REINSTATEMENT OF SECTION XVI – UNAVAILED COLLEGE EDUCATIONAL BENEFITS, OF THE EDU-CHILD PLAN AGREEMENT
planholders to refund the contract price upon presentation of a valid
cause such as illness or death of the scholar, migration of the scholar
abroad, etc.;
WHEREAS, the Lump Sum Refund under Section XVI of the said
agreement is the amount corresponding to the number of complete years
that the plan has been fully paid less any amount of educational college
benefits (ECB) already availed, and shall be determined as follows:
|
No. of Years after Full
Payment |
Lump Sum Refund
(Gross of ECB Already Availed) |
|
1
2 3 4 5 6 7 8 9 10 11 12 13 14 15 and over |
55% of the Contract Price
60% of the Contract Price 65% of the Contract Price 70% of-the Contract Price 75% of the Contract Price 80% of the Contract Price 85% of the Contract Price 90% of the Contract Price 95% of the Contract Price 100% of the Contract Price 105% of the Contract Price 115% of the Contract Price 120% of the Contract Price 130% of the Contract Price 150% of the Contract Price |
WHEREAS, the GSIS discontinued implementing the Lump Sum Refund
and offered the Optional Exit Mechanism (OEM), under Provision No. 7 of
Office Order No. 13-06 dated 26 January 2006, wherein active or fully
paid Edu-Child and Memorial plans are terminated and the total premiums
paid are refunded to the planholder without interest;
WHEREAS, the Lump Sum Refund is more cost-efficient for the
GSIS, as payment shall be based on the schedule provided therein net of
ECB already availed, whereas the OEM provides for 100% refund of the
total premiums paid;
RESOLVED, to APPROVE and CONFIRM the reinstatement of Section
XVI – Unavailed College Educational Benefits, of the Edu-Child Plan
Agreement as recommended by the Vice President, NCR Area Il, in her
Memorandum dated 17 May 2012;
RESOLVED FINALLY, to REVOKE Provision No. 7 of Office Order No. 13-06 dated 26 January 2006 which approved the OEM.