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Commission On Audit Memorandum No 2001-003

The Commission on Audit (COA) is revoking COA Memorandum No. 2000-063 regarding pension plans for barangay officials provided by private insurance companies. Several previous COA decisions and opinions from 1997 to 2000 upholding the validity of insurance coverage for barangay officials will remain in effect. These allow barangay officials to be covered by private insurance plans if approved by the local sanggunian and governed by Section 522 of the Local Government Code. The coverage can only be for the duration of the officials' terms in office, and barangay funds cannot be used to pay premiums after their terms end.

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419 views1 page

Commission On Audit Memorandum No 2001-003

The Commission on Audit (COA) is revoking COA Memorandum No. 2000-063 regarding pension plans for barangay officials provided by private insurance companies. Several previous COA decisions and opinions from 1997 to 2000 upholding the validity of insurance coverage for barangay officials will remain in effect. These allow barangay officials to be covered by private insurance plans if approved by the local sanggunian and governed by Section 522 of the Local Government Code. The coverage can only be for the duration of the officials' terms in office, and barangay funds cannot be used to pay premiums after their terms end.

Uploaded by

Jackophili
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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COMMISSIONONAUDITMEMORANDUMNO.

2001003
January31,2001
TO : Directors,LocalGovernmentAuditOfficeandCOARegional Offices,Provincial,CityandMunicipalAuditorsandAllOthers Concerned

SUBJECT: RevokingCOAMemorandumNo.2000063datedMay25,2000
InordertoclarifyandmaintainthepositionoftheCommissiononthematterofprocurementofpensionandother insuranceplansforbarangayofficials,COAMemorandumNo.200063issuedonMay25,2000coveringthe subjectofpensionplansforbarangayofficialsprovidedbyprivateinsurancecompanies,isherebyrevoked.COA DecisionNo.98457datedDecember3,1998,LegalOfficeMemorandadatedNovember12,1999and September2,1999,COAOpinionNo.2000001datedJanuary3,2000,andCOAOpinionNo.97002,dated January15,1997,allofwhichupheldthevalidityofinsurancecoverageofbarangayofficials,remaintheofficial pronouncementofthisCommissiononthematter. Insummary,thefollowingarethegistoftheabovedecision/opinions: COADecisionNo.98457andOpinionNo.97002 Whatthelawrequiresinrespecttothepossibleinsurancecoveragewithaprivateinsurancecompanyisto subjectthesametoaresolutiondulypassedandapprovedbythesanggunianconcernedshouldfinancesofthe municipal/citygovernmentallowsaidcoverage,providedthatsuchinsurancecoverageshallbegovernedbythe provisionofSection522,R.A.7160. LegalOfficeMemorandadatedNovember12,1999andSeptember2,1999 NotwithstandingtheopinionadvancedbytheGSISGeneralCounsel,thisOfficeaffirmstheviewthatpension planbenefitscanbeextendedtobarangayofficials.AcarefulreadingoftheContecaseshowsthatthe prohibitionrefersonlytogovernmentofficersandemployeeswhoarequalifiedforretirementinsurancecoverage bytheGSIS.Thelimitedtermofofficeofbarangayofficialswouldnotqualifythemforpensionorretirement benefitswhichispreciselywhyRA6942limitedthebenefitsavailabletothemtoonlyfourdeath,burial, accidentanddisabilitybenefits. Furthermore,theGSISLawisthegenerallawwithrespecttoinsuranceofpublicofficers,whereasSections447 and458oftheLocalGovernmentCodearethespecialprovisionsgoverninglocalofficials,andtheruleincaseof conflictisthatspeciallawprevailsovergenerallaw.Thefact,however,isthatthereisnoconflictbetweenthe twostatutesfortheycanbeperfectlyharmonizedsincetheLocalGovernmentCodecanbeviewedasfillingthe vacuumintheGSISLawasregardspensionorretirementlawsoflocalelectiveofficials. COAOpinion2000001 Paymentbythegovernmentforsuchinsurancecoverageshallonlybeforthedurationofthebarangayofficers termofoffice.Shouldsaidbarangayofficialsormemberswouldstillwanttocontinueavailmentofthebenefit evenaftertheirtermsofoffice,premiumspaymentsthereforshouldalreadycomefromtheirpersonalfunds. Thus,permanentinsurancecoveragewherethebarangaywillshoulderpaymentofthepremiumsaftertheirterm ofofficewillnotbefeasible. Forinformationandguidanceinaudit.

(Sgd.)CELSOD.GAGAN Chairman

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