Treasury to handle payroll of all government agencies

The Bureau of the Treasury will gradually take over the payroll of all government agencies in a bid to address existing inefficiencies such as failure of some entities to remit pension-fund contributions of state workers.

National Treasurer Roberto Tan said concerned economic officials have agreed to transfer the payroll systems of all line agencies under the Treasury over a three- to five-year period.

Tan said the assumption by the Treasury of the payroll of government agencies was part of the reform road map being established by the economic team.

“Centralization will be a more efficient way of doing the payroll,” Tan told reporters in a briefing after the auctions for treasury bills on Monday.

When asked if the plan had to do with problems related to remittance of pension-fund contributions, Tan said transferring the payroll under the Treasury’s management would address these problems.

Last week, the Government Service Insurance System (GSIS) said 25,454 of its members were temporarily ineligible to avail themselves of loans and cash dividends because their contributions to the state pension fund had not been remitted by their government agency-employers.

These agencies, totaling 287, have been suspended by the GSIS.

The pension fund manager said a government agency would be suspended if it failed to remit contributions at least 60 days from due dates.

The GSIS said the 287 agencies have been suspended after they failed to respond to the pension fund manager’s reminders of their need to remit contributions.

“Suspended agencies can enter into a memorandum of agreement with the GSIS to settle their outstanding obligations. Once this is done, the suspension will be lifted and their employees can avail themselves of GSIS service loans,” GSIS president and general manager Robert Vergara said.

Vergara noted, however, that agencies under a memorandum of agreement with GSIS would be suspended again if the required amortization is not received by the GSIS within one month.

Vergara said the GSIS, despite its move to suspend the government agencies, continued to reach out to affected employees to regain their benefits.

The pension fund manager also said that heads of delinquent government agencies could face administrative charges for the delays in the remittance of contributions.—Michelle V. Remo