)
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.

End of Process

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


benefit)

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

2. Verify from the database if BMP of Claims Unit


pensioner has not yet been adjusted as (CO/BO)
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.

23
Activity Responsible
3. Update BMP of pensioner and inform Membership Department
the Claims Unit of adjustment. (NCR, Luzon, VisMin)

4. Compute the amount of pension Claims Unit


adjustment, reckoning from the date (CO/BO)
the adjusted BMP was due and
approve for payment.

5. Inform the member of the pension Claims Unit


adjustment. (CO/BO)

End of Process

E. Recovery of Pension Overpayment

Activity Responsible
1. Inform the Claims Unit of pension Membership Department
overpayment for collection. (NCR, Luzon, VisMin)

2. Set-up receivable in the account of the Claims Unit


old-age or survivorship pensioner. (CO/BO)

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).

24
Activity Responsible

3. Notify in writing the legal heirs of the Claims Unit


deceased pensioner or the remarried (CO/BO)
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

4. In case of non-payment, prepare Claims Unit


collection letter to be sent thirty (30) (CO/BO)
days after receipt of the letter
notification by the legal heirs or
remarried survivorship pensioner.

5. In case of non-payment after receipt of Claims Unit


the collection letter: (CO/BO)

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.

6. Prepare First and Final demand letter, LSG


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

25
Activity Responsible
pensioner.

7. Reconcile payments against the set-up Reconciliation Units


receivable on the account of the old- (CO/BO)
age or survivorship pensioner.

8. Report to the Controller Group any Claims Unit


overpayment that can no longer be (CO/BO)
collected for the setting up of or
Allowance for Doubtful Accounts. LSG

End of Process

F. Lifting of Suspension of Pension Benefit

Activity Responsible
1. Receive request for the lifting of Membership Department
suspension of pension benefit, as (NCR, Luzon, VisMin)
approved by the Department/Branch
Manager or Vice President, Operations
Group, through TMS.

2. Update the pensioner status to Office I or


“Active”. Manager (as alternate),
Membership Department
(NCR, Luzon, VisMin)

3. Inform the Requesting Unit / Branch Membership Department


Office of the action taken, through (NCR, Luzon, VisMin)
TMS.

4. Determine if there is a pension accrual Claims Unit


to be paid. [Proceed to the procedures (CO/BO)
on the Payment of Pension Accrual]

End of Process

G. Deletion of Pension Record

Activity Responsible
1. Receive request for the deletion of Membership Department
pension record, as approved by the (NCR, Luzon, VisMin)
SVP or VP, Operations Group, through
TMS.

26
Activity Responsible
2. Delete pension record. Office I or
Manager (as alternate),
Membership Department
(NCR, Luzon, VisMin)
3. Inform the requesting Unit / Branch Membership Department
Office of the action taken, through (NCR, Luzon, VisMin)
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

27