More than 25,000 government employees have been rendered ineligible for loans and cash dividends from the Government Service Insurance System (GSIS) because of their agencies’ delinquency in remitting contributions to the state-run pension fund.
The GSIS said in a statement on Thursday that a total of 25,454 of its members cannot apply for loans or receive dividends because it has not been receiving their contributions, which should have been remitted by their employers.
The employers, a total of 287 government agencies, have been suspended by the GSIS for delinquency.
The GSIS warned that the heads of delinquent government agencies may be held administratively liable for the delays in the remittance of contributions.
These government entities owe the pension fund P2.38 billion in unremitted contributions and interest on this.
The erring state agencies include local government units, government-owned and -controlled corporations, local water districts and others.
A government agency is suspended if it fails to remit contributions at least 60 days from the due dates.
Robert Vergara, GSIS president and general manager, said the agencies have not responded to reminders of their need to remit contributions.
But he said the “delinquent” agencies can still have their suspension lifted.
Suspended agencies can enter into a memorandum of agreement with the GSIS to settle their outstanding obligations. Once this is done, the suspension will be lifted and their employees can avail again of GSIS service loans, he said.
However, they can be suspended yet again if the required amortization is not received by the GSIS within one month of their entering into a memorandum of agreement.
He said the GSIS continues to reach out to these delinquent agencies in order to help the affected employees regain their benefits.
The GSIS said in a statement that suspension of delinquent government agencies is covered by its charter, or the GSIS Act of 1997.