GSIS revives memorial service plans for gov't employees
MANILA, Philippines - About 1,800 members of the state-owned pension fund Government Service Insurance System (GSIS) who have fully-paid memorial service plans with pre-need firm Paz Memorial Services Inc. could soon claim what is due them after the two patched up their long-standing dispute.
The GSIS recently entered into a P5.8 million compromise agreement with Paz Memorial over some unsettled premium payments, which resulted in the 2004 suspension of the servicing of the memorial service plans availed by GSIS members.
"“We are glad that we have reached an amicable settlement with Paz Memorial on this long-standing issue and together, fulfill our contractual obligations to our plan holders,” GSIS president Robert Vergara said in a statement on Wednesday, May 23. Vergara initiated the talks with the pre-need firm.
GSIS tapped Paz Memorial in 1993 to handle the marketing and mortuary services for government clients through memorial plans.
Following the compromise deal, GSIS can now engage the services of Paz Memorial to provide the network, manpower and facilities that GSIS members require when they or their loved ones pass away.
The GSIS will finance an initial P5 million trust fund that will be replenished when claims reach P1 million.
The obligation of Paz Memorial to render its services will be limited to this trust fund. - Rappler.com
