More than 1 million members of the Government Service Insurance System will receive their cash dividends before Christmas day after the GSIS Board of Trustees approved today the release of Php818 million from its coffers.

The pension fund released the cash dividends after posting a surplus in revenues derived from its Social Insurance Fund.

Compulsory Life Insurance policyholders who are entitled to the cash dividends include all active members including members of the Judiciary and Constitutional Offices whose life insurance coverage have been in force for at least one year as of 31 December 2010.

Also included are active members issued with Life Endowment Policy (LEP) or with new or converted Enhanced Life Policy (ELP) provided their policies have been in force for at least one year as of 31 December 2010.

Active members whose LEP matured after 31 December 2010 and who were issued a renewal policy under the ELP are likewise entitled to cash dividends based on their LEP.

In addition, active members who opted to convert their LEP into ELP after 31 December 2010, are qualified to receive the cash dividends.

Meanwhile, those who are not entitled to receive the cash dividends are the following:  active members who have defaulted in their Consolidated Loans and Salary Loans for at least 12 months and/or have unpaid premiums for at least 12 months; those with lapsed policies in calendar year 2010; those whose policies have matured in the same calendar year; terminated policies due to death, retirement, and separation also in calendar year 2010; and members under suspended agencies as of end-December last year.

The dividends will be paid through the members’ GSIS eCard on or before Christmas day, the pension fund said.

On top of the release of the cash dividends, the GSIS, with the approval of its Board of Trustees, has authorized the payment of Php1.62 billion in Christmas Cash Gift to its more than 200,000 qualified pensioners. This represents a 23 percent increase over the Php1.32 billion level in 2010.