QuestionsQuestions (EXECUTIVE ORDER NO. 190)
To direct the Department of Budget and Management (DBM) to directly remit LGU shares and employee contributions (and other remittances) to the concerned national government agencies, government financial institutions, and GOCCs, to address delayed or non-remittance.
The LGU’s shares and the employee contributions due under RA No. 8291, RA No. 6111, and Presidential Decree No. 626, as amended.
It provides that the amount corresponding to the premium contributions shall be deducted from the Internal Revenue Allotment (IRA) of the concerned LGUs.
It states that outstanding compulsory contributions and other remittances of LGUs due to the concerned agencies/GFIs/GOCCs shall likewise be deducted from the IRA of the concerned LGU.
It shifts the remittance obligation for these specified contributions/remittances from the LGU to the DBM, which must remit directly to the proper recipient agencies/institutions.
The concerned national government agencies, GFIs, and GOCCs may enter into an appropriate MOA with the DBM.
A list of existing personnel covered by the insurance system, the individual contributions (government and employee share), and a list of delayed remittances due to national government agencies, GFIs, and GOCCs.
It is stated that such failure shall be a basis for appropriate disciplinary action and sanction.
On January 1, 2000.
To justify the need for timely remittance; delays/non-remittance prevent LGU personnel from availing benefits under the social security and insurance programs.
Pag-IBIG, Employees Compensation Insurance Premium (ECIP), Health Insurance Fund, and the BIR authorized withholding tax, in addition to arrearages on GSIS remittances.
DBM is tasked to issue the necessary implementing rules and regulations to ensure full compliance with EO No. 190.
EO No. 190 operationalizes/implements the direct remittance and IRA deduction mechanism for contributions due under those statutes.
Section 1 covers quarterly remittance of shares and employee contributions due; Sections 3 covers outstanding compulsory contributions and other remittances (arrearages/delayed remittances) by deducting from the IRA.
Because it allows automatic sourcing of payment from LGU funds, reducing LGU ability to delay payment and ensuring funds reach the proper agencies even when LGUs fail to remit on time.