GSIS provides penalty abatement to government entities
The Government Service Insurance System (GSIS) is encouraging government entities to make unpaid premium payments in order to get penalty relief.
“We urge government agencies to engage into a memorandum of understanding (MOA) with GSIS to help you in resolving your workers’ unremitted payments. Magtulungan po tayo sa pagbibigay ng nararapat na ginhawa sa kapwa natin kawani ng gobyerno “Rolando Macasaet, president and general manager of GSIS, stated in a statement on October 19, 2021.
The fines will be reduced by a percentage of the entire amount of the agencies’ commitments.
If an agency’s account is in arrears for seven months to less than 25 months, it may receive a 40% penalty waiver; a 35% waiver if the account is in arrears for 25 months to less than 37 months, a 30% waiver if the account is in arrears for 37 months to less than 60 months, and a 20% waiver if the account is in arrears for 60 months or more.
Furthermore, an extra 10% condonation will be granted to the agency if at least 20% of the entire obligation is paid prior to the signing of the MOA, and a 5% additional condonation if at least 15% is paid.
“Subject to approval, we may even increase the condonation rate to a maximum of 60% of the calculated penalties on your premium arrearages. Take advantage of this opportunity to assist your workers and guarantee that they fully enjoy their rights and that their benefits are calculated correctly. The program will also help to keep the pension fund healthy “Macasaet explained.
Government entities who do not have an existing agreement on premium settlement with GSIS and those with ongoing cases owing to non-remittance of premiums are eligible to engage into a MOA.
The option is now available to government entities that were previously covered by SSS but are now covered by GSIS.
This is also available to agencies that previously signed into a Memorandum of Understanding (MOU) with GSIS but failed to comply with the terms and conditions of the agreement.
Noncompliance must be due to legitimate grounds and must be approved by the Board.
Agencies interested in engaging into a MOA must make a formal request to GSIS to settle their responsibilities and reconcile their impacted workers’ accounts.
Employees who will be covered by the MOA must also submit updated service records.
Using GSIS and supplied data, the pension fund will generate a statement of account to calculate the agency’s total overdue amount.
GSIS will handle the request after the agency has indicated its agreement with the entire overdue debt.