WHEREAS, the non-remittance of premium contributions resulted in the suspension of the agency as well as their employees’ loan privileges;
WHEREAS, in line with the vision to institute a member-focused orientation, the System seeks to adopt a policy that will address the suspension of the loan privileges of its members as a result of their agency's non-remittance of premium contributions;
RESOLVED, to APPROVE and CONFIRM the Policy and Procedural Guidelines (PPG) on the Non-Suspension of Loan Privileges of Employees of Agencies that Failed to Remit the Mandatory Premium Contributions, which includes the modes of lifting the suspended status of agencies, as proposed by the Senior Vice President, Corporate Services Group in her Memorandum dated 25 April 2013;
RESOLVED, FURTHER, that Section 16.1 of the Revised Implementing Rules and Regulations of Republic Act No. 8291, as approved under Board Resolution No. 88 dated 23 June 2010, is hereby AMENDED, as follows:
Section 16. Effects of Non-Remittance of Contributions and Other Amounts on the Eligibility to Benefits of Members
16.1. Non-remittance of the mandatory premium contributions of an agency’s employees will not result in the suspension of their loan privileges, unless the agency is already on suspended status. The agency head and other responsible officials and employees, however, shall be held liable for violation of the provisions of R.A. 8291 and other relevant laws, rules and regulations. Employees from these agencies shall be disqualified from receiving yearly dividends pending the remittance of these mandatory premium contributions to GSIS.
RESOLVED FINALLY, that this amendment shall take effect after fifteen (15) days from publication in at least two (2) newspapers of general circulation.
All other policies, procedural guidelines, office orders and other issuances that run counter, in whole or in part, to the provisions of the PPG on the Non-Suspension of Loan Privileges of Employees of Agencies that Failed, to Remit the Mandatory Premium Contributions are likewise hereby REVOKED, SUPERSEDED and/ or AMENDED accordingly.
A copy of the PPG on the Non-Suspension of Loan Privileges of Employees of Agencies that Failed to Remit the Mandatory Premium Contributions is made an integral part of this Resolution.
Certified Correct:
(SGD.) ATTY. MARIA THERESA ABESAMIS-RAAGAS
Corporate Secretary
Confirmed:
(SGD.) ROBERT G. VERGARA
Vice-Chairman
GSIS Board of Trustees
Attachment:
Policy and Procedural Guidelines No. 227-13
Non-Suspension of Loan Privileges of Employees of Agencies that Failed
to Remit the Mandatory Premium Contributions
I. BACKGROUND/RATIONALE
Despite the System’s persistent collection efforts, including the implementation of a program whereby delinquent agencies were given the option to enter into memorandum of agreement (MOA) with GSIS to settle its unpaid obligations, a significant number of agencies still failed to remit the mandatory premium contributions of its employees.
To address the issue, Management, through a directive issued by the President and General Manager (PGM) in 2009, suspended agencies which were remiss in their remittance of premium contributions for at least six (6) months. Consequently, all loan privileges of employees of the suspended agencies were likewise suspended, as provided under Section 16 of the Revised Implementing Rules and Regulations (RIRR) of Republic Act No. 8291.
In line with the System’s vision to pursue its social mission with a member-focused orientation, the System seeks to adopt a Policy and Procedural Guidelines (PPG) that will address the agencies’ non-remittance of premium contributions without resorting to the suspension of the loan privileges of its employees. This PPG likewise aims to provide rules as to the treatment of suspended agencies.
II. OBJECTIVES
This PPG aims to:
III. COVERAGE
This PPG shall cover all delinquent and suspended agencies with or without MOA. Agencies with existing MOA shall be governed by the respective terms and conditions of their agreement unless they enter into a new MOA after the issuance of this policy.
IV. POLICIES
A. Non-Suspension of Agencies
GSIS shall not suspend an agency with unremitted mandatory premium contributions. Likewise, the member-employees' loan privileges shall not be suspended.
B. Information on Premium Arrearages
The Operations Group shall provide agencies and member-employees with available information on periods when premium arrearages were incurred and the corresponding amount.
C. Suspended Agencies
D. Delinquent Agencies
1) | GSIS has not received at least ninety percent (90%) of the mandatory premium contributions for a due month; |
2) | Interest shall be charged on the delayed payment; and |
3) | Each employee’s PPP and loanable amount shall be affected. |
E. Reportorial Requirements
F. System and Other Requirements
G. Information Drive
The Corporate Communications Office (CCO) shall prepare the internal and external communications plans to convey this PPG to all GSIS executives, employees and stakeholders.
H. Manual of Operations
The detailed procedures contained in the Manual of Operations shall conform to guidelines set forth in this PPG.
V. PROCEDURES
Activity Responsible Unit Central Office Branch Office 1. Generate positive billing every 3rd week of the previous month. Note: if the due month is March, billing generation is on the 3rd week of February ITSG2. Validate positive billing within the day from receipt of billing files Accounts Management Division
(AMD) Billing, Collection and Reconciliation Division (BCRD)3. Distribute positive billing to agencies every 1st week of the due month. Note: If the due month is March, the billing distribution shall be on the 1st week of March. AMD BCRD4. Monitor payment of the Remitting Agency (RA). 4.1 If payment was remitted on or before the due date, post payment. Note: If the due month is March, the payment must be remitted by the RA on or before April 10.
Treasury Unit4.2 If payment was not remitted within seven (7) days, request a meeting with the head of agency in accordance with Section IV.D.2.a.
NCR, I, II, III, and QC Manager Branch Manager/Head5. Monitor payment of the RA after seven (7) days. AMD BCRD5.1 If payment is remitted, post payment. Treasury Unit
Treasury Unit5.2 If payment was not remitted after seven (7) days from the due date, send DL, copy furnished the AAO and the head of the employees’ union or association.
Note: In case the agency does not have an employees’ union or association, a notice shall be sent to the Human Resources unit of the agency for posting in its bulletin boards.
BCRD6. Monitor payment of the RA after receipt of DL. AMD BCRD6.1 If payment is remitted within 30 days, post payment.
Treasury Unit6.2 If payment is not remitted within 30 days, send NOD, copy furnished the AAO and the head of the employees’ union or association, or HR for agencies without employee’s union or association.
NCR, I, II, III, and QC Manager Branch Manager/Head7. Monitor payment of the RA after receipt of NOD. AMD BCRD7.1 If payment is remitted within five (5) working days, post payment.
Treasury Unit 7.2 If payment is not remitted within five (5) working days, refer to LSG. SVP concerned8. Prepare and send FDL to delinquent agency within 15 days, copy furnished OUC. LSG9. Monitor payment after receipt of the FDL. AMD BCRD9.1 If payment is remitted within 30 days, post payment.
Treasury Unit9.1.1 Inform LSG of the payment through concerned SVP, Operations
NCR, I, II, III, and QC Manager Branch Manager/Head9.2 If payment is not remitted within 30 days, inform LSG through concerned SVP, Operations, for filing of appropriate legal action.
10. Within 30 days upon approval of the PGM, file appropriate legal action against the head of the delinquent agency and all responsible officials and employees, as stated in the penal provision of Republic Act No. 8291. LSG END OF PROCESS
All Office Orders, Policy and Procedural Guidelines, Circulars which are inconsistent herewith are hereby superseded, modified, or repealed accordingly.
This PPG shall take effect after fifteen (15) days from publication in at least two (2) newspapers of general circulation.
(SGD.) ROBERT G. VERGARA
President and General Manager