25,000 GSIS members ineligible to apply for loans

MANILA, Philippines - At least 25,000 members of the Government Service Insurance System (GSIS), the state-owned pension fund for state workers, are ineligible to apply for a loan and receive cash dividends as a result of the suspension of their respective agencies.

The GSIS has suspended various agencies due to non-payment of premiums, loans and other compulsory contributions to the pension fund.

GSIS president and general manager Roberto Vergara said 287 member-agencies nationwide have failed to pay their contributions on time, and including interest the liabilities have reached P2.38 billion.

He said that of the 287 suspended agencies, 31 percent are local government units while the rest are government-owned and controlled corporations and national government agencies, such as local water districts.

“As a result of the suspension, 25,454 employees are ineligible to apply for loans and receive cash dividends,” Vergara said.

Under GSIS rules, agencies are suspended if no payment is received 60 days from the billed month.

Vergara said the GSIS pursues reconciliation efforts with suspended agencies so that all affected employees could continue enjoying their benefits.

“Suspended agencies could enter into a memorandum of agreement with the GSIS to settle their outstanding obligations. Once this is done, the suspension will be lifted and their employees could again avail themselves of GSIS service loans,” he said.

Republic Act 8291 or the GSIS Act of 1997 provides that employers who fail to include the payment of contributions in their annual appropriations or otherwise fail to remit the accurate or exact amount of contributions on time, or delay the remittance of premium contributions to the GSIS, shall be slapped with penalties.

The heads of offices and agencies shall be held administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS.