New GSIS chief told to refund P1.7-billion illegal deductions from teachers

MANILA, Philippines - A militant party-list lawmaker called on newly appointed Government Service Insurance System (GSIS) chairman Daniel Lacson to immediately scrap the “unjust and illegal” policies of his predecessor and refund P1.7 billion in deductions from teachers’ benefits.

ACT party-list Rep. Antonio Tinio made the call in response to Lacson’s appointment to the GSIS.

President Aquino is still searching for a replacement for GSIS general manager Winston Garcia, who was accused of irregularities in the pension fund.

“First of all, the GSIS chairman must ensure that the Board is not merely a rubber stamp at the disposal of the GSIS president and general manager. This was the case with Winston Garcia as president and general manager,” Tinio said.

He said Lacson must immediately recall the illegal policies and practices implemented by Garcia that have unfairly burdened GSIS members, such as negligent record-keeping, the premium-based policy, and automatic deduction of arrears.

“Lacson must also immediately implement the refund of at least P1.7 billion unfairly deducted by Garcia from teachers’ benefits,” Tinio said, adding that from 1997 to 1998, members’ contribution was increased from 9.5 percent to 12 percent but the government failed to put up its counterpart fund.

To pay its debt, the GSIS under Garcia had made cuts in various benefits extended to members from 2002 to 2006.

The Department of Budget and Management and the GSIS issued a joint memo in 2007 that the arrears of the government was already paid.