FINANCIAL OBLIGATION PROBLEM. Education Secretary Leonor Briones describes the urgent requirement for instructors to settle their debts from the GSIS and Pag-IBIG Fund. Screenshot by Rappler MANILA, Philippines– Education Secretary Leonor Briones said the flak they have been getting over the deductions in instructors’ salaries to settle loans are” misplaced.” Briones defended the Department of Education’s recent orders prioritizing reductions in instructors’ wages for the payment of loans from the Federal government Service Insurance Coverage System (GSIS) and Home Development Mutual Fund (Pag-IBIG Fund) in a Rappler Talk interview on Thursday, November 16.
“I think they are lost, due to the fact that as I said, who has been benefitting? Who are the significant players, ‘yon talaga (those) who have been negotiating? By the time that we get the notification to subtract, the cash has most likely been invested. Sila-sila ang nag-uusap (They are the ones talking with each other),” said Briones.
By significant players, the Cabinet authorities was describing the teachers with loans, GSIS, Pag-IBIG Fund, and private loan provider (PLIs).
“Pero (However) the one who has benefitted least and is servicing the instructors is the one most blamed. And media is fed with this sort of info. And it’s surprising since teachers are believing people. PLIs are believing individuals. GSIS are believing individuals,” stated Briones.
In October, several instructors from the National Capital Area and Calabarzon had actually gotten wages listed below the mandated net earnings worth P4,000 after Briones signed DepEd Order No 38, series of 2017 in July, which gave the go-signal for GSIS and Pag-IBIG Fund loan payments to be subtracted from teachers’ incomes.
Why sign the orders? Briones stated teachers now owe P123 billion worth of loans to the GSIS, which prevously threatened to take legal action against DepEd and the instructors if the financial obligation remains overdue.
Educators also owe private lending organizations around P178 billion as of December 2016.
‘Think reasonably’ about loans
Briones described the payroll system for teachers was developed in such a method that when reductions for the month would decrease the instructor’s wage below P4,000, the reductions would be pushed back to another pay day instead.
This becomes a significant concern when the teacher has currently overborrowed, because his or her pending deductions will just increase over time without getting paid.
“For a number of years now, GSIS has actually been rubbed out. Now, GSIS did not raise this issue with us because after all, at the end of the day, when a teacher overborrows and does not pay, when he or she retires, they will immediately subtract all the built up financial obligations at compounded interest,” said Briones.DepEd chose to step in because due to unpaid GSIS loans that needed to be paid off, some 26,000 teachers did not get retirement benefits in 2016. Briones added there is an”increasing number”
of instructors who are losing their licenses since they are accused of estafa before the Specialist Guideline Commission. Others are dealing with administrative cases submitted by PLIs.”Now, my argument is, in this very touching drama, tearjerking drama, with media can be found in, then maybe let us pause to believe this thing through reasonably,”said Briones.She worried the requirement for instructors to be smarter in their finances and mulled
making monetary literacy workshops compulsory for teachers.Briones also issued a circular advising to teachers to straight pay PLIs over the counter to avoid more deductions from their incomes.– Rappler.com DepEd Secretary Leonor Briones says they had to action in and make certain instructors ‘loans from GSIS are being paid, due to the fact that 26,000 instructors
did not receive retirement advantages in 2016 due to unsettled financial obligations