THE Government Service Insurance System (GSIS) is urging government agencies to pay unremitted premium contributions to avail of penalty condonation.
“We encourage government agencies to enter into a memorandum of agreement (MOA) with [the] GSIS to assist you in settling the unremitted contributions of your employees,” GSIS President and General Manager Rolando L. Macasaet was quoted as appealing in a statement. “Magtulungan po tayo sa pagbibigay ng nararapat na ginhawa sa kapwa natin kawani ng gobyerno.” [Let us work together to provide the necessary relief to our fellow government employees.]
A percentage of the penalties of the total amount of agencies’ obligations will be condoned. Agencies may get a 40-percent condonation on the penalties of their outstanding premium obligations if their account is in arrears for 7 months to less than 25 months.
Other payment arrangements include the following: a 35-percent condonation if the account is 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.
The GSIS said it is even willing to throw in an additional 10-percent condonation will be given to the agency if at least 20 percent of the total obligation is paid prior to the execution of the MOA and 5-percent additional condonation if at least 15 percent is paid.
“We may even extend the condonation rate to a maximum of 60 percent of the computed penalties on your premium arrearages, subject to approval,” Macasaet said. “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.”
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 also open to government agencies previously covered by the Social Security System but are now under the GSIS, the pension fund manager said.
This is also open to agencies that previously entered into a MOA with the GSIS but failed to comply with the terms and conditions of the said agreement, the agency added. Noncompliance must be due to valid reasons and subject to Board approval.
Agencies interested to enter into a MOA must submit a written request to GSIS to settle their obligations and reconcile the accounts of their affected employees. The updated service records of employees to be covered by the MOA must also be submitted.
Using GSIS and submitted records, the pension fund will come up with a statement of account to determine the total outstanding balance of the agency. Once the agency signifies their agreement with the total outstanding obligation, the GSIS will process the request.