State-owned Government Service Insurance System (GSIS) is urging government agencies to pay unremitted premium contributions to avail of penalty condonation.

In a statement, Rolando Macasaet, GSIS president and general manager said on Tuesday, Oct. 19, said that government agencies are encouraged to enter into a memorandum of agreement (MOA) in settling the unremitted contributions of their employees.

“Let’s help each other in providing appropriate relief to our fellow government workers,” Macasaet urged.

Under the program, a percentage of the penalties of the total amount of agencies’ obligations will be condoned.

Agencies may get 40 percent condonation on the penalties of their outstanding premium obligations if their account is in arrears for seven months to less than 25 months, while 35 percent if in arrears for 25 months to less than 37 months,

Likewise, agencies may get 30 percent condonation, if account is in arrears for 37 months to less than 60 months; and 20 percent, if 60 months and above.

On top of that, an additional 10 percent condonation will be given to the agency if at least 20 percent of the total obligation is paid prior to execution of the MOA and five percent additional condonation if at least 15 percent is paid.

Macasaet said that GSIS may also extend the condonation rate to a maximum of 60 percent of the computed penalties on premium arrearages, subject to approval.

“Seize this chance to help your employees and ensure that they will fully enjoy their privileges and receive the correct computation of their benefits. The program will also aid in maintaining a healthier pension fund,” Macasaet added.

Qualified to enter into a MOA are government agencies with no existing agreement on premiums settlement yet with GSIS and those with pending cases due to non-remittance of premiums.

The option is now also open to government agencies previously covered by SSS but are now under GSIS.

This is also open to agencies which previously entered into a MOA with GSIS but failed to comply with the terms and conditions of the said agreement. Noncompliance must be due to valid reasons and subject to Board approval.

Agencies, which are interested to enter into a MOA, must submit a written request to GSIS to settle their obligations and reconcile the accounts of their affected employees.

The updated service records of employees to be covered by the MOA must also be submitted.

Using GSIS and submitted records, the pension fund will come up with a statement of account to determine the total outstanding balance of the agency. Once the agency signifies their agreement with the total outstanding obligation, GSIS will process the request.

Source: Manila Bulletin (