Implementation Guidelines on Letter of Instructions No. 1102, and Other Related Matters in so far as Local Governments Under the Metropolitan Manila Commission are Concerned.

August 12, 1981

MMC FINANCE CIRCULAR NO. 10-81

 

1.0 Purpose

1.1 In compliance with Section 2 of Letter of Instructions No. 1102 issued January 13, 1981, and conformity with paragraph A-2 of GSIS Circular No. 200-81 dated February 6, 1981, this Circular prescribes the rules and regulations to be followed in implementing the aforesaid LOI as it relates to the advance quarterly remittance of government shares of the contributions/premiums due under the Revised GSIS Act of 1977 (PD 1146), Philippine Medicare Act (RA 6111) and Employees' Compensation Law (PD 626) and other requirements under said Letter of Instruction.

2.0 Implementing Guidelines

2.1 It shall be the responsibility of heads of local governments to enforce the implementation of LOI No. 1102 and GSIS Circular No. 200-81, in so far as they concern respective City/Municipality.

2.2 Heads of local governments shall remit quarterly in advance directly to the GSIS, the shares of the compulsory contributions/premiums under PD 1146, RA 6111 and PD 626.

2.3 City/Municipal Mayors and Treasurers are hereby directed to comply strictly with the provisions of the three cited laws as it is compulsory and/or mandatory on their part to remit the government shares of the contributions/premiums due to GSIS, in preference to the payment of other obligations, except salaries and wages of their employees Likewise, the personal shares of the compulsory contributions, shall, as usual be deducted from the salaries of employees and shall be remitted to the GSIS on or before the tenth (10th) day of the month following the month they were directed. To facilitate the prompt and timely remittance thereof and in order to meet the deadline set by the System, the compulsory personal shared of the employed must be deducted from their salaries pertaining to the first quinces of the month. This will give sufficient time for the accounting/disbursing/treasury personnel to take up, record and remit to GSIS all deductions pertaining to personal share contributions.

2.4 The attention of City/Municipal Mayors/Treasurers is invited to the fact that these compulsory personal shares of the employees are in the nature of trust funds, and should herefore be remitted promptly to the GSIS. Failure on the part of officials/employees of local government units concerned to remit on time the said amounts deducted from the employees, shall subject them to the penalties and surcharges that the GSIS may impose under existing laws and cannot be attributed to the insured members. In no case shall any employee who is issued an appointment and is a member of the GSIS be allowed in one time or another, to defer deduction of the compulsory personal shares authorized under the three cited laws. The payroll clerk or any official who allows the non-deduction of said compulsory contributions shall be made personally liable for the amount, in addition to other disciplinary section that my be taken against him for violation of the law.

2.5 All outstanding compulsory contributions payable under PD 1146 (Life and Retirement Insurance), RA 6111 (Medicare) and PD 626 (EC), as amended, including personal and government shares, as appearing in the City/Municipality's books of accounts as of July 31, 1981 (Cut-off date) property certified by the City/Municipal Treasurer and confirmed by the Auditor, must be remitted to the System as soon as possible but not later than one year after the cut-off date.

2.6 Starting with the fourth quarter of Calendar Year 1981, the amount of compulsory contributions (government shares) authorized under PD 1146 (Life and Retirement), RA 6111 (Medicare) and PD 626 (Employees Compensation), shall be remitted in advance, that is, on or before October 10, 1981, to the GSIS. The basis for this initial remittance shall be the Premium Master List (PML) as of July 31, 1981, which shall be prepared and submitted by the City/Municipal Treasurer in the case of governments and by the Chief of the Accounting Service, Finance Office, in the case of MMC. The Premium Master List shall contain the names of all employees, permanent and non-permanent who are compulsory members of the System and arranged in alphabetical order according to office/department within the local government or MMC as the case may be. (See Annex "A" for sample form).

Likewise, the personal shares of employees for the month of August, 1981 and every month thereafter shall be based on this Premium Remittance Advice (See Annex "B").

2.7 Subsequently, the payment for the first quarter of 1982 shall be remitted on or before January 10, 1982. It shall accompanied by a duly certified summary of the actual contributions (see Annex "C) for the three (3) months covering the preceding quarter. The difference between the remittance made in advance for the fourth quarter and the actual government shares due shall then be added or deducted as the case may be on the next quarter remittance. This procedure shall be observed every quarter thereafter.

3.0 For strict compliance.

MAURO G. CALAGUIOAssistant for Finance

APPROVED:

By Authority of the Governor:

ISMAEL A. MATHAY, JR.Vice-Mayor