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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: |kaw, Bangko, Industriya at Gobyerno) Fund” HOME DEVELOPMENT MUTUAL FUND RULE! PRELIMINARY PROVISIONS. Section 1. Title. These Rules shall be referred to asthe Rules and Regulations Implementing Republic Act No. 9879 or the Home Development Mutual Fund Law of 2008, otherwise known as Pag- IBIG (Pagtutukungan sa Kinabukasan: Ikaw, Bangko, Industiya at Gobyerno) Fund Section 2. Construction. Any doubt inthe interpretation of these Rules shallbaresolvedin favor of the members. RULE I DECLARATION OF STATE POLICY AND STATEMENT OF THE FUND'S OBJECTIVES Section 1. Declaration of Stat Policy isthe policy ofthe Stateto establish, develop, promote, and integrate a nationwide sound ang viable tax-exempt mutual provident savings system suitable to the needs of the employed and other earning groups, and to motivate them to better plan and provide for their housing needs. by ‘membership inthe Home Development Mutual. Fund, with mandatory contributory support of the employers in the spirit of Secraljustice and the pureitof national development Section 2. Statement of Fund's Objectives. In general, the objectives ofthe Fund are: almprove the quality of fe of its members by developing and ‘promoting an ntograted nationwide, sound, and viable tax-exempt ‘mutual provident savings system ‘sulable to the needs of the ‘employed andootner earning groups: improve the qually of life of iis members by promoting home ‘nnership through the extension of affordable housing loans: « Slimutate and assist the shalt industry through the extension of developmental andinsttutonal rancing; Glinvest the provident savings of its members taking into ‘consideration proftablity and safety of the funds as a means of providing. them provident benefits upon termination of thelr ‘membership nthe Func; Provide small and short term loans, other benefis and assistance ‘programs to lis members, consistent with the Fund's provident character; and f. Design and implement other programs that shall futher promote ‘and mabilze savings and provide additional resources for the ‘mutual benefit of iis members with appropriate retums on the ‘Savings andinvestments RULE I DEFINITION OF TERMS Section 1. Definition of Terms. For purposes ofthese Rules and Regulations, the folowing terms shall, unless the context indicates ctherwise, nave the folowing meanings: ‘Beneficiaries. Person or persons who are entitled to recsive the ‘member's TAV arising from the death of the member who shall be the errs, 2s provided for under the CvilCode athe Philippines, of saidmember 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 refer to Compensation fr serviees in whatever frm pai, including but nt limited to fees, salaries, wages, and sirlar items received in a ‘month. It shail mean the remuneration or earings, however signaled, capable of being expressed in terms of money, ‘whether fixed oF 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 urwiten contract of employment for work done orto be done, or for services rendered orto be rendered. 4.Contributions. The amount payable to the Fund by the members ‘andlor thelr employers, 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 crecited to thei Total Accumulated Value, payable cut ofthe netincame ofthe preceding year { Employee. Any person who performs services for an employer in ‘hich ether or both mental and physical efforts are used and who receives any compensation fr such service. ‘aEmployer. Any person, natural or jurgica, domestic or foreign wha carries on inthe Philippines, or outside othe Philppines, any trade, business, industry, undertaking or 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 focal offices, politcal subdivisions, branches, agencies, oF instrumentalitas, 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: Tkaw, Bangko, Industtya'at Gobyemo} Fund, erated under R.A. 9579, vnioh i. ‘government nancial institution involved in mobilzing provident funds primarily forshelter nance. It rapiaces the Home Development Mutual Fund established under Presidential Decree No. 1752. |. GSIS. The Goverment Service Insurance System created under Commonwealth ActNo. 186, as amended, kinvestible Funds. The funds available for investments after deducting cost of operations and expenses, reserves for benefit claims, provision fora sinking fund for the return of the members! equity’ upon maturity end» provision for reserve for loan repayments. 1.888, The Social Security System creatod under Republic Act No. 1161, asamended. ‘mMemiber. 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 Fund's loan programs pp. Membership Term. A period of twenty (20) years commencing from the frst day of the month to which the member's inital ‘contribution to the Fund applies: Provided, thatthe member shall have contibuted a total of hwo hundred forty (240) monthiy ‘contributions atthe imeof maturly e 44.Monthly. The period from the end ofthe lest payroll period ofthe preceding month to the end f the last payroll perod othe curent ‘month ifeompensation ison 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 lables, Net Income. The balance of realized or accrued earings for 2 given period after deducting all costs and expenses, interests, faxes, losses and. charges of every character, including ‘depreciation and depletion forthe period, Permanent Total Disability. The loss or Impairment ofa physical ‘and mertal function resuting from injury or sickness which ‘completely incapacitates a member 10 perform any work oF ‘engage in any business or occupation as determined by the Fund. 4, Total Accumulated Value (TAY), The sum of the member's ‘contributions and the employers requited contributions, when propriate, and the comesponding dividends credited thereto RULEIV ORGANIZATION, ADMINISTRATION, POWERS AND FUNCTIONS OF THE HOME DEVELOPMENT MUTUAL FUND Section 1 . Home Development Mutual Fund, otherwise knowin a PagBiG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund. The Home Development Mutual Fund orthe Pag-18IG Fund created under R.A. 9678 is a goverment Financial institution involved in mobilizing provident funds primariy for shelter fnance. I's a naionside tax-exempt mutual provident savings system for private anc government employees and other f2aming groups, supported by matching mandatory Contibutions of thew 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 anc employer contributions shal be fully credited to each member, accounted for indhvidualy and vaneferabe n case of change af employment. They shall eam dividends. 28 provided for in these Ries. 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 Usual corporate powers under existing laws, the Fund shallhave the following specie powers and functions: a. To formulate, adopt, amend andlor rescind such rules and regulations as may be necessary to carryout the provisions and purposes of R.A. 9679, as well as the effective exercise of the powers and funcions, and the discharge of duties. and Fesponsibiliiesofthe Fund, ts officers and employees, b.To adopt or approve the annual and supplemental budget of receipts and expenditures incluging salaries 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 effecve management and operationofthe Fund, «To submit annually othe Presidentofthe Philippines not later than Maren 15, a report ofits activities and the slate of the Fund during the preceding year, including information and recommendations forthe development and improvement thereof, 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 cary out the purposes of A. 9679; {To set up is own accounting and computer systems; to conduct ‘continuing actuarial and statistical studies and valuations to termine the financial viability of the Fund and its projects; to fequire reports, compilations and analysis of stabstieal and ‘economic data, as wellas make such other studies and surveys as ‘may be needed for the proper administration and development of theFund: 19. Tahave the power of succession; to sue and be sued; and to adopt ‘and use acorporate seal; 1h To ener into and cary out contracts of every kind and description with any parson, fim or assocation or corporation, domestic oF foreign: i. Toborow funds tom any sure, private or goverment foreign or lomestio; J. To invest, own or otherwise participate in equity in any establishment, firm or entity: to form, organize, invest in oF establish and maintain a subsidiary or Subsidiaries in relaton to any ofits purposes; To maintain a provident fund, which shall consist of contributions ‘made by Both the Fund and lis offlears and employees and their earnings, for the payment of benefits to such offciels and ‘employees or theirheirs under such terms and conditions as itmay prescribe: | To design and adopt an Early Retirement incentive Plan (ERIP) for is own personnel, 1m To estabish field ofces and to conduct is business and exercise as powers inthese places 1.79 approve restructuring proposal for the payment of due but Unremitted contributions and unpaid loan amortizaions under Suen terms and conditions asthe Beard of Tustessmay prescribe: (0.To determine, fix and impose interest and penaites upon unpaid Contributions due rom employers and employees; p.To ensure the colection and recovery ofallindobledness, abies ‘andlor accountabilties, inclucing unpaid contributions in favor of, the Fund arsing from any cause or source or whatsoever, due om all obigors, whether public or private; to demand payment of the ‘Obligations referred to herein, and inthe event of fallre or refusal (of the obligor or debtor to comply with the demand, to iiiate oF Institute the necessary or proper actions or suis, criminal, cil, administrative, or otherwise, before the cours, tribunals, Commissions, boards or bodies of proper jurscicton: Provided, however, tha the Fund may compromise or release, in while orin ‘art, any interest, penalty or cil iabilty tothe Fund in connection lth 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 debtor's properties, and in the enforcement of cour wits and processes in eases involving the Fund. The special sheriff of the Fund shall ‘make a repotto the proper court after any action taken by him, hich shall reat such action asifitwere an actofits own sheriffsin allrespecis; To design and implement other pragrams that shall further promote and mobilize savings and provide additonal resources {forthe mutual benefitofhe members with appropriate returns on the savings/investments, The program shall beso designed as to spur socio-economic lake-off and maintain continued growth 1. 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 nerein 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 out the provisions ofA. 9678, ‘Section 4. Board of Trustees. The corporate powers and functions fof the Fund shal be vested in and exereised by the Board that shal, be composedofthe folowing ‘The Chairperson of the Housing and Urban Development Coordinating Council, asthe exorfico Chairman b. The Secretary ofthe Deparment of Finance, as the ox officio Vice Chairman, «. The Secretary of te Department of Labor and Employment, or his/her duly designatedundersecretay, as exoficiomember, 4. The Secretary ofthe Department of Budget and Management, or hisiner duly cesignated undersecretary, as ex fica membor: «©. The Secretary of the Department of Trade and Industry, or hisvher uly designated undersecretary, as exorficiomember;, ‘The Chief Executive Oficer ofthe Fund: and Five (8) appointive members, two (2) ropresentatives 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 fra term of two 2) ‘years. Provided, however, that ofthe frst be appointed, one (1) ‘epresentatve ofthe employers shall have a tem 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 memibersof the Board shall be nitled to @ reasonable per diem for each meeting actually fatlended and over alowances 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, rules and regulations to cany out effectively the functions ofthe 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 So wall as the discharge ofthe dutios and responsibilities of the Fund, [Is ffears and employees, «To authorize expencitures of the Fund in the interest of effective ‘adminisvation and operations; to adopt from time to time the ‘busgets for said purposes: 4. To approve the annual and supplemental budget of receipts and ‘expenditures including salaries and allowances of the Fund personnel; to authorze such capital and operating expenditures ‘and disbursements as may be necessary and proper for the ‘affective management and operation ofthe Fund, To condone, in whole or in part, penalties imposed on loans of ‘members and borrowers wh, for ustable reasons prescrived by the Board, falled to pay on ime any obligation due to the Fund; Provided, that such exclusive power to condone shall likewise apply to penalties imposed on employers, who justiably fail to remitwhen due the required contributions of their employees; {Toapprove the Fund's organizational and administrative structures and safing patter, and o estabish, fix, review, revise and adjust ‘he appropriate compensation package for the offers and ‘employees of the Fund in accordance wit Section 8 , Rule IV hereof; 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 into ect ‘the powers and accomplish the purposes for which the Fund fs cestabished, Section 6, Rule-Making Power. The Board shall make and change: eedfal rules and regulatons, which shall be published in ‘accordance with law or at least onoa in a newspaper of general Circulation in the Philippines, to provide for, but not limited to, the following matters a.The effective administration, custody, development, utilization and ‘isposiion of the Fund or parts thereof, including payment of ‘amounts credited tormembers orto their beneficiaries or estates 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 mambers; interim disbursements of accumulated values to members of ‘ameliorative and similar purposes eBenelis,contibutonsincing thee rates, premium rte, and interestrates f Housing and otherloan assistance programs tomembers; Adjudication and setteement of claims and cispues and the ‘procedures forthe same on any matters involving the interests of ‘members nthe Fund; hOptimize the effectiveness ofthe Fund's coverage: |. Extension of Fund coverage to other earning groups, with or without employer contributions, end waiver or suspension of ‘coverage ois enforcement by reasons of nature of employment, ‘condition of business, ably’ to. make contributions and other Teasonable considerations; and |.Other matters that, by express or implied provisions of R.A. 9679, ‘shall require implementation by appropriate policies, rules and regulations. Section 7. Chief Executive Officer. The Chief Executive Orficer of oO the Fund shall be appointed by the President ofthe Philippines and shall execute and administer the polices and resolutions approved by the Board of Trustees, prepare its agenda, and direct end Supervise the operations and management ofthe Fund. The Chief Executive Officer, subject to the approval ofthe 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 otheruise discipline them for cause, and prestribe their duties and qualifcations, in accordance with existing civl service laws, rules and regulations, tothe end that only competent personnel maybe employed. Section 8. Organizational and administrative structures and Staffing pattern. The organizational and administrative structures ‘and tating pattem ofthe Fund shallbe as determined by the Board Al postions inthe 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 audit of actual duties and responsibilies Provided, that the compensation plan shall be comparable with prevaling compensation plans in the private sector and shall be Subject tothe parodic review ofthe Board no move than once every four (4) years without prejucice to yearly ment eviews or increases based on productivity and profitably. The Fund shall therefore, be ‘exempt from any laws, rules and regulations on ‘salanes and compensations. Section 9, Administration Costs. The Fund shall bear the costs of its acministration and development, in such amounts andior mits as the Board of Trustees may deom appropriate, but nat exceeding two (2%) percent of the Net Fund Assets ofthe previous year, excluding ‘operating cost irectly relating othe lending operations ofthe Fund. Section 10, Audit. The Chairman of the Commission on Ausit shal act as the’ ex-officio audior of the Fund and, accordingly, is fempowered to appoint a represeniative and other subordinate personnel to perform and reporton such audit 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 Dacroe No. 1445, otherwise known as the Government ‘Auditing Code ofthe Philippines. Section 11. Exemption from Tax, Legal Process and Lien. All laws tothe contrary notwitstancing, the Fund and alts assets and properties, all contibutons collected and all accruals thereto and Income oF investment earings therefor, as well as al supplies, equipment, papers or documents shall be exempt from any tax, lassassment, foe, charge, or customs or import duty; and all benefit payments made by the Pag-I8IG Fund shall kawise ba exampt fom al kinds of taxes, foes or charges, and shall not be able to attachments, gamishments, levy r seizure by or under any legal or ‘equitable process whatsoaver, either before or after receipt by the person or persons ented thereto, except to pay any debt of the ember to he Fund. No tax measure of whatever nature enacted shall apply 10 the Fund, unless It expressly revokes the declared 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 tomeetcurrent administrative and operational requirements, shall be invested with duo and prudent regard forts safety, growth ‘and iquidty needs. Provided, that at least seventy percent (70%) of the Funds investibie funds shall be invested’ in nousing, in ‘accordance with R.A. 9679. ‘Section 13, Visitorialand Enforcement Powers. ‘a. The Fund or is duly authorized representative is empowered to 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 voiations of any provision of RA. 9878, bParicular aspects ofthe Fund's administration may be subject to ‘supervision, visitation or vatification by appropri agencies of the government as may be designated and authorized by the Presicent ote Philippines RULEV FUND COVERAGE AND MEMBERSHIP ‘Section .Mandatory Coverage and Membership of Employees, ‘Coverage under and membership in the Fund shall be mandatory for thefollowing All employees who are compulsonly covered by the SSS; Provided, thal for purposes of mandatory coverage inthe Fund of, persons who are compulsory 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 household-helper eaming at least P1,000 a month. A household-helper is any person who renders domestic services ‘exclusively to'a household such as driver, gardener, cook, ‘governess, andother similar occupations 3 Filipino Seafarer upon the signing ofthe standard contract of ‘employment betwaen the seafarer and the manning agency \which, together with the foreign ship over, actas employers. 4A self-employed person, regardless of trade, business or ‘occupation, wth an income of at 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 directors: actors, actressas, directors, seriptwrters ‘and news reporters who are nat unger an employer-employee Felationship; professional athletes, coaches, tramers and jockeys; farmers and fisherolks; and workers inthe informal ‘sector such as cigarette vendors, watch-yourcar boys, among ‘others, Provided, that a self-employed person subject 10 ‘compulsory coverage by the SSS shalldetreatedby the Fundas both employee and employer at the same time, and shall therefore be required to pay both the employee and the comesponding employer contributions, Provided finally, that actual memibershipin he SSS shallnotbea ‘condition precedent for mandatary coverage in the Fund, itbeing oe sufficient thatthe person ought to be covered compulsorily by thesss. b. All employees who are subject to mandatory coverage by the GSIS, regardless oftheir employment status «Uniformed members of the Armed Forces ofthe Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology. and te Philippine National lice. {Filipinos employed by foreign-based employers. Coverage under tha Fund shall be mandatory for Filipinos employed by foreign- based employers whether deployed here or abroad, or a ‘combination thereof, but whose respective employers are ‘xclusively based outside oftePhippines. The employers shall not be subject to mandatory coverage. Provided, that if the employer maintains an office or agent in the Philippines that effectively acts as an employer ofthe Filino, then such office or agent shall be deemed an employer subject of mandatory Ccoverageunder R.A. 9678, Section 2. Mandatory Coverage of Employers. Coverage under the Fund shall bemandatory for he 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 overs shall be considered jointly and severally as the employers of Filipino Seafarers. Provided finally, that a self-employed person subject to compulsory coverage by the S85 shall bo treated by the Fund as both employee andempioyeratthe sametime b Employers of employes subject of mandatory coverage bythe t c-The Armed Forces of the Philipines, the Bureau of Fire Protection, the Bureau of Jal Management and Penology, andthe Philippine National Police. Section 3. Voluntary Coverage. Persons who are atleast eightaen (18) years old but not more than sixty five (65) years old anc are not Subject fo mandatory coverage may be covered by the Fund on & Voluntary basis, subjectto such terms and conditions stated in these Rules ors the Board may impose, and shall include, butntimited to,thefolowing ‘Spouses who devote full ime to managing the household and family affairs, uniess they also engage in another vocation or employment whicnis subjectto mandatory coverage. bFilipine “employees. of foreign government or intemational ‘organization, or ther wholly-owned instrumentality based inthe Philippines, in the absence of an edministrative agreement with theFund, ‘eEmployoes of an employer who s granted a waiver or suspension ofcoverage by tneFuncunder R.A. 9679. 4. Leaders and members of religious groups: ‘8. A mamber separated ftom empioymant, local or abroad, oF ‘ceased tobe solf-employed, but would 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. {. Publc 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. {9Such other eaming groups as may be determined by the Board by ‘ules and regulations. Provided, that any foreign government. international organization Or their wholly-owned instrumentality employing workers in the Philipines or employing Filipinos outside ofthe Philippines, may fenter into an agreement wih 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 benefts; Provided, finaly, that the provisions of the saidActshallbe cupplementary 6 any such agreement, Section 4. Effective Date of Mandatory and Voluntary Membership and Coverage. Mandatory coverage of the employer shalltake effect onthe frst day ofis business operation, and that of the employee on tne date ois ore employment Proves that 2. Employees and employers who are not subject of mandatory ‘coverage prior to R.A. $679 and these Rules, including tho ‘uniformed members af tre Armed Forces of the Philippines, the ‘Bureau of Fire Protection, the Bureau of Jail Management and Penelogy, andthe Philippine National Police, and their respective ‘employers, 2s 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, ther coverage as wel 28 that oftheir employees shall take effect after the expiration of their respective suspension or waiver of coverage: Voluntary members, coverage shall commence on the actual date ‘ofregjstration, Provided, finally, that actual membership in the Fund shall ‘commence only upon remitance ofthe intial contribution and not ‘tpointof registration, Section 5, Registration of Employers. Alinew employers shalfrst 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. 9679 and these Rules, shall register for coverage before January 1,2010, unless adiflerent dates setby the Board by resolution Section 6. Registration of Employees. It shall be the duty ofall employers to register all their employees subject of mandatory coverage, by submitting to the Fund all data and information that it may require in relation to the employers’ respective businesses and employees, within thity (30) days from the start oftheir business, ‘operations. For newly hired employees, the employer shall register them with the Fund within thity (30) days from the start of their employment Section 7. Registration of the Self-employed. The self employed “who af subjetto compulsory coverage shall register with the Fund ‘within thirty (30) cays from the date he or she started to be selt- femplayed. Provided, that if the self-employed shall be required to ® ‘obtain the necessary permits andlor licenses, othr than the license requires fr practicing aparicuar profession, prior tothe practice of his or her sefremployment, he or she shal register withthe Fund briorto engaging insuch, ‘Section 8. Membership Term. Membership inthe Fund shall be {ora period of twanty (20) years commencing from the first day ofthe ‘month to which the member’ inal contribution tthe Fund applies: Provided, that the member shall have contributed a total of two hundred forty (240) menthiycontnbutions atthe time 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 frst fly seed ‘a. Membership Term Maturity; Death: € Retirement, 4. Permanent Total Dicabilty orinsanity: Permanent departure from the county; {Termination ttom the service by reason ofheath; {.Other causes as may be provided forby the Board of Trustees. ‘Occurrences other than the above, such as resignation, lay-off or suspension from employment, shall not consitule 2 ground for {ermination of membership. Such occurrences shall ony result 10 ‘suspension of contoutions. Provided finaly, that 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, thon the member shall continue fo be mandatory covered by the Fund and his of her emplayer is mandatad to continue deducting and remiting the employee's requirod contribution together with the ‘comesponding employers contribution pursuantto these Rules, Section 10. Retirement. Any member shall be compulsorily rotired under the Fund upon reaching age sixty-five (68). The member may however opt to retire earier under the Fund upon the occurrence of, any of the following events, provided the member fs nol a member- bortower: ‘a. Actual retirement from the SSS or GSIS, or from goverment serviceby provision of aw Retirement under a separate employer provident or retirement plan. Provided, that the members al least forty-five (45) years of ageatthetimeofretement, «Upon reaching agesinty (60). Provides finally that in the event the member opts to retire earlier ‘rom the Fund for reasons stated under ems b and c above, and thereafter continues or subsequently places him or hersolf in a ‘situation which would subject him or herself to mandatory coverage, then the member shall continue to be mandatory covered by the Fund and his or her employer is mandated to continue deducting ‘and remiting the employee's required contribution together with the ‘corresponding employer's contribution pursuantto these Rules. ‘Section 11, Permanent Total Disability. The following disabilities shallbe deemed total and permanent: @ 2. Temporary total disability lasting continuously for more than one. hundred twenty (120) days: . Complete loss of sight ofboth eyes: 6 Loss oftwo lbs ator overthe ankle or wrist; 6 Permanent complete paralysis oftwo limbs: ¢.Braininjuryresulting incurable imbecityorinsanty; and Such other cases which are adjudged tobe total and permanent sablty bya duly icensed physician and approvedby he Board. Section 12. Existing Membership and Coverage. Membership, ‘2nd coverage under e Fund established under Presidential Decree: No. 1752, a6 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 integrated ito the new Fund established Under R.A. No. 9678, and shall He subject henceforth to polices and ‘les that ne Board shall adopt under the said aw. All rights vested, duty imposed, penalty accrued, or proceeding commenced under Presidential Decree No. 1752, as amended, particularly those under Republic Act No. 7742, shall continue to subsist ang shall be ‘enforced under the provisions ofA. 9679 and those Rules. RULE VE CONTRIBUTIONS Section 1. Rate of Contributions. Covered employees and employers shall contibute 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%). b. Employees earning more then One thousand five huncred pesos, (P1500.00) per manth-—two percent(2%), €.All employers ~ two percent (2%) ofthe monthly compensation of allcovered employees. ‘The maximum monthly compensation to be used in computing employee and employer contnibutions shall not be more than Five thousand pesos (P5,000.00); Provided, that this maximum and the contribution rates may be fixed from time to time by the Board through rules and regulations acopied byt taking info consideration actuarial caleulationsandratesof benefits. Provided furthar, thatthe Toregoing rates shal ikewise be the same forthe selt-employed and ‘voluntary members, ‘Amember may, however, be allowed o 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 unless the employer agrees to match the member's increased contribution. Notwithstanding any contract to the contary, an employer shall not {deduct direcly or indirectly rom the compensation ofits employees. Covered by the Fund, or otherwise recover from thom, the ‘employer's contribution ith respect o such employees. Section 2. Fulltime Spouse. Ful-time spouses who volunteer to be covered by the Fund as provided for under these Rules, shal ® ‘adopts a bass of monthly contributions one-haif(%4)ofthe monthly ‘compensation income of the employed spouse. The fultime ‘spouse shall notbe required pay the employer'scontrbution ‘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 Tatierinaccordancewitn Section tof hisRule RULE VII COLLECTION AND REMITTANCE Section 1. Employer's Fiduciary Obligation. The employer ‘assumes a fiduciary elationship with oth the Fund and the member Concerned as regards the latter's contibution and the required femployer contribution, aswel asthe remittance thereof the Fund, ‘The employer likewise assumes the same fiduciary relationship with bath the Fun and the member concerned as regards the collation {and remittance of the latter's loan amotizations or payments to the Fundwhen the same is made through salary deductions as provided inthe succeeding sections ofthis Rule. Section 2 . Method of Collection and Payment. Monthly Contbutions of members to the Fund shall be collected through aytoll deductions by their respective employers, who for this purpose shallactas agentboth ofthe Fund.and the member. ta member avails of ary loan from the Fund and the member Consents in writing to amortize or pay the same through salary decuctions, the employer shall be duty-bound to faithfully Implement the same and shall continue fo do So until the loan is fully, ald. _Untl the loan is fully paid, the employer shall nt discontinue the salary deductions without the prior writen consent of the Fund, Forthis purpose, the employer shal ikewise act as agentboth ofthe Fund andthe employee. fa momber-borrower wha has previously consented to amortize or pay his loans through salary deductions resigns or otherwise Separates from the service ofthe empioyer, the employer shall be Bound to inform the Fund of such resignation ‘ot separation 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 amortizations or payments deducted from the ‘employee's compensation or shell indleste such deductions on the employee's pay sip. ‘Section. Remittance of Collections. ‘2. All employers shall remit to the Fund their contributions an the ‘contrioutions of their covered employees a5 well as the latter's loan amorizatons of payments tothe Fund, as provided for under Section 2 of this Rule, when applicable, within fieen (15) days, {tom the date the same were collected unless another period i previously agreed upon betwoon the employer and the Fund, oF ‘within such periods asthe Fund may praserioe otherwise, ® ‘The Fund may prescribe a diferent remittance schedule for Flipinos employed by foreign based employers depending onthe ‘nature of theircantracts or manner oftheir deployment abroad, Every employer required to set aside and remit such contributions fas prescribed under R.A, No. 9679 and these Rules shale 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 fall due unt ald. Every employer who actually deducts from the salary of his fempioyee 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 kowise further subjoct the employer toa penalty of three percent (33%) per month ofthe amounts payable ffom the date the loan” amortzations or payments fll ve unt pai. lt shall be mandatory and compulsory for all_ government Instrumentals, agencies, including government-owned. and Contvolled corporations, to provide the payment of contbutionsin their annual appropriations, Penal sanctions shall be imposed Uupen these employers who fail to include tha payment of conttibutons on time, or delay the remittance of the required Contributions tothe Fund. Theheads of ofces and agencies shal be administatively liable for non-remitance of the required Contibutions tothe Fund, Fallure or refusal of the employer to pay or to remit the contbutions herein prescnibed shall not prejudice the right ofthe covered employeeto the benefits under tis Act ‘eNo retroactive payment of contributions shall be alowed, except forunremitted collections that are paid 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 labile, the employer shal fkewise be liable forall the applicable interesis and penalties arising from the late remittance of contibutons and loan amortzations or payments {actually collected from the member, as wall as the dhvidends which the contributions should have earned have t 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 dividends added to said member's TAV. Provided, thatthe employer di not collect rom his employee during the period of his delinquency, but pays the ‘mandatory employer counterpartfo that period, the same shall not bo given retoacive 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 period othis orher employer's delinquency, such payment shal be treatedasa single contribution The contibutions under R.A. 9679 and these Rules, in eases where an employer refuses or neglects to pay the same, shall be Collected by the Fund in the same manner as taxes are made Collectible under the Nalonal Internal Revenue Cade, as ‘emendes, ‘The right to insttute the necessary action against the employer may Be commenced within twenty (20) years from the time delinquency is known or the assessment is made by the Fund, or from the time the benefit accrues, as the case may be. @ ‘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 thalatter case payments shallberemtted before the ‘Oth day ofthe beginning month ofthe succeeding quarter. Monthly, ‘emitances shall be made directly tothe Fund before the 10tn day of ‘tha following ealendar month ‘Section 5, Effect of Leave Without Pay or Suspension from Employment. Inthe event a member-saver goes on leave without ay oris subjected todsciplinary action where he's suspended from ‘work, the member-saver's monthly contribution together wath the corresponding employer's monthly contributions shall be ‘suspended forthe duration ofthe leave without pay er 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 to be ‘shouldered by him or her. A mamber-barrower, on the other hand, ‘shall continue to pay and remit direct to the Fundhis or her monthiy Contributions and loan amortzations or payments. The duty of the ‘employer to deduct monthiy amorizatons or payments for the ‘member-orrower's outstanding oan with he Fund as provided for Under Section 2 ofthis Rule shall be suspended forthe curation of, ‘he leave without pay or suspension from work. Provided, that it ‘halle the duty ofthe employer oinform the Fund ofthe members, leave without pay or suspension from work within thity (30) days fromthe fist day of such eave or suspension Section 6. Effect of Resignation or Separation from Employment. inthe event a member-saver resigns or is otherwise ‘separated from employment, the member-saver's monthly Contribution together with the corresponding employer's monthiy Contributions tothe Fund shall cease, Provided, that such membor- ‘saver may opt to continue paying and romiting to the Fund directly his or her_monthiy contibutions. together with the employer Counterpartto be shouldered by him orer. Amember-borrower, on ‘tho other hand, shall continue fo pay and romit rectly to tho Fund his or her monthiy contributions and. loan amortizations. or payments. The duty of the employer to daduct monthly amortzations or payments fr the member-borrower's outstanding ‘oan wit the Fund as provided for under Section 2 ofthis Rule shall, likewise cease. Provides, that shall be the cuty oftie employer to, Inform the Fund of such resignation or separation immediatly upon ‘notice thereof, butnotiater han tity (30) days from the effectivity of ‘aidresignation or separation. RULE Vill WAIVER OR SUSPENSION OF FUND COVERAGE ‘Section 1 . Waiver or Suspension of Coverage.The Board may, by rules or resolution, waive or suspend an employer's mandatory Coverage under the Fund by reason of nature of employment, Condition of business, ability to make contibutons and. other ‘easonable 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 nfull force and effect units expirationas staledin said waiver or suspension ® RULE Ix BENEFITS. Section 1. Mandatory Contributory Support of the Employer. In the spr 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 Fes or as may be provided fr by the Board. Notwithstanding any contract to the contrary, an employer shall not deduct, ect oF Indirect, from the compensation of its employees covered by the Fund, of otherwise recover fom them, the employer's contribution vt raspectto such employees. Section2. Acts of the Employer shall not prejudice the member. Failure or refusal ofthe employer to pay of lo remit the contibutons 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 ‘acervais thereto and Income or investment earrings theretrom, shal bbe exempt om any tax, assessment, fee, charge, or customs oF import duty, and al benafit paymenis made by the Fund shall likewise be exempt rom al kinds oftaxes, fees or charges, and shal not be labie to attachments, gamishments, levy or seizure by oF Lunder any legal ar equitabie process whalsoover, ether before oF alter receipt by the person or persons entitled thereto, excepto pay any debtofthe member to the Fund Section 4. Dividends. The Board shall set aside annually an amount which in nocase shal bo less than seventy percent (70%) of the annual net income of the Fund, tobe paidin the form of ividends tomembers. The member's coninbutons,inckisive of employee's and employer's contributions, shall eam dividends which shall be Gstibuted annually and credited to his or her TAV. Only members ‘th outstanding TAV as of year-end shall be ented to cividends Sctared for that particular year. All dividend earnings shall be tax free. Section 5, Return of Contributions. A member shall be eniled to fecelve his Total Accumulated Value upon termination. of ‘membership in accordance with Section 9 of Rule Vof these Rules, Tess any and all pending obligations withthe Fund, In the event of Gath, the member's heirs shall ikewise receive the same less any anda pending obligations withthe Fund. Section 6. Housing Features. Amember of good standing shall be eligible to apply for housing loans, under such terms and conditions ‘as maybe authorized bythe Board, taking into account ably to pay ‘The Board of Trustees shall institute polcies to ensure that lower- incomemembers obtain such housing loans, Section 7. Benefit Programs. A member may aval of the Fund's various shor term loans and oiher beneft programs, provided that he or sho satistos the eligibility requirements setby tha Board Section 8, Portability of Membership. A member who transfers to another employer or who becomes sell-empioyed carries with him ® his Total Accumulated Value, Section 9.0ptional Withdrawal of Contributions. Those who become members ofthe Fund after the effectivity of R.A. 9679 shal have the option to withdraw his or her Total Accumulated Value on the fiteenth (15th) year of continuous membership. Provided, that said member has no outstanding housing loan with the Fund at the time of witherawa ‘The exercise ofthis option by the membor shall not be considered as a ground to terminate his membership withthe Fund. The member shall continue to be mandatony covered by the Fund and his or her ‘employer is mandated to continue deducting and remitting the employee's required contribution together withthe corresponding ‘employer's contribution pursuanttothese Rules, Section 10. Death Benefits. Upon the death of member, his or her beneficiaries shall be entitled to death benefits in an amount to be determined by the Board in addition to the Total Accumulated Value as mentioned provided forunder in Section 5 hereof. Section 11, Government Guarantee. The benefits prescribed Under R.A. 9679 shall not be diminished and to guarantee said benefits the Goverment of the Republic ofthe Philippines accepts ‘general responsibilty forthe solvency ofthe Fund Section 12. PagiBIG Contributions are Excluded from the Computation of the Gross income. Pursuantto Section 32 (6) (7) (Qotthe National Internal Revenue Code of 1997. as amended, Pag- TBIG Contbutions are excluded from the computation ofthe grass income and shallbe exempt from taxation. RULEX ADJUDICATION OF CLAIMS AND DISPUTES Section 1. Facility of Payment of Claims and Benefits. Te Fund shall prompt pay the benofits provided for in Rule IX hereof to the ‘member orto such persons as may be entiled thereto in accordance with the provisions of said Rule provided that the necessary Supporting documents are submitted together with the applieation or provident claims. In relation thereto, he Chief ExecutWve Offcor shall issue the necessary rules and procedures to faciltate the processing and paymentof the said benefis and claims. Section 2. Adjudication and Settlement of Claims and Disputes. The Fund shallhave orginal and exclusive juriediclon over al claims and disputes on any matter relative to the implementation of the provisions of RA. 9679 and these Rules affecting the rights and Interestof the members. The decision of the Chief Executive Officer of the Fund shall be fal and executor, unless appealed to the Board, after the lapse of thity (30) days from receipt by the aggrieved party of such decision. The decision ofthe Board shall, Unless appealed to a competent court, become final and executory aterfiteen (15) days romreceiptofsuch decsion. ‘The Chief Executive Officer shall prescribe the forms to be used and the procedtes to be followed in the adjudication and setlement of the aforementioned claims and disputes. @ Section 3, Proof of Death of a Member. The proof of death of a member shall be established by a duly certifed death certificate ora ‘crtiied extract ftom the Death Register Iesued by the Chal Registrar or National Statistics Ofice (NSO) or by such other officer ‘authorized to issue such extracts, The Fund may tkewse accept as ‘ational proof such otner documents as it may, ints discretion, doom acceptable, RULEX! MISCELLANEOUS PROVISIONS ‘Section 1. Unclaimed Savings/Dividends. Any amount standing tothe erect of any member or period of one year ater rmination ‘of membership shall be regarded as unclaimed savings and shall be reclassified as an account payable to the former member by the Fund. If any such amount standing to the credit of such person remains unclaimed for a perod of more than ten (10) years, the ‘same shallbe reverted tthe Fund's retained eamings. Soction2. Employment Records and Reports. ‘a. Each employer shall immediately report tothe Fund the names, ages, cil status, occupations, salaries, and dependents of ts ‘covered employees within such periods as provided under these Rules ras may be prescribed by the Fund. Every employer shall keep true and accurate work records for, ‘such period and containing such information as the Fund may prescribe, in addition to the annual register of new and ‘Separated employees which shall be secured trom the Fund, ‘when the employee shall enter onthe fst day of employment of fon the effective date of separation, the names of the persons ‘employed or separated from employment and such other data thal the Fund may require and said annual register shall be ‘submited to the Fund in the month of January of each year Such record shall be open for inspection by the Fund of ts ‘authorized representatives quarterly or as often as the Fund may require, RULE xi GENERAL PROVISIONS. ‘Section 1. Penalty Clause. Pursuant lo Section 25 of RA. 9679, refusal or failure without lawful cause or with fraudulent intent t© ‘comply with the provisions of said law and these Rules, particularly with respect to registration of employees, collection and remittance ‘of employee-savings as well as the required employer ‘conirioutions, or the correct amount due, within the time set under these Rules r the policies and guidelines adopted by the Board, or ‘pectic call or extension made by the Fund Management, shall ‘constitute an offense punishable by a fine of not less than, but not ‘more than twice, the amount involved or imprisonment of not more than six (6) years, of Both such fine and imprisonment, in the discretion of the Court, apart from the civi labiliies’ and/or ‘obligations ofthe offender or delinquent. ‘When the offender is a corporation, the penalty shall be imposed "upon the members of the governing board end the President or ‘General Manager, without prejucice to the prosecution of related offenses under the Revised Penal Code and other laws, revocation © and denial of operating rights and privileges inthe Philippines, and \deportation when the offender isa foreigner. In case of government instrumentalies, agencies or corporations, the treasurer, finance officer, cashier, disbursing officr, budget fier or other official or employee whe fails fo include in the annal budget the amount corresponcing to the amployers contributions, or io fils or refuses or delays by more than thirty (30) days from the time such amount becomes due and cemandable orto deduct the ‘monthly contributions of the employee shall, upon conviction by final Judgment, suffer the penaties ofimprisonment of not more that six (6), Years, anda ine of notless than, butnot ore than twice the emount Involved. Section2. Separability Clause. If, forany reason, any provision of these Rules, or the application thereof to any person or circumstances, is held invalid or unconstitutional, the remaining provisions not affected tnereby shall continue to bein full force ana ole, ‘Section 3. Repealing Clause. All rules and regulations, policies, btders andissuances contrary oor inconsistentwith these Rules are hereby repeaied or madifed accordingly. All ights vested, duty imposed, penalty accrued, or proceeding commenced under Presidential Dacroe No. 1782, as amended, particulary those under Republic Act No. 7742, shall continue to subsist and shall be enforced under the provisions ofR.A, 9679.nd these Rules, Section 4. Effectivity. Tose Rules shalltakeoffecfiteen (18) days ater the publication thereof in two (2) newspapers of general irculation, For more information please get in touch with the Pag-IBIG Fund call center at 724-4244(Pag-IBIG). You may also visit the Pag-IBIG Fund branch office nearest you. ® fT

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