GSIS rejects DBCC plan on premium debts

The Government Service Insurance System (GSIS) opposed yesterday the plan of the Development and Budget Coordinating Committee (DBCC) to hire actuarial experts to verify the alleged P13.5 billion in unpaid premium debts incurred by the government.

GSIS executive vice president for operations Sector Enriqueta Disuanco said she was taken aback by DBCC’s move to check the government’s unpaid premium with the help of actuarial experts.

"We were surprised because we know the government debts are covered under a Memorandum of Agreement (MOA) signed in 2001 by the GSIS, Bureau of Treasury and the Department of Budget and Management (DBM)," Disuanco said during the weekly radio program "Para Sa Iyo… Bayan" of Vice President Noli De Castro.

She acknowledged the national government indeed has to remit P13.5 billion in unpaid premium contribution arrearages to the GSIS but explained the MOA already recognizes the government’s principal obligation to the GSIS.

Prior to the MOA signing, Disuangco said a Task Force was created to reconcile the amount of premium arrearages.

Under the MOA, government has to remit the principal amount of P7.14 billion in unpaid premium contribution to the GSIS. This is the government’s share in the payment of premiums of government employees. — Pia Lee-Brago