State pension fund Government Service Insurance System (GSIS) signed an agreement with the City Government of Manila (CGO Manila) to finally settle a total of Php127 million in unpaid premiums of its 15,976 employees covering January 2012 to June 2019.
GSIS President and General Manager Rolando Ledesma Macasaet and Manila Mayor Francisco “Isko Moreno” Domagoso signed the memorandum of agreement between the two agencies.
“The affected CGO Manila employees may now look forward to receiving their correct benefits when they retire and correct proceeds when they take out a loan ,” Macasaet said during the event held at the Manila City Hall last October 28.
GSIS relies on premium contributions of members and their respective agencies to be able to dispense social insurance benefits. The period of service with paid premiums is the basis for the computation of their benefits. Government agencies that fail to promptly remit the mandatory premium contributions incur an interest of not less than 2% per month.
In July 2019, GSIS and the CGO Manila formed a task force to update the service records and reconcile the remitted premiums of the affected employees for the determination of the amount that must be settled by the local government. The signing of the MOA formalizes CGO Manila’s commitment to finally settle its obligations.
“Tayo ay nakatipid ng Php68.5 million. Ang dapat nating bayaran ay humigit kumulang P195 million, ngunit naging P127 million na lamang. Ito ay babayaran natin sa GSIS simula January 2021. Maraming salamat sa lahat ng bumubuo ng GSIS,” Mayor Domagoso said.
GSIS may condone up to 60% but not to exceed Php75 million of interest on premium arrearages of agencies provided an agency enters into a memorandum of agreement with the pension fund. CGO Manila will pay the total amount of monthly installment for one year at an interest of 12% per annum.
PGM Macasaet and Mayor Domagoso sealed the agreement with an elbow bump. GSIS Core Business Sector Executive Vice President Atty. Nora Malubay and Jocelyn Quintos of the Manila City Personnel Office witnessed the event.