Direct Remittance of LGU Contributions by DBM
- Directs the Department of Budget and Management (DBM) to remit LGU contributions directly to the Government Service Insurance System (GSIS) quarterly.
- Covers LGU shares and employee contributions as provided under Republic Act No. 8291, Republic Act No. 6111, and Presidential Decree No. 626, as amended.
Deduction from Internal Revenue Allotment (IRA)
- Mandates that the premium contributions (LGU and employee shares) be deducted from the IRA of the concerned LGUs.
- Extends this deduction to cover outstanding compulsory contributions and other remittances due to concerned government agencies, government financial institutions (GFIs), and government-owned and/or controlled corporations (GOCCs).
Mechanism for Implementation and LGU Obligations
- Allows relevant national government agencies, GFIs, and GOCCs to enter into Memoranda of Agreement (MOA) with the DBM to facilitate effective implementation.
- Requires LGUs to submit to the DBM:
- Lists of existing personnel covered under the insurance system.
- Records of individual contributions (both government and employee shares).
- Lists of delayed remittances due.
- Establishes that non-compliance by LGU officials or employees with submission requirements is subject to disciplinary actions and sanctions.
Issuance of Implementing Rules and Regulations
- Charges the DBM with the responsibility to issue necessary implementing rules and regulations.
- Aims to ensure complete adherence to the provisions of this executive order by all LGUs.
Effectivity
- Provides that the executive order shall take effect starting January 1, 2000.
Summary:
This executive order addresses recurring problems of delayed and non-payment of mandatory social security and insurance contributions by LGUs by placing the remittance responsibility squarely with the DBM, which will directly remit payments deducted from the LGUs' IRA. It establishes administrative mechanisms requiring LGU transparency and accountability through regular reporting and collaboration agreements with concerned agencies, ensuring prompt and proper payment of statutory contributions and safeguarding government personnel benefits.