Guidelines on the Release and Purpose of the National Government (NG) Counterpart Fund Allocated for the Government Service Insurance System-Social Security System (GSIS-SSS) Educational Assistance Fund Program (EAFP)

October 10, 2012 BLGF MEMORANDUM CIRCULAR NO. 073-12 TO : All Heads of Offices, Heads of Bureaus, Regional Directors and Other Offices Concerned SUBJECT : Guidelines on the Release and Purpose of the National Government (NG) Counterpart Fund Allocated for the Government Service Insurance System-Social Security System (GSIS-SSS) Educational Assistance Fund Program (EAFP) For the information and guidance of all concerned, attached is a copy of Joint Circular No. 2012-1 from the Department of Budget and Management, Department of Finance, Social Security System, and Government Service Insurance System dated September 20, 2012 regarding the above-captioned subject. The Central and Regional Directors of this Bureau are hereby instructed to take note of the above and disseminate the contents to all Bureau Staff. Please be guided accordingly. TaCIDS (SGD.) ATTY. SALVADOR M. DEL CASTILLO OIC-Executive Director ATTACHMENT September 20, 2012 DBM-DOF-GSIS-SSS JOINT CIRCULAR NO. 001-12 FOR : Officials of the Government Service Insurance System, the Social Security System, Department of Finance, Department of Budget and Management and Others Concerned SUBJECT : Guidelines on the Release and Purpose of the National Government (NG) Counterpart Fund Allocated for the Government Service Insurance System Social Security System (GSIS-SSS) Educational Assistance Fund Program (EAFP) 1.0 Purpose 1.1 To provide the guidelines on the release and purpose of the NG counterpart fund allocated for the implementation of the GSIS-SSS EAFP. 1.2 To define the roles and responsibilities of the agencies concerned during program implementation. 2.0 Coverage This Joint Circular shall cover the release of the NG counterpart fund of P5.0 Billion in FY 2012 and any future appropriations that may be made available to institutionalize the implementation of the GSIS-SSS EAFP. 3.0 Rationale To grant affordable educational cash loans to the respective qualified members of the GSIS and SSS. 4.0 General Guidelines 4.1 The NG subsidy releases shall be used to augment the funds of the GSIS and SSS allocated for the GSIS-SSS EAFP. The total respective available funds shall be used for the grant of Educational Loans as follows: SCHATc 4.1.1 The GSIS shall extend a P4,000.00 loan amount at 6% interest payable over a 5-year period to all its active members. 4.1.2 The SSS educational assistance package shall be offered under the following terms: Particulars Per Term Total Interest Repayment Loanable Rate Period Amount * Degree P15,000 Accumulated NG-0% 5 years to start 18 months for Course semestral/ semestral courses, 15 months trimestral/ SSS-6% for trimestral courses or 14 quarterly months and 15 days for releases, as quarter term courses from the the case may scheduled last release date or be from the date of last release for those who will not avail of the subsequent releases. Technical/ P7,500 Accumulated 3 years to start 18 months for Vocational semestral/ NG-0% semestral courses or 15 months Course trimestral for trimestral courses from the releases SSS-6% scheduled last release date or as the case from the date of last release for may be those who will not avail of the subsequent releases. * The total loanable amount shall be funded on a 50-50 basis by the NG and SSS. Any future revision of the loan amount and the interest rates shall be subject to the approval of the Board of Trustees for the GSIS and the Social Security Commission for the SSS. 4.2 The initial grant of the EAFP shall be available from May to December 2012 for the GSIS, while in the case of SSS until the entire fund has been fully allocated. 4.3 Any succeeding NG funding requirements for the Program may be proposed for inclusion in the President's Budget for final consideration by the Congress of the Philippines. 4.3.1 As approved by the President on May 3, 2012, the total NG subsidy of P5.0 Billion (P1.5 Billion and P3.5 Billion for the GSIS and SSS, respectively) charged against Unprogrammed Fund under the FY 2012 General Appropriations Act shall be released for the Program. 5.0 Responsibilities 5.1 The Department of Budget and Management (DBM) shall: 5.1.1 Release the allocated amount in the form of subsidy to the GSIS and SSS, through the Bureau of Treasury (BTr), upon submission of a request, subject to cash programming, budgeting, accounting, auditing, and other applicable laws, rules and regulations. ITDSAE 5.1.2 Recommend the inclusion in the annual President's Budget subsequent requirements for the Program, when still necessary, based on budget proposals submitted by the GSIS and SSS subject to pertinent budget preparation guidelines. 5.2 The Department of Finance (DOF) shall: 5.2.1 Certify through the BTr that the revenue collections exceeded the original revenue targets submitted by the President of the Philippines to Congress pursuant to Section 22, Article VII of the Constitution. 5.3 The Government Service Insurance System and the Social Security System shall: 5.3.1 Issue their respective Implementing Rules and Regulations on the grant of loans to their members under this Program, duly approved by the GSIS Board of Trustees and Social Security Commission, respectively. 5.3.2 Submit a request to the DBM for the release of funds based on the status and projected requirements of the EAFP. 5.3.3 Propose for inclusion in the annual President's Budget any subsequent requirements, through the submission of a budget proposal in accordance with the annual budget call issued by the DBM. 5.3.4 Prepare the pertinent annual physical and financial reports showing the status of the fund, loan availment, income of the fund, beneficiaries, among others, for submission to the President, copy furnished the DBM and DOF. HIaAED 6.0 Governing Clause Issues arising from the implementation of this Joint Circular shall be resolved jointly by the DBM, DOF, GSIS and SSS. 7.0 Effectivity This Joint Circular shall take effect immediately. (SGD.) FLORENCIO B. ABAD Secretary Department of Budget and Management (SGD.) CESAR V. PURISIMA Secretary Department of Finance (SGD.) ROBERT G. VERGARA President and General Manager Government Service Insurance System (SGD.) EMILIO S. DE QUIROS, JR. President and Chief Executive Officer Social Security System Published in The Philippine Star on October 10, 2012.