Flashcards Studio

A Department of Agriculture (DA) contracts a private firm, FarmTech Solutions, to provide two field extension workers for a six-month rural development project. The firm assigns Ana and Ben to render services and they are paid entirely by FarmTech; no GSIS contributions are remitted for them. The project is supervised by Dr. Reyes, a regular DA employee who is covered by GSIS. After two months, the DA offers to absorb Ana and Ben as DA employees to continue the project for the remaining four months, with salaries paid from government funds. (a) Who among the described individuals is covered by GSIS? (b) Is Ana and Ben covered by GSIS during their private-contract engagement? (c) If Ana and Ben are absorbed as DA employees, what is the effect on their GSIS coverage, and what happens to any prior GSIS contributions made by FarmTech on their behalf?