What agencies need to know about remittances
Your loan privileges as a GSIS member are automatically suspended if your agency fails to remit within three (3) months upon receipt of final collection notice due to arrears in payment of compulsory premium.
GSIS issues a monthly collection notice every 30 days if your agency has at least 3 months of unpaid compulsory premiums. The arrears in compulsory premiums are not necessarily consecutive for 3 months.
Within the first 10 days of the month, an agency must remit or submit to GSIS the following:
- all premium payments and loan amortizations using the Electronic Remittance File (ERF) form;
- any changes in personnel information like employment status, positions, salaries, and other important information using the Agency Remittance Advice (ARA) form. Annually, an agency must do the following:
- allocate budget to cover premium contributions such as:
- employer's share
report to GSIS the names of all its employees, their corresponding employment status, positions, salaries and other important information.
The following penalties are imposed on an agency if it fails to remit loan amortizations within 30 days from the time it received a billing notice from GSIS:
agency pays not less than two percent (2%) interest per month on unremitted collections computed from the due date and until the time GSIS receives the payments;
the head of your agency including the finance officer, cashier and other officials who failed to remit to GSIS the loan amortizations will face administrative and criminal charges and if convicted by the court, will be imprisoned from one to five years and be fined with amount of P10,000.00 to P20,000.00;
also, those convicted for failure to remit loan amortizations will pay the surcharges and interests incurred from the unpaid loans of all the agency's members.
Accounts Management System
Your agency also plays an important role in the accounts management system (AMS) of GSIS. AMS was instituted to ensure the regular and prompt remittance of all the premiums and loan amortizations due from you or your agency.
All agency accounts are handled by a specific GSIS office. Both GSIS and your agency work closely to conduct the following key activities:
Monitoring of accounts
- If your agency has at least 3 months of unpaid compulsory premiums, GSIS issues a monthly collection notice every 30 days.
- If your agency fails to settle its arrears with the GSIS within 30 days upon receiving the third and final notice, GSIS suspends its dividend and loan privileges.
Billing and collection
- Every month, your agency receives a monthly billing from GSIS on the required premium contributions from your agency: personal and government share, loan amortizations, and other premiums (optional and pre-need accounts)
- Payments must be submitted to GSIS with the corresponding remittance list. GSIS does not accept check payments if it does not tally with the agency remittance list.
If you are promoted, naturally, your premium contribution increases. Your agency must reflect changes in salary through the Agency Remittance Advice (ARA) which must be submitted with the Electronic Remittance File (ERF).
The ARA is used to update your membership profile to reflect your new salary rate. Your salary is the basis of computation for your loan applications and pension claims when you retire.
Issuance of Summary of Totals (SOT)
- The GSIS office that handles your agency account issues the SOT
Receipting of payments
- Your agency pays GSIS through any of the following modes of payment: (1) cashier, (2) mail, (3) direct payment to the bank, and (4) CLIP (Claims and Loans Interdependency Policy). Official receipts are only issued in numbers 1 to 3. No receipts are given for non-cash payments like the CLIP (4) which are deducted from the proceeds of loans and claims.
Posting of premium contributions and loan repayments
- The source documents for posting of all compulsory premium contributions and loan amortizations come from your agency. GSIS receives these payments shown in the Electronic Remittance File (ERF). The ERF is a list of the names of each employee, under each name has several columns to indicate premium and loan amortization payments
Reconciliation of accounts
Any discrepancy or variance in the posting of payments is done by GSIS and your agency.