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GSIS, QC local gov’t ink MOA to benefit more than 8,000 employees
GSIS, QC local gov’t ink MOA to benefit more than 8,000 employees

Date Posted: May 9, 2019

Government Service Insurance System (GSIS) President and General Manager Jesus Clint Aranas and Quezon City Mayor Herbert Bautista signed a Memorandum of Agreement (MOA) that will benefit a total of 8,422 employees of the local government. The signing of the MOA was witnessed by the executives and staff of the two government agencies at Quezon City Hall on May 8.

Under the MOA, the Quezon City Government (QCG) will pay GSIS Php53 million in unpaid interest on premium arrearages out of its outstanding obligation amounting to almost Php139 million. The maximum amount to be condoned by GSIS will be Php75 million.

“Since the computation of GSIS benefits is essentially anchored on the members’ length of service with paid premiums, affected former and present QCG employees will receive higher loanable amounts, retirement and pension benefits, and life insurance claims. After the payment has been posted, inactive QCG employees with previously processed and paid benefits can expect recomputation of their separation or retirement benefit, which may bring about increase in their monthly basic pension. Moreover, those who are still in the service are assured to receive the correct level of benefits when they apply for loan privileges and claim benefits. Active and inactive members whose maturity or cash surrender value claim proceeds have been reduced due to deducted arrears in premium can likewise expect a refund,” Aranas said.

The GSIS chief recounted that efforts to settle GSIS premium arrearages incurred by QCG from July 1997 to December 2013 goes as far back as the administration of former Mayor Ismael Mathay Jr. He said that it was only on November 22, 2018, under the leadership of Mayor Bautista, when the parties finally established that the outstanding interest obligation of QCG is almost Php139 million.

After the Php53 million settled by QCG under the MOA has been posted, all premium arrearages incurred by the affected members during reconciliation period will be fully paid.