“Now that the local government of Caloocan is no longer suspended, its more than 1,700 employees can fully enjoy their various loan privileges from the GSIS. ”
This was the statement of Robert G. Vergara, President and General Manager of the Government Service Insurance System, following Friday’s signing of a Memorandum of Agreement between the pension fund and the Caloocan City Government which effectively lifted the suspension of the city government since 2005.
As of end September 2011, the City’s total obligation to GSIS amounts to P120.59 million of which P15.78 million is the principal; the remaining P104.80 million represents the interest. Under the MOA, the GSIS condoned Php50 million from the total interest.
The Caloocan City Government, represented by Mayor Enrico ‘Recom’ Echiverri, also turned over a check amounting to Php15.78 million, representing the principal amount it owes the GSIS. The rest of the obligation will be paid monthly, over a period of three years.
Under the agreement, Caloocan City will continuously reconcile its Service Records including the payments of all active and inactive members within three months after the signing of the MOA.
Last August 5, Caloocan City turned over to the GSIS, a total of 2,864 service records, together with the master list of all active and inactive members with individual service records. The GSIS, then verified the records submitted by Caloocan and matched them with its own set of records.
Apart from the Caloocan City Government, the GSIS has signed agreements with 24 other agencies and local government units from January to September of this year, condoning Php45 million in interest and restoring the loan privileges of 1,658 members.
Also present during the signing ceremony were GSIS Chairman Daniel L. Lacson, Jr., GSIS Senior Vice President for Northern Luzon and Central Office Cecil Feleo, Caloocan City Administrator Russel Ramirez, and Caloocan City Treasurer Evelina Garma.