Implementing Rules & Regulations
RULES AND REGULATIONS FOR THE ESTABLISHMENT AND ADMINISTRATION OF A PROVIDENT FUND IN THE PHILIPPINE POSTAL CORPORATION
ARTICLE 1- DEFINITIONS
For purposes of clarification, the following terms and phrases, as used in these Rules, shall have the meaning indicated hereunder, unless the context requires otherwise:
- “Corporation’ or “PPC’’ shall mean the Philippine Postal Corporation.
- “Fund” shall mean the PPC Provident Fund.
- “Board of Directors” shall mean the Board of Directors of PPC.
- “Member” shall mean an official or employee of the PPC, who is entitled to the benefits of the Fund.
- “Trustee” shall mean the individual designated/elected/appointed as a member of the Board of Trustees of the Fund.
- “Office” shall mean the office of the PPC Provident Fund.
- “Earnings” shall include all interests, dividends and any other increments and returns from the investments or deposits of the fund.
ARTICLE II –ESTABLISHMENT AND CONCEPT OF THE FUND
- Pursuant to PPC Board Resolution No. 93-116 dated October 14, 1993, a Provident Fund in the Philippine Postal Corporation is hereby established.
- The Fund shall be under the general administration of the Philippine Postal Corporation as trustee and shall consist of the contributions made by both the Corporation and its officials and employees, fund from other sources and the earnings to be derived therefrom.
- The Fund’s objective is to maximize the payment of benefits to PPC officials and employees as a fitting reward for faithful and dedicated service in addition to the usual retirement benefits under existing laws, rules and regulations.
- The Fund shall be administered by a Board of Trustees, which has the power and authority to invest the Fund or any portion thereof and to pay benefits to the members or their heirs, subject to the rules and regulations as stipulated herein and under such terms and conditions as the Board of Directors and/or the Board of Trustees may fix.
- The beneficiaries of the Fund are the Philippine Postal Corporation Officials and employees of their heirs.
ARTICLE III – MEMBERSHIP
- Eligibility – All official and employees of the Corporation and its subsidiaries, except those appointed as:
- Casual or emergency;
- Part-time; or
- Temporary Employee
Shall automatically be members of the Fund, unless they choose otherwise in writing ninety (90) days from the effectivity of these rules and regulations.
- Duration of Membership – Membership in the Fund shall continue until the member has seceded from the Corporation, been separated for cause, or in any way terminated his services in the Corporation. Members who go on terminal leave prior to the retirement may continue their membership and avail of the benefits herein, until the expiration of such leave.
- Suspension of Contributions – When a member goes on leave of absence without pay, or is suspended from service in the Corporation as a penalty after administrative proceedings, all contributions pertaining to such member shall be suspended. However, when said member reports back for duty, he may resume contributing to the Fund, but in no case will such contribution be made to retroact to the period of leave or administrative suspension mentioned herein.
For purposes of determining continuous membership in the Fund, such suspended member shall be deemed to have continuous membership, but exclusive of the period he was on leave of absence without pay or under suspension as a penalty for an administrative offense.
In the case of a member who suffers preventive suspension during the pendency of any administrative case against him, the contributions mentioned above shall likewise be suspended during the period of suspension; provided, however, that if he is finally exonerated in the administrative case and his back salaries are paid, the suspended contributions shall be deemed to have accumulated during the period of suspension and may be paid into the Fund as if no suspension had ever been suffered; and provided, further, that the membership or such member shall be deemed to have been continuous even during the period of his suspension.
- If an official or employee who has seceded from the Corporation is subsequently reinstated, he shall be considered, for purposes of membership, as a newly appointed official or employee.
ARTICLE IV –SOURCE OF FUNDS
- Member’s Contribution – Membership in the Fund shall constitute an authority for the Corporation to deduct monthly the sum of Five (5%) percent of the monthly basic salary as the contribution to the Fund of the official or employee concerned
- Corporation’s Contribution – The Corporation shall pay to the Fund as its contribution an amount equivalent to Ten (10%) percent of each member’s monthly basic salary; provided, however, that the Board of Directors may modify from time to time such amount of contribution as it may see fit.
- Investments – As a policy, all fund investments shall be made within the context of safety, liquidity and profitability.
Investment of the Fund or any portion thereof shall be made in loans to members; interest–earning deposits; money market instruments; high-grade securities; real estate investment and/or other non speculative investments, under proper guidelines and established loan policies. These investments shall be reported monthly or periodically to the Board of Trustees for approval, confirmation or notation as the case may be.
- Loans to Members – As part of its investment policy, the Board of Trustees shall adopt rules and regulations for the availment by the members of loans from the Fund.
- Remittance of Contributions – The Chief Accountant or appropriate Department Heads in the central office and the Regional Managers in the Regional Offices shall deduct regularly from the monthly basic salaries of the members their contributions to the Fund and all amortizations on their loans. The said contributions and payments together with the Corporation’s contribution shall be remitted to the Provident Fund Office within ten (10) days from the date of collection.
- Depository Bank – All collections of the Fund shall be deposited with the authorized depository bank as duly approved by the Board of Trustees.
- General Reserve for Employee Benefits – There shall be a General Reserve for Employee Benefits Account, consisting of an amount to be determined by the Board of Trustees, which shall be used for the payment of the contingent amounts referred to in paragraphs 4 and 5 of Article V covering the benefits due a member by reason of death, incapacity or disability and for other purposes authorized by the Board of Trustees.
- Earnings – At the beginning of each calendar year, the realized earnings derived from the investments in the previous year just ended shall be credited and/or distributed to the members in proportion to the amount standing to their credit as of the preceding year just ended, the distribution to be authorized by the Board of Trustees under such terms and conditions including the manner of payment, that the said Board may deem proper.
There shall likewise be available for distribution to the members of the Fund any portion of the General Reserve for Employee Benefits Account which the Board of Trustees may deem to be in excess of what is necessary to meet the contingencies for which the reserve has been established.
- Reserve for Losses/Bad Debts – The Board of Trustees shall set up a reserve for losses/bad debts not exceeding two (2%) percent of the Funds total investment to be set aside from the earnings of the Fund.
ARTICLE V – BENEFITS
- Resignation/Retirement of Any Member – In the event of resignation/retirement of a member from the corporation. He may withdraw the whole amount of his contribution to the Fund, as well as its corresponding proportionate earnings, and where he has been a member of the Fund for at least five (5) years, he shall be entitled to the following proportion of the Corporation’s contribution and the earnings due thereon, to wit:
|Number of Years of Membership||Percentage of Corporation’s
Contribution and Earnings
Provided, however, that if the resigning/retiring member has attained the age of 60 years or more and has completed at least twenty (20) years of service to the Corporation, he shall be entitled to 100% of the amount standing to his credit. The portion of the Corporation’s contribution and its earnings not paid to a resigning/retiring member for one reason or another shall automatically accrue to the General Reserve for Employee Benefits.
- Separation for Cause – In case of separation of a member from the service for cause, he will be entitled only to that part of the Fund contributed by him, and the earnings thereon, after deducting any claim that the Fund and the Corporation may have, as provided under Section 6 of this Article; Provided, however, that the Corporation’s contribution corresponding to the employee concerned and the earnings thereon shall be credited to the General Reserve for Employee Benefits.
- Death – In the event of death of a member, his legal heirs shall be paid 100% of the deceased member’s personal and Corporation share plus earnings thereon, regardless of his length of service in the Corporation.
- Incapacity – In the event of separation from the service due to total and permanent in the event of separation from the service due to total and permanent disability as defined under existing laws, a member shall be entitled to 100% of the member’s personal and Corporation share plus earnings thereon, regardless of his length of service in the Corporation.
- Payment of Benefits – The member concerned or his legal heirs, as the case may be, shall file his claim in writing with the Provident Fund Office. If the claim is made by a legal heir of a deceased member. The laws and rules on succession shall apply. Similarly, the payment of benefits shall be governed by the policies and guideline established by the Provident Fund Office.
- Limitations on Payments – The fund shall have a first and permanent lien upon the amount standing to the credit of any member to cover all unpaid loans or credit accommodations and other claims of whatever nature which the Fund may have against him. The Corporation shall also have a lien on the outstanding credit of the member to cover all losses, costs and expenses which the Corporation may sustain through his dishonesty, theft, defalcation, embezzlement, falsification or for any debt due to the Corporation from the member.
Unless otherwise provided herein, a member cannot draw against his credits in the books of the Fund, nor can any such credit be made available as security for a loan except in favour of the Provident Fund.
ARTICLE VI – BOARD OF TRUSTEES
- Composition – The affairs, business and properties of the Fund shall be administered and managed by a Board of Trustees which shall be composed five (5) members from the Corporation as follows:
- A member of the Board of Directors of the Philippine Postal Corporation, to be designated by the Board;
- Two (2) Assistant Postmasters General to be designated by the Postmaster General
- One (1) member representing the second level of employees, to be designated by the Postmaster General from nominees of Heads of Departments and Office of the Corporation who could each recommend one (1) candidate for the position; and
- One (1) member representing the first level of employees and recommended by the Employees Organizations duly registered in accordance with Executive Order No. 180 and its implementing rules, to be designated by the Postmaster General. However, in case more than one Employees Organization exists, the different organizations shall agree among themselves as to who shall represent them in the Board.
Except for the member designated by the Board of Directors, all other members of the Board of Directors, all other members of the Board of Trustees shall be subject to confirmation by the PPC Board of Directors.
- Term of Office – The members of the Board of Trustees shall hold office for a term of one (1) calendar year or until such time that their successors shall have been appointed or qualified, and shall assume office on the first working day of every year and after confirmation by the Board of Directors. The Postmaster general shall submit appointments for confirmation by the Board of Directors. The Postmaster General shall submit appointments for confirmation by the Board of Directors thru the Board Secretariat not later that the fifteenth (15th) of November each year.
- Vacancy – In case of a vacancy, the appointee to such vacancy shall only serve for the unexpired portion of the term.
- Powers of the Board of Trustees – The Board of Trustees shall be directly responsible for the efficient and effective administration, control and management of the Fund and its earnings and properties in accordance with rules and regulations promulgated thereon. In addition, the Board shall have the following duties and functions:
- Promulgate, apply and enforce the rules and regulations governing the use and operations of the Fund;
- Establish the eligibility requirements for applicants, claimants and grantees of benefits from the Fund;
- Approve all loans, other benefits, and other payments from the Fund;
- Determine the type, use and amounts of loans and other benefits that may be granted, and prescribe the applicable repayment schedules and interest rates thereon;
- Perform such other functions as may be deemed necessary to carry out the objectives and purposes of the Fund.
- Presiding Officer; Secretary – The representative of the Board of Directors shall be the ex-officio Chairman and Presiding Officer of the Board of Trustees. The Postmaster General shall designate one of the Assistant Postmasters General to be the Vice-Chairman subject to confirmation by the Board of Directors, whose responsibility shall be perform all the duties of the Chairman in the latter’s absence or incapacity.
In the absence of the Chairman and the Vice-Chairman, the Trustees designated by the majority of the Trustees present, provided that they constitute a quorum as provided in Section 5 immediately following shall act as the presiding officer.
The Board of Trustees shall have a Secretary who shall be an officer of the Corporation and appointed by the Postmaster General.
- Meetings; Quorum – The Board of Trustees shall hold regular meetings at least once a month. The Chairman or any two Trustees, upon written request addressed to the Secretary, may call at anytime a special meeting of the Board of Trustees. The attendance of at least three (3) members shall constitute a quorum at any meeting, and all decisions of the Board of Trustees shall require the concurrence of at least three (3) members
- Per Diem – The members of the Board of Trustees shall receive a per diem for every meeting that they attend in an amount as may be fixed by the Board of Trustees from time to time
ARTICLE VII – OFFICERS AND EMPLOYEES OF THE FUND
- All officers and employees of the Provident Fund Office are personnel of the Corporation, who shall be appointed or removed by the Postmaster General in accordance with existing personnel policies of the Corporation. The Postmaster General shall fix their remuneration and other emoluments in accordance with corporate policies.
- Officers – The officers of the Provident Office are as follows:
- Administrator – shall be the Executive Officer of the Provident Fund Office.
- Treasurer – shall be accountable for the money and properties of the Fund in such manner as may be directed by the Board of Trustees and shall perform such other duties which are or may be incidental to his position.
- Fund Legal Counsel – The Chief Legal Officer of the Corporation shall be the ex-officio Legal Counsel of the Fund. He shall handle, control and supervise all cases and legal affairs of the Fund.
- Other Officers – The Postmaster General shall appoint such other officers of the Fund as he may deem fit.
- Auditor – The Auditor of the Corporation or his duly authorized representative shall be the ex-officio Auditor of the Fund.
ARTICLE VIII- AUTHORIZED SIGNATORIES
The authorized signatories of the Fund shall be the Administrator and the Treasurer, and such other officers as may be designated by the Board of Trustees from time to time.
ARTICLE IX – CONTRACTS
All contracts entered into for and in behalf of the Fund shall be executed by the Philippine Postal Corporation as the trustee of the Fund.
ARTICLE X – REPORTS
- Report to the Board of Trustees – The Administrator shall submit to the Board of Trustees every regular Board meeting a report showing the income and expenses, sources and allocation of the Fund, and the financial position of the Fund for the period, and such other reports as the Board of Trustees may require from time to time. Copies of all reports shall be furnished the Board of Directors.
- Semi-Annual Reports – The Board of Trustees shall cause to be prepared semi-annual reports on the Fund showing its income and expenditures and financial position as of June 30 and December 31 of each year. Copies of such reports shall be submitted to the Board of Directors and the Postmaster General not later than the fifteenth (15th) day after June 30 and December 31, and subsequently published in the Philippine Post Journal and posted in conspicuous places in the different offices of the Corporation and its subsidiaries for the general information of the members of the Fund.
ARTICLE XI – COSTS, EXPENSES, ETC.
For the first five (5) years of the Fund’s actual operation, all costs, expenses and taxes, if any , including office space, allowances and salaries of personnel, except honoraria/per diems of the Trustees, which are incidental to and necessarily connected with the administration of the Fund shall be borne by the Corporation. Thereafter, the Fund shall reimburse the Corporation for all personnel-related expenses.
ARTICLE XII – TERMINATION OF THE FUND
- Termination of the Fund – the Board of Directors may at any time terminate the Fund.
- Payment of Members’ Share – In the event of termination of the Fund, the balances to the credit of each member, including the Corporation’s contribution and the General Reserve for Employee Benefits, shall be paid to the members in full. The accumulated amount in the General Reserve for Employee Benefits shall be distributed among the members in proportion to the amounts standing to their credits as of the time of termination.
ARTICLE XIII – AMENDMENTS
These Rules and Regulations may be amended, revised, modified or repealed at any time by the Board of Directors.
ARTICLE XIV – EFFECTIVITY
These Rules and Regulations shall take effect on January 2, 1994. The deduction of Philippine Postal Corporation personnel’s contribution and payment of the Corporation’s contribution to the Fund shall be made on or before payroll date during the month.
APPROVED, 14 October 1993.
RENAN V. SANTOS
Chairman of the Board
EDUARDO P. PILAPIL PASCUAL C. KLIATCHKO
JORGE M. MARIANO III ROBERTO LL. AMOR
FRANCISCO R. FLORO RONALDO S. TUAZON
MARY ANN E. AREVALO
Acting Board Secretary