MALACANANG EO 641 PROHIBITS WITHDRAWAL OF PFO SHARE BEFORE RETIREMENT OR SEPARATION

Hindi na take-up yung proposal na withdrawal of PF Savings?....

Jocal wrote:

Hindi na take-up yung proposal na withdrawal of PF Savings?....

The merit of the proposal was discussed but then there is a legal restriction per Executive Order NO. 641 Sec. 3, please read the highlighted text of the Malacanang Order below:
http://www.gov.ph/2007/07/25/executive-order-no-641/

Executive Order No. 641, s. 2007
MALACAÑAN PALACE

Manila

BY THE PRESIDENT OF THE PHILIPPINES

Executive Order No. 641

AUTHORIZING THE ESTABLISHMENT AND ADMINISTRATION OF PROVIDENT FUNDS IN THE GOVERNMENT

WHEREAS, Provident Funds were established in government banking institutions pursuant to Republic Act (RA) No. 4537, funded out of the contributions made by the bank and its officers and employees;

WHEREAS, Section 41, General Provisions of RA No. 7180, the FY 1992 General Appropriations Act (GAA), authorized that any surplus of service fees deposited with the National Treasury be constituted into a Provided Fund which shall be available for loaning purpose and Administrative Order No. 279, s. 1992 prescribed the attendant rules and regulations;

WHEREAS, subsequent GAAs reiterated the constitution of Provident Funds, now charged against service fees, which shall be available also for welfare benefits’ purposes;

WHEREAS, other government-owned and/or controlled corporations (GOCCs) and government financial institutions (GFIs) were authorized to establish Provident Funds;

WHEREAS, Provident Funds supplement retirement or separation benefits and provide alternative sources of loan financing;

WHEREAS, there is a need to prescribe uniform rules and regulations for the establishment and administration of Provident Funds in the government;

WHEREAS, the Committee on the Protection of Income of Government Employees created pursuant to Executive Order No. 462 dated September 19, 2005, advocates the “Institutionalization of the Agency Provident Fund” as one of the measures to provide supplementary benefits to government employees;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Purpose – A Provident Fund is hereby authorized to be established in each government agency to be administered in accordance with the objectives, policies, governing structure and general guidelines indicated herein.

SECTION 2. Objectives. – The Provident Fund shall serve as a savings and loan credit facility that may cater to the needs of government officials and employees; and shall provide supplementary welfare benefits from the Fund.

SECTION 3. Policies. – The establishment and administration of the Provident Fund shall be guided by the following policies consistent with established management principles and practices:

Membership in the Provident Fund shall be voluntary;
Employees and employers alike shall share roles in the establishment and administration of Provident Funds;

Reasonable regulatory structures shall be established to ensure uniformity, integrity and viability of the operation of the Provident Fund;

Consistent with the principles of fair remuneration and equity, all officers and employees should have guaranteed access to the Provident Fund and should have the same rights and privileges under the Fund. There should be no special rules to benefit executives or a select group of employees;

The Provident Fund should be managed prudently by a Board of Trustees with equal representation from the employer and employees to preserve Fund accounts, safeguard the viability of the fund and ensure the security of members;

To encourage employees to contribute as much as they can to the Fund, as well as preserve their Provident Fund accounts and not withdraw their share before retirement or separation, advocacy measures should be instituted;


Members should have strong legal protections with government enforcement capabilities against the loss of Provident Fund assets due to fraud, theft or fiduciary mismanagement.

SECTION 4. Funding Sources. – The Provident Fund shall be sourced from the following:

(a) Members’ contributions;

(b) Initial government agency counterpart contributions in the form of support for reasonable operating requirements in the administration and operation of the fund such as the part-time assignment of existing personnel and the use of necessary agency facilities and equipment; and

(c) Such other fund sources as may be provided by the laws, and those which the Board of Trustees of the Fund may thereafter identify as legal, valid and authorized funding sources.

Government cash contributions to be sourced from savings may be authorized in the future as the government’s financial position would allow, subject to the guidelines that will be issued by the Department of Budget and Management (DBM).

SECTION 5. Governance – The Provident Fund shall be managed by a Board of Trustees, hereafter referred to be as the Board, with adequate representation from the employer and employees. The agency’s highest official directly responsible for financial affairs may be designated as Chairman of the Board of Trustees.

SECTION 6. Functions and Responsibilities of the Board. – The Board shall be directly responsible for the efficient and effective administration of the Provident Fund. Its functions shall be as follows:

Promulgate, implement and enforce the rules and regulations governing the use, operation, and investment of the Fund;

Identify and secure other legal, valid and authorized sources of funds to provide better credit facility and welfare benefits for the members;

Determine the type, use and amounts of loans that may be granted and prescribe the applicable repayment schedule and interest rates;

Determine the benefits due to members of the Fund;

Establish the eligibility requirements for membership, claimants and grantees of the fund;

Approve membership, loans to employees after considering the poverty threshold limit, benefits, and expenditures from the Fund;

Designate or appoint officers and staff of standing committees for the Fund from among the regular personnel of the agency, and prescribe their duties, and responsibilities;

Create and constitute regional boards if and when the size and spread of operations so warrant and delegate such functions as may be necessary;
Determine sanctions/liabilities of officers managing the Fund and of violators of the rules and regulations of the Fund; and

Perform such other functions as may be necessary to carry out the objectives and purposes of this Order.

SECTION 7. Restriction on Compensation and Expenses – All members, officers and staff of the Board shall serve without compensation, except for payment of actual overtime services rendered by the support staff.

Reasonable expenses incurred by the members of the Board in connection with Board activities may, however, be reimbursed upon presentation of receipts and other documentary evidences in support of claims. Any claim for reimbursement of actual and necessary expenses incurred in connection with activities of the Board shall be evaluated and processed in accordance with existing accounting and auditing rules and regulations.

SECTION 8. Accounting and Auditing Requirements. – The Provident Fund and its operations shall be subject to existing accounting and auditing rules and regulations.

SECTION 9. Reporting Requirement. – The Board of Trustees shall submit to the members thereof an annual report on the operation of the Fund and its financial condition at the end of each year, copy furnished the Office of the President and the Department of Budget and Management.

SECTION 10. Implementing Rules and Regulations. – The DBM shall issue the necessary implementing rules and regulations within sixty (60) days from the issuance of the Order, without prejudice to the immediate establishment or setting-up of a Provident Fund by the agencies.

SECTION 11. Separability Clause. – If any part or provision of this Executive Order is held invalid or unconstitutional, the other parts or provisions not affected shall remain valid and effective.

SECTION 12. Effectivity. – This Executive Order shall take effect fifteen (15) days following its publication in a national newspaper of general circulation.

DONE in the City of Manila, this 25th day of July in the year of Our Lord, Two Thousand Seven.

(Sgd.)GLORIA MACAPAGAL-ARROYO
By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Source: Supreme Court E-Library

By the way po Mam Sonia..query lang po..yun bang 80% ng Housing Fund Dividends na binigay last December 2012 ay i-deduct din from the proceeds nitong soft loan/dividends natin na i-release nitong March 1, 2013?...kasi kung ganun sobrang liit na lang net proceeds if ever..thank you.

alut5724 wrote:

By the way po Mam Sonia..query lang po..yun bang 80% ng Housing Fund Dividends na binigay last December 2012 ay i-deduct din from the proceeds nitong soft loan/dividends natin na i-release nitong March 1, 2013?...kasi kung ganun sobrang liit na lang net proceeds if ever..thank you.

Yes Mam Alut deducted po ang 80% hf div released last December so 20% na lg po ang remaining

Ma'am Son, ang concern ko lang po dito ay yong 80% hf dividends that was released last december 2012. If that form part of my earnings from HF why should it be deducted for the dividends schedule to be release this march..
may i know further from your end the composition of this 80%, from what period im entitled to this earnings/dividends. Parang nakakalito, dividend ang nature ang release thru loan kaya dapat bayaran....... PAKI PALIWANAG LANG PO.....

9308 wrote:

Ma'am Son, ang concern ko lang po dito ay yong 80% hf dividends that was released last december 2012. If that form part of my earnings from HF why should it be deducted for the dividends schedule to be release this march..
may i know further from your end the composition of this 80%, from what period im entitled to this earnings/dividends. Parang nakakalito, dividend ang nature ang release thru loan kaya dapat bayaran....... PAKI PALIWANAG LANG PO.....

9308: As explained to me last Friday at the PFO, the annual declaration of 100% dividend is during March because the PF accounting period is a fiscal period or year. Since the 80% hf dividend was given in advance last December because we requested it, therefore it will be deducted from the 100% hf dividend this March in other words only the remaining 20% will be paid out.

Eversince time immemorial, our pf dividend is annually released as a loan before it was special educational loan but now it is a special financial assistance loan. Under the NIRC, all income and dividend from whatever sources are taxable. And we are all taxable at 30% minimum rate if our dividend will be released to us as dividend so thus releasing it as a loan is one remarkable move by the management inorder to shield us from the harsh effect of taxation.

Before we were not required to submit loan applications, however in compliance with the recent audit findings that the applications must be submitted.

Maraming salamat po sa tanong mo at naway maski papano nabigyan ko ng liwanag ang iyong katanungan.

basag si bamba...