More state-run firms removed from GSIS list of suspended member agencies

REMITTING AGENCIES that remain suspended from availing programs from state-run Government Services Insurance System (GSIS) dropped by more than half in the first semester of 2014 from 2010 as more offices utilized a reconciliation package with the pension fund.

GSIS President and General Manager Robert G. Vergara said on Wednesday that suspended remitting agencies went down to 124 as of June 30 this year from as much as 315 in 2010.

Around 80 of this end-June total are agencies from the Autonomous Region in Muslim Mindanao (ARMM).

“What we’ve done is we’ve passed a policy in 2013 which encourages all these agencies to come to the GSIS, do a reconciliation, and even if they don’t sign up for an actual payment plan, just the fact that they reconciled for us, we just agree [that] okay, you owe us this [much] and let’s talk about when you (need to) settle this later on,” Mr. Vergara said in a press briefing.

“We will unsuspend [sic] the agencies so that the benefit of the GSIS loans and dividends can be extended to the members,” he added.

At least 82 agencies, he said, have submitted themselves for reconciliation.

Loan privileges of a GSIS member are suspended if his agency fails to remit within three months upon receipt of final collection notice due to arrears in payment of compulsory premiums.

GSIS collects premiums from around 7,000 government agencies.

“By and large, most agencies are remitting the right amount,” he said.

GSIS saw its net income rise in the first semester on the back of higher returns from its investments, the pension fund’s top official said Wednesday.

The pension fund profited P41 billion in the half, 24% higher than the P33 billion booked in the first six months of 2013.

Its total revenues reached P83 billion in the period, 24% higher than the P67 billion recorded the year previous.

Its total resources also reached P871 billion in the first half of 2014, rising by P85 billion from the same period last year. — M.F.E. Flores, BUsinessworld