GSIS CONTRIBUTIONS, PAYMENT CLAIMS SHOULD MADE THROUGH LAND BANK

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) is proposing a law that will authorize the Land Bank of the Philippines to receive payments of government employees' monthly premium contributions to the Government Service Insurance System and to facilitate the payment of benefits, proceeds and claims under the GSIS law (Republic Act 8291).

Pimentel made this proposal, embodied in Senate Bill, to enable the GSIS to address frequent complaints by employee-members about alleged misrecording of their premium contributions and payments for salary loans, as well as undue delay in the processing and delivery of their benefits.

"It alarming, to say the least, that we keep hearing of complaints about delays in the processing of GSIS membership papers. There are also complaints about delays in the non-payment of dividends," he said.

Pimentel said it is incumbent upon the GSIS authorities to undertake measures to remedy these problems and to improve its system and procedures for rendering services to its members.

Under the Pimentel bill, the authority given to the Land Bank of the Philippines to handle GSIS transactions shall be good for a period of one year from its enactment. However, this period may be extended for a reasonable duration.

The bill provides that all contracts and agreements entered into by the GSIS prior to the effectivity of this Act shall remain in force unless otherwise terminated or amended for lawful cause.

The GSIS and LBP shall, within 30 days from effectivity of this Act, issue rules and regulations necessary for the proper implementation of its provisions.