Article 91Labor and Agrarian Laws and Social Legislation, p. 91

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

(a) To formulate policies, rules and regulations to carry

out effectively the functions of the Fund under this Act;

(b) To promulgate such rules and regulations as may

be necessary or proper for the effective exercise of the

powers and functions, as well as the discharge of the

duties and responsibilities of the Fund, its officers and

employees;

(c) To authorize expenditures of the Fund in the

interest of effective administration and operations; to

adopt from time to time the budgets for said purposes;

(d) To approve the annual and supplemental budget

of

receipts

and

expenditures

including

salaries

and

allowances of the Fund personnel; to authorize such

capital and operating expenditures and disbursements as

may

be

necessary

and

proper

for

the

effective

management and operation of the Fund;

(e) To condone, in whole or in part, penalties imposed

on

loans

of

members/borrowers

who,

for

justifiable

reasons prescribed by the Board, failed to pay on time any

obligation due to the Fund: Provided, That such exclusive

power

to

condone

shall

likewise

apply to penalties

imposed on employers, who justifiably fail to remit when

due the required contributions of their employees;

(f)

To

approve

the

Fund's

organizational

and

administrative structures and staffing pattern, and to

establish, fix, review, revise and adjust the appropriate

compensation package for the officers and employees of

the Fund in accordance with Section 13 (k) hereof; and

(g) To exercise such powers as may be necessary to

carry into effect the powers and accomplish the purposes

for which the Fund is established.

SECTION 16. Rule-Making Power. — The Board of

Trustees

is

hereby authorized to make and change

needful rules and regulations, which shall be published in

accordance with law or at least once 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 disposition of the Fund or

parts thereof, including payment of amounts credited to

members or to their beneficiaries or estates:

(b)

Grounds

for

and

effects

or

termination

of

membership other than by completion of term:

(c) Fund earnings and their distribution, investment

and/or plowing back for the exclusive benefit of the

members;

(d) Interim disbursements of accumulated values to

members of ameliorative and similar purposes;

(e)

Benefits,

contributions

including

their

rates,

premium rates and interest rates;

(f) Housing and other loan assistance programs for

members;

(g)

Adjudication

and

settlement

of

claims

and

disputes and the procedures for the same on any matters

involving the interests of members in the Fund;

(h) Optimize the effectiveness of the Fund's coverage;

and

(i) Other matters that, by express or implied

provisions of this Act, shall require implementation by

appropriate policies, rules and regulations.

SECTION

17.

Powers

and

Duties

of

the

Chief

Executive Officer. — The Chief Executive Officer of the

Fund shall execute and administer the policies and

resolutions approved by the Board of Trustees, prepare its

agenda and direct and supervise the operations and

management of the Fund. The Chief Executive Officer,

subject to the approval of the Board in case of approval of

managerial positions and above, and the confirmation of

the Board in below that of manager level, shall appoint

the personnel of the Fund, remove, suspend or otherwise

discipline them for cause and prescribe their duties and

qualifications, in accordance with existing civil service

laws,

rules

and

regulations,

to

the

end

that

only

competent personnel may be employed.

SECTION 18. Money Investments. — All monies of

the Fund not needed to meet current administrative and

operational requirements, shall be invested with due and

prudent regard for its safety, growth and liquidity needs.

SECTION 19. Exemption from Tax, Legal Process

and Lien. — All laws to the contrary notwithstanding, the

Fund and all its assets and properties, all contributions

collected

and

all

accruals

thereto

and

income

or

investment earnings therefrom, as well as all supplies,

equipment, papers or documents shall be exempt from

any tax, assessment, fee, charge, or customs or import

duty; and all benefit payments made by the Pag-IBIG

Fund shall likewise be exempt from all kinds of taxes, fees

or

charges, and shall not be liable to attachments,

garnishments, levy or seizure by or under any legal or

equitable

process

whatsoever,

either before or after

receipt by the person or persons entitled thereto, except

to pay any debt of the member to the Fund. No tax

measure of whatever nature enacted shall apply to the

Fund, unless it expressly revokes the declared policy of

the State in Section 2 hereof granting tax exemption to

the Fund. Any tax assessment against the Fund shall be

null and void.

SECTION

20.

Government

Guarantee.

—

The

benefits prescribed in this Act shall not be diminished

and to guarantee said benefits, the government of the

Republic of the Philippines accepts general responsibility

for the solvency of the Fund.

SECTION 21. Administration Costs. — The Fund shall

bear the costs of its administration and development, in

such amounts and/or limits as the Board of Trustees may

deem appropriate, but not exceeding two percent (2%) of

the Net Fund Assets of the previous year, excluding

operating cost directly relating to the lending operations

of the Fund.

SECTION

22.

Audit.

—

The

Chairman

of

the

Commission on Audit shall act as the ex officio auditor of

the Fund and, accordingly, is empowered to appoint a

representative

and

other

subordinate

personnel

to

perform and report on such audit duties, responsible to

and

removable

only

by

the

Commission

on

Audit

Chairman, without prejudice, however, to the power of

the 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

Presidential Decree No. 1445 , otherwise known as the

Government Auditing Code of the Philippines .

SECTION 23. Remittance of Contributions. — (a) It

shall be the duty of every employer, private or public, to

set aside and remit the contributions required under this

Act in accordance with a mechanism determined by the

Board of Trustees.

(b) Every employer required to set aside and remit

such contributions as prescribed under this Act shall be

liable for their payment, and nonpayment shall further

subject the employer to a penalty of three percent (3%)

per month of the amounts payable from the date the

contributions fall due until paid.

(c) It shall be mandatory and compulsory for all

government

instrumentalities,

agencies,

including

government-owned

and

-controlled

corporations,

to

provide the payment of contributions in their annual

appropriations. Penal sanctions shall be imposed upon

these employers who fail to include the payment of

contributions on time, or delay the remittance of the

required contributions to the Fund. The heads of offices

and

agencies

shall

be

administratively

liable

for

non-remittance of the required contributions to the Fund.

(d) Failure or refusal of the employer to pay or to remit

the contributions herein prescribed shall not prejudice

the right of the covered employee to the benefits under

this Act.

© Compiled By RGL

91 of 169