[ GSIS RESOLUTION NO. 81, August 08, 2013 ]

AMENDMENT TO PPG NO. 227-13



WHEREAS, the GSIS Board of Trustees issued Board Resolution No. 39 on 25 April 2013, approving the Policy and Procedural Guidelines (PPG) on the Non-Suspension of Loan Privileges of Employees of Agencies that Failed to Remit the Mandatory Premium Contributions, or PPG No. 227-13;

WHEREAS, Section IV.C.2 of PPG No. 227-13 provides that the loan privilege of the employees of suspended agencies, i.e. those agencies already tagged as œsuspended  due to non-remittance of mandatory premium contributions of employees, shall be restored upon fulfilment of any of the following conditions:

"a.
Full payment of premium arrearages; or
"b.
Payment of at least ninety percent (90%) of the mandatory premium contributions for any three (3) consecutive months from the effectivity of this PPG and the signing of an Undertaking by the head of agency. The Undertaking shall state, among others, that the suspended agency shall enter into a MOA with GSIS to settle its premium arrearages and shall submit within two (2) months from the signing of the undertaking, a copy of its payroll for the corresponding period/ s (i.e. the three consecutive months), and other pertinent documents that will show the actual number of employees. These shall be the basis for the updating of its employees ™ individual member's service profile (MSP); or will update their records with the GSIS within three months from signing of the said undertaking.
"c.
Execution of a MOA with GSIS. 

WHEREAS, many incumbent Agency Heads, have expressed their intent to coordinate closely with the GSIS for the eventual reconciliation and updating of premium remittances of their employees but have admitted their difficulty in complying with the provisions of Section IV.C.2 of PPG No. 227-13, particularly for premium arrearages incurred before their assumption and/ or appointment to the agency;

WHEREAS, the Senior Vice Presidents of NCR, Luzon, and VisMin Operations Groups, in their Memorandum dated' 30 July 2013, have recommended the amendment of Section IV.C.2 of PPG No. 227-13;

RESOLVED, to APPROVE and CONFIRM the amendment, of Section IV.C.2 of PPG No. 227-13 (Non-Suspension of Loan Privileges of Employees of Agencies that Failed to Remit the Mandatory Premium Contributions), which was approved under Resolution No. 39 dated 25 April 2013, as follows:

"2.
Suspension of agencies shall be lifted upon any of the following conditions:
     

a.
Full payment of premium arrearages; or

b.
Payment of at least ninety percent (90%) of the mandatory premium contributions for any three (3) consecutive months from the effectivity of this PPG and the signing of an Undertaking by the head of agency. The Undertaking shall state, among others, that the suspended agency shall:


b.1
provide the GSIS with pertinent documents necessary for the updating of employees ™ records;


b.2
cooperate with the GSIS in the reconciliation of premium remittances both for personal and government share, as well as loan repayments of its members;


b.3
acknowledge the arrearages based on the updated records and reconciled accounts; and


b.4
officially inform their employees that pending the settlement of the premium arrearages, loan privileges and benefits due them will be based on the Periods with Premium Payments (PPP). 