Question & AnswerQ&A (EXECUTIVE ORDER NO. 190)
The main purpose of Executive Order No. 190 is to direct the Department of Budget and Management (DBM) to remit directly the contributions and other remittances of Local Government Units (LGUs) to concerned National Government Agencies (NGAs), Government Financial Institutions (GFIs), and Government Owned and/or Controlled Corporations (GOCCs) to ensure prompt payment and compliance.
According to Section 1, the DBM shall remit directly to the Government Service Insurance System (GSIS) the LGU shares as well as the employee contributions due under Republic Act No. 8291, Republic Act No. 6111, and Presidential Decree No. 626, as amended.
The contributions and remittances shall be deducted from the Internal Revenue Allotment (IRA) of the concerned LGUs as provided in Sections 2 and 3.
The EO addresses arrearages on GSIS remittances, delayed remittance of contributions for Pag-IBIG, Employees Compensation Insurance Premium (EICP), Health Insurance Fund, and the BIR authorized withholding tax.
Failure to submit the listing and other requirements shall be a basis for appropriate disciplinary action and sanction against LGU officials and/or employees.
The DBM is tasked to deduct the contributions from the IRA of LGUs, remit contributions directly to concerned agencies, and issue necessary implementing rules and regulations to ensure compliance.
Yes, Section 4 provides that concerned NGAs, GFIs, and GOCCs may enter into a Memorandum of Agreement with the DBM for effective implementation.
The Executive Order took effect on January 1, 2000, as stated in Section 6.
The contributions are regulated under Republic Act No. 8291, Republic Act No. 6111, and Presidential Decree No. 626, as amended.
Prompt remittance is emphasized to ensure that social benefits under government programs are paid correctly and timely to rightful claimants, making the benefits meaningful and effective.