GSIS signs P1-B deal with PSALM, NPC

THE GOVERNMENT Service Insurance System (GSIS) has signed a memorandum of agreement with the Power Sector Assets and Liabilities Management Corporation (PSALM) and the National Power Corporation (NPC) to settle over P1 billion in unremitted premium contributions arising from NPC’s 2003 restructuring.

“This is a significant day for the former 1,233 employees and their families who have lost their jobs in the course of privatization. Now, we are able to restore the benefits that the law granted to them with the cooperation of PSALM and GSIS. We commit to disbursing the benefits to the qualified beneficiaries in the most expedient and efficient way,” NPC President and Chief Executive Officer (CEO) Fernando Martin Y. Roxas said in a statement late on Tuesday.

The signing followed the ceremonial turnover of the check held earlier on June 17.

“The settlement covers the full restructured obligation for qualified former NPC employees, whose service periods have been validated by the Commission on Audit. GSIS also granted a 60% condonation on accrued interest in accordance with board-approved guidelines,” GSIS said.

GSIS will now proceed with the re-computation and crediting of service periods, allowing eligible claimants to receive their corresponding retirement and insurance benefits.

“Together we made it happen—the shared responsibility of PSALM, NPC and GSIS manifested in this ceremonial signing reflects the common commitment to fiscal responsibility, legal prudence and social justice,” PSALM President and CEO Dennis Edward Dela Serna said. — Aaron Michael C. Sy