GSIS suspends 287 member agencies for non-payment of dues

Government Service Insurance System (GSIS) has suspended 287 member agencies for failing to pay monthly obligations on time, affecting the status of at least 25,000 individual members, the pension fund for state workers said Thursday. This means that the individual members have been rendered ineligible to transact loan applications with GSIS and receive cash dividends. The member agencies were suspended for failing pay the premium, loans and other compulsory contributions of individual members, the pension fund said. “As a result of the suspension, 25,454 employees are ineligible to apply for loans and receive cash dividends," GSIS president and general manager Roberto Vergara said. The liabilities, including interest, totaled P2.38 billion, he said. Of the suspended agencies, 31 percent are local government units. The rest are government-owned and controlled corporations and national government agencies such as local water districts, the GSIS said. The pension fund, under its rules, may suspend member agencies that fail to remit payments after 60 days from the billed month. For government employees to continue enjoying their benefits, Vergara said the GSIS tries to reconcile with suspended agencies. “Suspended agencies can 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 can avail themselves of GSIS service loans," he said. The respective heads of suspended member agencies are accountable for the non-remittance or delayed remittance of premium contributions and loan payments, according to Republic Act 8291 of the GSIS act of 1997. — VS, GMA News