MANILA, Philippines – The Government Service Insurance System, the state-owned pension fund for government employees, has urged remitting agencies to comply with the increase in contributions to the Employees Compensation Insurance Fund (ECIF).
The increase is equivalent to one percent of the basic salary or P100 per month per employee, whichever is lower.
The GSIS said strict compliance with the required contributions will ensure the actuarial solvency of the Fund, which will ultimately go to the benefit claims of state workers.
According to the GSIS, the Employees’ Compensation Commission (ECC) has increased the maximum amount of contribution to the ECIF from P30 to one percent of the basic salary or P100 per month per employee, whichever is lower, in light of the depleting EC funds.
“The incidence and levels of benefits for work-connected illnesses and injuries have increased such that since 1983, the total amount of benefits paid for workers’ claims have exceeded the total amount of contributions collected by the GSIS-ECIF. As a result, the GSIS-ECIF was unable to accumulate enough funds…to pay part of the benefit claims,” the EC stated.
The GSIS said while the new rate has been in effect since 2003, there has been some agencies that are non-compliant, to the disadvantage of government employees.
The pension fund said remitting agencies should remit the correct amount of EC contributions to the GSIS to fully compensate government employees with benefit claims.
In 2009, the total contributions remitted to the GSIS by the public sector amounted to P1.77 billion, GSIS data showed.
Data also showed that the GSIS-managed ECIF, on the other hand, disbursed a total P64.64 million worth of benefits to public sector employees and their beneficiaries, broken down as follows: P30.34 million for disability benefits; P15.80 million for death claims; P17.04 million for medical services; P837,761 for sickness benefits; P521,913 for special medical examinations; and P91,364 for rehabilitation services.
At the end of 2009, the ECIF administered by the GSIS stood at P2.19 billion. –Iris C. Gonzales (The Philippine Star)
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