Direct remittance of LGU contributions

The Government’s social-security and insurance program is recognized as a source of social benefits for all government personnel.
Benefits are meaningful and serve their intended purpose only when social benefits are paid in the right amounts to rightful claimants when due.
The Executive Order addresses reports that compulsory contributions to the relevant systems and programs were not being remitted on time as mandated.
The Order targets delays affecting remittances for GSIS, Pag-IBIG, ECIP (Employees Compensation Insurance Premium), the Health Insurance Fund, and BIR authorized withholding tax.

Section 1 directs DBM to remit directly the LGU shares and employee contributions due under Republic Act No. 8291, Republic Act No. 6111, and Presidential Decree No. 626, as amended.
The LGU contributions and remittances referred to in Sections 1 to 3 are those due to concerned NGAs, GFIs, and GOCCs.

Section 1 mandates DBM to remit directly to the Government Service Insurance System (GSIS) quarterly the local government unit’s shares and the employee contributions due under Republic Act No. 8291, Republic Act No. 6111, and Presidential Decree No. 626, as amended.
The remittance schedule is quarterly.

Section 2 requires that the amount corresponding to the premium contributions be deducted from the Internal Revenue Allotment (IRA) of the concerned Local Government Units.
Section 3 requires that outstanding compulsory contributions and other remittances of LGUs due the concerned government agencies, GFIs, and GOCCs be deducted from the IRA of the LGU concerned.

Section 4 allows concerned NGAs, GFIs, and GOCCs to enter into an appropriate Memorandum of Agreement with DBM for effective implementation.
Section 4 requires each Local Government Unit to submit to DBM:
- a list of its existing personnel covered under the Insurance System; and
- the individual contributions (government share and employee share); and
- a list of delayed remittances due to concerned NGAs, GFIs, and GOCCs.
Section 4 provides that failure of LGU officials and/or employees to submit the required listing and other requirements is a basis for appropriate disciplinary action and sanction.

Section 5 directs DBM to issue necessary implementing rules and regulation to guide all LGUs and ensure full compliance with the Executive Order.

The Executive Order becomes effective on January 1, 2000 under Section 6.