More than 25,000 government employees belonging to the agencies suspended by the Government Service Insurance System due to non-remittance of dues cannot apply for loans and receive dividends.

GSIS president Robert Vergara yesterday said that a total of 287 member-agencies nationwide have been suspended by the state-pension fund as of the first half this year due to non-payment of premium, loan, and other compulsory contributions.

He said these agencies failed to pay a total of P2.38 billion, including interest, to GSIS, affecting 25,454 employees.

“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,” he said.

Thus, Vergara called on government agencies to be responsible in paying their employees’ dues and other payables for them to maximize their benefits.

He said erring agencies were tagged as suspended “if no payment is received 60 days from the billed month.”

Vergara also cited that the state pension fund “pursues reconciliation efforts with suspended agencies so that all affected employees can continue enjoying their benefits.”

“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.

Vergara also said that “agencies under a Memorandum of Agreement, will be suspended if the required amortization is not received by the GSIS within one month.”

Under Section 5 [c] of Republic Act 8291, otherwise known as “The GSIS Act of 1997", states 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 imposed penal sanctions.

Under the same law, heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS.*PNA

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