Adopting and Promulgating the Implementing Rules and Regulations of the Home Development Mutual Fund Law of 1980

May 12, 1981

HDMF BOARD RESOLUTION NO. 3-81

ADOPTING AND PROMULGATING THE IMPLEMENTING RULES AND REGULATIONS OF THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980

 

RESOLVED: That in order to carry out effectively the provisions and objectives of P.D. 1752 which amended P.D. 1530 and established the Home Development Mutual Fund of 1980, the Board of Trustees, pursuant to the powers vested in the same, hereby adopts the following Rules and Regulations:

GENERAL PROVISIONS

I. Scope of the Rules

These Implementing Rules and Regulations consist of Three Books. Book One deals with employees falling within the coverage of the GSIS and SSS; Book Two covers the self-employed and professionals; and Book Three applies to other working groups, such as but not limited to employees of foreign employers, embassies, and consulates, international organization and institutions, and non-permanent government employees not covered by the GSIS. cdt

II. Restatement of Fund Objectives

In general, the objectives of the Fund are —

1. To motivate the employed and other working groups to better plan and provide for their housing needs by membership in an integrated, nationwide savings system with contributory support of employers, in the spirit of social justice and the pursuit of national development.

2. To establish, maintain and ensure an affordable and adequate housing credit system for its members and thereby contribute to the establishment of decent human settlements and the upliftment of social conditions of our communities.

III. Private/Provident Character of the Fund

The Fund shall be for the mutual benefit of the members, private in character, owned wholly by them, administered in trust and applied exclusively for their benefit. All personal and employer contributions shall be fully credited to each member, accounted for individually and portable in case of change of employment. They shall earn dividends as provided for in these Rules. The said amounts shall constitute the provident fund of each member, to be paid to him, his estate or beneficiaries upon termination of membership, or from which may be drawn peripheral benefits for the member as may be approved by the Board of Trustees.

IV. Rule-Making Power of the Board of Trustees

The Board of Trustees has been authorized to make, issue, amend or change necessary rules and regulations to implement the provisions of P.D. 1752 for the effective administration, collection, custody, development, utilization and disposition of the Fund or parts thereof and such other matters that, by express or implied provisions of the law, shall require action by the Board of Trustees.

V. Housing Feature

The Fund shall establish an integrated system of home financing for the benefit of its members as provided for in the HDMF Housing Loan Guidelines of 1980, as amended by Resolution No. 102 Series of 1982.

VI. Non-Transferability of Benefits

No member shall assign, transfer, or convey or in any manner encumber his interest in the Fund prior to his actual receipt of the same, and any transaction attempting or purporting to effect such transfer or encumbrance shall not be recognized.

VII. Adjudication and Settlement of Claims and Disputes

All claims and disputes on any matter relative to the implementation of the provisions of P.D. 1752 affecting the rights and interest of the members shall be within the original and exclusive jurisdiction of the Fund, the decision of whose Chief Executive Officer shall be final and unappealable after the lapse of thirty (30) days from receipt of notice by the aggrieved party of such decision and without him taking the appropriate remedies available to him to a competent court. The Chief Executive Officer shall prescribe the forms to be used and the procedure to be followed in the adjudication and settlement of the aforementioned claims and disputes.

VIII. Amendments

These Rules and Regulations may be amended, modified, complemented, supplemented, and/or repealed by the Board from time to time if the interest of the Fund and its members so requires.

IX. Saving Clause

Should any provision of this Resolution or any part thereof be declared invalid, the other provisions so far as they are separable from the invalid ones, shall remain in force.

X. Effectivity

These Rules and Regulations shall take effect fifteen (15) days after its complete publication in the Official Gazette or in a newspaper of general circulation.

BOOK ONE

Employees Covered by GSIS aand SSS

RULE I

Definitions

SECTION 1. Definition of Terms. — The following terms shall mean:

a. Employer — any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking or activity of any kind, and uses the services of another person who is under his orders as regards such services; the Government, its national and local offices, political subdivisions, branches, agencies or instrumentalities including corporations owned and/or controlled by the Government; and other organizations, associations and institutions which are now, or in the future will be, under the coverage of the GSIS and SSS by virtue of their respective charters;

b. Employee — any person in the service of an employer who receives compensation for such service;

c. SSS — the Social Security System created under Republic Act Numbered Eleven Hundred and Sixty-One, as amended;

d. GSIS — the Government Service Insurance System created under Commonwealth Act Numbered One Hundred Eighty-Six, as amended;

e. Fund — the Home Development Mutual Fund of 1980 established by Presidential Decree No. 1752;

f. Board — the duly constituted Board of Trustees of the Home Development Mutual Fund of 1980;

g. Chief Executive Officer — the person who executes and administers the policies and resolutions approved by the Board, and directs and supervises the operations and management of the Fund;

h. Member — any person embraced under Section 1, Rule II of this Book;

i. Active Member — a member who is up-to-date in his monthly contributions and his employer's contributions;

j. Member-Borrower — a member who has availed of the Fund's housing loan program and has an outstanding loan account with the Fund;

k. Member-Saver — a member who has no outstanding loan account with the Fund;

l. Employee Accumulated Value — the employee's personal contributions to the Fund and the corresponding dividends credited thereto;

m. Employer Accumulated Value — the employer's counterpart contributions to the Fund and the corresponding dividends credited thereto;

n. Total Accumulated Value — the sum of the Employee Accumulated Value and the Employer Accumulated Value;

o. Fund Salary — the member's current basic monthly pay: Provided, That the employer may include the cost-of-living allowance and such other forms of remuneration regularly received by the employee: Provided, further, That if the amount used as basis for the Fund Salary exceeds Three Thousand Pesos (P3,000.00), for purposes of these Rules, the Fund Salary shall only be P3,000.00;

p. Monthly — the period from the end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly, daily or weekly basis; if on any other basis, "monthly" shall mean a period of one calendar month;

q. Fund Income — the income of the Fund from investments, loans, fines, penalties or surcharges earned by the Fund as provided for in Sections 2 and 4, Rule VII of this Book;

r. Dividends — increments credited according to these Rules or resolutions of the Board, to the Employee and Employer Accumulated Values, or paid out in cash, to wit:

1. Fixed Dividend — set at 7.5% p.a.

2. Variable Dividend — the portion out of unassigned surplus available for distribution after deducting fixed dividends and contingency, liquidity, and cross-subsidy reserves;

s. Membership Maturity — a period of 20 years commencing from the first day of the month to which the member's initial contribution to the Fund applies;

t. Retirement — the member's retirement from service as determined by his employer's retirement plan or qualified under R.A. No. 4917 (An Act Providing That Retirement Benefits of Employees of Private Firms shall not be subject to Attachment, Levy, Execution or any Tax Whatever): Provided, he is not less than 50 years of age; or if his employer has no qualified retirement plan, the first day of the month immediately following his 60th birthday;

u. Total Disability — loss or impairment of a physical or mental function resulting from injury or sickness which completely incapacitates a member to perform any work or engage in any business or occupation as determined by the Fund;

v. Beneficiary — the person designated by the member to receive, in the event of his death, the amount due him from the Fund in accordance with these Rules;

w. Integration — merging of private provident or housing plan with the Fund, relative to employer-employee required contributions to the Fund, so that for all legal intents and purposes, the members of the plan become members of the Fund;

x. Waiver — temporary exclusion from coverage under the Fund of an employer who is not yet registered with the Fund;

y. Suspension — temporary exclusion from coverage under the Fund of an employer who is already registered with the Fund;

z. Provident Plan — a plan established and maintained by an employer or employee group, with or without employee counterpart, primarily to provide for the payment of determinable benefits to the plan members. For purposes of waiver or suspension of coverage, retirement, pension or gratuity plans are covered under this definition;

aa. Housing Plant — a plan established and maintained by an employer or employee group, with or without employee counterpart, usually to provide financial assistance to qualified employees by extending loans for the acquisition of a house/lot, construction or improvement of a house, all at liberal rates and terms, primarily for the benefit of the employees. For purposes of waiver or suspension of coverage, existing free housing facilities provided by an employer to his employees may be considered similar to housing plan;

bb. Net Fund Asset — the total assets of the Fund less current liabilities.

SECTION 2. Gender; Number. — Whenever used herein, the masculine pronoun shall include the feminine and neuter gender, the singular number shall include the plural and the plural shall include the singular, unless the context clearly indicates a different meaning.

RULE II

Membership

SECTION 1. Coverage.— Membership in the Fund shall be compulsory upon all employees covered by the GSIS and SSS under their respective charters.

SECTION 2. Effectivity. — For employees presently covered by the GSIS OR SSS, as well as for their respective employers, mandatory coverage shall take effect on the date of effectivity of P.D. 1752: Provided, That implementation thereof shall start on July 1, 1981.

Thereafter, mandatory coverage of the employer shall take effect on the first day of his operation, and that of the employee on the date of his employment.

SECTION 3. Registration. — All employers shall register with the Fund. They shall submit to the Fund all data and information it may require in relation to their respective businesses and employees in such forms as the Chief Executive Officer may prescribe for the purpose.

SECTION 4. Membership Contributions. — The member shall contribute a percentage of his Fund Salary per employer for each month until his membership is terminated as provided for in Section 6 of this Rule, graduated as follows:

One percent (1%) in 1981;

Two percent (2%) in 1982;

Three percent (3%) in 1983 onward.

The employer shall likewise contribute an equivalent counterpart for each of his employees.

SECTION 5. Portability of Membership. — A member who transfers to another employer or who becomes self-employed or a self-paying employee as defined in Books II & III, respectively carries with him his Total Accumulated Value.

SECTION 6. Termination of Membership. — Membership shall be terminated anytime upon the occurrence of any of the following:

a. Membership Maturity;

b. Death;

c. Retirement;

d. Total Disability or Insanity;

e. Departure from the country permanently.

Occurrences other than the above shall not constitute termination of membership except as may otherwise be provided by the Board.

RULE III

Waiver/Suspension/Integration

SECTION 1. Waiver or Suspension — Existing Provident Plan. An employer and/or employee group who has an existing provident plan at the date of the effectivity of P.D. 1752, qualified under Republic Act No. 4917 and actuarially determined to be sound and reasonable by an independent actuary duly accredited by the Insurance Commission may apply with the Fund annually for waiver or suspension of coverage. Such waiver or suspension may be granted by the Chief Executive Officer on the basis of verification that the waiver or suspension does not contravene any effective collective bargaining or other existing agreement and that the features of the plan or plans are superior to the Fund and continue to be so.

SECTION 2. Waiver or Suspension — Existing Housing Plan.

An employer and/or employee group who has an existing housing plan at the date of effectivity of P.D. 1752 may apply with the Fund annually for waiver or suspension of coverage. Such waiver or suspension may be granted by the Chief Executive Officer on the basis of verification that the waiver or suspension does not contravene any effective collective bargaining or other existing agreement and that the features of the plan or plans are superior to the Fund and continue to be so.

SECTION 3. Waiver or Suspension — Distressed Employer.

An employer who is or becomes financially incapable of paying or continuously paying his counterpart contribution may apply with the Fund annually for waiver or suspension of coverage. Such waiver or suspension may be granted by the Chief Executive Officer upon verification that financial condition of the applicant warrants such concession.

SECTION 4. Effects of Waiver or Suspension — Existing Provident/Housing Plan.

Waiver or suspension granted to an employer under Sections 1 or 2 of this Rule shall likewise apply to his employees who are members of the private plan: Provided, That such members are not member-borrowers of the Fund. A member-borrower shall continue to pay and remit his monthly contributions to the Fund. A member-saver, on the other hand, may opt to remain in good standing or restore such status by remitting his monthly contributions to the Fund.

Employees who are non-members of the private plan and their employer shall be covered by the Fund until such time that the employees become members of the private plan, subject to the provisions of the preceding paragraph.

SECTION 5. Effects of Waiver or Suspension — Distressed Employer. Waiver or suspension granted to an employer under Section 3 of this Rule shall likewise apply to all of his employees except member-borrowers of the Fund. A member-borrowers shall continue to pay and remit his monthly contributions to the Fund. A member-saver, on the other hand, may opt to remain in good standing or restore such status by remitting his contributions to the Fund.

SECTION 6. Integration of Provident/Housing Plan. — An employer and/or employee group who has an existing provident/housing plan at the date of effectivity of P.D. 1752 may register with the Fund for integration, either fully or partially: Provided, such integration shall be considered full, if the contributions to the provident/housing plan, on a monthly basis, are wholly remitted to the Fund: Provided, further, That if said contributions are not sufficient to meet the contributions required under Sec. 5 of P.D. 1752, additional contribution shall be made by the employer and/or employee group.

SECTION 7. Effects of Integration. — Integration with the Fund of private provident/housing plan under the preceding section shall have the following effects:

a. An employee who is a member of the private plan shall be considered a member of the Fund and is therefore afforded all the rights and benefits due him under the Fund;

b. An employee who is not a member of the private plan, as well as his employer in so far as he is, concerned, shall be covered by the Fund as provided for in Section 4 of P.D. 1752.

SECTION 8. Processing of Applications.

The Chief Executive Officer shall issue the rules of procedures that shall govern the filing, receipt, requirements, processing and actions on application for waiver, suspension or integration mentioned in the preceding sections of this Rule. Application for waiver, suspension or integration shall be made in such forms as may be prescribed by the Chief Executive Officer.

Notwithstanding the filing of an application for waiver, suspension or integration, mandatory coverage shall remain in full force and effect until the same is expressly waived, suspended or integrated by the Chief Executive Officer.

SECTION 9. Decision of the Chief Executive Officer. — The decision or resolution of the Chief Executive Officer on applications for waiver, suspension or integration shall, unless appealed to a competent court, become final and unappealable after lapse of thirty (30) days from receipt of notice by the applicant and/or aggrieved party.

SECTION 10. Future Provident/Housing Plans. — The establishment of a separate provident/housing plan after the effectivity of P.D. 1752 shall not be ground for waiver or suspension of coverage in the Fund nor for full or partial integration with the Fund. Neither shall such coverage bar any employer and/or employee group from establishing separate provident/housing plans.

RULE IV

Beneficiaries

SECTION 1. Nomination.

A member shall nominate in writing, by filing the prescribed form, his beneficiary/ies who shall receive the amount which may be due him from the Fund in case of death: Provided, That such beneficiary is not otherwise disqualified by the Civil Code from being name beneficiary.

SECTION 2. Change of Beneficiary. — Every nomination shall remain in force until the death of the beneficiary or until revoked or amended by the member making it by filing another nomination form.

SECTION 3. Incompetent Beneficiary. — In the event that any beneficiary is a minor or otherwise incompetent to receive the benefits at the time payment is due, payment shall be made to the legal guardian or as may be ordered by the Courts.

SECTION 4. Failure to Nominate. — In the event of the member's death and there is no designated beneficiary, the laws of succession shall apply.

RULE V

Benefits

SECTION 1. Benefits Upon Termination of Membership. — In case of termination of membership as provided for under Section 6, Rule II of this Book, the member shall receive his Total Accumulated Value subject to the provisions of the HDMF Housing Loan Guidelines of 1980.

SECTION 2. Dividend Benefit. — Fixed dividends of 7.5% per annum shall be distributed to active member-savers from time to time as credits to their Total Accumulated Values or in cash. Variable dividends from surplus earnings of the Fund may be distributed to active members from time to time upon approval by the Board.

SECTION 3. Exemption from Tax, Legal Process and Lien. — Notwithstanding any provision of existing law, decree, letter of instruction, executive or administrative order, rule or regulation to the contrary, the Fund and all its assets, collections, receivables and increments, as well as all distributions therefrom whether of contributions, ratable income of the Funds or dividends paid to or received by the members thereof, or their heirs/beneficiaries, shall be exempt from the payment of any and all forms of taxes, assessments and other charges. All such provident payments shall not be liable to attachment, garnishment, levy or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the persons entitled thereto, except to pay any debt of the member to the Fund.

SECTION 4. Guaranty. — The Government of the Republic of the Philippines guarantees the payment of the Total Accumulated Value to the members of the Fund when they fall due.

 

RULE VI

Real Estate Housing Loan

SECTION 1. Eligibility. — An active member shall be eligible to apply for a housing loan under the terms and conditions set forth in the HDMF Housing Loan Guidelines of 1980.

SECTION 2. Source of Housing Loan Amounts. — The amounts to be loaned out to qualified members shall come from the Fund and/or other sources approved by the Board.

RULE VII

Employer Obligations

SECTION 1. Employer's Fiduciary Obligation. — The employer assumes a fiduciary relationship with both the Fund and the members concerned as regards the latter's contribution and the counterpart, as well as the remittance thereof.

Delinquency of the employer to remit the contributions and/or refusal or failure to comply with the provisions of P. D. 1752 shall be ground for the imposition of the penalty under Sections 2 and 4 of this Rule.

The employer is likewise enjoined to conduct a continuing information campaign on the Fund through the posting of the HDMF Law of 1980 and of the promulgated Rules and Regulations in the premises of the employees.

SECTION 2. Penalty Clause. — Refusal or failure to comply with these Rules and Regulations, issued pursuant to P.D. 1752, particularly with respect to the registration of employees, collection and remittance of employee contributions as well as employer counterparts, in the correct amount due, within the time set or specific call or extension made by the Fund management, shall constitute an offense punishable by the penalty imposed under Section 23 of P.D. 1752. When the offender is a corporation, the penalty shall be imposed upon the members of the governing board and the President or General Manager, without prejudice to prosecution of related offenses under the Revised Penal Code and other laws, revocation and denial of operating rights and privileges in the Philippines and deportation when the offender is a foreigner.

SECTION 3. Collection from Members. — Contributions of members shall be collected through payroll deductions by their respective employers, who for this purpose shall act as agent both of the Fund and the member.

Every employer shall issue a receipt of all contributions deducted from the employee's compensation or shall indicate such deduction on the member's pay envelope.

HDMF members formerly employed under the context of "Employee" and who become self-employed or self-paying employees shall remit their contributions to the Fund.

In the event a member-saver becomes unemployed, goes on leave without pay, is subjected to disciplinary action where he is suspended from work or his employer's coverage is waived or suspended, his monthly contributions shall be suspended for the duration of the unemployment, leave, suspension from work or waiver or suspension of coverage: Provided, That such member-saver may opt to remain in good standing or restore such status by remitting his monthly contributions to the Fund. A member-borrower, on the other hand, shall continue to pay and remit his monthly contribution to the Fund.

SECTION 4. Remittance of Collections. — Employers shall set aside and remit the contributions, as defined in these Rules to the Fund. Employers shall be liable for their payment, and non-payment shall, in addition to the penalty provided in Section 2 of this Rule, subject the employer to penalty of three percent (3%) per month or any fraction thereof of the amounts payable from the date the contributions fall due until paid.

Contributions shall be credited to the account of the member only upon actual receipt thereof by the Fund, together with the supporting documents.

RULE VIII

Administration of the Fund

SECTION 1. Board of Trustees. — Direction and control of the Fund shall be vested on its duly-constituted Board of Trustees, composed of the following:

The Minister of Human Settlements, who shall act as Chairman;

The Minister of Finance, whose shall act as Vice Chairman;

The Minister of the Budget;

The Minister of Labor;

The Minister of Industry;

The Chief Executive Officer of the Home Development Mutual Fund,

One representative of government employees;

Two representatives of government employees;

Two representatives of private employers.

SECTION 2. Administration Costs and Expenses. — All costs and expenses attributable to the administration and development of the Fund, in such amount and/or limits as the Board may deem viable, not exceeding two percent (2%) of the previous year's net Fund asset, shall be borne by the Fund.

Expenses for initial operation may be provided for by the National Home Mortgage Finance Corporation, subject to reimbursement, with or without interest, or as subsidy for the development of housing finance.

SECTION 3. Investment of Money. — Moneys of the Fund that are not needed to meet current administrative and operational requirements, shall be invested primarily in housing loans to members or home mortgage-backed securities with due and prudent regard for the Fund's safety, growth, and liquidity needs.

SECTION 4. Fund Supervision. — The administration and disposition of the Fund, including its books of accounts, shall be subject to supervision, visitation and verification by appropriate agencies of the government as may be designated and authorized by the President of the Philippines.

SECTION 5. Records and Reports. — The Board shall keep and cause to be kept such records as may be necessary for the purpose of making actuarial and statistical studies, calculations and valuations of the Fund including such data as may be necessary for the adjustments of member benefits, variable dividends, interest rates and contingency reserves. It shall maintain appropriate books of accounts to record it assets, liabilities, income expenses, receipts and disbursements of funds and other financial transactions and operations.

It shall likewise submit annually to the President of the Philippines, not later than March 15, a public report covering its activities, as well as the state of the Fund, during the preceding year, including information and recommendations for the development and improvement of the Fund.

SECTION 6. 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 to Contract for another mode of independent audit service, in addition to that provided by the Commission on Audit.

RULE IX

Miscellaneous Provisions

SECTION 1. Existing Coverage. — Membership under P.D. 1530, together with amounts and benefits already accrued to the members, including employers' counterparts, as well as covering records and documents, shall be transferred, continued and/or integrated into the Fund: Provided, That members of the Fund established under P.D. 1530 shall have the option to withdraw the allowable amounts from the same under such terms and conditions set by the Board. These members, upon integration into the Fund shall be subject to rules and regulations herein contained.

SECTION 2. Substitute Retirement Plans. — Substitution of Fund benefits for retirement benefits means that the Employer Accumulated Value which a member receives upon termination of his membership in the Fund may be applied by the private employer as partial payment of the retirement benefits due such employee member upon retirement.

A private employer shall have the option to treat the coverage by the Fund as a substitute retirement benefit for the employee concerned within the purview of the Revised Labor Code: Provided, such treatment does not in any way contravene any effective collective bargaining or other existing agreement: Provided, further, That only the Employer Accumulated Value of the last employer shall be applied as partial payments of the retirement benefits due the employee member. Provided, finally, That in case the Employer Accumulated Value is less than the retirement benefits which the employee-member is entitled to receive, the employer shall pay the deficiency upon retirement of the employee-member.

BOOK TWO

Self-Employed

RULE I

Definitions

SECTION 1. Definition of Terms — The following terms shall mean:

a. Self-Employed Person — any person who has no employer other than himself and derives income from his physical and mental efforts;

b. Member — any self-employed person covered under the Fund as provided for in Rule II, Section I of this Book;

c. Active Member — a member who is up-to-date in his monthly contributions;

d. Member Accumulated Value — the member's personal contributions to the Fund and the corresponding dividends credited thereto: Provided, That if the member was previously employed, it shall include also the Employer Accumulated Value of such previous employer, if any;

e. Gross Annual Income — the gross income derived by an individual, as reflected in his preceding year's income tax return, from any trade, profession or business: Provided, That for this purpose "gross income" in a given year shall refer to the totality of his earnings for that year regardless of whether it is earned in one or more months;

f. Fund Salary — the Gross Annual Income during the preceding year, which is at least P3,000.00, divided by twelve;

g. Dividends — Increments credited to the Member Accumulated Value or paid out in cash, to wit:

1. Fixed Dividend — set at 7.5% p.a.

2. Variable Dividend — the portion out of unassigned surplus available for distribution after deducting fixed dividends and contingency, liquidity, and cross-subsidy reserves.

SECTION 2. Terms and Phrases Previously Defined — Unless otherwise defined in this Book, the terms and phrases defined under Book One of these Rules shall apply.

RULE II

Membership

SECTION 1. Coverage — Membership in the Fund shall be compulsory upon all self-employed persons not over 60 years of age with Gross Annual Income of at least P3,000.00 belonging to the following groups:

a. Members of the Philippine Bar and professionals duly licensed by the Professional Regulation Commission, such as: Architects, Certified Public Accountants, Chemists, Contractors, Customs Brokers, Dentists, Detailmen, Dieticians, Engineers, Geologists, Marine Officers, Medical Technologists, Midwives, Nurses, Optometrists, Pharmacists, Physicians, Physical Therapists, Social Workers or Veterinarians;

b. Business partners, single proprietors, and board directors duly registered with the appropriate government agencies;

c. Actors, actresses, directors, script writers, recording artists, dancers, singers or musicians and free lance movie cameramen, production men, propmen, make-up artists, graphic artists, sound effects men, film editors or bit players;

d. Free lance writers, journalists, newscasters or news correspondents;

e. Professional athletes, coaches, trainers and referees licensed by the Games and Amusements Board as well as jockeys and trainers licensed by the Philippine Racing Commission;

f. Real estate brokers, salesmen, sales brokers, real estate agents, appraisers or consultants registered with the Bureau of Domestic Trade or any other appropriate agency;

g. Other brokers licensed by the Securities and Exchange Commission;

h. Actuaries, adjusters, insurance agents or brokers registered with the Insurance Commission; and

i. Farmers and fisherman

The compulsory coverage of other groups of self-employed persons shall be determined later on by the Board.

If one is both an employee and a self-employed person, his membership status shall be that of a covered employee subject to the Rules in Book One.

An employee-member who later becomes self-employed shall be covered accordingly by the provisions of this Book.

SECTION 2. Effectivity — Effectivity of the compulsory coverage of the self-employed shall be based on a schedule approved by the Board.

SECTION 3. Registration — All covered self-employed persons shall register with the Fund. They shall submit to the Fund all data and information it may require in relation to their respective businesses or undertakings in such form as may be prescribed by the Chief Executive Officer.

SECTION 4. Membership Contributions — The member shall contribute a graduated percentage of his Fund Salary per schedule below for each month until his membership is terminated as provided for in Section 6 of this Rule.

		Monthly Contribution
	Gross	First	Second	Third Year
Fund Salary	Annual Income	Year	Year	and Onward
P 250.00- 299.99	P 3,000- 3,599,99	P4	P8	P12
300.00- 366.99	3,600- 4,399,99	5	10	15
366.67- 433.32	4,400- 5,199.99	6	12	18
433.33- 499.99	5,200- 5,999.99	7	14	21
500.00- 566.66	6,000- 7,999.99	8	16	24
566.67- 633.32	6,800- 7,599.99	9	18	27
633.33- 699.99	7,600- 8,399.99	10	20	30
700.00- 766.66	8,400- 9,199.99	11	22	33
766.67- 833.32	9,200- 9,999.99	12	24	36
833.33- 899.99	10,000-10,799.99	13	26	39
900.00- 966.66	10,800-11,599.99	14	28	42
966.67-1,033.32	11,600-12,399.99	15	30	45
1,033.33- 1,099.99	12,400-13,199.99	16	32	48
1,100.00- 1,166.66	13,200-13,999.99	17	34	51
1,166.67- 1,233.32	14,000-14,799.99	18	36	54
1,233.33- 1,299.99	14,800-15,599.99	19	38	57
1,300.00- 1,366.66	15,600-16,399.99	20	40	60
1,366.67- 1,433.32	16,400-17,199.99	21	42	63
1,433.33- 1,499.99	17,200-17,999.99	22	44	66
1,500.00- 1,566.66	18,000-18,799.99	23	46	69
1,566.67- 1,633.32	18,800-19,599.99	24	48	72
1,633.33- 1,699.99	19,600-20,399.99	25	50	75
1,700.00- 1,766.66	20,400-21,199.99	26	52	78
1,766.67- 1,833.32	21,200-21,999.99	27	54	81
1,833.33- 1,899.99	22,000-22,799.99	28	56	84
1,900.00- 1,966.66	22,800-23,599.99	29	58	87
1,966.67-above	23,600-above	30	60	90

The member is required to report his Fund Salary on the date of his registration and every year thereafter on or before June 30.

In case the member-saver's Gross Annual Income for the immediately preceding taxable year falls below P3,000.00, the payment of his monthly contributions for the current year may be waived or suspended upon approval by the Chief Executive Officer. A member-borrower shall continue to pay and remit his monthly contribution to the Fund.

SECTION 5. Portability of Membership — A member who later becomes an employee or a self-paying employee carries with him his Member Accumulated Value and shall henceforth be subject to the Rules and Regulations provided in Book One or Book Three, whichever is applicable.

SECTION 6. Termination of Membership — Membership shall be terminated anytime upon occurrence of any of the following.

a. Membership Maturity;

b. Death;

c. Total Disability or Insanity;

d. The first day of the month immediately following his 60th birthday;

e. Departure from the country permanently.

Occurrences other than the above shall not constitute termination of membership except otherwise expressly provided by the Board.

RULE III

Beneficiaries

The provisions on beneficiaries under Rule IV of Book One shall also be applicable to members under this Book.

RULE IV

Benefits

SECTION 1. Benefits Upon Termination of Membership — In case of termination of membership as provided for under Section 6, Rule II of this Book, the member shall receive his Member Accumulated Value subject to the provisions of the HDMF Housing Loan Guidelines of 1980.

SECTION 2. Dividend Benefit and Tax Exemption — The dividend and tax exemption benefits accorded to the members of the Fund under Sections 2 and 3, Rule V of Book One, are likewise granted to members under this Book.

SECTION 3. Guaranty — The government of the Republic of the Philippines guarantees the payment of Member Accumulated Value to the members when they fall due.

RULE V

Real Estate Housing Loan

The provisions on real estate housing loans under Rule VI of Book One shall also be applicable to members under this Book.

RULE VI

Member's Contributions

SECTION 1. Member's Responsibility and Liability — The self-employed member assumes a responsibility and liability to the Fund upon his membership as regards his contributions and remittance thereof, so that delinquency and/or failure to comply shall be ground for the imposition of the penalty indicated under Section 2 of this Rule.

SECTION 2. Penalty Clause — Refusal or failure to comply with these Rules and Regulations, pursuant to P.D. 1752, particularly with respect to membership registration, remittance of contribution within the time set or specific call or extension made by the Fund, shall constitute an offense punishable by the same penalty imposed under Section 2 and 4, Rule VII of Book One.

SECTION 3. Contributions — The monthly contributions for each quarter shall be remitted to the Fund within ten days from the end of that quarter which the contributions pertain.

Advance payments may be allowed at the option of the member.

Contributions shall be credited to the account of the member only upon actual receipt thereof the Fund together with the supporting documents.

BOOK THREE

Other Working Groups

RULE I

Definitions

SECTION 1. Definition of Terms — The following terms shall mean:

a. Self-Paying Employee — any person who is either:

1. an employee of a foreign embassy, consulate, military base, or international organization or institution with offices in the Philippines; or

2. an employee recruited in the Philippines by foreign employer for employment abroad; or

3. a non-permanent government employee not covered by GSIS.

b. Member — any self-paying employee who contributes to the Fund in accordance with the provisions of this Book.

c. Active Member — a member who is up-to-date in his monthly contributions;

d. Member Accumulated Value — the member's personal contributions to the Fund and the corresponding dividends credited thereto: Provided, That if the member was previously an employee, it shall include also the Employer Accumulated Value of such previous employer, if any;

e. Fund Salary — the member's current gross monthly pay, converted to Philippine peso at the official Central Bank exchange rate if pay is received in foreign denomination: Provided, That if the current gross monthly pay exceeds P3,000.00 for purpose of these Rules, the Fund Salary shall only be P3,000.00.

f. Dividends-increments credited to the Member Accumulated Value or paid out in cash, to wit:

1. Fixed Dividend — set at 7.5% p.a.

2. Variable Dividend — the portion out of unassigned surplus available for distribution after deducting fixed dividends and contingency, liquidity, and cross subsidy reserves.

g. Retirement — the member's retirement from service as determined by his employer's PROVIDENT/retirement plan or IN THE ABSENCE OF SUCH PROVIDENT/retirement plan on the first day of the month immediately following his 60th birthday.

SECTION 2. Terms and Phrases Previously Defined.

Unless otherwise defined in this Book, the terms and phrases defined under Book One of these Rules shall apply.

RULE II

Membership

SECTION 1. Eligibility — Membership in the Fund is open on a voluntary basis for any self-paying employee not over sixty (60) years of age.

If one is an employee/self-employed and a self-paying employee, his membership status shall be that of a compulsorily covered employee/self-employed subject to the Rules in Book One/Book Two.

A Member as defined in Book One or Two who later becomes a self-paying employee may continue his membership in the Fund in accordance with the provisions of this Book.

SECTION 2. Effectivity — Membership of the self-paying employee shall take effect on the month to which his first contribution pertains, subject to the rule of Portability under Book One/Book Two, whichever is applicable.

SECTION 3. Application — Application for membership shall be made in such form as may be prescribed and supported by such documents as may be required by the Chief Executive Officer.

SECTION 4. Fund Contributions — The self-paying employee shall contribute a graduated percentage of his Fund Salary for each month until his membership is terminated as provided for in Section 6 of this Rule, to wit;

Two percent (2%) in 1981;

Four percent (4%) in 1982;

Six percent (6%) in 1983 onward.

The above percentages are inclusive of the employer's share which the self-paying member personally shoulders.

SECTION 5. Termination of Membership — Membership shall be terminated anytime upon the occurrence of any of the following:

a. Membership Maturity;

b. Death;

c. Total Disability or Insanity;

d. Retirement; and

e. Departure from the country permanently

Occurrences other than the above shall not constitute termination of membership except as otherwise expressly provided by the Board.

RULE III

Beneficiaries

The provisions on beneficiaries under Rule IV of Book One shall also be applicable to members under this Book.

RULE IV

Benefits

The provisions on benefits under Rule IV of Book Two shall also be applicable to members under this Book.

RULE V

Real Estate Housing Loan

The provisions on real estate housing loans under Rule VI of Book One shall also be applicable to members under this Book.

RULE VI

Member's Contributions

The monthly contributions for each quarter shall be remitted to the Fund within 10 days from the end of that quarter to which the contributions pertain.

Advance payments may be allowed at the option of the member.

Contributions shall be credited to the account of the member only upon actual receipt thereof by the Fund, together with the supporting documents.

HOME DEVELOPMENT MUTUAL FUND
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5th Floor China Bank Bldg.	Ground Floor
Paseo de Roxas, Makati	China Bank Bldg.
Metro Manila	Paseo de Roxas, Makati
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