RA 9679 IRR

7/17/2019 RA 9679 IRR

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IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9679

Or the

“Home Development Mutual Fund Law of 2009, otherwise known as Pa!"#"$%Patutulunan sa kina&ukasan' "kaw, #anko, "ndustri(a at $o&(erno) Fund*

RULE IPRELIMINARY PROVISIONS

Section 1. Tite. +hese ules shall &e referred to as the ules and eulations"mplementin epu&li- .-t /o 919 or the Home Development Mutual FundLaw of 2009, otherwise known as Pa!"#"$ %Patutulunan sa 3ina&ukasan'"kaw, #anko, "ndustri(a at $o&(erno) Fund*

Section !. Con"t#$ction. .n( dou&t in the interpretation of these ules shall&e resolved in favor of the mem&ers

RULE II

DECLARATION OF STATE POLICY AND STATEMENT OF T%E FUND&SOB'ECTIVES

Section 1. Dec(#(tion o) St(te Poic*. "t is the poli-( of the 4tate toesta&lish, develop, promote, and interate a nationwide sound and via&le ta5!e5empt mutual provident savins s(stem suita&le to the needs of theemplo(ed and other earnin roups, and to motivate them to &etter plan andprovide for their housin needs, &( mem&ership in the Home DevelopmentMutual Fund, with mandator( -ontri&utor( support of the emplo(ers in thespirit of so-ial 6usti-e and the pursuit of national development

Section !. St(te+ent o) F$n,&" O-ecti/e". "n eneral, the o&6e-tives of the Fund are'

a "mprove the 7ualit( of life of its mem&ers &( developin and promotin an

interated nationwide, sound, and via&le ta5!e5empt mutual provident savinss(stem suita&le to the needs of the emplo(ed and other earnin roups8

& "mprove the 7ualit( of life of its mem&ers &( promotin home ownershipthrouh the e5tension of aorda&le housin loans8

- 4timulate and assist the shelter industr( throuh the e5tensiondevelopmental and institutional :nan-in8

d "nvest the provident savins of its mem&ers takin into -onsideratpro:ta&ilit( and safet( of the funds as a means of providin them provid&ene:ts upon termination of their mem&ership in the Fund8

e Provide small and short term loans, other &ene:ts and assistan-e prorato its mem&ers, -onsistent with the Fund;s provident -hara-ter8 and

f Desin and implement other prorams that shall further promote amo&ili<e savins and provide additional resour-es for the mutual &ene:t ofmem&ers with appropriate returns on the savins and investments

RULE III

DEFINITION OF TERMS

Section 1. De0nition o) Te#+". For purposes of these ules and eulatiothe followin terms shall, unless the -onte5t indi-ates otherwise, have followin meanins'

(. Bene0ci(#ie". Person or persons who are entitled to re-eive the mem&e +.= arisin from the death of the mem&er who shall &e the heirs, as providfor under the >ivil >ode of the Philippines, of said mem&er

-. Bo(#,. +he dul( -onstituted #oard of +rustees of the Home DevelopmMutual Fund

c. Co+en"(tion. #asi- monthl( salar( plus mandated -ost of livallowan-e %>OL.) #asi- monthl( salar( shall refer to -ompensation servi-es in whatever form paid, in-ludin &ut not limited to fees, salarwaes, and similar items re-eived in a month "t shall mean the remunerator earnins, however desinated, -apa&le of &ein e5pressed in termsmone(, whether :5ed or as-ertained on a time, task, pie-e or -ommiss

&asis, or other method of -al-ulatin the same, whi-h is pa(a&le &( emplo(er to an emplo(ee or &( one person to another under a writtenunwritten -ontra-t of emplo(ment for work done or to &e done, or for servi-rendered or to &e rendered

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,. Cont#i-$tion". +he amount pa(a&le to the Fund &( the mem&ers and?ortheir emplo(ers, in a--ordan-e with . 919 and these ules

e. Di/i,en,". . -orporate pro:t set aside, de-lared and ordered &( the #oardof +rustees to &e paid to the mem&ers proportionatel( a--ordin to theirrespe-tive interests whi-h shall &e -redited to their +otal .--umulated =alue,pa(a&le out of the net in-ome of the pre-edin (ear

). E+o*ee. .n( person who performs servi-es for an emplo(er in whi-h

either or &oth mental and ph(si-al eorts are used and who re-eives an(-ompensation for su-h servi-e

3. E+o*e#. .n( person, natural or 6uridi-al, domesti- or forein, who -arrieson in the Philippines, or outside of the Philippines, an( trade, &usiness,industr(, undertakin or a-tivit( of an( kind, and uses the servi-es of anotherperson who is under his order as reards su-h servi-es8 the $overnment andan( of its national and lo-al o@-es, politi-al su&divisions, &ran-hes, aen-ies,or instrumentalities, in-ludin -orporations owned and?or -ontrolled &( theovernment

4. E+o*+ent. .n( servi-e performed &( an emplo(ee for his or heremplo(er within the Philippines

i. F$n,. +he Home Development Mutual Fund, otherwise known as Pa!"#"$%Patutulunan sa kina&ukasan' "kaw, #anko, "ndustri(a at $o&(erno) Fund,-reated under . 919, whi-h is a overnment :nan-ial institution involved inmo&ili<in provident funds primaril( for shelter :nan-e "t repla-es the HomeDevelopment Mutual Fund esta&lished under Presidential De-ree /o AB2

. GSIS. +he $overnment 4ervi-e "nsuran-e 4(stem -reated under>ommonwealth .-t /o AC1 as amended

5. n/e"ti-e F$n,". +he funds availa&le for investments after dedu-tin -ostof operations and e5penses, reserves for &ene:t -laims, provisions for asinkin fund for the return of the mem&ers; e7uit( upon maturit( and provisionfor reserve for loan repa(ments

. SSS. +he 4o-ial 4e-urit( 4(stem -reated under epu&li-.-t /o AA1A, asamended

+. Me+-e#. .n( person -overa&le under . 919, whether on a mandator voluntar( &asis, and pa(s the mandated -ontri&utions

n. Me+-e#Bo##oe#. . mem&er who has an outstandin a--ount under aof the Fund;s loan prorams

o. Me+-e#S(/e#. . mem&er who has no outstandin a--ount under an(the Fund;s loan prorams

. Me+-e#"4i Te#+. . period of twent( %20) (ears -ommen-in from :rst da( of the month to whi-h the mem&er;s initial -ontri&ution to the Fuapplies' Provided, that the mem&er shall have -ontri&uted a total of thundred fort( %20) monthl( -ontri&utions at the time of maturit(

8. Mont4*. +he period from the end of the last pa(roll period of the pre-edmonth to the end of the last pa(roll period of the -urrent month-ompensation is on hourl(, dail( or weekl( &asis8 if on an( other &a“monthl(* shall mean a period of one -alendar month,

#. Net F$n, A""et. +he total assets of the Fund less -urrent lia&ilities

". Net Inco+e. +he &alan-e of reali<ed or a--rued earnins for a iven per

after dedu-tin all -osts and e5penses, interests, ta5es, losses and -haresever( -hara-ter, in-ludin depre-iation and depletion for the period

t. Pe#+(nent Tot( Di"(-iit*. +he loss or impairment of a ph(si-al amental fun-tion resultin from in6ur( or si-kness whi-h -ompletin-apa-itates a mem&er to perform an( work or enae in an( &usinesso--upation as determined &( the Fund

$. Tot( Acc$+$(te, V($e TAV:. +he sum of the mem&er;s -ontri&utioand the emplo(er;s re7uired -ontri&utions, when appropriate, and -orrespondin dividends -redited thereto

RULE IV

ORGANI;ATION< ADMINISTRATION< PO=ERS AND FUNCTIONS OF T%%OME DEVELOPMENT MUTUAL FUND

Section 1. %o+e De/eo+ent M$t$( F$n,< ot4e#i"e 5non (" P(IBIG P(3t$t$$n3(n "( 5in(-$5("(n> I5(< B(n35o< In,$"t#i*(

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Go-*e#no: F$n,. +he Home Development Mutual Fund or the Pa!"#"$ Fund-reated under . 919 is a overnment :nan-ial institution involved inmo&ili<in provident funds primaril( for shelter :nan-e "t is a nationwide ta5!e5empt mutual provident savins s(stem for private and overnmentemplo(ees and other earnin roups, supported &( mat-hin mandator(-ontri&utions of their respe-tive emplo(ers in the spirit of so-ial 6usti-e and thepursuit of national development, with housin as the primar( investment

Section. !. P#o/i,ent C4(#(cte#. +he Fund shall &e private in -hara-ter,

owned wholl( &( the mem&ers, administered in trust and applied e5-lusivel(for their &ene:t .ll the personal and emplo(er -ontri&utions shall &e full(-redited to ea-h mem&er, a--ounted for individuall( and transfera&le in -aseof -hane of emplo(ment +he( shall earn dividends as provided for in theseules +he said amounts shall -onstitute the provident fund of ea-h mem&er,to &e paid to him or her, his or her estate or &ene:-iaries upon termination of mem&ership, or from whi-h peripheral &ene:ts for the mem&er ma( &e drawn

Section ?. Poe#" (n, F$nction" o) t4e F$n,. "n addition to the usual-orporate powers under e5istin laws, the Fund shall have the followinspe-i:- powers and fun-tions'

a +o formulate, adopt, amend and?or res-ind su-h rules and reulations asma( &e ne-essar( to -arr( out the provisions and purposes of . 919, as

well as the ee-tive e5er-ise of the powers and fun-tions, and the dis-hare of duties and responsi&ilities of the Fund, its o@-ers and emplo(ees8

& +o adopt or approve the annual and supplemental &udet of re-eipts ande5penditures in-ludin salaries and allowan-es of the Fund;s personnel8 toauthori<e su-h -apital and operatin e5penditures and dis&ursements of theFund as ma( &e ne-essar( and proper for the ee-tive manaement andoperation of the Fund8

- +o su&mit annuall( to the President of the Philippines not later than Mar-hAB, a report of its a-tivities and the state of the Fund durin the pre-edin(ear, in-ludin information and re-ommendations for the development andimprovement thereof8

d +o invest not less than sevent( per-ent %0E) of its investi&le funds tohousin, in a--ordan-e with . 9198

e +o a-7uire, utili<e, or dispose of, in an( manner re-oni<ed &( law, realpersonal properties to -arr( out the purposes of . 9198

f +o set up its own a--ountin and -omputer s(stems8 to -ondu-t -ontinua-tuarial and statisti-al studies and valuations to determine the :nanvia&ilit( of the Fund and its pro6e-ts8 to re7uire reports, -ompilations aanal(sis of statisti-al and e-onomi- data, as well as make su-h other studand surve(s as ma( &e needed for the proper administration and developmof the Fund8

+o have the power of su--ession8 to sue and &e sued8 and to adopt and ua -orporate seal8

h +o enter into and -arr( out -ontra-ts of ever( kind and des-ription with aperson, :rm or asso-iation or -orporation, domesti- or forein8

i +o &orrow funds from an( sour-e, private or overnment, forein or domes

6 +o invest, own or otherwise parti-ipate in e7uit( in an( esta&lishment, :rmentit(8 to form, orani<e, invest in or esta&lish and maintain a su&sidiar(su&sidiaries in relation to an( of its purposes8

k +o maintain a provident fund, whi-h shall -onsists of -ontri&utions made&oth the Fund and its o@-ers and emplo(ees and their earnins, for pa(ment of &ene:ts to su-h o@-ials and emplo(ees or their heirs under suterms and -onditions as it ma( pres-ri&e8

l +o desin and adopt an arl( etirement "n-entive Plan %"P) for its opersonnel8

m +o esta&lish :eld o@-es and to -ondu-t its &usiness and e5er-ise its powin these pla-es8

n +o approve restru-turin proposal for the pa(ment of due &ut unremitt-ontri&utions and unpaid loan amorti<ations under su-h terms and -onditioas the #oard of +rustees ma( pres-ri&e8

o +o determine, :5 and impose interest and penalties upon unp-ontri&utions due from emplo(ers and emplo(ees8

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p +o ensure the -olle-tion and re-over( of all inde&tedness, lia&ilities and?ora--ounta&ilities, in-ludin unpaid -ontri&utions in favor of the Fund arisinfrom an( -ause or sour-e or whatsoever, due from all o&liors, whether pu&li-or private8 to demand pa(ment of the o&liations referred to herein, and in theevent of failure or refusal of the o&lior or de&tor to -ompl( with the demand,to initiate or institute the ne-essar( or proper a-tions or suits, -riminal, -ivil,administrative, or otherwise, &efore the -ourts, tri&unals, -ommissions, &oardsor &odies of proper 6urisdi-tion' Provided, however, that the Fund ma(-ompromise or release, in whole or in part, an( interest, penalt( or -ivil lia&ilit(

to the Fund in -onne-tion with the -olle-tion of -ontri&utions and the lendinoperations of the Fund, under su-h terms and -onditions as pres-ri&ed &( the#oard of +rustees Provided, further, that the #oard ma(, uponre-ommendation of the >hief 5e-utive O@-er, deputi<e an( mem&er of theFund;s leal sta to a-t as spe-ial sheri in fore-losure -ases, in the sale oratta-hment of the de&tor;s properties, and in the enfor-ement of -ourt writsand pro-esses in -ases involvin the Fund +he spe-ial sheri of the Fund shallmake a report to the proper -ourt after an( a-tion taken &( him, whi-h shalltreat su-h a-tion as if it were an a-t of its own sheris in all respe-ts8

7 +o desin and implement other prorams that shall further promote andmo&ili<e savins and provide additional resour-es for the mutual &ene:t of themem&ers with appropriate returns on the savins?investments +he proramshall &e so desined as to spur so-io!e-onomi- take!o and maintain

-ontinued rowth8

r +o -ondu-t -ontinuin a-tuarial and statisti-al studies and valuations todetermine the :nan-ial -ondition of the Fund and takin into -onsiderationsu-h studies and valuations and the limitations herein provided, read6ust the&ene:ts, -ontri&utions, interest rates of the allo-ation or reallo-ation of thefunds to the -ontinen-ies -overed8 and

s +o e5er-ise su-h powers and perform su-h a-ts as ma( &e ne-essar(, useful,in-idental or au5iliar( to -arr( out the provisions of . 919

Section 2. Bo(#, o) T#$"tee". +he -orporate powers and fun-tions of theFund shall &e vested in and e5er-ised &( the #oard that shall &e -omposed of the followin'

a +he >hairperson of the Housin and Gr&an Development >oordinatin>oun-il, as the e5 o@-io >hairman 8

& +he 4e-retar( of the Department of Finan-e, as the e5 o@-io =>hairman

- +he 4e-retar( of the Department of La&or and mplo(ment, his?her dul( desinated underse-retar(, as e5 o@-io mem&er8

d +he 4e-retar( of the Department of #udet and Manaement, his?her dul( desinated underse-retar(, as e5 o@-io mem&er8

e +he 4e-retar( of the Department of +rade and "ndustr(, or his?dul( desinated underse-retar(, as e5 o@-io mem&er8

f +he >hief 5e-utive O@-er of the Fund8 and

Five %B) appointive mem&ers, two %2) representatives of private emplo(etwo %2) representatives of private emplo(ers and one %A) representativeovernment emplo(ees

+he four %) private se-tor representatives shall ea-h &e appointed &( President of the Philippines for a term of two %2) (ears Provided, however, tof the :rst to &e appointed, one %A) representative of the emplo(ers shall haa term of onl( one %A) (ear

+he representative of the overnment emplo(ees shall &e appointed &( President of the Philippines for a term of two %2) (ears

+he >hairman, =i-e >hairman and mem&ers of the #oard shall &e entitled treasona&le per diem for ea-h meetin a-tuall( attended and other allowanat su-h amounts as ma( &e :5ed &( the #oard, in a--ordan-e with e5istlaws, rules and reulations

Section @. Poe#" o) t4e Bo(#,. +he #oard shall have the followin powe

a +o formulate poli-ies, rules and reulations to -arr( out ee-tivel( fun-tions of the Fund under . 9198

& +o promulate su-h rules and reulations as ma( &e ne-essar( or properthe ee-tive e5er-ise of the powers and fun-tions, as well as the dis-harethe duties and responsi&ilities of the Fund, its o@-ers and emplo(ees8

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- +o authori<e e5penditures of the Fund in the interest of ee-tive administration and operations8 to adopt from time to timethe &udets for said purposes8

d +o approve the annual and supplemental &udet of re-eiptsand e5penditures in-ludin salaries and allowan-es of the Fund personnel8 toauthori<e su-h -apital and operatin e5penditures and dis&ursements as ma(&e ne-essar( and proper for the ee-tive manaement and operation of theFund8

e +o -ondone, in whole or in part, penalties imposed on loans of mem&ers and&orrowers who, for 6usti:a&le reasons pres-ri&ed &( the #oard, failed to pa( ontime an( o&liation due to the Fund8 Provided, that su-h e5-lusive power to-ondone shall likewise appl( to penalties imposed on emplo(ers, who 6usti:a&l( fail to remit when due the re7uired -ontri&utions of their emplo(ees8

f +o approve the Fund;s orani<ational and administrative stru-tures andsta@n pattern, and to esta&lish, :5, review, revise and ad6ust the appropriate-ompensation pa-kae for the o@-ers and emplo(ees of the Fund ina--ordan-e with 4e-tion C, ule "= hereof8

+o approve or -on:rm appointments of o@-ers and other personnel of theFund, as the -ase ma( &e8 and

h +o e5er-ise su-h powers as ma( &e ne-essar( to -arr( into ee-t the powersand a--omplish the purposes for whi-h the Fund is esta&lished

Section 6. R$eM(5in3 Poe#. +he #oard shall make and -hane needfulrules and reulations, whi-h shall &e pu&lished in a--ordan-e with law or atleast on-e in a newspaper of eneral -ir-ulation in the Philippines, to providefor, &ut not limited to, the followin matters'

a +he ee-tive administration, -ustod(, development, utili<ation anddisposition of the Fund or parts thereof, in-ludin pa(ment of amounts -reditedto mem&ers or to their &ene:-iaries or estates8

& $rounds for and ee-ts of termination of mem&ership other than &(-ompletion of term8

- Fund earnins and their distri&ution, investment and?or plowin &a-k for thee5-lusive &ene:t of the mem&ers8

d "nterim dis&ursements of a--umulated values to mem&ers of amelioratand similar purposes8

e #ene:ts, -ontri&utions in-ludin their rates, premium rates, and interrates8

f Housin and other loan assistan-e prorams to mem&ers8

.d6udi-ation and settlement of -laims and disputes and the pro-edures

the same on an( matters involvin the interests of mem&ers in the Fund8

h Optimi<e the ee-tiveness of the Fund;s -overae8

i 5tension of Fund -overae to other earnin roups, with or withemplo(er -ontri&utions, and waiver or suspension of -overae or enfor-ement &( reasons of nature of emplo(ment, -ondition of &usiness, a&ito make -ontri&utions and other reasona&le -onsiderations8 and

6 Other matters that, &( e5press or implied provisions of . 919, sre7uire implementation &( appropriate poli-ies, rules and reulations

Section 7. C4ie) Eec$ti/e Oce#. +he >hief 5e-utive O@-er of the Fu

shall &e appointed &( the President of the Philippines and shall e5e-ute aadminister the poli-ies and resolutions approved &( the #oard of +rusteprepare its aenda, and dire-t and supervise the operations and manaemof the Fund +he >hief 5e-utive O@-er, su&6e-t to the approval of the #oard-ase of approval of appointments to manaerial positions and a&ove, and t-on:rmation of the #oard in appointments to &elow that of manaer level, shappoint the personnel of the Fund, remove, suspend or otherwise dis-iplthem for -ause, and pres-ri&e their duties and 7uali:-ations, in a--ordanwith e5istin -ivil servi-e laws, rules and reulations, to the end that o-ompetent personnel ma( &e emplo(ed

Section . O#3(ni(tion( (n, (,+ini"t#(ti/e "t#$ct$#e" (n, "t((tte#n. +he orani<ational and administrative stru-tures and sta@n pattof the Fund shall &e as determined &( the #oard .ll positions in the Fund sh

&e overned &( a -ompensation and position -lassi:-ation s(stem a7uali:-ation standards approved &( the #oard &ased on a -omprehensive anal(sis, wae -ompensation stud( and audit of a-tual duties aresponsi&ilities8 Provided, that the -ompensation plan shall &e -ompara&le wprevailin -ompensation plans in the private se-tor and shall &e su&6e-t to

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periodi- review of the #oard no more than on-e ever( four %) (ears withoutpre6udi-e to (earl( merit reviews or in-reases &ased on produ-tivit( andpro:ta&ilit( +he Fund shall, therefore, &e e5empt from an( laws, rules andreulations on salaries and -ompensations

Section 9. A,+ini"t#(tion Co"t". +he Fund shall &ear the -osts of itsadministration and development, in su-h amounts and?or limits as the #oard of +rustees ma( deem appropriate, &ut not e5-eedin two %2E) per-ent of the /etFund .ssets of the previous (ear, e5-ludin operatin -ost dire-tl( relatin to

the lendin operations of the Fund

Section 1. A$,it. +he >hairman of the >ommission on .udit shall a-t as thee5!o@-io auditor of the Fund and, a--ordinl(, is empowered to appoint arepresentative and other su&ordinate personnel to perform and report on su-haudit duties, responsi&le to and remova&le onl( &( the >ommission on .udit>hairman, without pre6udi-e, however, to the power of the #oard of +rustees to-ontra-t for another mode of independent audit servi-e, in addition to thatprovided &( the >ommission on .udit as provided for under Presidential De-ree/o AB, otherwise known as the $overnment .uditin >ode of thePhilippines

Section 11. Ee+tion )#o+ T(< Le3( P#oce"" (n, Lien. .ll laws to the-ontrar( notwithstandin, the Fund and all its assets and properties, all

-ontri&utions -olle-ted and all a--ruals thereto and in-ome or investmentearnins there from, as well as all supplies, e7uipment, papers or do-umentsshall &e e5empt from an( ta5, assessment, fee, -hare, or -ustoms or importdut(8 and all &ene:t pa(ments made &( the Pa!"#"$ Fund shall likewise &ee5empt from all kinds of ta5es, fees or -hares, and shall not &e lia&le toatta-hments, arnishments, lev( or sei<ure &( or under an( leal or e7uita&lepro-ess whatsoever, either &efore or after re-eipt &( the person or personsentitled thereto, e5-ept to pa( an( de&t of the mem&er to the Fund /o ta5measure of whatever nature ena-ted shall appl( to the Fund, unless ite5pressl( revokes the de-lared poli-( of the 4tate in 4e-tion 2 of . 919rantin ta5 e5emption to the Fund .n( ta5 assessment aainst the Fund shall&e null and void

Section 1!. Mone* In/e"t+ent". .ll mone(s of the Fund not needed to

meet -urrent administrative and operational re7uirements, shall &e investedwith due and prudent reard for its safet(, rowth and li7uidit( needsProvided, that at least sevent( per-ent %0E) of the Fund;s investi&le fundsshall &e invested in housin, in a--ordan-e with . 919

Section 1?. Vi"ito#i( (n, En)o#ce+ent Poe#".

a +he Fund or its dul( authori<ed representative is empowered to inspe-t premises, &ooks of a--ounts and re-ords of an( person or entit( -overed . 9198 re7uire to su&mit its reports reularl(, and a-t on violations of aprovision of . 919

& Parti-ular aspe-ts of the Fund;s administration ma( &e su&6e-t supervision, visitation or veri:-ation &( appropriate aen-ies of

overnment as ma( &e desinated and authori<ed &( the President of tPhilippines

RULE V

FUND COVERAGE AND MEMBERS%IP

Section 1. M(n,(to#* Co/e#(3e (n, Me+-e#"4i E+o*ee". >overae under and mem&ership in the Fund shall &e mandatfor the followin'

a .ll emplo(ees who are -ompulsoril( -overed &( the 4448 Provided, that purposes of mandator( -overae in the Fund of persons who are -ompulso-overed &( the 444, the term emplo(ee shall &e understood the manner

whi-h the 444 de:nes it, and shall in-lude, &ut not limited to'

A . Private emplo(ee, whether permanent, temporar( or provisional, whonot over 10 (ears old

2 . household!helper earnin at least PA,000 a month . household!helpean( person who renders domesti- servi-es e5-lusivel( to a household su-hdriver, ardener, -ook, overness, and other similar o--upations

. Filipino seafarer upon the sinin of the standard -ontra-t of emplo(m&etween the seafarer and the mannin aen-( whi-h, toether with the foreshipowner, a-t as emplo(ers

. self!emplo(ed person, reardless of trade, &usiness or o--upation, within-ome of at least PA,000 a month and not over 10 (ears old +his in-ludes, not limited to8 self!emplo(ed professionals8 &usiness partners, sinproprietors and &oard dire-tors8 a-tors, a-tresses, dire-tors, s-riptwriters anews reporters who are not under an emplo(er!emplo(ee relationshprofessional athletes, -oa-hes, trainers and 6o-ke(s8 farmers and :sherfo

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and workers in the informal se-tor su-h as -iarette vendors, wat-h!(our!-ar&o(s, amon others Provided, that a self!emplo(ed person su&6e-t to-ompulsor( -overae &( the 444 shall &e treated &( the Fund as &othemplo(ee and emplo(er at the same time, and shall therefore &e re7uired topa( &oth the emplo(ee and the -orrespondin emplo(er -ontri&utions

Provided :nall(, that a-tual mem&ership in the 444 shall not &e a -onditionpre-edent for mandator( -overae in the Fund, it &ein su@-ient that theperson ouht to &e -overed -ompulsoril( &( the 444

& .ll emplo(ees who are su&6e-t to mandator( -overae &( the $4"4,reardless of their emplo(ment status

- Gniformed mem&ers of the .rmed For-es of the Philippines, the #ureau of Fire Prote-tion, the #ureau of Iail Manaement and Penolo(, and thePhilippine /ational Poli-e

d Filipinos emplo(ed &( forein!&ased emplo(ers >overae under the Fundshall &e mandator( for Filipinos emplo(ed &( forein!&ased emplo(ers whetherdeplo(ed here or a&road, or a -om&ination thereof, &ut whose respe-tiveemplo(ers are e5-lusivel( &ased outside of the Philippines +he emplo(ersshall not &e su&6e-t to mandator( -overae Provided, that if the emplo(ermaintains an o@-e or aent in the Philippines that ee-tivel( a-ts as an

emplo(er of the Filipino, then su-h o@-e or aent shall &e deemed anemplo(er su&6e-t of mandator( -overae under . 919

Section !. M(n,(to#* Co/e#(3e o) E+o*e#". >overae under the Fundshall &e mandator( for the followin'

a mplo(ers of emplo(ees -ompulsoril( -overed &( the 444 +hese shallin-lude private emplo(ers previousl( ranted waiver or suspension of -overaefor whatever reason under Presidential De-ree AB2, as amended Provided,that mannin aen-ies toether with the forein ship owners shall &e-onsidered 6ointl( and severall( as the emplo(ers of Filipino 4eafarersProvided :nall(, that a self!emplo(ed person su&6e-t to -ompulsor( -overae&( the 444 shall &e treated &( the Fund as &oth emplo(ee and emplo(er at thesame time

& mplo(ers of emplo(ees su&6e-t of mandator( -overae &( the $4"4

- +he .rmed For-es of the Philippines, the #ureau of Fire Prote-tion, t#ureau of Iail Manaement and Penolo(, and the Philippine /ational Poli-e

Section ?. Vo$nt(#* Co/e#(3e. Persons who are at least eihteen %(ears old &ut not more than si5t( :ve %1B) (ears old and are not su&6e-tmandator( -overae ma( &e -overed &( the Fund on a voluntar( &asis, su&6to su-h terms and -onditions stated in these ules or as the #oard mimpose, and shall in-lude, &ut not limited to, the followin'

a 4pouses who devote full time to manain the household and famil( aaunless the( also enae in another vo-ation or emplo(ment whi-h is su&6e-mandator( -overae

& Filipino emplo(ees of forein overnment or international orani<ation,their wholl(!owned instrumentalit( &ased in the Philippines, in the a&sen-ean administrative areement with the Fund

- mplo(ees of an emplo(er who is ranted a waiver or suspension-overae &( the Fund under . 919

d Leaders and mem&ers of reliious roups8

e . mem&er separated from emplo(ment, lo-al or a&road, or -eased toself!emplo(ed, &ut would like to -ontinue pa(in his or her perso-ontri&ution 4u-h mem&er ma( &e a pensioner, investor, or an( otindividual with passive in-ome or allowan-es

f Pu&li- o@-ials or emplo(ees who are not -overed &( the $4"4, su-h#arana( O@-ials, in-ludin #arana( >hairmen, #arana( >oun-il Mem&e>hairmen of 4anunian 3a&ataan, and #arana( 4e-retaries and +reasure

4u-h other earnin roups as ma( &e determined &( the #oard &( rules areulations

Provided, that an( forein overnment, international orani<ation or thwholl(!owned instrumentalit( emplo(in workers in the Philippines

emplo(in Filipinos outside of the Philippines, ma( enter into an areemwith the Fund for the in-lusion of their emplo(ees as mem&ers of the FuProvided, further, that the terms of su-h areement shall -onform with tprovisions of . 919 and these ules on -overae and amount of pa(m

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of -ontri&utions and &ene:ts8 Provided, :nall(, that the provisions of the said.-t shall &e supplementar( to an( su-h areement

Section 2. Eecti/e D(te o) M(n,(to#* (n, Vo$nt(#* Me+-e#"4i (n,Co/e#(3e. Mandator( -overae of the emplo(er shall take ee-t on the :rstda( of his &usiness operation, and that of the emplo(ee on the date of his orher emplo(ment' Provided, that for'

a mplo(ees and emplo(ers who are not su&6e-t of mandator( -overae prior

to . 919 and these ules, in-ludin the uniformed mem&ers of the .rmedFor-es of the Philippines, the #ureau of Fire Prote-tion, the #ureau of IailManaement and Penolo(, and the Philippine /ational Poli-e, and theirrespe-tive emplo(ers, as well as Filipinos emplo(ed &( forein &asedemplo(ers, mandator( -overae shall take ee-t on Ianuar( A, 20A0, unless adierent date is set &( the #oard &( resolution8

& mplo(ers whose -overae had &een previousl( suspended or waived forwhatever reason under PD AB2, their -overae as well as that of theiremplo(ees shall take ee-t after the e5piration of their respe-tive suspensionor waiver of -overae8

- =oluntar( mem&ers, -overae shall -ommen-e on the a-tual date of reistration

Provided, :nall(, that a-tual mem&ership in the Fund shall -ommen-e onl(upon remittan-e of the initial -ontri&ution and not at point of reistration

Section @. Re3i"t#(tion o) E+o*e#" .ll new emplo(ers shall :rst reisterwith the Fund prior to the start of their &usiness operations Provided, that allemplo(ers who are not su&6e-t of mandator( -overae prior to . 919 andthese ules, shall reister for -overae &efore Ianuar( A,20A0, unless adierent date is set &( the #oard &( resolution

Section 6. Re3i"t#(tion o) E+o*ee". "t shall &e the dut( of all emplo(ersto reister all their emplo(ees su&6e-t of mandator( -overae, &( su&mittin tothe Fund all data and information that it ma( re7uire in relation to the

emplo(ers; respe-tive &usinesses and emplo(ees, within thirt( %0) da(s fromthe start of their &usiness operations For newl( hired emplo(ees, the emplo(ershall reister them with the Fund within thirt( %0) da(s from the start of theiremplo(ment

Section 7. Re3i"t#(tion o) t4e Se)e+o*e,. +he self!emplo(ed who su&6e-t to -ompulsor( -overae shall reister with the Fund within thirt( %da(s from the date he or she started to &e self!emplo(ed Provided, that if tself!emplo(ed shall &e re7uired to o&tain the ne-essar( permits andli-enses, other than the li-ense re7uired for pra-ti-in a parti-ular professioprior to the pra-ti-e of his or her self!emplo(ment, he or she shall reister wthe Fund prior to enain in su-h

Section . Me+-e#"4i Te#+. Mem&ership in the Fund shall &e for a per

of twent( %20) (ears -ommen-in from the :rst da( of the month to whi-h mem&er;s initial -ontri&ution to the Fund applies8 Provided, that the memshall have -ontri&uted a total of two hundred fort( %20) monthl( -ontri&utioat the time of maturit(

Section 9. Te#+in(tion o) Me+-e#"4i. Mem&ership in the Fund shallterminated an(time upon the o--urren-e of an( of the followin, provided tthe mem&er;s :nan-ial o&liations with the Fund are :rst full( settled'

a Mem&ership +erm Maturit(8

& Death8

- etirement8

d Permanent +otal Disa&ilit( or "nsanit(8

e Permanent departure from the -ountr(8

f +ermination from the servi-e &( reason of health8

Other -auses as ma( &e provided for &( the #oard of +rustees

O--urren-es other than the a&ove, su-h as resination, la(!o or suspensfrom emplo(ment, shall not -onstitute a round for termination mem&ership 4u-h o--urren-es shall onl( result to suspension of -ontri&utio

Provided :nall(, that in the event the mem&er after mem&ership terminat-ontinues or su&se7uentl( pla-es him or herself in a situation whi-h wosu&6e-t him or herself to mandator( -overae, then the mem&er shall -ontinto &e mandatoril( -overed &( the Fund and his or her emplo(er is mandated

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-ontinue dedu-tin and remittin the emplo(ee;s re7uired -ontri&utiontoether with the -orrespondin emplo(er;s -ontri&ution pursuant to theseules

Section 1. Reti#e+ent. .n( mem&er shall &e -ompulsoril( retired under theFund upon rea-hin ae si5t(!:ve %1B) +he mem&er ma( however, opt toretire earlier under the Fund upon the o--urren-e of an( of the followinevents, provided the mem&er is not a mem&er!&orrower'

a .-tual retirement from the 444 or $4"4, or from overnment servi-e &(provision of law8

& etirement under a separate emplo(er provident or retirement planProvided, that the mem&er is at least fort(!:ve %B) (ears of ae at the time of retirement8

- Gpon rea-hin ae si5t( %10)

Provided :nall(, that in the event the mem&er opts to retire earlier from theFund for reasons stated under items & and - a&ove, and thereafter -ontinues orsu&se7uentl( pla-es him or herself in a situation whi-h would su&6e-t him orherself to mandator( -overae, then the mem&er shall -ontinue to &emandatoril( -overed &( the Fund and his or her emplo(er is mandated to-ontinue dedu-tin and remittin the emplo(ee;s re7uired -ontri&utiontoether with the -orrespondin emplo(er;s -ontri&ution pursuant to theseules

Section 11. Pe#+(nent Tot( Di"(-iit*. +he followin disa&ilities shall &edeemed total and permanent'

a +emporar( total disa&ilit( lastin -ontinuousl( for more than onehundred twent( %A20) da(s8

& >omplete loss of siht of &oth e(es8

- Loss of two lim&s at or over the ankle or wrist8

d Permanent -omplete paral(sis of two lim&s8

e #rain in6ur( resultin in in-ura&le im&e-ilit( or insanit(8 and

f 4u-h other -ases whi-h are ad6uded to &e total and permanent disa&ilit(a dul( li-ensed ph(si-ian and approved &( the #oard

Section 1!. Ei"tin3 Me+-e#"4i (n, Co/e#(3e. Mem&ership a-overae under the Fund esta&lished under Presidential De-ree /o AB2,amended, toether with the amounts and &ene:ts alread( a--rued to mem&ers, in-ludin emplo(er;s -ounterpart -ontri&utions, as well as -overre-ords and do-uments, shall &e transferred, -ontinued, and interated inthe new Fund esta&lished under . /o 919, and shall &e su&6e-t hen-efo

to poli-ies and rules that the #oard shall adopt under the said law .ll rivested, dut( imposed, penalt( a--rued, or pro-eedin -ommen-ed unPresidential De-ree /o AB2, as amended, parti-ularl( those under epu.-t /o 2, shall -ontinue to su&sist and shall &e enfor-ed under provisions of . 919 and these ules

RULE VI

CONTRIBUTIONS

Section 1. R(te o) Cont#i-$tion". >overed emplo(ees and emplo(ers sh-ontri&ute to the Fund &ased on the monthl( -ompensation of -oveemplo(ees as follows'

a mplo(ees earnin not more than One thousand :ve hundred pe%PA,B0000) per month J one per-ent %A E)

& mplo(ees earnin more than One thousand :ve hundred pesos %PA,B00per month !two per-ent %2E)

- .ll emplo(ers J two per-ent %2E) of the monthl( -ompensation of all -oveemplo(ees

+he ma5imum monthl( -ompensation to &e used in -omputin emplo(ee aemplo(er -ontri&utions shall not &e more than Five thousand pe%PB,00000)8 Provided, that this ma5imum and the -ontri&ution rates ma( :5ed from time to time &( the #oard throuh rules and reulations adoptedit, takin into -onsideration a-tuarial -al-ulations and rates of &ene:

Provided further, that the foreoin rates shall likewise &e the same for self!emplo(ed and voluntar( mem&ers

. mem&er ma(, however, &e allowed to -ontri&ute more than what is re7uiherein should he or she so desires +he emplo(er, however, shall onl(

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mandated to -ontri&ute what is re7uired under these ules unless theemplo(er arees to mat-h the mem&er;s in-reased -ontri&ution

/otwithstandin an( -ontra-t to the -ontrar(, an emplo(er shall not dedu-t,dire-tl( or indire-tl(, from the -ompensation of its emplo(ees -overed &( theFund, or otherwise re-over from them, the emplo(er;s -ontri&ution with respe-tto su-h emplo(ees

Section !. F$ti+e So$"e. Full!time spouses who volunteer to &e -overed

&( the Fund as provided for under these ules, shall adopt as a &asis of monthl( -ontri&utions one!half %K) of the monthl( -ompensation in-ome of theemplo(ed spouse +he full!time spouse shall not &e re7uired to pa( theemplo(er;s -ontri&ution

Section ?. Cont#i-$tion" o) Me+-e# it4 M$tie E+o*e#". "n -aseswhere a mem&er has two or more emplo(ers, su-h mem&er shall -ontri&utemonthl( to the Fund a per-entae of his or her monthl( -ompensation peremplo(er, whi-h shall &e mat-hed &( the latter in a--ordan-e with 4e-tion A of this ule

RULE VII

COLLECTION AND REMITTANCE

Section 1. E+o*e#&" Fi,$ci(#* O-i3(tion. +he emplo(er assumes a:du-iar( relationship with &oth the Fund and the mem&er -on-erned asreards the letter;s -ontri&ution and the re7uired emplo(er -ontri&ution, aswell as the remittan-e thereof to the Fund

+he emplo(er likewise assumes the same :du-iar( relationship with &oth theFund and the mem&er -on-erned as reards the -olle-tion and remittan-e of the latter;s loan amorti<ations or pa(ments to the Fund when the same ismade throuh salar( dedu-tions as provided in the su--eedin se-tions of thisule

Section !. Met4o, o) Coection (n, P(*+ent. Monthl( -ontri&utions of mem&ers to the Fund shall &e -olle-ted throuh pa(roll dedu-tions &( their

respe-tive emplo(ers, who for this purpose shall a-t as aent &oth of the Fundand the mem&er

"f a mem&er avails of an( loan from the Fund and the mem&er -onsents inwritin to amorti<e or pa( the same throuh salar( dedu-tions, the emplo(er

shall &e dut(!&ound to faithfull( implement the same and shall -ontinue to so until the loan is full( paid Gntil the loan is full( paid, the emplo(er shall ndis-ontinue the salar( dedu-tions without the prior written -onsent of Fund For this purpose, the emplo(er shall likewise a-t as aent &oth of tFund and the emplo(ee

"f a mem&er!&orrower who has previousl( -onsented to amorti<e or pa( loans throuh salar( dedu-tions resins or otherwise separates from servi-e of the emplo(er, the emplo(er shall &e &ound to inform the Fund

su-h resination or separation immediatel( upon noti-e thereof, &ut not lathan thirt( %0) da(s from the ee-tivit( of said resination or separation

ver( emplo(er shall issue -orrespondin re-eipts for all -ontri&utions or loamorti<ations or pa(ments dedu-ted from the emplo(ee;s -ompensationshall indi-ate su-h dedu-tions on the emplo(ee;s pa( slip

Section ?. Re+itt(nce o) Coection".

a .ll emplo(ers shall remit to the Fund their -ontri&utions and -ontri&utions of their -overed emplo(ees as well as the latter;s loamorti<ations or pa(ments to the Fund, as provided for under 4e-tion 2 of tule, when appli-a&le, within :fteen %AB) da(s from the date the same we-olle-ted unless another period is previousl( areed upon &etween

emplo(er and the Fund, or within su-h periods as the Fund ma( pres-rotherwise +he Fund ma( pres-ri&e a dierent remittan-e s-hedule for Filipiemplo(ed &( forein &ased emplo(ers dependin on the nature of th-ontra-ts or manner of their deplo(ment a&road

& ver( emplo(er re7uired to set aside and remit su-h -ontri&utions pres-ri&ed under . /o 919 and these ules shall &e lia&le for thpa(ment, and non!pa(ment thereof shall further su&6e-t the emplo(er tpenalt( of three per-ent %E) per month of the amounts pa(a&le from the dthe -ontri&utions fall due until paid ver( emplo(er who a-tuall( dedu-ts frthe salar( of his emplo(ee the latter;s loan amorti<ation or pa(ments to tFund, as provided for under these ules, shall &e lia&le for their pa(ment, anon!pa(ment thereof shall likewise further su&6e-t the emplo(er to a penalt(three per-ent %E) per month of the amounts pa(a&le from the date the lo

amorti<ations or pa(ments fall due until paid

- "t shall &e mandator( and -ompulsor( for all overnment instrumentalitaen-ies, in-ludin overnment!owned and -ontrolled -orporations, to prov

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the pa(ment of -ontri&utions in their annual appropriations Penal san-tionsshall &e imposed upon these emplo(ers who fail to in-lude the pa(ment of -ontri&utions on time, or dela( the remittan-e of the re7uired -ontri&utions tothe Fund +he heads of o@-es and aen-ies shall &e administrativel( lia&le fornon!remittan-e of the re7uired -ontri&utions to the Fund

d Failure or refusal of the emplo(er to pa( or to remit the -ontri&utions hereinpres-ri&ed shall not pre6udi-e the riht of the -overed emplo(ee to the &ene:tsunder this .-t

e /o retroa-tive pa(ment of -ontri&utions shall &e allowed, e5-ept forunremitted -olle-tions that are paid &( the emplo(er whi-h shall &e appliedretroa-tivel( upon presentation of proof that said -ontri&utions were previousl(-olle-ted or dedu-ted from the emplo(ee ithout pre6udi-e to the emplo(er;s-ivil, -riminal and administrative lia&ilities, the emplo(er shall likewise &e lia&lefor all the appli-a&le interests and penalties arisin from the late remittan-e of -ontri&utions and loan amorti<ations or pa(ments a-tuall( -olle-ted from themem&er, as well as the dividends whi-h the -ontri&utions should have earnedhave it &een remitted on time 4u-h interests and penalties, e5-ludin thepenalt( pres-ri&ed under 4e-tion & of ule ="", shall &e applied for thea--ount of the mem&er -on-erned and the dividends added to said mem&er;s +.= Provided, that if the emplo(er did not -olle-t from his emplo(ee durin theperiod of his delin7uen-(, &ut pa(s the mandator( emplo(er -ounterpart for

that period, the same shall not &e iven retroa-tive ee-t &ut shall &e treatedas a sinle -ontri&ution for the month in whi-h the pa(ment is made in favor of the -on-erned mem&er "n the same manner, when an emplo(ee opts to pa(the sum of his or her personal -ontri&utions durin the period of his or heremplo(er;s delin7uen-(, su-h pa(ment shall &e treated as a sinle-ontri&ution

f +he -ontri&utions under . 919 and these ules, in -ases where anemplo(er refuses or nele-ts to pa( the same, shall &e -olle-ted &( the Fund inthe same manner as ta5es are made -olle-ti&le under the /ational "nternalevenue >ode, as amended

+he riht to institute the ne-essar( a-tion aainst the emplo(er ma( &e-ommen-ed within twent( %20) (ears from the time delin7uen-( is known or

the assessment is made &( the Fund, or from the time the &ene:t a--rues, asthe -ase ma( &e

Section 2. Re+itt(nce o) Cont#i-$tion" -* Se)e+o*e, (n,Vo$nt(#* Me+-e#". 4elf!emplo(ed and voluntar( mem&ers ma( remit their

monthl( -ontri&utions on a monthl( or 7uarterl( &asis, provided that in tlatter -ase pa(ments shall &e remitted &efore the A0th da( of the &einnmonth of the su--eedin 7uarter Monthl( remittan-es shall &e made dire-to the Fund &efore the A0th da( of the followin -alendar month

Section @. Eect o) Le(/e =it4o$t P(* o# S$"en"ion )#E+o*+ent. "n the event a mem&er!saver oes on leave without pa( osu&6e-ted to dis-iplinar( a-tion where he is suspended from work, the mem&saver;s monthl( -ontri&ution toether with the -orrespondin emplo(e

monthl( -ontri&utions shall &e suspended for the duration of the leave withopa( or suspension from work Provided, that su-h mem&er!saver ma( opt-ontinue pa(in and remittin to the Fund dire-tl( his or her mont-ontri&utions toether with the emplo(er -ounterpart to &e shouldered &( hor her . mem&er!&orrower, on the other hand, shall -ontinue to pa( and redire-tl( to the Fund his or her monthl( -ontri&utions and loan amorti<ationspa(ments +he dut( of the emplo(er to dedu-t monthl( amorti<ationspa(ments for the mem&er!&orrower;s outstandin loan with the Fund provided for under 4e-tion 2 of this ule shall &e suspended for the durationthe leave without pa( or suspension from work Provided, that it shall &e tdut( of the emplo(er to inform the Fund of the mem&er;s leave without pa(suspension from work within thirt( %0) da(s from the :rst da( of su-h leavesuspension

Section 6. Eect o) Re"i3n(tion o# Se(#(tion )#o+ E+o*+ent. "n event a mem&er!saver resins or is otherwise separated from emplo(ment, mem&er!saver;s monthl( -ontri&ution toether with the -orrespondemplo(er;s monthl( -ontri&utions to the Fund shall -ease Provided, that sumem&er!saver ma( opt to -ontinue pa(in and remittin to the Fund dire-his or her monthl( -ontri&utions toether with the emplo(er -ounterpart to shouldered &( him or her . mem&er!&orrower, on the other hand, s-ontinue to pa( and remit dire-tl( to the Fund his or her monthl( -ontri&utioand loan amorti<ations or pa(ments +he dut( of the emplo(er to dedmonthl( amorti<ations or pa(ments for the mem&er!&orrower;s outstandloan with the Fund as provided for under 4e-tion 2 of this ule shall likew-ease Provided, that it shall &e the dut( of the emplo(er to inform the Fundsu-h resination or separation immediatel( upon noti-e thereof, &ut not lathan thirt( %0) da(s from the ee-tivit( of said resination or separation

RULE VIII

=AIVER OR SUSPENSION OF FUND COVERAGE

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Section 1. =(i/e# o# S$"en"ion o) Co/e#(3e. +he #oard ma(, &( rules orresolution, waive or suspend an emplo(er;s mandator( -overae under theFund &( reason of nature of emplo(ment, -ondition of &usiness, a&ilit( to make-ontri&utions and other reasona&le -onsiderations

Section !. Ei"tin3 =(i/e# o# S$"en"ion. .ll e5istin waivers orsuspension ranted previousl( for whatever reason under PD AB2, asamended, shall -ontinue to &e in full for-e and ee-t until its e5piration asstated in said waiver or suspension

RULE I

BENEFITS

Section 1. M(n,(to#* Cont#i-$to#* S$o#t o) t4e E+o*e#. "n thespirit of so-ial 6usti-e and the pursuit of national development, the mem&er;s-ontri&ution to the Fund shall &e with the mandator( -ontri&utor( support of the emplo(er as provided for under these ules or as ma( &e provided for &(the #oard /otwithstandin an( -ontra-t to the -ontrar(, an emplo(er shall notdedu-t, dire-tl( or indire-tl(, from the -ompensation of its emplo(ees -overed&( the Fund, or otherwise re-over from them, the emplo(er;s -ontri&ution withrespe-t to su-h emplo(ees

Section !. Act" o) t4e E+o*e# "4( not #e$,ice t4e +e+-e#. Failure

or refusal of the emplo(er to pa( or to remit the -ontri&utions hereinpres-ri&ed, or as ma( &e provided for &( the #oard, shall not pre6udi-e theriht of the -overed emplo(ee to the &ene:ts under . 919 and these ules

Section ?. Ee+tion )#o+ T(< Le3( P#oce"" (n, Lien. .ll laws to the-ontrar( notwithstandin, all -ontri&utions -olle-ted and all a--ruals theretoand in-ome or investment earnins therefrom, shall &e e5empt from an( ta5,assessment, fee, -hare, or -ustoms or import dut(8 and all &ene:t pa(mentsmade &( the Fund shall likewise &e e5empt from all kinds of ta5es, fees or-hares, and shall not &e lia&le to atta-hments, arnishments, lev( or sei<ure&( or under an( leal or e7uita&le pro-ess whatsoever, either &efore or afterre-eipt &( the person or persons entitled thereto, e5-ept to pa( an( de&t of themem&er to the Fund

Section 2. Di/i,en,"< +he #oard shall set aside annuall( an amount whi-h inno -ase shall &e less than sevent( per-ent %0E) of the annual net in-ome of the Fund, to &e paid in the form of dividends to mem&ers +he mem&er;s-ontri&utions, in-lusive of emplo(ee;s and emplo(er;s -ontri&utions, shall earn

dividends whi-h shall &e distri&uted annuall( and -redited to his or her +.Onl( mem&ers with outstandin +.= as of (ear!end shall &e entitleddividends de-lared for that parti-ular (ear .ll dividend earnins shall &e tfree

Section @. Ret$#n o) Cont#i-$tion". . mem&er shall &e entitled to re-ehis +otal .--umulated =alue upon termination of mem&ership in a--ordanwith 4e-tion 9 of ule = of these ules, less an( and all pendin o&liatiowith the Fund "n the event of death, the mem&er;s heirs shall likewise re-e

the same less an( and ail pendin o&liations with the Fund

Section 6. %o$"in3 Fe(t$#e". . mem&er of ood standin shall &e eliito appl( for housin loans, under su-h terms and -onditions as ma( authori<ed &( the #oard, takin into a--ount a&ilit( to pa( +he #oard +rustees shall institute poli-ies to ensure that lower!in-ome mem&ers o&tsu-h housin loans

Section 7. Bene0t P#o3#(+". . mem&er ma( avail of the Fund;s varioshort term loans and other &ene:t prorams, provided that he or she satis:the elii&ilit( re7uirements set &( the #oard

Section . Po#t(-iit* o) Me+-e#"4i. . mem&er who transfers to anotemplo(er or who &e-omes self!emplo(ed -arries with him his +o

.--umulated =alue

Section 9. Otion( =it4,#(( o) Cont#i-$tion". +hose who &e-omem&ers of the Fund after the ee-tivit( of . 919 shall have the optionwithdraw his or her +otal .--umulated =alue on the :fteenth %ABth) (ear-ontinuous mem&ership Provided, that said mem&er has no outstandhousin loan with the Fund at the time of withdrawal

+he e5er-ise of this option &( the mem&er shall not &e -onsidered as a routo terminate his mem&ership with the Fund +he mem&er shall -ontinue to mandatoril( -overed &( the Fund and his or her emplo(er is mandated-ontinue dedu-tin and remittin the emplo(ee;s re7uired -ontri&uttoether with the -orrespondin emplo(er;s -ontri&ution pursuant to thules

Section 1. De(t4 Bene0t". Gpon the death of a mem&er, his or &ene:-iaries shall &e entitled to death &ene:ts in an amount to &e determin

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&( the #oard in addition to the +otal .--umulated =alue as mentioned providedfor under in 4e-tion B hereof

Section 11. Go/e#n+ent G$(#(ntee. +he &ene:ts pres-ri&ed under .919 shall not &e diminished and to uarantee said &ene:ts the $overnmentof the epu&li- of the Philippines a--epts eneral responsi&ilit( for thesolven-( of the Fund

Section 1!. P(3IBIG Cont#i-$tion" (#e Ec$,e, )#o+ t4e

Co+$t(tion o) t4e G#o"" Inco+e. Pursuant to 4e-tion 2 %#) %) %f) of the/ational "nternal evenue >ode of A99, as amended, Pa!"#"$ >ontri&utionsare e5-luded from the -omputation of the ross in-ome and shall &e e5emptfrom ta5ation

RULE

AD'UDICATION OF CLAIMS AND DISPUTES

Section 1. F(ciit* o) P(*+ent o) C(i+" (n, Bene0t". +he Fund shallpromptl( pa( the &ene:ts provided for in ule " hereof to the mem&er or tosu-h persons as ma( &e entitled thereto in a--ordan-e with the provisions of said ule provided that the ne-essar( supportin do-uments are su&mittedtoether with the appli-ation for provident -laims "n relation thereto, the >hief 5e-utive O@-er shall issue the ne-essar( rules and pro-edures to fa-ilitate

the pro-essin and pa(ment of the said &ene:ts and -laims

Section !. A,$,ic(tion (n, Sette+ent o) C(i+" (n, Di"$te".

+he Fund shall have oriinal and e5-lusive 6urisdi-tion overall -laims anddisputes on an( matter relative to the implementation of the provisions of .919 and these ules ae-tin the rihts and interest of the mem&ers +hede-ision of the >hief 5e-utive O@-er of the Fund shall &e :nal and e5e-utor(,unless appealed to the #oard, after the lapse of thirt( %0) da(s f rom re-eipt &(the arieved part( of su-h de-ision +he de-ision of the #oard shall, unlessappealed to a -ompetent -ourt, &e-ome :nal and e5e-utor( after :fteen %AB)da(s from re-eipt of su-h de-ision

+he >hief 5e-utive O@-er shall pres-ri&e the forms to &e used and thepro-edures to &e followed in the ad6udi-ation and settlement of theaforementioned -laims and disputes

Section ?. P#oo) o) De(t4 o) ( Me+-e#. +he proof of death of a memshall &e esta&lished &( a dul( -erti:ed death -erti:-ate or a -erti:ed e5trfrom the Death eister issued &( the >ivil eistrar or /ational 4tatisO@-e %/4O) or &( su-h other o@-er authori<ed to issue su-h e5tra-ts +Fund ma( likewise a--ept as additional proof su-h other do-uments as it min its dis-retion, deem a--epta&le

RULE I

MISCELLANEOUS PROVISIONS

Section 1. Unc(i+e, S(/in3"HDi/i,en,". .n( amount standin to -redit of an( mem&er for a period of one (ear after termination of mem&ersshall &e rearded as un-laimed savins and shall &e re-lassi:ed as an a--opa(a&le to the former mem&er &( the Fund "f an( su-h amount standin to t-redit of su-h person remains un-laimed for a period of more than ten %A(ears, the same shall &e reverted to the Fund;s retained earnins

Section !. E+o*+ent Reco#," (n, Reo#t".

a a-h emplo(er shall immediatel( report to the Fund the names, aes, -status, o--upations, salaries, and dependents of its -overed emplo(ees witsu-h periods as provided under these ules or as ma( &e pres-ri&ed &( tFund

& ver( emplo(er shall keep true and a--urate work re-ords for su-h perand -ontainin su-h information as the Fund ma( pres-ri&e, in addition to annual reister of new and separated emplo(ees whi-h shall &e se-ured frothe Fund, when the emplo(ee shall enter on the :rst da( of emplo(ment or the ee-tive date of separation, the names of the persons emplo(edseparated from emplo(ment and su-h other data that the Fund ma( re7uand said annual reister shall &e su&mitted to the Fund in the month of Ianuof ea-h (ear 4u-h re-ord shall &e open for inspe-tion &( the Fund or authori<ed representatives 7uarterl( or as often as the Fund ma( re7uire

RULE II

GENERAL PROVISIONS

Section 1. Pen(t* C($"e. Pursuant to 4e-tion 2B of . 919, refusafailure without lawful -ause or with fraudulent intent to -ompl( with provisions of said law and these ules, parti-ularl( with respe-t to reistratof emplo(ees, -olle-tion and remittan-e of emplo(ee!savins as well as

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re7uired emplo(er -ontri&utions, or the -orre-t amount due, within the timeset under these ules or the poli-ies and uidelines adopted &( the #oard, orspe-i:- -all or e5tension made &( the Fund Manaement, shall -onstitute anoense punisha&le &( a :ne of not less than, &ut not more than twi-e, theamount involved or imprisonment of not more than si5 %1) (ears, or &oth su-h:ne and imprisonment, in the dis-retion of the >ourt, apart from the -ivillia&ilities and?or o&liations of the oender or delin7uent

hen the oender is a -orporation, the penalt( shall &e imposed upon themem&ers of the overnin &oard and the President or $eneral Manaer,without pre6udi-e to the prose-ution of related oenses under the evisedPenal >ode and other laws, revo-ation and denial of operatin rihts andprivilees in the Philippines, and deportation when the oender is a foreiner

"n -ase of overnment instrumentalities, aen-ies or -orporations, thetreasurer, :nan-e o@-er, -ashier, dis&ursin o@-er, &udet o@-er or othero@-ial or emplo(ee who fails to in-lude in the annual &udet the amount-orrespondin to the emplo(ers; -ontri&utions, or who fails or refuses or dela(s&( more than thirt( %0) da(s from the time su-h amount &e-omes due anddemanda&le or to dedu-t the monthl( -ontri&utions of the emplo(ee shall,

upon -onvi-tion &( :nal 6udment, suer the penalties of imprisonment of nmore that si5 %1) (ears, and a :ne of not less than, &ut not more than twi-e amount involved

Section !. Se(#(-iit* C($"e. "f, for an( reason, an( provision of theules, or the appli-ation thereof to an( person or -ir-umstan-es, is held invaor un-onstitutional, the remainin provisions not ae-ted there&( s-ontinue to &e in full for-e and ee-t

Section ?. Ree(in3 C($"e. .ll rules and reulations, poli-ies, orders aissuan-es -ontrar( to or in-onsistent with these ules are here&( repealedmodi:ed a--ordinl( .ll rihts vested, dut( imposed, penalt( a--rued,pro-eedin -ommen-ed under Presidential De-ree /o AB2, as amendparti-ularl( those under epu&li- .-t /o 2, shall -ontinue to su&sist ashall &e enfor-ed under the provisions of . 919 and these ules

Section 2. Eecti/e*. +hese ules shall take ee-t :fteen %AB) da(s afthe pu&li-ation thereof in two %2) newspapers of eneral -ir-ulation

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