POLICY AND PROCEDURAL GUIDELINES NO.

: 272-14

FUNCTIONAL AREA : MEMBERSHIP

DISTRIBUTION : All Senior Vice Presidents

All Vice Presidents
NCR Operations Group
Luzon Operations Group
Visayas Mindanao Operations Group
Actuarial and Risk Management Group
Legal Services Group
Information Technology Services Group
Corporate Services Group
Corporate Communications Office
Internal Audit Services Office
Department/Branch Office Managers

SUBJECT : TREATMENT OF MEMBERS WHO ARE ON

SECONDMENT AND OFFICIAL STUDY LEAVE
WITHOUT PAY

I. BACKGROUND/RATIONALE

GSIS members and the agencies where they belong are required to pay and remit
their obligations, i.e., correct premium contributions and loan amortizations, to the
GSIS in a timely manner. On the other hand, the GSIS is mandated to collect these
obligations on a monthly basis.

The GSIS maintains a database referred to as Membership Service Profile (MSP)

which consolidates all members’ services rendered in government, regardless of
status of appointment and payment of compulsory premium contributions. These
services form part of a member’s Total Length of Service (TLS) which is considered
in determining the eligibility of the member to benefits mandated by law.

Those periods of government service for which the compulsory premium

contributions have been actually paid and remitted are referred to as Periods with
Paid Premiums (PPP) which will be used in computing the amount of benefit to be
paid by the GSIS to a member. Any member’s leave of absence without pay (LWOP)
is excluded as part of his or her PPP, unless proof of payment of compulsory
premium contributions is presented.

While serving the government, members may be seconded to another government

agency or to international bodies recognized by the Philippine government. For
 some, they may go on study leave for purposes of completing further studies to
enhance skills and knowledge in order to serve the agency better. Still for some,
they may use such study leave to prepare for their bar or board examination.

There is a need to provide written guidelines on the proper treatment of the

aforesaid cases, hence, the issuance of this PPG.

II. OBJECTIVES

This PPG aims to:

A. Provide the policy for the treatment of members who are a) on secondment to an
international body/organization by the Philippine government and b) on official
study leave of absence without pay;

B. Provide guidelines for the payment and remittance of life insurance and
retirement premiums of affected members; and

C. Provide the procedural guidelines for the Operations Group in handling such
cases.

III. DEFINITION OF TERMS

A. Secondment - refers to the movement of an employee from one

department or agency to another, including
international bodies/organizations recognized by the
Philippine government, which is temporary in nature
and which may or may not require the issuance of an
appointment but may either involve reduction or
increase in compensation.1

B. Official Study - absence of an official or employee in excess of

Leave Without Pay his or her accumulated vacation or sick leave credits
while pursuing graduate studies duly covered by an
agreement between the head of agency and the
concerned official or employee

IV. POLICIES

A. Coverage

This PPG shall cover the treatment of all members who are on secondment and
official study leave without pay.

1
Section 6 (c), Rule III, CSC Memorandum Circular No. 40, Series of 1998, Revised Omnibus Rules on
Appointments and Other Personnel Actions, as amended by CSC MC No. 15 Series of 1999.
B. General Policies

To provide a uniform treatment on payment and remittance of life insurance and

retirement premiums of the concerned members and their agencies, the following
guidelines shall be adopted and implemented by the Operating Units Concerned
(OUCs):

1. Payment of Premiums

The payment for life insurance and retirement premiums of concerned

members shall be coursed through the agency and remitted to the GSIS
using the prescribed Electronic Remittance File (ERF) based on the billing
sent by GSIS. No direct payment for life insurance and retirement premiums
from the said members shall be accepted.

2. Payment Options

The concerned member shall be given the following payment options:

a. Pay monthly;

b. Pay in advance to cover one (1) year premium contributions or the entire
duration of his or her secondment or study leave (if agreement is one year
or less); and

c. Pay annually, if agreement covers more than one (1) year, with 2%
interest equivalent to charges for delayed remittance of premium
contributions.

GSIS shall provide the concerned member with the corresponding

computations to ensure that his or her policy will not lapse even if Option (c)
is selected. For Options (a) and (c), the corresponding Remittance List (RL)
and/or ERF shall be provided.

3. Remittance of Contributions

The agency shall be responsible for the prompt remittance of premium

contributions (both government share and personal share), thus the agency
shall shoulder interest for any delayed payments. However, if the delay is
caused by concerned member’s negligence, the interest shall be charged
against the concerned member.

4. Billings and Payments for Service Loans

All outstanding loans during the duration of both secondment and official
study leave without pay shall be continuously billed. Payments and/or
 repayments for service loans and/or optional policy premiums may be
remitted directly to GSIS or through the mother or receiving agency, in case
of secondment to another government agency.

5. Settlement of Premium in Arrears (PIA) Covering Previous Agreements on

Secondment and Official Study Leave Without Pay

Payment of all PIAs covering the duration of previous secondment and official
study leave without pay shall be allowed within one (1) year from the
effectivity of this PPG. A monthly interest of 2% equivalent to charges for
delayed remittance of premium contributions shall be imposed on said PIAs.

The concerned member shall be required to submit a copy of the agreement

on secondment or official study leave without pay and an updated service
record indicating the period covered by the said agreement.

C. Specific Guidelines on Secondment

1. The Membership Department shall remind all heads of agencies through

their respective Agency Authorized Officers (AAOs) and Human Resources
Officers (HROs), to report seconded personnel through prompt submission
of the Agency Remittance Advice (ARA). The ARA shall be the basis for
updating the Membership Service Profile (MSP) of the seconded member.

2. Seconded members and their agencies shall be required to submit a copy of

the secondment agreement, or any equivalent document, and an updated
service record indicating the period of secondment.

3. The Membership Department, upon updating of the MSP, shall send a letter
to the seconded members informing them of their obligations, particularly
payments for their retirement and life insurance premiums, which shall be
remitted only through their mother or receiving agency.

4.The entire period under secondment will be included in the computation of

the TLS but only those periods with premium payments shall be considered
in the PPP.
D. Specific Guidelines on Official Study Leave Without Pay

1. The member who will go on official study leave without pay shall be required
to inform the GSIS at least sixty (60) days in advance for the purpose of
updating his or her MSP2.

2
Memorandum No. 2011-M-0225-MEM-005 re: Mancom Directives and Resolutions re Proposed Policy
on the Conditional Inclusion of Official Study Leave Without Pay as Part of Member’s Record of
Creditable Service (now PPP) dated 28 February 2011.
2. The Membership Department shall remind all agencies, through their
respective AAOs and/or HROs, to promptly report personnel who are on
official study leave without pay by submitting the corresponding ARA as basis
for updating the concerned member’s MSP.

3. The Membership Department, upon updating of the MSP, shall send a letter
to the member on official study leave without pay to inform the member of his
or her obligations, particularly monthly payments for retirement and life
premiums (both government share and personal share), which shall be
remitted only through the member’s agency.

4. Concerned members and their agencies shall be required to submit a copy of

the study leave agreement, duly approved by the Head of Agency or
authorized representative, and an updated service record indicating the
period of study leave as basis for updating their MSP.

5. The concerned member shall pay his or her retirement and life insurance
premiums, both personal and government shares, based on the actual
salaries received immediately prior to the official study leave without pay.

6. If the concerned member is not capable of Payment Options (a) to (c) in Part
IV.B.2, the member shall, at his or her option which shall be made in writing,
settle the retirement and life insurance premiums equivalent to the number of
months of the period of study leave without pay. The payment of the
computed monthly amortization shall start three (3) months from the
completion of such study leave without pay.

To illustrate:

Duration of Period Duration of Start of

Study Leave Covered Amortization Monthly
Amortization
One (1) year June 2014- One (1) year September 2015
May 2015
Two (2) years June 2014- Two (2) years September 2016
May 2016

The outstanding amount of unpaid premiums as of the end of the official study
leave without pay shall bear an interest rate of 12% compounded annually.

7. The entire period covered by the official study leave without pay will be
included in the computation of the TLS but only those periods with premium
payments shall be considered in the PPP.
 E. Information Drive

The Corporate Communications Office (CCO) shall prepare information materials

to disseminate this PPG to all GSIS executives, employees and stakeholders.

F. Effectivity

This PPG shall take effect after fifteen (15) days from the date of publication in
the Official Gazette or in two (2) newspapers of general circulation.

All Office Orders, Policy and Procedural Guidelines, Circulars which are inconsistent
herewith are hereby superseded, modified, or repealed accordingly.

(Sgd.) ROBERT G. VERGARA

President and General Manager

Date signed: 01 December 2014