Recomputation and Refund of the Deductions Made by the GSIS from the Retirement and Other Benefits of Retirees/Members

June 7, 2007 BIR MEMORANDUM TO : All Revenue Officials, Employees and Others Concerned SUBJECT : Recomputation and Refund of the Deductions Made by the GSIS from the Retirement and Other Benefits of Retirees/Members The DBM and GSIS have issued Joint Memorandum Circular No. 2007-01 dated January 2, 2007, which prescribed the following rules and regulations on the subject: 1. DBM shall release to the GSIS the amount appropriated to cover the 2.5% government share deficiency in premium contribution for the period from July 1997 to December 1998. Said release shall be considered as payment of the principal and not on any interest due thereon. 2. Active and retired national government personnel who were granted the following life and retirement benefits from August 2003 (when GSIS began deducting the increase in employer's share including interest charged thereon from the member) to present, shall be entitled to the benefits corresponding to payment of the premium adjustment for the period July 1997 to December 1998: 2.1 Retirement Benefits (for retirees); and ADCETI 2.2 Life insurance claims due to matured policy and salary/policy loans (only in cases where deductions in premium arrearages including interest were made by GSIS by reason of subject increase in employer's share in premium contribution). It shall be the GSIS who will pay the members concerned of the aforementioned benefits. Relative thereto, the following procedures shall be observed: A. Personnel Division (NO)/Human Resource Management Unit (ROs) 1. Secure from GSIS the list of active and retired members who availed of life and retirement benefits in (2) above. 2. Notify the members who are included in the list and require them to properly accomplish the Business Form (BF, attached Annex A). IcHTAa For retirees, they should be informed thru the BIRREXEA, as per their request dated April 12, 2007. The BIRREXEA has represented that it would assume responsibility of providing the retirees of the BF and collecting the accomplished forms for eventual submission to the BIR. 3. Endorse and submit the properly accomplished BF to the GSIS office currently handling the claims transactions. 4. Provide copies of service records, when necessary. 5. Forward to Accounting Division/Finance Division the list secured from the GSIS to verify the accuracy of the computation. B. Accounting Division (NO)/Finance Division (ROs) 1. Verify accuracy of the GSIS computation. 2. Coordinate with GSIS the result of the verification. ITSaHC B. * GSIS Members Concerned 1. Properly accomplish and submit the GSIS BF to the Personnel Division (for NO employees)/Human Resource Management Unit (for RO employees). For the information and guidance of all concerned. IacHAE (SGD.) VIRGINIA L. TRINIDAD Deputy Commissioner Resource Management Group ATTACHMENT January 2, 2007 JOINT DBM-GSIS MEMORANDUM CIRCULAR NO. 001-07 TO : Heads of Departments, Bureaus, Offices and Agencies of the National Government, Including State Universities and Colleges, Finance Directors, Budget Officers, Heads of Accounting Units, and All Others Concerned SUBJECT : Guidelines on the Recomputation and Refund of the Benefits of Government Service Insurance System (GSIS) Retirees/Members Whose Retirement and Other Benefits Were Reduced by Reason of the Increase in the National Government's Share in Premium Contribution for the Period July 1997 to December 1998 1.0 The Joint Memorandum Circular is being issued to prescribe the rules and regulations to govern the implementation of Republic Act (R.A.) No. 9358, or the Supplemental Appropriations for Fiscal Year 2006, specifically on the increase in the National Government share in premium contribution from 9.5% to 12% for the period July 1997 to December 1998. cDCSTA 1.1 Subparagraph I.2, Paragraph I, Section 1 of R.A. No. 9358 appropriates the sum of Three Billion Two Hundred Ninety Nine Million Seven Hundred Ninety One Thousand Pesos (P3,299,791,000.00) for the increase in the National Government share in premium rate of 2.5% or the difference between 9.5% to 12% from July 1997 to December 1998; and 1.2 Subparagraph 2, Paragraph C, Section 2 of R.A. 9358 states that the release of deficiencies in government counterpart contributions due the Government Service Insurance System (GSIS) representing deficiency from July 1997 to December 1998 shall, notwithstanding any provision of law to the contrary, be considered as payment of the principal and not on any interest due thereon: Provided, that GSIS undertakes to readjust the benefit of all retirees whose retirement and other benefits were reduced by reason of each deficiency in employer's counterpart contributions. HAIaEc 2.0 National Government personnel who were granted life and retirement benefits from August 2003 (when GSIS began deducting the increase in the employer's share including interest charged thereon from the members) to present shall be entitled to benefits corresponding to payment of the premium adjustment for the period July 1997 to December 1998. 3.0 All deductions made by the GSIS and thereafter applied as payment for this premium deficiency shall be refunded to the employees. DaScHC 4.0 Any interest imposed by the GSIS resulting from the increase in government share in premium contribution for the period July 1997 to December 1998 shall be resolved by GSIS and the Department of Budget and Management (DBM) in separate discussions. 5.0 Specific responsibilities of DBM, GSIS, and concerned government entities/GSIS members are as follows: 5.1 DBM shall: 5.1.1 Release to GSIS the appropriated amount of P3,299,791,000.00 for the increase in the National Government share in premium rate of 2.5% or the difference between 9.5% to 12% for the period July 1997 to December 1998. IHEAcC 5.1.2 Post to the DBM website (www.dbm.gov.ph) said increase in the National Government share in premium contribution by paying agency/office per GSIS computation. 5.2. GSIS shall: 5.2.1 Post to the individual GSIS retirees' and members' account the payment corresponding to the increase in the National Government share in premium contribution from July 1997 to December 1998. Any interest being claimed thereon by the GSIS shall not be charged against the retiree/member but shall be subject to separate discussions by GSIS and DBM. IEDHAT 5.2.2 Generate and provide the agencies concerned the list of active and retired members that availed of the following benefits starting August 2003 to present: 5.2.2.1 Retirement benefits; and 5.2.2.2 Life insurance claims due to matured policy and salary/policy loans (only in cases where deductions in premium arrearages including interest were made by GSIS by reason of subject increase in employer's share in premium contribution). IEcDCa 5.2.3 Process the members' request within ten days after the receipt of the agencies' official endorsement. 5.2.4 Pay the following to GSIS members concerned: 5.2.4.1 Adjustment in the retirement benefits and basic monthly pension as a result of the payment of the said increase in the National Government share in premium contribution to retired GSIS members; and 5.2.4.2 Refund of the full amount deducted by GSIS from active members whose matured policies and salary/policy loans, if any, were reduced as a result of the increase in the National Government share in premium contribution including interest. 5.3 National Government Agencies shall: 5.3.1 Verify the accuracy of the GSIS computation posted on the DBM website as cited in Par. 5.1.2 against agency records relative to the increase in the National Government share in premium rate of 2.5% or the difference between 9.5% to 12% for the period July 1997 to December 1998. CSHcDT 5.3.2 Notify the members concerned who are included in the list specified under Par. 5.2.2. 5.3.3 Provide its current and former employees eligible for the claim with GSIS with copies of the Business Forms (BF), shown as Annex A, for their accomplishment. 5.3.4 Officially endorse and submit the properly accomplished BF to the GSIS office currently handling the claims transactions of its employees. IDaCcS 5.4 GSIS Members Concerned shall: 5.4.1 Properly accomplish and submit the GSIS BF to the responsible official of their respective agencies for subsequent official endorsement and submission to GSIS. 6.0 This Circular shall take effect immediately. (SGD.) ROLANDO G. ANDAYA, JR. Secretary Department of Budget and Management (SGD.) WINSTON F. GARCIA President and General Manager Government Service Insurance System ANNEX A GSIS BUSINESS FORM DBM and GSIS Joint Memorandum Circular No. 2007-1 dated January 2, 2007 Guidelines on the Recomputation and Refund of the Benefits of GSIS Retirees/Members Whose Retirement and Other Benefits Were Reduced by Reason of the Increase in the National Government's Share in Premium Contribution for the Period July 1997 to December 1998 Name: ____________________________________________ (please write full name with middle initial) GSIS Policy No.: _________________________ NO.: ___________________ GSIS Retirement No. ______________________________________________ Agency/Office & Address: __________________________________________ Mailing Address: __________________________________________________ Tel. Nos. Office Landline: _________________ Residence Landline: _________ Fax No.: _______________________ Cellphone No.: _____________________ E-mail Address: ___________________________________________________ Nature of Business/Request/Transaction (Please check appropriate box): Type of Claim Date & Time Filed with Date & Time Filed with Agency GSIS [ ] Recomputation of Retirement Benefits ___________________ ___________________ (Monthly Basic Pension, Lump Sum) ___________________ ___________________ [ ] Recomputation of Survivorship Benefits ___________________ ___________________ [ ] Refund of Excess Life Premium ___________________ ___________________ Payments (Cash Surrender Value, ___________________ ___________________ Maturity, Death) ___________________ ___________________ [ ] Others ___________________ ___________________ Details of Request: ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ________________________________________ __________________________ Signature over Full Name of Transacting Member Signature over Full Name of the Receiving Officer of the Agency ____________________________________ Signature over Full Name of Attending Member's Servicing Officer of GSIS