Manila (June 1, 2012) –As a result of continuous reconciliation of service records, the Philippine Postal Corporation (PHLPost) and the Government Service Insurance System (GSIS) signed a Memorandum of Agreement lifting the suspension of benefits and loan privileges on the postal company and put it again in the Good Standing status.
The agreement covers all reconciled service records of GSIS contributions of PHLPost employees in Cabarroguis, Butuan City, Maasin, Lucena, and San Pablo City.
The signing was attended by GSIS President and General Manager (PGM) Robert G. Vergara and PHLPost Postmaster General (PMG) and CEO Josefina M. Dela Cruz together with other officials from both institutions.
In the agreement, GSIS condone 60 percent of its obligation in the interest gain from the unremitted premiums of PHLPost. It is also necessary that PHLPost should ensure its prompt settlement of arrearages and that GSIS will consequently restore the loan privileges of its employees. The agreement also states that GSIS will lift the tagging of PHLPost as suspended agency in the rolls of its contributors.
PMG Dela Cruz expressed her appreciation for GSIS’ prompt action. “I am very happy that we are slowly but surely making things happen. We are now seeing the fruits of our labor and will continue to do our best to make sure that all our employees will regain the privileges and benefits they duly deserve as government workers.
PGM Vergara also shares the same, and is glad that they were able to finish the first five areas.
Records covered in the reconciliation are from July 1997 to December 2011 which brought by the unremitted contribution of the previous administration. In 2010, in pursuant of the revised GSIS Implementing Rules and Regulation, loan privileges of PHLPost employees were subsequently suspended by GSIS due to its outstanding premium arrearages that gained criticism from the PHLPost workforce especially in the rank and file.
When the PMG Dela Cruz assumed office in July 2011, she immediately tasked the Human Resource Department and the Finance Department to conduct a reconciliation of service records with GSIS to reinstate its good standing status.
In 2011, President Aquino released in 2011 a P644 million budget for PHLPost to support its effort to revive the corporation and settle its financial obligations in the likes of GSIS.