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Manila Bulletin devider Philippines devider National devider GSIS urges gov't agencies to pay unremitted premium contributions

GSIS urges gov't agencies to pay unremitted premium contributions

Published Oct 19, 2021 05:28 pm

The Government Service Insurance System (GSIS) on Tuesday, Oct. 19, urged government agencies to pay unremitted premium contributions to avail of penalty condonation.

GSIS (Facebook)

"We encourage government agencies to enter into a memorandum of agreement (MOA) with GSIS to assist you in settling the unremitted contributions of your employees. Magtulungan po tayo sa pagbibigay ng nararapat na ginhawa sa kapwa natin kawani ng gobyerno," said GSIS President and General Manager Rolando Macasaet.

Agencies may get 40 percent condonation on the penalties of their outstanding obligations if their account is in arrears for seven months to less than 25 months; 35 percent condonation, if in arrears for 25 months to less than 37 months; 30 percent if 37 months to less than 60 months; and 20 percent if 60 months and above.

An additional 10 percent condonation will be awarded to the agency if at least 20 percent of the total obligation is paid prior to the execution of the memorandum of agreement (MOA) and five percent additional condonation if at least 15 percent is paid.

"We may even extend the condonation rate to a maximum of 60% of the computed penalties on your premium arrearages, subject to approval. Seize this chance to help your employees and ensure that they will fully enjoy their privileges and receive the correct computation of their benefits. The program will also aid in maintaining a healthier pension fund," Macasaet added.

Qualified to enter into a MOA are government agencies with no existing agreement on premiums settlement yet with GSIS and those with pending cases due to non-remittance of premiums.

The option is now open to government agencies previously covered by the Social Security System but are now under GSIS and also open to agencies that previously entered into a MOA with GSIS but failed to comply with the terms and conditions of the said agreement.

However, non-compliance must be due to valid reasons and subject to Board approval.

Agencies interested to enter into MOA must submit a written request to GSIS to settle their obligations and reconcile the accounts of their affected employees. Updated service records of employees to be covered by the agreement must also be submitted.

Once the agency signifies its agreement with the total outstanding obligation, GSIS will process the request.

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