MANILA, Philippines—Public school teachers will soon enjoy more benefits including higher loans and increase in retirement benefits after a new memorandum of agreement was signed by the Departments of Budget and Management (DBM), and of Education (DepEd) and the Government Service Insurance System (GSIS).
The signing of the tripartite agreement was witnessed by no less than President Aquino in ceremonies held in Malacañang on Tuesday.
The MoA, Malacañang said, was meant to address the “chronic issue” of unpaid premiums by restoring the benefits of nearly 800,000 active and inactive employees of the DepEd since July 1997.
Under the agreement, the DBM will settle P6.92 billion of premium-in-arrears representing the government share and expedite payment by advancing P3.46 billion, or half of the total amount, Malacañang said.
In return, the GSIS, through its board of trustees, will condone P14 billion of accrued interest as well as grant a five percent discount on the principal.
With the signing of this MoA, GSIS president and general manager Robert Vergara said DepEd employees “will soon enjoy a proportionate increase in their eligible benefits, higher loanable amounts and, potentially, increased retirement benefits.”
The retired and inactive employees of DepEd may also receive higher pensions as the GSIS will recalculate their benefits and refund any amount that was deducted and will adjust their pensions accordingly, Vergara added in the same statement.—Maila Ager