LEGAZPI CITY—The Bicol Regional Development Council urged the Government Service Insurance System (GSIS) to lift the suspension of its housing loan program for government workers.
Albay Gov. Joey Salceda, council chair, said the council adopted a resolution on June 24 urging GSIS president and general manager Robert Vergara to restore the housing loan program to millions of GSIS members.
The council resolution, passed on behalf of millions of GSIS members in Bicol, also asked the government insurance firm to explain why it was deferring its housing program in favor of the Pag-Ibig Fund.
Aside from the fact that GSIS housing loans carry an 8-percent interest against the 12-percent interest charged by Pag-Ibig, the transfer of its housing program to the Pag-Ibig Fund would be an added burden to government employees, Salceda said.
He said GSIS members would have to pay additional management fees.
The council also requested GSIS to pay the educational plans of its members who have been contributing to this program.
The GSIS has suspended all of its housing loan programs effective April 28 this year, in line with the thrust to wind down housing programs in favor of working with key shelter agencies.
Vergara, in a press statement, said GSIS wanted to synchronize its efforts in implementing the government’s housing program through closer partnership agencies whose main function is on housing, saying that “with this new measure, we also avoid duplication.”
Vergara said while it is within the mandate of the pension fund to enter into housing loan programs, “GSIS is really not a housing institution … it is first and foremost a pension fund.”
The GSIS clarified that applications and housing loans existing before April 28 would still be processed and serviced.
“Policies and procedural guidelines for GSIS housing programs will remain in effect for these housing loans,” Vergara said.
The disposition of acquired assets would also continue but on a cash basis only, he added.
To date, at least 85 percent of GSIS’ loan portfolio is in short to medium-term loans like consolidated loans, emergency loans, one-time cash advances, policy loans and pension loans, which can be availed of online.