GSIS hobbled by P30-B gov’t arrears

MANILA, Philippines – Some P30 billion in unpaid premiums from various government agencies and units are hampering the operations of the Government Service Insurance System as well as its ability to pay out benefits.

Winston F. Garcia, GSIS president and general manager, said in an interview the amount represented unremitted or incomplete payments.

“These [arrears] stretch as far back as 10 or even 15 years ago,” Garcia said. “Their being unpaid impacts on whether GSIS members can collect [the benefits due them when the time comes].”

He explained that 30 percent of the country’s 8,000 or so local government units and other agencies owe the pension fund.

In a related development, the GSIS yesterday received from the Quezon City Hall a check for about P43 million in payment for premium arrears incurred from 1997 to 2007.

According to City Hall data, the amount represents P35 million in employer’s share, P6 million in employees’ share, and P2 million in employee compensation.

Of the total amount in arrears, P33 million or 70 percent are accounts incurred by the previous city administrations.

Also, P8 million in premiums involve casual employees who eventually became permanent.

During the ceremonial turnover of the payment at the GSIS headquarters in Pasay City, Mayor Feliciano Belmonte said the city government was paying the arrears to ensure services rendered by casual employees are considered creditable government service.

Further, the GSIS and Quezon City government formalized the sale of the pension fund’s 1.1-hectare property in Barangay Payatas for P7.6 million.

The property—Lots 1-3 and 5-8 in Block 1 and Lots 1 and 3-18 in Block 3 in La Unica Hija Subdivision, Payatas, Quezon City—was sold for P700 per square meter.

“The GSIS will be able to dispose of a property which remained idle for the past 29 years and which has no prospect of appreciating in value on account of its use as a dump site,” Garcia said.

Quezon City will use the property as an additional site for the QC Materials Recovery and Volume Reduction Facility.–Ronnel W. Domingo, Philippine Daily Inquirer