ELDERLY employees of Palacio Del Gobernador Condominium Corp (PDGCC) are at risk of ending up without any benefits and pension payments upon retirement as the agency is outside the coverage of the Social Security System (SSS) as a non-chartered government firm but has never made the shift to coverage under the Government Service Insurance System (GSIS).
Without coverage in either state pension funds, PDGCC personnel also do not have protection from calamites, sickness, or disabilities.
In the 2022 report on the PDGCC, the Commission on Audit noted that under the Social Security Act of 2018, all non-chartered government-owned or controlled corporations (GOCCs) were expressly excluded.
The same law made it mandatory for non-chartered GOCCs to adopt RA 8291 or the GSIS Act of 1997.
“Non-transfer of the employees’ membership from SSS to GSIS is contrary to GSIS Memorandum Circular No. 036, s. 2022 which requires mandatory GSIS membership coverage of personnel of non-chartered GOCCs,” the COA said.
PDGCC started out as a private entity in 1976 as it was formed for the purpose of holding title to all the common areas in the Palacio del Gobernador Condominium project, comprising the land and building which is now recognized a historical landmark by the National Historical Commission of the Philippines.
It became a GOCC on July 3, 2003, through Board Resolution No. 07-002 series of 2003, wherein the Board of Directors adopted the opinion of Office of the Government Corporate Counsel (OGCC) dated March 5, 2003 that PDGCC is a GOCC subject to existing laws, rules, and regulations applicable to government firms.
Based on the recommendations of the audit team, the PDGCC management committed to facilitate the transfer of the membership of its personnel from SSS to GSIS within the year.
“In fact, the PDGCC had a meeting with the GSIS Officers on February 28, 2023 regarding the process and requirements of transfer of membership,” agency officials informed the COA.
According to the procedures, PDGCC would have to decide whether the coverage would be retroactive or prospective.
“Both coverages, especially retroactive coverage, will have financial implications with PDGCC and its employees. Thus, such options will be presented to the Board of Directors for their comments and/or approval,” the COA pointed out.
