Pensioners drawing benefits from the Government Service Insurance System (GSIS) may use Land Bank of the Philippines as a servicing bank starting next year.
GSIS has nearly 280,000 pensioners who used to work for government agencies and institutions.
LandBank and the pension fund of government employees and have signed a memorandum of agreement authorizing the state-run bank as a servicing bank for old age and survivorship pensioners, GSIS president and general manager Robert Vergara said Tuesday.
“This measure will now make it easier for our members and pensioners, especially in the provinces, to access their benefits and other loans," he added.
LandBank will start servicing pensioners by the first quarter of 2011, gradually expanding to include all GSIS members.
Savings accounts for both GSIS and its member will be opened with LandBank that will also input additional ATM (automated teller machine) services specifically for pensioners.
The concept will undergo pilot testing next month, covering about 14,000 pensioners registered with the GSIS Batangas Regional Offices and servicing offices under its jurisdiction that include the Lucena Branch Office and its satellite offices in Calapan City, Oriental Mindoro; Mamburao, Occidental Mindoro; and Boac, Marinduque.
Results of the pilot test will determine how other pensioners and regular members will be incorporated into the program
“By March next year, we project that the rest of our pensioners will be able to use Land Bank’s facility; all employees at the GSIS head office by May; and all active members by July," Vergara said.
LandBank ATM cards
Pensioners will have to pick up their LandBank ATM cards from designated branches. In case the pensioner is incapacitated, a LandBank representative will deliver the ATM card.
Withdrawing monthly or accrued pension benefits and pension loans do not carry any transaction fees.
Those who choose to keep existing savings accounts with the Union Bank of the Philippines can still use the GSIS eCard to transact the nearest Union Bank ATM.
Both LandBank and Union Bank ATM cards may be used in any Megalink, Bancnet, and Expressnet machines.
Pension benefits disbursed by GSIS rose by 11.3 percent to P18.78 billion in the first 10 months of the year from P16.87 billion a year earlier on growing number of pensioners and higher pension benefits.
The GSIS management and the board of trustees are looking for ways to make it easier for pensioner to renew their active status, Vergara said. “Our vision is to harness technology so that eventually, all our pensioners need not come to the GSIS office for renewal of their active status. They can just do it in the comfort of their own homes through technology-enabled means."
The mandate of the pension fund is to provide retirement benefits to our stakeholders, especially pensioners who have rendered years of public service, he added. — VS,
