Section 23Sec./Art. 23

Remittance of Contributions.

(a) It shall be the duty of every employer, private or public, to set aside and remit the contributions required under this Act in accordance with a mechanism determined by the Board of Trustees.

(b) Every employer required to set aside and remit such contributions as prescribed under this Act shall he liable for their payment, and nonpayment shall further subject the employer to a penalty of three percent (3%) per month of the amounts payable from the date the contributions fall due until paid.

(c) It shall be mandatory and compulsory for all government instrumentalities, agencies, including government-owned and -controlled corporations, to provide the payment of contributions in their annual appropriations. Penal sanctions shall be imposed upon these employers who fail to include the payment of contributions on time, or delay the remittance of the required contributions to the Fund. The heads of offices and agencies shall be administratively liable for non-remittance of the required contributions to the Fund.

(d) Failure or refusal of the employer to pay or to remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits under this Act.

(e) The contributions under this Act, in cases where an employer refuses or neglects to pay the same, shall be collected by the Fund in the same manner as taxes are made collectible under the National Internal Revenue Code, as amended.

The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time delinquency is known or the assessment is made by the Fund, or from the time the benefit accrues, as the case may be.