ARTA Helps Address PMDC Employee Concerns About GSIS Benefits – Manila Newsletter

The Anti-Red Tape Authority (ARTA) said it had stepped in to address the issue of Government Service Assurance System (GSIS) coverage for employees of the Philippine Mining Development Corporation (PMDC).

Logos of the Government Service Insurance System (GSIS), the Anti-Red Tape Authority (ARTA) and the Philippine Mining Development Corporation (PMDC).

This assurance was given after the Office of Government Corporate Counsel (OGCC) issued Notice No. 153, 2021 series in May 2021, said PMDC members are covered by GSIS – instead of the system Social Security (SSS) – since its inception in 2003.

After a series of meetings with PMDC, GSIS and other relevant government agencies, and a written clarification issued by OGCC, it was determined that PMDC employees are covered by GSIS.

Representatives of GSIS said they have already prepared policy guidance and initial calculations subject to senior management approval. They also coordinated with the PMDC on possible requirements for coverage, including the list of employees.

Before the case was declared closed by ARTA’s Deputy Director General for Operations, Ernesto Perez, it was found that the Governance Commission of Government Owned and Controlled Companies (GCG) suggested to GSIS to ” raising the issue of PMDC to the office of the president (OP).

At the November 15 meeting, Perez said there was no need to appeal to the PO since the OGCC has already issued an opinion and the GSIS agreed with the GCG’s advice that the PMDC is part of its coverage.

Previously, PMDC had met with ARTA in July to discuss the request for its employees to be covered by GSIS. ARTA met with the two parties a few days later to discuss the matter.

Shortly thereafter, ARTA’s Managing Director Jeremiah Belgica wrote to the OGCC to seek legal advice on whether the GSIS can waive the two percent interest on unpaid premiums and whether the compromise law under the new civil code may apply to interest and penalty. .

Government corporate lawyer Elpidio Vega responded by saying that PMDC employees are not required to pay interest on unpaid premiums because they did not originally expect to be subject to the coverage. of GSIS. PMDC employees have acted in good faith when complying with the provisions of the SSS and without any intention to violate GSIS law.

Vega added that it is within the powers and functions of the GSIS Board of Directors to compromise or release any claims or settle the liability of the agencies regardless of the amount involved.

“ARTA took steps that facilitated not only the issue of the retroactive application of GSIS membership coverage for PMDC employees, but also the disclaimer of paying interest on unpaid premiums and power. of GSIS to compromise or release any claim in this regard. “, the agency said in a statement.

During this time, it was left to the discretion of PMDC employees to waive or refund premium contributions.


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