GSIS, PSALM, NPC Seal PHP1B Benefits Deal

The Government Service Insurance System (GSIS), Power Sector Assets and Liabilities Management Corporation (PSALM), and National Power Corporation (NPC) on July 8 signed a tripartite agreement to settle more than PHP1 billion in long-standing premium arrears.

The deal, formalized through a Memorandum of Agreement (MOA) at the PSALM office in Vertis North, Quezon City, resolves unpaid premium contributions dating back to NPC’s restructuring in 2003.

The settlement follows the ceremonial turnover of payment held on June 17 at the GSIS head office in Pasay City.

The agreement ensures that 1,233 qualified former NPC employees – whose service periods have been validated by the Commission on Audit (COA) – will now receive long-delayed retirement and insurance benefits.

Under the MOA, GSIS granted a 60% condonation on accrued interest, aligning with its board-approved policy to facilitate benefit recovery.

GSIS President and General Manager Wick Veloso lauded the deal as a crucial milestone in restoring workers’ rights.

“Ang ginawa natin ngayon ay hindi lamang nagbibigay ng pag-asa sa mga tao mula sa PSALM at NPC, kundi nagpapahayag din ng mensahe sa lahat ng nagsisilbi sa gobyerno: Gagawin natin ang lahat upang masuklian ang kanilang tapat na serbisyo sa bayan,” Veloso said.

PSALM President and CEO Dennis Edward Dela Serna described the agreement as a demonstration of shared accountability.

“Together we made it happen—the shared responsibility of PSALM, NPC and GSIS manifested in this ceremonial signing reflects the common commitment to fiscal responsibility, legal prudence and social justice,” he said.

NPC President and CEO Fernando Martin Roxas underscored the social impact of the agreement, especially for workers affected by the power sector’s privatization.

“This is a significant day for the former 1,233 employees and their families who have lost their jobs in the course of privatization,” Roxas said.

“Now, we are able to restore the benefits that the law granted to them with the cooperation of PSALM and GSIS,” he added.

With the agreement in effect, GSIS will begin recomputing and crediting service periods so eligible retirees can finally claim their due benefits.

The issue traces back to 2003, when the Electric Power Industry Reform Act (EPIRA) mandated the privatization of state-owned power assets, leading to widespread retrenchment and fragmented personnel records.

According to COA, discrepancies in remittance records and unresolved obligations had long hindered the processing of benefits for former NPC staff.

The settlement aims to resolve a decades-old gap in public sector labor compensation, reinforcing the government’s commitment to administrative justice and institutional reform.

GSIS said it remains committed to ensuring transparency and timeliness in the disbursement of the benefits following recalibration of each claimant’s service history.