BIR Ruling

June 3, 1969 Filipinas Cement Corporation E. Rodriguez, Jr. Avenue Barrio Ugong Pasig, Rizal Gentlemen : This refers to the Retirement Plan of your corporation which you submitted for determination of qualification under Republic Act No. 4917. cdi In this connection, I have the honor to inform you as follows: A close perusal of the Plan and of the Trust Instrument disclosed the following: (1) The Plan is a definite written program; (2) It is more or less a permanent and continuing program; (3) It covers all salary and hourly or daily rate of employees; (4) It is non-discriminatory; (5) It provides for non-diversion that is the corpus or income of the trust fund shall be used only for the exclusive benefit of the covered employees; (6) The Fund is actuarially sound; and (7) Finally, the Fund is duly trusteed. It appears that the Retirement Plan of your corporation meets the requirements of Republic Act No. 4917 for a responsible plan as amplified by Revenue Regulations No. 1-68. Such being the case, the Trust Fund shall be entitled to all the benefits provided for by Republic Act No. 4917. In this connection, it may be stated that forfeitures arising on account of death or early retirement should be utilized as soon as possible to reduce employer contribution. It is further understood that in the course of operations of the Plan there should not be any departure from any of the qualifying features of the Plan submitted for approval of this Office and on account of which this Office had found the Plan to meet the requirements of the law and upon which this certificate of qualification is predicated. Finally, all amendments or modification that may subsequently be made hereafter should be submitted to this Office for certification that such amendments or modification shall not affect the qualification of the Plan. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue