GSIS cuts penalties on unpaid premiums

MANILA, Philippines — State-run Government Service Insurance System (GSIS) has urged state agencies to remit their unpaid contributions, as penalties will be slashed to as much as 60 percent.

GSIS president and general manager Rolando Macasaet yesterday said public offices can sign a memorandum of agreement (MOA) to cut their penalties on delayed premiums.

“We encourage government agencies to enter into a MOA with GSIS to assist you in settling the unremitted contributions of your employees,” Macasaet said.

Under the MOA, agencies can avail of up to 40 percent condonation for outstanding obligations incurred for seven months to 25 months. On the other hand, 35 percent reduction will be applied to arrears amassed for above 25 months to 37 months.

Likewise, the MOA can grant 30 percent deduction to pending premiums accumulated for more than 37 months to 60 months, and 20 percent condonation if beyond 60 months. Another 10 percent will be shaved from the penalties for as long as 20 percent of the obligations were paid prior to the execution of the MOA.

However, only five percent in additional condonation will be extended if the agency chooses to remit just 15 percent its arrears.

Macasaet appealed to heads of agencies to take advantage of the program to make sure that their personnel will benefit from the social pension fund when needed.

“We may even extend the condonation rate to a maximum of 60 percent of computed penalties on your premium arrearages, subject to approval,” Macasaet said.