CLARK FREEPORT — Clark Development Corp. and the Government Service Insurance System conducted a general assembly on Nov. 9 relative to the intended implementation of retroactive GSIS coverage from June 29, 2011 to July 31, 2023.
GSIS coverage for CDC employees started on Aug. 1, 2023.
CDC president and CEO Agnes VST Devanadera urged employees to carefully consider the advantages and benefits of the retroactive coverage under the GSIS. She also encouraged them to consider what it could mean for themselves and their families.
“I hope you see the value of this. Think of your families because this is a benefit that has been worked out by several institutions,” Devanadera said, referring to the Office of the President of the Philippines, GSIS, SSS, OGCC and the Bases Conversion and Development Authority.
CDC and GSIS officials likewise discussed the various social benefits and loan programs under the GSIS. These included sample computations on the retroactive personal share, credited service and possible funding options.
Deity Manampan, GSIS vice president for Luzon North, presented the key provisions of the retroactive coverage. She also addressed employees’ questions on personal shares, previously paid SSS contributions, credited service and benefits.
Manampan explained that payment of the employee’s personal share for the retroactive period is optional. The computation of GSIS retirement benefits will be based on the number of actual paid-up premiums accumulated by the employee at the time of retirement.
The coverage finds its legal basis in RA 8291 (Government Service Insurance System Act of 1997), and GSIS Policy and Procedural Guidelines No. 383-22. These provide for compulsory GSIS membership of covered government employees, including those in government-owned or controlled corporations without original charters like CDC.
The legal basis for GSIS coverage for CDC employees was recognized by the Office of the Government Corporate Counsel under Contract Review No. 694, Series of 2019, and Opinion No. 126, Series of 2021. The OGCC likewise upheld the effectivity of RA 10149 (Government-owned and Controlled Corporation Governance Act of 2011), as the basis for the beginning of the retroactive period.
CDC shall also continue to coordinate with SSS and GSIS on the proper treatment and reconciliation of SSS contributions paid during the retroactive period. The OGCC formally confirmed that CDC may proceed with the execution of the memorandum of agreement with GSIS, pending the finalization of discussions with SSS on the return of premiums.
CDC and GSIS will continue providing employees with information to help them make informed decisions on their benefits.CDC-PR
