Law Summary

Overview

This resolution, adopted on November 22, 2004, by the Government Service Insurance System (GSIS), pertains to the distribution of annual cash dividends amounting to P847 Million to policyholders of the System's Compulsory Life Insurance.

Eligibility for Cash Dividends

• Active Members:

  • Members whose life insurance coverage has been in force for at least one (1) year as of December 31, 2003, are entitled to cash benefits.
  • This includes members of the Judiciary and Armed Forces of the Philippines (AFP).

• Policy Types:

  • Members with new or renewed Life Endowment Policies (LEP) are eligible if their policies have been active for a minimum of one (1) year as of December 31, 2003.
  • Members who converted LEP to Enhanced Life Policies (ELP) are also eligible, provided their policies have been in force for at least one (1) year, calculated from the original LEP issue date.

• Ineligibility:

  • Policies that were terminated in 2003 are not entitled to cash dividends.
  • Lapsed policies as of December 31, 2003, are also disqualified from receiving dividends.

Funding and Payment Procedures

• Source of Funds:

  • The cash dividends, estimated at P847 Million, will be charged to the Social Insurance Fund (SIF).

• Payment Deductions:

  • Dividends for policyholders with premium arrearages will first be used to settle such arrearages. Any remaining balance will then be paid to the policyholders.

Database Management and Policy Status

• Policy Tagging:
  • The Information Technology Services Group (ITSG) must cleanse the membership database by tagging lapsed policies prior to the dividend distribution. Tagged policies will not be eligible for dividends.

Computation and Accountability

• Dividend Computation:

  • Specific formulas for computing cash dividends are provided in an attached annex (not filed with ONAR) for ITSG guidance.

• Delivery Accountability:

  • A certification from the designated Liaison Officers (LOs) is required upon receipt of dividend checks. The certification includes:
    • Acknowledgment of receipt of checks.
    • An assurance on refunding misdelivered or improperly encashed checks.
    • A promise to return the signed abstract of dividend within fifteen (15) days of receipt.

Certification Requirements

• Liaison Officer Certification:
  • The certification must include:
    • Printed name and signature of the Liaison Officer.
    • Date of receipt.
    • A guarantee for refund of checks in case of issues.

Key Takeaways

• The GSIS Resolution No. 238 establishes a framework for distributing P847 Million in cash dividends to eligible compulsory life insurance policyholders.
• Eligibility is limited to active members with policies in force for at least one year as of December 31, 2003.
• Policies terminated or lapsed before this date are not entitled to dividends.
• The ITSG is responsible for ensuring accurate policy status and dividend computations.
• Liaison Officers play a crucial role in the accountability of dividend checks, with specific certification requirements to safeguard against misdelivery.