• DBM ROLLS OUT P3.5-B FOR GSIS PREMIUMS OF DEPED WORKERS; ABAD: GOV’T TO ENSURE IMMEDIATE RELEASE OF GSIS PERKS FOR DEPED EMPLOYEES

    Posted on October 3, 2012 by in News

    The Department of Budget and Management (DBM) released P3.46 billion to cover the advance payment of Government Service Insurance System (GSIS) premiums for Department of Education (DepEd) employees, in fulfillment of a Memorandum of Agreement (MOA) previously signed by the DBM, DepEd, and GSIS.

    The fund release will support 50 percent of the government’s P6.92-billion share in unpaid GSIS premiums for DepEd workers for the period of July 1, 1997 to December 31, 2010.

    “President Aquino instructed us to expedite the payment of unsettled GSIS premiums for all DepEd personnel, which is one of the Administration’s priority projects and expenditures. The recent fund release is the first step in restoring the benefits of affected employees, as well as in resolving this longstanding problem,” Budget and Management Secretary Florencio B. Abad.

    The P3.46-billion release—which will be sourced from the 2012 General Appropriations Act—will allow affected DepEd personnel to claim their GSIS benefits, including their retirement benefits and monthly pension.

    Under the MOA, the GSIS has agreed to give a 5-percent discount in consideration of the P3.46-billion advance payment, bringing the total government share down to P6.58 billion.

    The remaining balance will be released upon the DepEd’s validation of the total outstanding premium obligations, as well as the GSIS’s submission of a billing statement, among other documentary requirements.

    According to the budget chief, the Administration is pushing for the integration of all DepEd employees into the National Payroll System to prevent the non-payment of worker insurance premiums.

    “Besides penalizing those responsible for the non-remittance of GSIS contributions, we also need to pursue long-term solutions that will prevent this same problem from resurfacing. The integration of DepEd workers into the National Payroll System should address this problem, as well as boost transparency and accountability in the management of salaries for government workers,” Abad said.

Comments are closed.