The Government Service Insurance System (GSIS), the Power Sector Assets and Liabilities Management Corp. (PSALM), and the National Power Corp. (NPC) have formally settled more than P1 billion in unremitted premium contributions, closing a long-standing obligation linked to NPC’s 2003 restructuring.
In a statement, GSIS said the tripartite Memorandum of Agreement (MOA) was signed on July 8 in Quezon City, following a ceremonial check turnover on June 17 at the GSIS head office in Pasay.
The settlement covers the full restructured obligation for qualified former NPC employees, with service periods validated by the Commission on Audit.
GSIS also granted a 60 percent condonation on accrued interest based on board-approved guidelines.
GSIS President and General Manager Jose Arnulfo Veloso called the agreement “a landmark step” in ensuring justice and restoring benefits to long-displaced government workers.
“What we have done today not only gives hope to the people from PSALM and NPC, but also sends a message to everyone serving in government: We will do everything we can to repay their faithful service to the nation,” Veloso said.
PSALM President and CEO Dennis Edward Dela Serna emphasized the shared responsibility of the three agencies, calling the settlement “a reflection of fiscal responsibility, legal prudence and social justice.”
NPC CEO Fernando Martin Roxas highlighted the impact on the 1,233 former employees affected by the restructuring.
“We are now able to restore the benefits the law granted 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,” Roxas said. With the MOA signed and the payment completed, GSIS will begin recomputation and crediting of service periods so eligible claimants may finally receive their retirement and insurance benefits.
