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PIA Press Release

Ilocos Sur LGUs to withhold remittances for GSIS premium contributions

By Freddie G. Lazaro

Narvacan, Ilocos Sur (February 11) -- The Local Government Units (LGUs) of Ilocos Sur has temporarily withhold the deposit of all collected premium contributions for Government Service Insurance System (GSIS) from its employees and its shares pending the agency's completion on updating records and loan payments of each member, it was learned Tuesday here.

This developed when the members of the League of Municipalities of the Philippines (LMP) Ilocos Sur Chapter passed the resolution no. 25, series of 2009 to address the problems of the GSIS members from the LGUs regarding remittances for contributions and loan payments.

According to Narvacan town Mayor Edgardo D. Zaragoza, the incumbent LMP Ilocos Sur President, the LGUs employees are persistently complaining that their GSIS remittances for premium contributions and loan payments are not regularly updated despite the fact that such monetary obligations are religiously paid on time.

When the mayors verified this problem through their authorized employee representative to the agency, they found out that remittances to GSIS for contributions/premiums and loan payments were reportedly uploaded 10 months behind, in which it was unfair for the members who apply for a loan and having the unrecorded loan payments be charged against applied loan.

"We even requested any representative from the GSIS to appear during our regular meeting to explain the present agency's operations and programs to clarify the problems of the members, who are our employees, but no one to attend our request," Zaragoza said.

"If the change of the system of GSIS is the reason for the problem, why it will takes longer period of time to solution this problem considering that the agency had been using the electronic information technology?" he inquired.

In the resolution, the mayors agreed that the collected GSIS premium contributions both employee-employer shares will be deposited under the LGUs trust fund and will only be remitted to GSIS when its records of premium and loan payments have been updated.

"Only collected GSIS loan payments will be remitted to the agency to avoid interest and penalties," they told.

The mayors said in the resolution that the withhold of collections for the GSIS premium contributions will take effect upon receipt of the resolution by the concerned agency to avoid other complications considering that their municipal treasurers are mandated to remit payments.

The Ilocos Sur mayor's league, which composed of 32 members, also urged all other LGUs for their support to temporarily withhold their collected GSIS premium payments pending the agency's completion in updating records.

Earlier, similar moved also initiated by the members of the mayor's league in Benguet province. (PIA Ilocos Sur) [top]

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