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    Ra9679 PDF

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    IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9679 Orthe “Home Development Mutual Fund Law of 2009, otherwise known as Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund” HOME DEVELOPMENT MUTUAL FUND RULE! PRELIMINARY PROVISIONS, Section 1. Title. These Rules shall be refered to asthe Rules and Regulations Implementing Republic Act No. 9879 or the Home Development Mutual Fund Law of 2009, otherwise known as Pag- 'BIG (Pagtutulungan sa Kinabukasan: aw, Bangko, Industiya at Gobyerno) Fund’ Section 2. Construction. Any doubt inthe interpretation of these ules shallbaresolvedin favor of tie members. RULE I DECLARATION OF STATE POLICY AND STATEMENT OF THE FUND'S OBJECTIVES Section 1. Declaration of State Policy tise policy ofthe Stateto establish, develop, promate, and integrate a nationwide sound ang viable tax-exempt mutual provident savings system suitable tothe needs of the employed and other earning groups, and to motivate them to better plan and provide for thelr housing needs, by membership in the Home Development Mutual Fund, wath ‘mandatory contributory support of the employers in the spirit of secialjustice and the pursuitof national development Section 2. Statement of Func’s Objectives. In general, the objectives ofthe Fund are: almprove the quality of Ife of ts members by developing and ‘promoting an intograted nationwide, sound, and viable tax-oxempt ‘mutual provident savings system sulable to the needs of the ‘employed and other earning groups: improve the qually of life of is members by promoting home ‘ouership through the extension o affordable housing loans: « Slimutato and assist the shelter industry through the extension of developmental andinsituional rancing Giinvest the provident savings of its members. taking into ‘consideration profitability and safety of the funds as a means of providing them provident benefts upon termination of their ‘membarship inthe Func: ‘Provide small and shot term loans, alher benefis and assistance programs to iis members, consistent with the Fund's provident Character; and £. Design and implement other programs that shall futher promote and mobilize savings and provide additional resources for the ‘mutual benefit of iis members with appropriate retums on the ‘savingsand investments. RULE I DEFINITION OF TERMS Section 1. Definition of Terms. For purposes ofthese Rules and Regulations, the following terms shall, unless the context indicates these, have the folowing meanings: ‘Beneficiaries. Person or persons who are entitied to receive the ‘member's TAV arising from the deat of the member who shall be the heirs, 2s provided or under the CivilCade ofthe Philippines, of said member b. Board. The duly consttuted Board of Trustees of the Home ‘Development Mutual Fund. Compensation. Basic monthly salary plus mandated costo ving ‘allowance (COLA). Basic monthly salary shall reler to Compensation fr services in whataver form pai, including but nat limited to fees, salaries, wages, and sirlar items received in 3 ‘month. It shall mean the remuneration or earnings, however osignated, capable of belng expressed in terms of money, whether fixed or ascertained on a time, task, piece or commission basis, or other method of calculating the same, whichis payable by {an employer to an employee or by one person to another under a wotten or unwiten contract of employment for work done orto be ‘done, or for services rendered orto be rendered. ‘d.Contributions. The amount payable tothe Fund by the members ‘andlor thelr empioyers, in aceardance with R.A. 9579 and these Rules, ‘.Dividends. A corporate profit set aside, declared and ordered by the Board of Trustees to be paid to the members proportionately {2ccording to their respective interests which shall be crected to thei Total Accumulated Value, payable cutof the netincame ofthe preceding year 1 Employee. Any person who performs services for an employer in ‘which ether or oth mental and physical efforts are used and whe receives any compensation forsuch servic. ‘g.Employer. Any person, natural or juridical, domestic or foreign wha carries on inthe Philippines, or outside of the Philppines, any trade, business, incusty, underiaking of activity of any kind, and Uses the services of another person who is under his order as regards such services; the Government and any ofits national and local offices, politcal subdivisions, branches, agencies, or intrumentaites, including corporations owned and/or controlled bythe government. h.Employment. Any service porformed by an employee for his or her employer within the Philippines. Fund, The Home Development Mutual Fund, otherwise known as, Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industtiya.at Gobyemo) Fund, eratad under R.A. 9579, vnioh i {government franca! Institution involved in mobilizing provident funds primarily forshetter nance. It rapiaces the Home Development Mutual Fund established ‘under Presidential DeorseNo. 1752. J. GSIS. The Government Service Insurance System created under CommonweaithActNo. 186, as amended. kinvestible Funds. The funds available for investments after deducting cost of operations and expenses, reserves for benefit Claims, provisions fora sinking fund forte rturn of the members! equity’ "upon maturity and. provision for reserve for loan repayments 1.888, Tho Social Security System creatod under Republic Act No. 1161, asamended. m.Member. Any person coverable under R.A. 9679, whether on @ ‘mandatory of voluntary basis, and pays the mandated ‘contributions 1. Member-Borrower. A member who has an outstanding account under any ofthe Fund s loan programs. ‘o.Member-Saver.Amemiber wna has no outstanding account under ‘anyofthe Func'sioan programs . Membership Term. A period of twenty (20) years commencing ‘om the frst day of the month to which the member's inital ‘contribution to the Fund applies: Provided, thatthe member shall have contributed a total of hwo hundred forty (240) monthly ‘contributions atthe imecof maturly e ‘Monthly. The period from the end of the last payroll period ofthe preceding month to the endof the ast payroll period othe current ‘month ifeompensationison hourly, daly or weekly basis: fon any ‘ther basis, monthly’ shallmean a period of one calendar month +. Net Fund Asset. The total assets of the Fund less current labites, 8. Net Income. The balance of realized or accrued earings for @ given period ater deducting all costs and expenses, interests, faxes, losses and. charges of every character, including \epreciation and depletion forthe period, t Permanent Total Disability. The loss or impairment ofa physical ‘and mertal function resuting trom injury or sickness which ‘completely incapacitates a member 10 perform any work oF ‘engageinany business or occupation as determined by the Fund, tu, Total Accumulated Value (TAV). The sum of the member's ‘contributions and the employers required contributions, when ‘appropriate, and the coresponding didends credited thereto. RULEIV ORGANIZATION, ADMINISTRATION, POWERS AND FUNCTIONS OF THE HOME DEVELOPMENT MUTUAL FUND Section 1. Home Development Mutual Fund, otherwise known as PagBiG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund. The Home Development Mutual Fund orthe Pag-IBIG Fund created under R.A. 9678 isagoverment financial institution involved in mobilizing provident funds primariy for shelter nance. I's a nationwide taxcexampt mutual provident savings system for private and government employees and other ‘earning groups, supported by matching mandatory contributions of thor respective employers in the spint of social justice and the pursuit of rational development, with housing as the primary Investment. Section. 2. Provident Character. The Fund shall be private in character, owned wholly by the members, administered in rust and Applied exclusively for thelr benef. Al the personal ang employer ‘contributions shall be fuly credited to each member, accounted for ingvidualy and ransferab in case of change of employment. They shall earn dividends. 28 provided for in these Rules. The said amounts shall consttute the provident fund of each member, to be paid to him or her, his or her estate or beneficiaries upon termination of membership, oF from which peripheral benefits for the member maybe drawn, Section 3. Powers and Functions of the Fund. In action to the ‘sual corporate powers under existing laws, the Fund shall have the following specie powers and functions: a. To formulate, adopt, amend andlor rescind such rules and regulations a8 may be necessary to cary out the provisions and purposes of R.A. 9679, as well 3s the effective exercise of the powers ‘and funcions, and the discharge of duties. and Fesponsibiltiesofthe Fund, tsoffiers and employees, To adopt or approve the ‘annual and supplemental budget of receipts and expenditures including salares and allowances of the Fund's personnel; to authorize such capital and operating expenditures and disbursements of the Fund as may be ecessary and proper for the elffecive management and operation ofthe Fund, «.To submit annually othe President ofthe Philippines not laterthan [March 15, a report o its activities and the slate of tre Fund during the preceding year, including information and recommendations forthe development and improvementthereof, 4. Toinvestnotless than seventy percent (70%) ofits investible funds. tohousing,inaccordance with RA. 9678; «2. To acquire, ullize, or dispose o, in any manner recognized by law, realorpersonal properties to carry aul the purposes of R.A. 9679; {To set up is own accounting and computer systems; to conduct ‘continuing actuarial and staistical studies and valuations to termine the financial viability of the Fund and its projects; to Fequire reports, compilations and analysis of stabstieal and ‘economic dala, as well as make such ater studies and surveys as ‘may be needed for the proper administration and development of theFund; 49. Tohave the power ofsuccession; to sue and be sued: and to adopt ‘and use a corporate seal h. To enter into and cary out contracts of every kind and description with any parson, fim or assocation or corparation, domestic or {oreign: | Teborow uns tom any source private or government oreanor J. To invest, own or otherwise participate in equity in any establishment, frm or ently; to form, organize, invest in oF establish and maintain a subsidiary or Subsidiaries in relaton to anyofts purposes; kcTo maintain a provident fund, which shall consists of contributions ‘made by Both the Fund and lis offears and employees and thei earnings, for the payment of benefits to such officials and ‘employees or theirheirs under such tems and conditions as itmay prescribe: \ Te design and adopt an Early Retirement incentive Plan (ERIP) for ‘ts own personnel, ‘m-To establish felé offices and to conduct its business and exercise ae powers inthese places 1.70 approve restructuring proposal for the payment of due but Uunremitted contributions and unpaid loan emortizations under such terms and conditions as the Scard of Trustees may prescrie: ‘0.To determine, fix and impose interest and penaites upon unpaid Contrbutions due from employers and employees; p.To ensure the colection and recovery ofallindebledness,liabiios ‘andlor accountabilties, nclucing unpaid contributions in favor of the Fund arising from any cause or souree or whatsoever, due from all obigors, whether public or private; to demand payment of the ‘obligations referred to herein, and inthe event of failure or refusal (of the obligor or debtor to comply with the demand, to iiiate oF Institute the necessary or proper actions or suis, criminal, civil, administrative, or otherwise, before the cours, tribunals, ‘commissions, boards or bodies of proper jurisdiction: Provided, however, tha the Fund may compromise or release, in wile orin ‘art, any interest, penalty or cil labilty tothe Fund in connection ‘sith the collection of contributions and the lending operations of the Fund, under such terms and conditions as prescribed by the Board of Trustees. Provided, further, that the Board may, upon recommendation of the Chief Executive Officer, deputize any ‘member of the Fund's legal staff to act as special sheriff in foreclosure cases, in the sale oF attachment of the debior's properties, and in the enforcement of cour writs and processes in eases involving the Fund. The special sheriff of the Fund shal ‘make @ repo to the proper court after any action taken by him, (4) which shalltret such action as iitwere an actofits own sheriffs alrespects; To design and implement other pragrams that shall further promote and mobilize savings and provide additonal resources {forthe mutual benefit ofthe members with appropriate returns on the savings/investments, The program shall be so designed as to, spur socio-economic lake-off and maintain continued growth To conduct continuing actuarial and statistical studies and valuations to determine the financial condition of the Fund and taking into consideration such studies and valuations and the limitations herein provided, readjust the benefits, contributions interest rates of the allocation or reallocation of the funds to the Contingencies covered; and 8. To exercise such powers and perform such acts as may be necessary, useful incidental or auxliary to camry oul the provisions ofA. 9678, ‘Section 4. Board of Trustees. The corporate powers and functions ‘ofthe Fund shal be vested in and exereisd by the Board that shall, be composedofthe folowing ‘The Chairperson of the Housing and Urban Development Coordinating Council, as the exofficio Chairman b. The Secretary of the Deparimentof Finance, as the ex officio Vice Chairman, «. The Secretary of the Department of Labor and Employment, or his/her duly designated undersecretary, as exoficiomember, 4. The Secretary ofthe Depariment of Budget and Management, or hiner duly cesignated undersecretary, as exoficia member, «@. The Secretary ofthe Department of Trade and Industry, orhisvher uly designated undersacratary, as ex officio member {. The Chief Executive Officer ofthe Fund: and ‘Five (6) appointive mombers, two (2) representatives of private ‘employees, two (2) representatives of private employers and one (representative of government employees. ‘The four (4) private sector representatives shall each be ‘appointed by the President ofthe Philippines fr a term of two 2) ‘years. Provided, however, that ofthe frst be appointed, one (1) ‘epreseniatve ofthe employers shall have a term of only one (1) yest. The representative of the government employees shall be ‘appointed by the President ofthe Philippines fora term of two (2), years. ‘The Chairman, Vice Chairman and memibers ofthe Board shall be riled to @ reasonable per diem for each meeting actually fatlended and over alowanes at such amounts as may be fixed by the Board, in accordance with existing laws, rules and regulations. Section 5. Powers of the Board. The Board shall have the following powers ‘To formulate policies, ules and regulations to cany out effectively the funetionsofthe Fund under R.A, 9679; b.Topromulgate such rules and regulations as may be necessary or ‘proper forthe effective exercise of the powers and functions, 2s ° wall as the discharge ofthe dutios and responsibilities of the Fund, is offeors ana employees; 6, To authorize expencitures ofthe Fund in the interest of effective ‘adminisvation and operations; to adopt from time to time the ‘budgets for said purposes; 4. To approve the annual and supplemental budget of receipts and ‘expenditures including salaries and allowances of the Fund personnel; to aufhorze such capital and operating expenditures ‘and disbursements as may be necessary and proper for the ‘ffective managementand operation ofthe Fund: To condone, in whole or in part, penalties imposed on loans of ‘members and borrowers who, for ustable reasons prescrived by the Board, felled to pay on ine any obligation dus to the Fund; Provided, that such exclusive power to condone shall likewise apply to penalties imposed on employers, who justifiably fall to remitwhen due the required contributions of ther employees; fToapprove the Fund's organizational and adminisiraive structures and safing patter, and o estabish, fix, review, revise and adjust ihe appropriate compensation package for the offcers and ‘employees of the Fund in accordance wit Section 8 , Rule IV hereot: 970 approve or confirm appointments of officers and other personnel ofthe Fund, as the case maybe; and h. To exercise such powers as may be necessary to cary int ect the powers and accomplish the purposes for which the Fund Is cestabished, Section 6, Rule-Making Power. The Board shall make and change: reedfal ules and regulatons, which shall be published in ‘accordance with law oF at least once in a newspaper of general Circulation in the Philippines, to provide for, but not limited to, the fatlowing matters a.The effective administration, custody, development, ublization and ‘disposition of the Fund or parts thereof, including payment of ‘amounts credited tormembers orto their beneficlanes orestates; b.Grounds for and effects of termination of membership ather than by completion ofterm ‘¢Fund eamings and their distribution, investment andlor plowing back or the exclusive benefit ofthe members: interim disbursements of accumulated values to members of ‘ameliorative and similar purposes; ‘eBenetts, contrbutions including ther rales, premium rates, and interestrates {Housing and otherloan assistance programs to members; Adjudication and settement of claims and cisputes and the ‘procedures forthe same on any matters involving the interests of ‘members nthe Fund; hOptimize the effectiveness ofthe Fund's coverage: |L Extension of Fund coverage to other earning groups, with or without employer contributions, and waiver or suspension of ‘coverage o its enforcement by reasons of nature of employment, ‘condition of business, ably to make contributions and other feasonable considerations; and |.Other matters that, by express oc implied provisions of R.A. 9679, shall require Implementation by appropriate policies, rules and regulations. Section 7. Chief Executive Officer. The Chief Exeoutve Orficer of oO the Fund shall be appointed by ine Prasient ofthe Philippines and shall execute and administer the polices and resolutions approved by the Board of Trustees, prepare its agenda, and direct and Supervise the operations and management ofthe Fund. The Chief Executive Officer, subject to the approval of the Board in case of ‘approval of appointments to managerial postions and above, and the confirmation of the Board in appointments to below that of ‘manager level, shall appoint the personnel of the Fund, remove, ‘suspend or oheruise discipline them for cause, and prestribe their duties and qualifcations, in accordance with existing civl service laws, rules and regulations, lo the end that only competent personnel maybe employed. Section 8. Organizational and administrative structures and Staffing pattern. The organizational and administrative structures and stating pattem ofthe Fund shall be as determined by the Board All postions in the Fund shall be governed by a compensation and positon classification system and qualification standards approved by the Board based on a comprehensive job analysis, wage Compensation study and aucit of actual duties and responsibilties Provided, that the compensation plan shall be comparable with prevailing compensation plans in the private sector and shall be Subject tothe parodie review ofthe Board ro mare than once every four (4) years without prejucice to yearly merit reviews or increases based on productivity and profitably. The Fund shall therefore, be ‘exempt from any laws, rules and regulations on salaries and compensations. Section 9, Administration Costs. The Fund shall bear the costs of its acministration and development, n such amounts andiorlimits as the Board of Tustees may deem appropriate, but not exceeding two (2%) percent of the Net Fund Assets ofthe previous year, excluding ‘perating cost cirectly relating tothe lending operations ofthe Fund. Section 10. Audit. The Cheirman of the Commission on Ausit shal act as the’ exofficio audior of the Fund and, accordingly, is ‘empowered to appoint a represeniatve and other subordinate personnel o perform ane reporton such sud duties, responsible to ‘and removable only by the Commission on Audit Chairman, without Prejudice, nowever, tothe power ofthe Board of Trustees to contract for another mode of independent audit service, in addition to that provided by the Commission on Audit as provided for under Prasidemtal Decree No, 1445, otherwise known as the Government ‘Auditing Code ofthe Philippines. Section 11. Exemption from Tax, Legal Process and Lien. All laws tothe contrary notwithstanding, the Fund and alts assets and properties, al contibutons collected and all accruals thereto and Income oF investment earings therefrom, as well as al supplies, equipment, papers or documents shall be exempt from any tax, ‘assossment, fe, charge, or customs or import uty; and all benefit payments made by the Pag.I8IG Fund shall kawisa be axampt rom all kinds of taxes, foes or charges, and shall not be liable to attachments, gamishments, levy or seizure by or under any legal or ‘equitable process whatsoaver, her before or after receipt by the person or persons enlited thereto, except to pay any debt of the ember to the Fund. No tax measure of whatever nature enacted shall apply to the Fund, unless It expressly revokes the dectared polly ofthe Statein Section 20fR.A, 9679 granting tax exemption to the Fund. Any tax assessment against the Fund shall be null and vole Section 12. Money Investments. All moneys of the Fund not ‘needed to mectcurrent administrative and operational requirements, shall bo invested with duo and prudent regard forts safety, grown ‘nd iquidty needs, Provided, that at least seventy percent (70%) of the Fund's investbie unds shall be invested. in nousing, in accordance with R.A.9679. Section 13, Visitorialand Enforcement Powers. fa. The Fund or its duly authorized representative is empowered 10 Inspectthe premises, Books of accounts and records of any person oF ently covered by R.A. 9679; require to submit is reports regularly, and acton violations of any provision of RA. 9878, b.Paricular aspects ofthe Fund's administration may be subject to ‘supervision, visitation or verification by appropriate agencies of the government as may be designated and authorized by the Presicentof te Philippines, RULEV FUND COVERAGE AND MEMBERSHIP ‘Section 1.Mandatory Coverage and Membership of Employees. ‘Coverage under an membership in the Fund shal be mandatory for, thefellowing 2A) employees who are compulsonly covered by the SSS; Provided, thal for purposes of mandatory coverage inthe Fund of, persons who are compulsorily covered by the SSS, the term femployeo shall be understood the manner by which the SSS ‘defines it, and shal include, butnotlinited to: 1A Private employee, whether permanent, temporary or provisional, wha isnot over 60 years old, 2A householtshelper eaming at least P1,000 a month. A hhousehold-helpers ary person who renders domestic services ‘exclusively toa household such as driver, gardener, cook, ‘governess, andothersimiar ocoupations 3A Filipino seaferer upon the signing ofthe standard contract of ‘employment between the Seafarer and the manning agency ‘whieh, logether with the foreign ship over actas employers. 4A selemployed person, regardiess of trade, business or ‘occupation, wih an income ofa least P1,000 a month and nat ‘over 60 years old. This includes, but not limited to: seit ‘employed professionals; business partners, single proprietors ‘and board direciors; actors, actresses, directors, seriptwrters ‘and news reporters who are not under an employer-employee ‘lationship; professional athletes, coaches, ‘rainers and Jockeys: formers and fishecolks; and workers in the informal ‘sector such as cigarette vendors, watch-yourccar boys, among ‘others, Provided, that a self-employed person subject 10 ‘compulsory coverage by the SSS shallde treatedby the Fundas both employee and employer at the same time, and shall therefore be required to pay both the employee and the ccoresponding employer contributions, Provided finally, thatactual membershipin the SSS shallnotbea ‘condition precedent for mandatory coverage in the Fund, itbeing oe sufficient thatthe person ought to be covered compulsorily by thesss, ». All employees who are subject to mandatory coverage by the GSIS, regardless oftheir employment status «Uniformed members of the Armed Forces ofthe Philipines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology.and te Philippine National lice. {Filpinos employed by foreign-based employers. Coverage under tha Fund shall be mandatory for Filipinos employed by foreign- based employers whether deployed here or abroad, of a ‘combination thereof, but whose respective employers are ‘exclusively based outside oftePhitppines. The amployers shall not be subject to mandatory coverage. Provided, that ifthe ‘employer maintains an office or agent in the Philippines that effectively acts as an employer ofthe Filipino, then such office or agent shall be deemed an employer subject of mandatory ‘coverage under R.A. 9673, Section 2. Mandatory Coverage of Employers. Coverage under the Fund shall bemandatory forthe folowing ‘a Employers of employees compulsorily coveredby the SSS. These shall include private employers previously granted waiver or Suspension of coverage for whatever reason under Presidential Decree 1752, as amended. Provided, that manning agencies together with the foreign ship owners shell be considered jointly and severally as the employers of Filipino Seafarers. Provided finally, that a sellemployed person subject to compulsory coverage by the SSS shall bo treated by the Fund as both employee andempioyeratthe sametime b Employers of employes subject of mandatory coverage bythe ccThe Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jal Management and Penology, andthe Philippine Natonal Police, Section 3. Voluntary Coverage. Persons who are atleast eightaon (18) years old but not more than sixty five (65) years old anc are not Subject to mandatory coverage may be covered by the Fund on & Voluntary bass, subject to such terms and conditions stated in these. Rules ors the Board may impose, and shall include, butntimited to, the folowing ‘Spouses who devote full ime to managing the household and family affairs, unioss they also engage in another vocation or employment whichis subjectto mandatory coverage bFilipine “employees. of foreign government or intemational ‘organization, of their wholy-owned instrumentality based in the Philippines, in the absence of an edministrative agreement with the Fund, ‘Employees of an employer who s granted a waiver or suspension of coverage by tneFuncunder R.A. 9679. 4. Leaders and members of religious groups; ‘8 A mamber separated from employment, local or abroad, oF ‘ceased tobe solt-employed, but woud like to continue paying his ‘or her personal contabution, Such member may be a pensioner, Investor, or any other individual with passive income "or allowances, {. Puble officials or employees who are not covered by the GSIS,, ‘such as Barangay Ofelals, Including Barangay Chairmen, °o Barangay Council Members, Chairmen of Sangguniang Kabataan, and Barangay Secretaries and Treasurers. ‘g:Such other earning groups as may be determined bythe Board by rules and regulations. Provided, that any foreign government, interational organization Or their wholly-owned instrumentalty employing workers in the Philippines or employing Filipinos ouside cf the Philippines, may ‘enter into an agreement with the Fund for the inclusion of their fomployees as members of the Fund; Provided, further, that the terms of such agreement shall conform with the provisions of RA. {9679 and these Rules on coverage and amount of payment of Contributions and benefits; Provided, final, that the provisions of the saidActshallbe cupplementary to any such agreement, Section 4. Effective Date of Mandatory and Voluntary Membership and Coverage. Mandatory coverage of the employer shalltake effect onthe fst day ofhis business operation, and that of the employee on tne date os ore employment Proves that 2. Employees and employers who are not subject of mandatory ‘coverage prior to R.A. $679 and these Rules, including the ‘unformed members ofthe Armed Forces of the Philippines, the ‘Bureau of Fire Protection, the Bureau of Jail Management and Ponology, andthe Philippine National Police, and their respective employers, as well as Flipinos employed by foreign based employers, mandatory coverage shall take effect on January 1, 2010, uniassadiferentdateis setby the Board by resolution; b.Employers whose coverage had been previously suspended or \Walved for whatever reason under PD 1752 their coverage as wel 23 that oftheir employees shall ake effect aftr the expiration of their respective suspension or waiver of coverage: ‘cNoluntary members, coverage shall commence onthe actual date ‘ofregstation, Provided, finally, that actual membership in the Fund shall ‘commence only upon remittance ofthe ital contribution and not ‘tpointof registration, Section 5, Registration of Employers. Alinew employers shal st register withthe Fund prior to the start of ther business operations. Provided, that all employers who are not subject of mandatory coverage prior to RA. 9673 and these Rules, shall register for ‘coverage before January 1,2010, uniessadiferentdate is set bythe Board by resolution Section 6. Registration of Employees. It shall be the duty ofall employers to repistar all their employees subject of mandatory average, by submitting to the Fund all data and information that may require in relation to the employers’ respective businesses and employees, within thity (30) days from the start of thelr business. Sperations, For newly hited employees, tne employer shal regster them with the Fund within thity (30) days from the stat of their employment Section. Registration of the Self-employed. The sell employed ‘who ate subjeato compulsory coveraga shall register with the Fund ‘within thity (80) days from the date he or she started to be set- employed. Proved, that the self-employed shall be required to ® ‘obtain the necessary permits andior licenses, othe than the license ‘equited for practicing a parcular profession prir tothe practice of his or her self-employment, he or she shall register withthe Fund priarto engaging in such, ‘Section 8. Membership Term. Membership in the Fund shall be {ora period of twenty (20} years commencing trom tha irstday othe ‘month to which the member's inal contribution tthe Fund applies; Provided, that the member shall have contributed a total of two hundred forty (240) manthly contributions attnetime of maturity ‘Section 9 Termination of Membership. Membership in the Fund shall be terminated anytime upon the occurrence of any of the following, provided that the member's financial obligations withthe Fund are rst fly seted ‘a. Membership Term Matunty; Death; Retirement: <. Permanent Total Disabil orinsaniy: Permanent departure from the country: {Termination ftom the service by reason ofheath; {9.Other causes as may be provided forby the Boardof Trustees, ‘Occurrences other than the above, such as resignation, lay-off or suspension from employment, shall not constitute 2 ground for Termination of membership. Such occurrences shall ony result 10 ‘suspension of contoutions. Provided finaly, tat in the event the member after membership termination continues or subsequently places him or herself in a situation which would subject him or herself to mandatory coverage, ‘hon the member shall continue fo be mandatory covered by the Fund and his of her emplayer is mandatad to continue deducting ‘and remitin the employee's raquid contribution together with the ‘corresponding employers contribution pursuantto these Rules, ‘Section 10. Retiroment. Any member shall be compulsorly retired under the Fund upon reaching age sixty-five (65). The member may. however, opt to retire earlier under the Fund upon the occurence of any of the following events, provided the member fs not a member- borrower ‘a. Actual retirement from the SSS or GSIS, ar from goverment servceby provision oflaw: bRetrement under a separate employer provident or retirement plan. Provided, thatthe members al least forty-five (45) years of 2geatthe time of retirement «Upon reaching agesinty (60). Provides finally that in the event the member opts to retire ealer ‘rom the Fund for reasons stated under items b and ¢ above, and tharaafter continues or subsequently places him or herself in a ‘situation which woul subject him or herself mandatory coverage, ‘hen the member shall continue to be mandatonly covered by the Fund and his or her employer is mandated to continue deducting ‘and remiting the employee's requced contribution together with the ‘corresponding employer's contribution pursuantto these Rules. ‘Section 11. Permanent Total Disability, The following disabilities shailbe deemed total and permanent: @ 2. Temporary total disability lasting continuously for more than one. hundred wonty (120) days; Complete loss of sightof bath eyes: 6 Loss oftwo lbs ator overthe ankle or wrist; 6 Pormanent complete paralysis oftwo limbs: ¢.Brain injury resulting incurable mbecity orinsanty; and Such other cases which are adjudged tobe total and permanent sabity bya duly icensed physician and approvedby the Board, Section 12. Existing Membership and Coverage. Membership ‘2nd coverage under e Fund established under Presidential Decree: No. 1752, as amended, together with tho amounts and benefits ‘already accrued to the members, including employer's counterpart Contnbutions, as well as covering records and documents, shall be transferred, continued, and integrate into the new Fund established Under R.A. No. 8678, and shale subject henceforth to policies and rules that ne Board shall adopt under the said law. Ali ights vested, uty imposed, penalty accrued, or proceeding commenced under Presidential Decree No. 1752, as amended, particularly those under Republic Act No. 7742, shall continue to subsist and shall be ‘enforced under the provisions of R.A. 9679 and these Rules. RULE VE CONTRIBUTIONS Section 1, Rate of Contributions. Covered employees and employers shall contribute to the Fund based on the monthly compensation of covered employees as follows ‘2. Employees eaming not more than One thousand five hundred ‘pesos (P1,500.00) per month —one percent (1%). ». Employees earning more then One thousand five huncred pesos, (1500.00) per month—two percent(2%). €.All employers ~ two percent (2%) ofthe monthly compensation of allcovered employees. ‘The maximum monthly compensation fo be used in computing employee and employer contnibutions shall not be more than Five thousand pesos (P5,000.00); Provided, thal this maximum and the ‘contribution rates may be fixed from time to time by the Board through rules and regulations adopted byt taking ino consideration ‘actuarial calculations and ates of benefits. Provided further, thatthe oregoing rates shal ikewise be the same forthe selt-employed and voluntary members, ‘Amember may, however, be alowed to contribute more than whats required herein should he or she so desires, The employer, however, shall only be mandated to contribute whatls required under ‘these Rules uniess the employer agrees to match the member's increased contribution. Notwithstanding any contract othe contary, an employer shall not {educ,drecly or indirectly from the compensation ofits employees: covered by the Fund, or otherwise recover from thom, the ‘employer's contribution wth respect o such employees. Section 2. Fulltime Spouse. Fume spouses who volunteer to be covered by the Fund as provided for under these Rules, shall ® ‘adoptas a basis of monthiy contributions one-haif(24)ofthe monthly ‘Compensation income of the employed spouse. The fulime ‘spouse shall not be requiredto pay the employer'scontrbuton ‘Section 3. Contributions of Member with Multiple Employers. In, ‘cases where a member has two or more employers, such member shal contribute monthly to the Fund a percentage of his or her ‘monthly compensation per employer, which shall be matched by the Iatterinaccordancewith Section 1 ofthisule RULE VIL COLLECTION AND REMITTANCE Section 1. Employer's Fiduciary Obligation. The employer ‘assumes a fiduciary relationship with both the Fund and the member Concerned as regards the latler’s contibution and the required ‘employer contribution, aswel asthe remittance thereof tothe Fund, ‘The employer likewise assumes the same fiduciary relationship wit, bth the Fund and the member concerned as regards the collation {and remittance ofthe latter's loan amotizations or payments to the Fundwhen the same is made through salary ceductions as provided inthe succeeding sections ofthis Rule. Section 2 . Method of Collection and Payment. Monthly Contbutions of members to the Fund shall be eollected through paytoll deductions by their respective employers, vino Tor this purpose shallactas agentboth ofthe Fund and the member. a member avails of ary loan from the Fund and the member ‘consents in writing to amortize or pay the same through salary ecuctions, the employer shall be duty-bound to faithfully Implement the same and shall continue todo so uti the loan is fully, ald Untl the loan is fully paid, the employer shall nc discontinue the salary deductions without the prior writen consent of the Fund, Forthis purpose, the employer shal ikewise actas agentboth ofthe Fundand the employee, fa member-barrower wha has previously consented to amortize or pay his loans through salary deductions resigns or otherwise Separates from the service of te empioyer, the employer shall be bound fo inform the Fund of such resignation of seperation Immediately upon notice thereof, but not later than thity (30) days from the effectivity of said resignation or separation. Every employer shall Issue corresponding receipts for all Contributions or loan amartizations or payments deducted from the ‘employee's compensation or shell indicate such deductions on the lemployee's pay ip. Section. Remittance of Collections. {All employers shall remit tothe Fund their contributions and the ‘contrioutions of their covered employees a5 well as the latter's loan amortzations or payments to the Fund, as provided or undor ‘Section 2 of this Rule, when applicable, within fifteen (16) days {tom the date the same were collected unless another period i previously agreed upon betwoen the employer and the Fund, oF ‘thin such periods asthe Fund may preserioe otherwise, ® ‘The Fund may prescribe a diferent remittance schedule for Flipinos employed by foreign based employers depending onthe ‘nature of thei contracts or manner oftheir deployment abroad Every employer required to set aside and remit such contributions 2s prescribed undor R.A. No. 9679 and these Rules shall be lable for their payment, and non-payment thereof shall futher subject the employer toa penalty of three percent (3%) per month ofthe amounts payable from the date the contributions fll due unt aid. Every employer vino actually deducts from the salary of his employee the laters loan amortization or payments to the Fund, a8 provided for under these Rules, shall be liable for theit payment, and non-payment thereof shall ikowise futher subjoct the employer toa penalty of three percent (3%) per month of the amounts payable ffom the date the loan’ amortzations or payments fll due unt paid. it shall be mandatory and compulsory for all_ government Instrumentals, agencies, including government-owned and Contvoled corporations, to provide the payment of contributions in their annual appropriations, Penal sanctions shall be Imposed Uupen these employers who fail to include tha payment of contvibutons on time, or delay the remittance of the required Contributions to the Fund. Theheads of offices and agencies shal be administatively lable for non-remittance of the required Contibutons tothe Fund. Fallure or refusal of the employer to pay or to remit the cantibutions herein preseibed shall not prejudice the right ofthe covered employeeto the benefits under tis Al ‘eNo retroactive payment of contibutions shall be alowed, except forunremtted collections that are pai by the employer which shal be applied retroactively upon presentation of proof that said contributions were previously collected or deducted ftom the employee. Without prejudice to the employers civ, criminal and administrative fables, the employer shal fkewise be liable forall the applicable interesis and penallies arising from the late remittance of cortibulions and loan amortzations or payments {actually collected from the member, as wal as the dhvidends which the contributions should have earned have it been remitted on time. | Such interests and penalties, excluding the penalty prescribed under Section 3b of Rule Vil, shall be applied for the Account ofthe member concerned and the dvidends added to said member's TAV. Provided, that the employer dis not collect from his employee during the period of his delinquency, but pays the ‘mandatory employer counterpart for that period, the same shall not be given retroacive effect but shall be Weated asa single Contabution forthe month in which the payment is made in favor of the concerned member. In the same manner, when an employee ‘pts to pay the sum of his or her personal contributions during the periog othis orher employer's delinquency, such payment shall be treatedasa single contribution The conlbullons under R.A. 9679 and these Rules, in cases where an employer refuses or neglects to pay the same, shal be Collected by the Fund in the same manner as taxos are made Collectible ‘under the National Internal Revenue Code, as ‘mendes, ‘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 fromthe time the beneftaccruos, asthe casemay be. @ Section 4, Remittance of Contributions by Self-employed and Voluntary Members. Self-employed and voluntary members may remit their monthly contbuions on a monthly or quarterly basis, provided thatin tha latter case payments shallbe remitted before the ‘Oth day ofthe beginning month ofthe succeeding quarter. Monthly ‘emitances shal be made directly tothe Fund before the 10in day of ‘he following ealencar month ‘Section 5. Effect of Leave Without Pay or Suspension from Employment. In he event a member-saver goes on leave without pay oris Subjected tolsciplinary action where hei suspended from "work, the member-saver's monthly contribution together with the corresponding employer's monthly contributions shall be ‘suspended forthe duration ofthe leave without pay or suspension ‘rom work. Provided, that such member-saver may opt to continue paying and remitting to the Fund direcly his or her monthly Contributions together with the employer counterpart tobe ‘shouldered by him or her. A mamber-borrower, onthe other hand, ‘shall continue to pay and remit direct to the Fundhis or her monthiy Contributions and loan amortzations or payments. The duty ofthe ‘employer to deduct monthly amorizatons or payments for the member-borrower's outstanding loan vith the Fund 3s provide for, Under Section 2 ofthis Rule shall be suspended forthe curation of ‘ne leave without pay or suspension from work. Provided, that it ‘halle the duty ofthe employer o inform the Fund ofthe members, Jeave without pay or suspension from work within thity (30) days fromthe fist day of such leave or suspension, Section 6. Effect of Resignation or Separation from Employment. inthe event 2 momber-saver resigns or is otherwise ‘Separated from employment, the member-saver’s monthly Contribution together with the comesponding employer's monthiy Contributions othe Fund shall cease. Provided, that such membor- ‘Saver may opt to continue paying and romiting to the Fund directly his or her_monthly contibutions together with the employer Counterpartio be shouldered by him orer. Amember-borrower, on the other hand, shall contin fo pay and romit rectly to tho Fund his. or her monthly contributions. and loan amortzations. or payments. The duty of the employer to deduct monthly amartzations o° payments for the member-borrower's outstanding ‘oan with the Fund as provided for under Section 2 ofthis Rule shall, ‘kewise cease. Provides, that shall be the duty oft employer to, {nom the Fund of such resignation or soparation immediatly upon ‘notice thereof, butnotiater han tity (30) days from the effectivity of ‘sidresignation or separation. RULE Vill WAIVER OR SUSPENSION OF FUND COVERAGE ‘Section 1 . Waiver or Suspension of Coverage The Board may, by rules oF resolution, waive or suspend an employer's mandatory overage under the Fund by reason of nature of employment, fonditon of business, abilly to make contrbutons and other ‘reasonable considerations Section 2. Existing Waiver or Suspension, All existing waivers fr suspension granted previously for whatever reason under PD. 1752, as amended, shall continue to be infull force andeffect unis expiration staledin said waiver or suspension ® RULE IX BENEFITS Section 1. Mandatory Contributory Support of the Employer. In the spit of social justice and the pursuitaf atonal development, the member's contibution to the Fund shall be with the mandatory Contributory support ofthe employer as provided for under these Fules or as may be provided for by the Board. Notwithstanding any contract to the contrary, an employer shall not deduct, drecty oF Indirectly, from the compensation of its employees covered by the Fund, of otherwise recover fom them, the employers contribution ‘ith rospectto such employees. Section2. Acts of the Employer shall not prejudice the member. Failure or refusal ofthe employer to pay of to remit the contibutions herein prescribed, or as may be provided for by the Board, shall not Drejucice the right of the covered employee to the benefits under R.A. 96792ndthese Rules. Section 3. Exemption from Tax, Legal Process and Lien. Alliaws to the contrary notwithstanding, all contibutions collected and all ‘acervas thereto and income or investment earrings therefrom, shal bbe exempt from any tax, assessment, fee, charge, or customs of import duty; ané al benafit paymenis made by the Fund shall likewise be exempt rom al kinds oftaxes, fees or charges, and shal not be lable to attachments, gamishments, levy or seizure by oF lunder any legal ar equitabie process whalsoever, either before or alter receipt by the person or persons ented thereto, excepto pay any debtofthe member othe Fund, Section 4, Dividends, The Board shall set aside annually an amount which in no case shal bo less tian seventy percent (70%) of the annual net income of the Fund, tobe paidin the form of cividends tomembers. The member's contributions, inckisive of employee's and employer's contributions, shall eam dividends which shal be Gistributed annually and credited to his oF her TAV. Only members ‘with outstanding TAV as af year-end shall be enttied to dividends ectared for that particular year. Al dividend earnings shall be tax free. Section 5, Return of Contributions. A member shall be eniled ta feceive his Total Accumulated Value upon termination. of ‘membership in accordance with Section 9 of Rule Vof these Rules, less any and all panding obligations withthe Fund. Inthe event of

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