(NAR) VOL. 24 NO. 4 / OCTOBER - DECEMBER 2013
WHEREAS, the Senior Vice President, Corporate Services Group, was tasked to draft detailed guidelines to implement Board Resolution No. 44;
WHEREAS, the Senior Vice President, Corporate Services Group, in her Memorandum dated 17 May 2013, submitted and proposed the approval of the Policy and Procedural Guidelines on the Treatment of Premium Payments of Members Beyond the Mandatory Retirement Age of 65;
RESOLVED, to APPROVE and CONFIRM the Policy and Procedural Guidelines on the Treatment of Premium Payments of Members Beyond the Mandatory Retirement Age of 65, as proposed by the Senior Vice President of the Corporate Services Group;
RESOLVED FURTHER, that Board Resolution No. 44 dated 22 March 2012, is hereby SUPERSEDED.
A copy of the Policy and Procedural Guidelines on the Treatment of Premium Payments of Members Beyond the Mandatory Retirement Age of 65 is hereto attached and made an integral part of this Resolution.
Attachment:
Policy and Procedural Guidelines No. 230-13
PPG on the Treatment of Premium Payments of Members Beyond the
Mandatory Retirement Age of 65
I. BACKGROUND/RATIONALE
Under Board Resolution (BR) No. 44 dated 22 March 2012, the policy on the Treatment of Premium Payments of Members Beyond the Mandatory Retirement Age of 65 was approved. The policy complies with Section 13 (b) of RA 8291 that indicates 65 years old as the mandatory retirement age, unless the service is extended by appropriate authorities in accordance with the existing civil service rules and regulations.
In the course of the implementation of BR 44, the Operations Group saw the need to include non-presidential appointees whose services were extended pursuant to RA 8292 (Higher Education Modernization Act of 1997) and RA 9500 (University of the Philippines Charter of 2008).
Specific guidelines are hereby being issued to rectify errors or restore equity concerning members who continuously pay premiums even beyond 65 years old. Furthermore, these guidelines will serve as a guide for the uniform treatment and implementation of the policy embodied in BR 44.
II. DEFINITION OF TERMS The following terms shall be defined as:
III. POLICIES
A. COVERAGE
This PPG shall cover regular members who have remitted premium contributions to GSIS even beyond the mandatory retirement age of 65.
B. GENERAL POLICY
C. EXCEPTIONS
D. EFFECT ON THE PERIOD WITH PREMIUM PAYMENTS (PPP)
The following shall be included in the computation of the member’s PPP:
E. REFUND OF PREMIUM CONTRIBUTIONS BEYOND AGE 65
F. EXTRACTION OF DATA
For purposes of determining the number of affected members, the Technical Support Departments (TSDs) of the Operations Group shall conduct an annual extraction of data of members turning 65 in June of each year.
G. NOTIFICATION TO AFFECTED MEMBERS
H. SYSTEM AND OTHER REQUIREMENTS
IV. PROCEDURES
The detailed procedures to be included in the Manual of Operations of the OUCs shall adhere to the following general guidelines:
Phase 1
A. Extraction of Data and Notification to Members and Agencies
B. Determination of Members’ Options and Processing of Members’ Claim
Activity Responsible Unit/Person 1. Extract data of members who are beyond age 65 with premium contributions TSD, Operations
Group 2. Exclude Special Members from the list. Membership
Department,
Operations Group 3.
Determine from the remaining list inactive members without claim 3.1 Prepare notification, using the CCO-prepared pro forma letter, informing them of their option to apply for refund or to include services to their future claim and require members to respond directly to GSIS within 30 days upon receipt of the letter. Proceed to Activity 6. 4.
Determine from the remaining list of members those who are covered by Optional Continuance of Membership of BR 44.4.1 Prepare notification, using the CCO-prepared pro forma letter, informing them of their option to continue or discontinue membership and require member to respond directly to GSIS or through their AAOs within 30 days upon receipt of the letter. Proceed to Activity 6.
5.
Identify who, among those in the remaining list, submitted notice of extension issued by Office of the President or CSC5.1 If with valid notice of extension, continue membership coverage and include such services in the computation of PPP.5.2 If without notice of extension, prepare letter requesting the submission of notice of extension or option* taken within 30 days, directly to GSIS or through their AAOs, to continue membership coverage. *Options that may be taken by the members who are 65 years old (PPP or Refund) 6. Send Letters to Records Management Department (RMD) for mailing 7. Mail letters to concerned members and agencies RMD
Activity Responsible Unit/Person 1
Monitor and follow-up members and AAOs’ response within
30 days from notice:1.1 If member is an elected, appointed or co-terminus employee, categorize reply as to:1.1.1 member opted to continue, indicate in the MSP option taken and continue membership coverage1.1.2 member opted to discontinuance 1.1.2.1 If member requested for refund, process refund upon filing of an MRF.1.1.2.2 If member requested to have it included in the PPP, close MSP and indicate the option taken1.2 If member is not an elected, appointed or co-terminus employee, categorize reply as to:1.2.1 member submitted valid notice of extension, indicate in the Membership Service Profile (MSP) option taken and continue membership coverage.1.2.2 member requested for refund, process refund upon filing of an MRF.1.2.3 member opted to have it included in the PPP, close MSP and indicate the option taken1.3 If member is inactive, categorize reply as to: 1.3.1 member requested for refund, process refund upon filing of an MRF.
1.3.2
member opted to have it included in the PPP, update MSP and indicate option taken. Create open item for premiums and apply premiums paid to open item. Membership
Department,
Operations Group
Phase II
A. Updating of List of Affected Members
Activity Responsible Unit/Person 1Extract data of members who are about to turn 65 years old within the current year TSD, Operations
Group 2Exclude Special Members in the list and the extracted members during Phase I
Membership
Department,
Operations Group 3
Determine from the remaining list of members those who are covered by Optional Discontinuance of Membership of BR 44 3.1 Prepare notification, using the CCO-prepared pro forma letter, informing them of their option to continue or discontinue membership and require member to respond directly to GSIS or through their AAOs within 30 days upon receipt of the letter. Proceed to Activity 5. 4
Prepare notification, using the CCO-prepared pro forma letter, informing those in the remaining list of the termination of their membership coverage unless a notice of extension issued by the OP or CSC is submitted and require member to respond directly to GSIS or through their AAOs within 30 days upon receipt of the letter.
5
Send letters to RMD for mailing. 6Mail letters to concerned members and agencies RMD
B. Monitoring of Members’ Response through AAOs
Activity Responsible Unit/Person 1
Monitor and follow-up AAO’s response within 30 days from receipt of letters.1.1 If member is an elected, appointed or co-terminus employee, categorize reply as to:1.1.1 member opted to continue, indicate in the MSP option taken and continue membership coverage1.1.2 member opted to discontinue, indicate in the MSP option taken. Close MSP upon separation from the service or date of birth, whichever comes first.1.2 If member is not an elected, appointed or co-terminus employee, categorize reply as to:1.2.1 member submitted notice of extension, indicate in the MSP option taken and continue membership coverage.1.2.2 member did not submit notice of extension, indicate in the MSP option taken. Close MSP on the 65th birthday.
Membership
Department,
Operations Group 2 If no response was received from the AAO, close MSP upon separation from the service or 65th birthday, whichever comes first and inform member and the AAO through mail.
This PPG shall take effect immediately.
(SGD) ROBERT G. VERGARA
President and General Manager
Date Signed: 31 May 2013