Publishing the Full Text of GSIS Branch Memorandum Circular No. 03-2002

August 22, 2002 REVENUE MEMORANDUM CIRCULAR NO. 36-02 SUBJECT : Publishing the Full Text of GSIS Branch Memorandum Circular No. 03-2002 Dated July 1, 2002 Entitled "Increase in the Maximum Limit of Employees' Compensation (EC) Contributions Effective January 1, 2003" TO : All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all internal revenue officers, employees and others concerned, quoted hereunder is the full text of GSIS BRANCH MEMORANDUM CIRCULAR NO. 03-2002 dated July 1, 2002: "REPUBLIC OF THE PHILIPPINES PASEGURUHAN NG MGA NAGLILINGKOD SA PAMAHALAAN (GOVERNMENT SERVICE INSURANCE SYSTEM) LUNGSOD NG QUEZON SANGAY II (SIBILYAN) Diliman, Lungsod ng Quezon July 1, 2002 BRANCH MEMORANDUM CIRCULAR No. 03-2002 TO : ALL HEADS OF DEPARTMENT, AND COMMISSIONS, PRESIDENT OF STATE UNIVERSITIES AND COLLEGES, REGIONAL DIRECTORS AND CHIEFS OF BUREAUS AND OFFICES, MANAGING HEADS OF GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS, ACCOUNTING, FINANCE, COLLECTING AND/OR DISBURSING OFFICERS, THEREOF, AUDITORS, PROVINCIAL GOVERNORS, CITY AND MUNICIPAL MAYORS AND TREASURERS, ALL GSIS MEMBERS AND THE OTHERS CONCERNED. SUBJECT : INCREASE IN THE MAXIMUM LIMIT OF EMPLOYEES' COMPENSATION (EC) CONTRIBUTIONS EFFECTIVE JANUARY 1, 2003 Quoted hereunder is Resolution No. 102 adopted by the GSIS Board of Trustees in its meeting No. 7 held on April 17, 2002. "Recommendation to increase the maximum limit of EC contributions from P30.00 per month to P100.00 per month per employee and request for the GSIS Board to reconsider its earlier decision to stop interfund borrowings." RESOLVED: That the Board APPROVED, as it does hereby, APPROVE the request of the Employees' Compensation Commission for the Board to reconsider its earlier decision to stop interfund borrowings which will result to the inability of the GSIS to pay all EC claims. RESOLVED CONSEQUENTLY: That in view of the approval by the ECC of the GSIS recommendation to increase the maximum limit of EC contribution from P30.00 to P100.00 per month per employee, effective Calendar Year 2003, subject to review anytime thereafter, The Board APPROVE, as it does hereby APPROVE the following recommendations: 1. Pay all rightful EC claims, 2. Resort to interfund borrowing from the General Insurance Fund (GIF) and the Optional Life Insurance Fund (OLIF), if necessary; and 3. Stop payments of all types of EC claims of employees of government agencies who FAIL TO IMPLEMENT THE INCREASE IN EC CONTRIBUTION and to remit the same to the GSIS, effective January 1, 2003; 4. Resume the remittance of the share in the operating budgets of the ECC and Occupational Safety and Health Center (OHSC) beginning Calendar Year 2002 but limited to 50% only. Please be guided accordingly. (SGD.) DOMINADOR P. EVANGELISTA Branch Manager" This circular will take effect on January 1, 2003. (SGD.) ESTELITA C. AGUIRRE Deputy Commissioner Resource Management Group