The Anti-Red Tape Authority (ARTA) said it has stepped in to resolve the issue on the Government Service Insurance System (GSIS) coverage of Philippine Mining Development Corporation (PMDC) employees.

This assurnce was given after the Office of Government Corporate Counsel (OGCC) issued Opinion No. 153, Series of 2021 in May 2021 said that PMDC members are covered by the GSIS --- instead of the Social Security System (SSS) --- from its creation in 2003.

After a series of meetings with the PMDC, GSIS, and other concerned government agencies, and a written clarification issued by the OGCC, it was established that PMDC employees are covered by the GSIS.

Representatives from the GSIS said they have already prepared policy guidelines and initial calculations subject to the approval of their management. They have also coordinated with the PMDC on the possible requirements for the coverage, including the list of employees.

Before the case was declared closed by ARTA Deputy Director-General for operations Ernesto Perez, it was found that the Governance Commission on Government-Owned and Controlled Corporations (GCG) suggested to the GSIS to elevate the PMDC issue to the Office of the President (OP).

During the meeting on November 15, Perez said there was no need to appeal to the OP since the OGCC has already rendered an opinion and the GSIS has subscribed to the opinion of the GCG that the PMDC is part of its coverage.

Prior to this, the PMDC met with ARTA in July to discuss the request for its employees to be covered by the GSIS. The ARTA met with both parties a few days later to discuss the issue.

Soon after, ARTA Director-General Jeremiah Belgica wrote to the OGCC to seek its legal opinion on whether GSIS can waive the two-percent interest on unpaid premiums and whether the law on a compromise under the New Civil Code can apply to the interest and penalty.

Government Corporate Counsel Elpidio Vega responded by saying that the PMDC employees are not liable to pay interest on unpaid premiums because they originally did not expect to be subject to the coverage of GSIS. PMDC employees acted in good faith when they complied with the provisions of SSS and without any intention to violate the GSIS law.

Vega added that it was within the powers and functions of the GSIS Board of Trustees to compromise or release any claim or settle liability of the agencies regardless of the amount involved.

"ARTA initiated measures that facilitated not only the resolution of the issue on the retroactive application of PMDC employees’ GSIS membership coverage but likewise the non-liability to pay interest on the unpaid premiums and the authority of the GSIS to compromise or release any claim thereto," the agency said in a statement.

Meanwhile, it was left to the discretion of PMDC employees whether they will waive or pay back premium contributions.