Tax Resources PH icon

TAX RESOURCES PH

Tax resources for Filipinos

RMC No. 28-2007: Publishes the full text of Joint Memorandum Circular No. 2007-1 issued by the DBM Secretary and the President and General Manager of GSIS dated January 2, 2007 entitled “Guidelines on the Recomputation and Refund of the Benefits of Government Service Insurance System (GSIS) Retirees/Members Whose Retirement and Other Benefits Were Reduced by Reason of the Increase in the National Government’s Share in Premium Contribution for the Period July 1997 to December 1998”

Files
Download this file

Summary

RMC No. 28-2007 publishes the full text of DBM-GSIS Joint Memorandum Circular No. 2007-1 dated January 2, 2007. It sets the recomputation and refund of GSIS benefits reduced by the increase in the National Government’s share in premium contribution for July 1997 to December 1998.

Key points

  1. Basis in RA No. 9358. The Joint Circular implements Republic Act No. 9358 on the increase in the National Government share in premium contribution from 9.5% to 12% for July 1997 to December 1998. The Act appropriates P 3,299,791,000.00 for the 2.5% increase. The release of deficiencies in government counterpart contributions is considered payment of principal and not interest, with GSIS undertaking to readjust the benefits of affected retirees.
  2. Who is entitled. National Government personnel granted life and retirement benefits from August 2003 to present are entitled to benefits corresponding to payment of the premium adjustment. All GSIS deductions applied to this premium deficiency are refunded to the employees. Any interest is to be resolved separately by GSIS and the DBM.
  3. DBM duties. The DBM releases the appropriated P 3,299,791,000.00 to GSIS and posts on its website (www.dbm.gov.ph) the increase by paying agency/office per GSIS computation.
  4. GSIS duties. GSIS posts the payment to individual retirees’ and members’ accounts without charging the claimed interest against them. It gives agencies the list of members who availed of retirement benefits and life insurance claims since August 2003, processes requests within ten days after receiving the agency’s endorsement, and pays the benefit adjustments and refunds.
  5. Agency and member duties. National Government Agencies verify the GSIS computation against their records and notify the members concerned. They provide the eligible current and former employees with GSIS Business Forms, and endorse the accomplished forms to the GSIS office handling their claims. Members accomplish the Business Forms and submit them to their agency’s responsible official.

Who is affected

  • GSIS retirees and members whose benefits were reduced
  • National Government Agencies
  • DBM and GSIS

Deadlines and effectivity

  • Joint Circular dated January 2, 2007
  • Premium period: July 1997 to December 1998
  • Benefits granted from August 2003 to present
  • GSIS processes requests within ten days after receiving agency endorsement

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.