Law Summary

1. Introduction

This document summarizes the GSIS Resolution No. 9, adopted on January 8, 2003, concerning the stoppage of payment of all types of Employees' Compensation (EC) claims for government employees in light of specific non-compliance with contribution requirements.

2. Denial of Request for Reconsideration

• Explanation: The resolution denies the request for reconsideration submitted by the Employees' Compensation Commission (ECC) regarding GSIS Memorandum Circular 1-2002.
• Key Definitions:
  • Employees' Compensation (EC): A program that provides benefits to government employees injured or incapacitated in the course of their employment.
• Important Details:
  • The ECC sought to overturn the decision to stop EC claims payments.
  • The denial was based on the recommendation from the Chief Legal Counsel's memorandum dated January 3, 2003.
• Consequences: The stoppage of EC claims payments is confirmed, reinforcing the previous directive.

3. Stoppage of Payment of EC Claims

• Explanation: Payment for all types of EC claims will cease if government agencies fail to implement an increase in EC contributions.
• Key Definitions:
  • Contribution Increase: The required increase in EC contributions from P30 to P100, effective January 2003.
• Requirements/Procedures:
  • Government agencies must remit the increased EC contributions to the GSIS for claims to be processed.
• Timeframes:
  • The increase is effective from January 2003, and the compliance is expected to be immediate.
• Consequences: Failure to comply will result in the stoppage of all EC claims payments for the respective agencies.

4. Instruction to Management

• Explanation: Management is instructed to formalize communication with the ECC regarding the advanced contributions.
• Key Definitions:
  • Advanced Contributions: A total of P3.5 billion that the GSIS advanced to cover EC claims.
• Requirements/Procedures:
  • GSIS Management must write to the ECC to confirm or acknowledge the advanced amount before further considerations by the GSIS Board.
• Consequences: This formal correspondence is necessary to ensure transparency and acknowledgment of financial matters between GSIS and ECC.

5. Board Meeting Adoption

• Explanation: The resolution was adopted during Board Meeting No. 1 on January 8, 2003.
• Important Details:
  • The resolution reflects the governance and decision-making processes within GSIS.

Key Takeaways

• The GSIS will cease payments of EC claims for government employees if their agencies do not implement a mandatory increase in contributions.
• The decision to deny the ECC's request for reconsideration reinforces compliance requirements effective from January 2003.
• GSIS Management is tasked with formally communicating advanced financial contributions to the ECC, further emphasizing accountability in the management of EC claims.