Not a member yet? Register now and get started.

lock and key

Sign in to your account.

Account Login

Forgot your password?

COA to report public offices that fail to remit GSIS premium, loan payments
COA to report public offices that  fail to remit GSIS premium, loan payments

Date Posted: August 24, 2017
The Commission on Audit (COA) heeded the request of the Government Service Insurance System (GSIS) to audit the compliance of all public agencies with the law mandating the remittance not only of GSIS contributions but also of loan repayments of government workers to the state pension fund.

COA Chairperson Michael G. Aguinaldo directed all COA auditors under Memorandum No. 2017-15 dated August 8, 2017, to report delinquent agencies who are remiss in paying premium and loan amortization and those who fail to remit on time, citing Section 6 of Republic Act 8291. All these, he said, will be included in COA’s annual audit report so that “penal sanctions may be imposed upon the responsible officials and employees” who violated the law.

The COA chief issued the order after GSIS Chairman Francisco Duque III and Officer-in-Charge Nora Malubay-Saludares sought COA’s help in the pension fund’s premium and loan payment collection efforts. The GSIS officials appealed to COA to check agencies’ compliance in paying the required GSIS premiums, Employees’ Compensation (EC) contributions, and amortizations for various GSIS loans on time.

“We laud COA in assisting us to address the nonpayment of premiums and loans which has been a long-standing concern of GSIS because it compromises the benefits of GSIS members. Loan balances, If left unpaid, will balloon to unmanageable amounts that will significantly reduce the benefits of members and leave them in precarious situations when they retire or separate from government,” Chairman Duque stressed. He also said that GSIS has to boost its collection efficiency to strengthen its capabilities to fund the future benefits of its members and pensioners.

In a related development, Department of Education (DepEd) Secretary Leonor M. Briones also responded to GSIS’s request to prioritize the payment of GSIS premium and loan payments over all other private lenders. Sec. Briones issued DepEd Order No. 38 series of 2017, reiterating the prioritization of GSIS premium and obligations as first preference in employees’ salary deductions. She also directed agency authorized officers to ensure that the Php4,000 net take home pay under the General Appropriations Act is observed after GSIS loan amortizations are deducted; warrant the prompt payment of premiums and loans; and educate DepEd employees on the consequences of late or non-payment of loans.

“We welcome the quick and responsive action of Sec. Briones because we do not want the payment of GSIS loan to take a back seat now and allow members to suffer later after penalties and surcharges have swelled to an unmanageable level,” Chairman Duque exclaims.

“We are confident that the impact of this synergy among GSIS, COA and DepEd will redound to a brighter future for GSIS and its members,” he beams.

COA Memo No. 2017-015
Amendment to expand the coverage of COA Memo No. 2016-007 mandating the audit of the deduction made for GSIS premiums from salaries of all government employees and the remittance thereof to the GSIS in accordance with RA No. 8291, to include the audit of the deduction for the payment of GSIS monthly salary and other loan amortizations

DepEd Order No. 38 s. 2017
Further clarifications to DepEd Order Nos. 12 and 27, s. 2017
(Implementation of P4,000.00 net take home pay for DepEd personnel)