GSIS extends loan condonation program for inactive members

by Ben O. de Vera, Philippine Daily Inquirer, 7 Jan 2020

The Government Service Insurance System has extended until the end of 2020 the settlement of inactive members’ unpaid loans under the so-called GSIS Program for Restructuring and Repayment of Debts (PRRD).

In a statement on Tuesday (Jan. 7), the state-run pension fund said that past members who had already left government service but still have unpaid loans can still apply for the GSIS-PRRD until Sept. 30.

Payments will be accepted by the GSIS until Dec. 31.

This loan condonation and structuring program started in 2018.

The program, the GSIS said, “addresses the clamor of separated GSIS members and pensioners for a little more time to restructure their loans and pay the remaining balance through installment.”

GSIS Chair Rolando L. Macasaet, in the statement, said PRRD, which coincidentally are also the initials of President Rodrigo Roa Duterte, allows inactive members to pay their loans free of penalties and at an interest rate of 10 percent per annum.

Among the loans covered by PRRD are salary loans, emergency loans, educational assistance loans, stock purchase loans, loans to Department of Education employees and others.

However, pensioners and housing loans are not covered by the program.

Edited by TSB