FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
8 JUL 21 P3 :3i 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
Presidential Decree No. 1752 created the Home Development Mutual Fund to 
generate savings among the employed through an integrated nationwide savings system. 
From its creation in 1980 up to 2007, the HDMF has generated total assets amounting to 
P202.63 Billion, with 6.85 Million members nationwide. It has also released P22.59 Billion 
for housing loans in 2007, benefiting more than 46,000 members. 
Notwithstanding the good standing of the HDMF, amendments to its Charter appear 
to be necessary in order to conform to changing market conditions. This bill proposes the 
following amendments: 
1. 
To rename the HDMF into the PAGlBlG Fund in representation of the 
government financial institution primarily involved in mobilizing provident 
funds for housing finance. 
2. 
To expand membership of the Fund to include all employees, regardless of 
monthly income or any waiver from Fund coverage previously issued to 
employers. Spouses managing the household shall be covered under a 
voluntary contribution basis. 
To implement a shift from fixed contribution rates of members to a 
progressive rate base. 
To reinstate the exempt status of the Fund in terms of corporate income 
tax, allowing more of its funds to be allocated from financing loans as well 
as investments in government securities. 
3. 
4. 
5. 
To allow the Fund to determine its own compensation and position 
classification system in order to maintain its hiring competitiveness. 
The strengthening of the Fund's charter will be instrumental in marshalling much 
needed funds to support its millions of members and beneficiaries. In the spirit of social 
justice and pursuit of national development, the passage PI1 T T z t l y  sought. 
-. 1- 
HARD J. GORDON 
Senator 


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8 
JUL 21 p3:21 
FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
. 
~~~~~~~~~ 
BY : 
SENATE 
S. No. 
~ 
~ 
Introduced by Senator Richard J. Gordon 
AN ACT 
AMENDING PRESIDENTIAL DECREE NO. 1752, OTHERWISE KNOWN AS THE HOME 
DEVELOPMENT MUTUAL FUND LAW OF 1980, AS AMENDED 
Be if enacfed by fbe Senate and fbe House of Representatives in Congress assembled: 
SECTION 1. Section Presidential Decree No. 1752, as amended, otherwise known 
as the Home Development Mutual Fund Law of 1980, is hereby further amended to read as 
follows: 
"Section 1. Title. - This Act shall be known as the [Home 
Development Mutual Fund Law of 19801 "PAG-IBIG FUND LAW OF 2008." 
SEC. 2. DECLARATION OF Policy. - It is the policy of the [Republic 
of the Philippines to motivate the employed and other earning groups to better 
plan and provide for their housing needs by membership in an integrated, 
nationwide savings system established for the said purpose, with contributory 
support of the employers, in the spirit of social justice and the pursuit of 
national development.] STATE TO ESTABLISH, DEVELOP, PROMOTE, AND 
INTEGRATE A NATIONWIDE SOUND AND VIABLE TAX-EXEMPT MUTUAL 
PROVIDENT SAVJNGS SYSTEM SUITABLE: TO THE NEEDS OF THE 
EMPLOYED AND OTHER EARNING GROUPS, AND TO MOTIVATE THEM 
TO BETTER PLAN AND PROVIDE FOR THEIR HOUSING NEEDS, BY 
MEMBERSHIP 
IN 
THE 
PAG-BIG 
FUND, 
WITH 
MANDATORY 
CONTRIBUTORY SUPPORT OF THE EMPLOYERS IN THE SPIRIT OF 
SOCIAL JUSTICE AND THE PURSUIT OF NATIONAL DEVELOPMENT, 
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SEC. 3. STATEMENT OF OBJECTIVES. - TOWARDS THIS END, 
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THE STATE SHALL INTEGRATE ALL LAWS RELATING TO THE PAG-IBIG 
FUND TO EFFECTIVELY ACHIEVE THE FOLLOWING OBJECTIVES: 
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(A)TO IMPROVE THE QUALITY OF LIFE OF ITS CITIZENS BY 
PROVIDING THEM WITH SUFFICIENT SHELTER; 
(6) TO PROVIDE FOR AN INTEGRATED NATIONWIDE PROVIDENT 23 
SAVINGS SYSTEM: AND 
(C) TO PROVIDE HOUSING THROUGH MOBILIZATION OF FUNDS FOR 
SHELTER FINANCE. 
SEC. 4. DEFINITION OF TERMS. -THE FOLLOWING TERMS SHALL 
MEAN: 
A. "BOARD - THE DULY CONSTITUTED BOARD OF TRUSTEES OF 
THE PAG-IBIG FUND; 
B. "COMPENSATION" - BASIC MONTHLY SALARY PLUS MANDATED 
COST OF LIVING ALLOWANCE; 
C. "CONTRIBUTIONS" - THE AMOUNT PAYABLE TO THE FUND BY 
THE MEMBERS AND THEIR EMPLOYERS, IN ACCORDANCE WITH THIS 
ACT; 
D. "DEPENDENTS" - REFER TO LEGAL DEPENDENTS OF A 
DECEASED MEMBER, AS DEFINED UNDER THE FAMILY CODE; 
E. "EMPLOYEE" -ANY PERSON IN THE SERVICE OF AN EMPLOYER 
WHO RECEIVES COMPENSATION OF SUCH SERVICES; 
F. "EMPLOYER" - ANY PERSON, NATURAL OR JURIDICAL, 
DOMESTIC OR FOREIGN, WHO CARRIES ON IN THE PHILIPPINES, OR 
OUTSIDE OF THE PHILIPPINES, ANY TRADE, BUSINESS, INDUSTRY, 
UNDERTAKING OR ACTIVITY OF ANY KIND, AND USES THE SERVICES 
OF ANOTHER PERSON WHO IS UNDER HIS ORDER 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 THE LOCAL GOVERNMENT 
UNITS; 
FOR HIS/HER EMPLOYER WITHIN THE PHILIPPINES: PROVIDED, 
HOWEVER, THAT ANY FOREIGN GOVERNMENTj INTERNATIONAL 
G. "EMPLOYMENT" -ANY SERVICE PERFORMED BY AN EMPLOYEE 
ORGANIZATION OR 
THEIR 
WHOLLY-OWNED 
INSTRUMENTALITY 
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EMPLOYING WORKERS IN THE PHILIPPINES OR EMPLOYING FILIPINOS 
OUTSIDE OF THE PHILIPPINES, MAY ENTER INTO AN AGREEMENT 
WITH THE FUND FOR THE INCLUSION OF THEIR EMPLOYEES AS 
MEMBERS OF THE FUND: PROVIDED, FURTHER, THAT THE TERM OF 
SUCH AGREEMENT CONFORM WITH THE PROVISIONS OF THIS ACT. 
H. "FUND - THE FUND CREATED UNDER THIS ACT WHICH IS A 
GOVERNMENT FINANCIAL INSTITUTION INVOLVED IN MOBILIZING 
PROVIDENT FUNDS PRIMARILY FOR SHELTER FINANCE; 
I. "GSIS - THE GOVERNMENT SERVICE INSURANCE SYSTEM 
CREATED UNDER COMMONWEALTH ACT NO. 186, AS AMENDED; 
J. "INVESTIBLE FUNDS - SHALL MEAN FUNDS AVAILABLE AFTER 
DEDUCTING COST OF OPERATIONS AND EXPENSES, ADMINISTRATIVE 
AND GENERAL EXPENSES, RESERVES FOR BENEFIT CLAIMS, 
PROVISIONS FOR A SINKING FUND FOR THE RETURN OF THE 
MEMBERS EQUITY UPON MATURITY AND PROVISION FOR RESERVE 
FOR LOAN REPAYMENTS. 
K. "MEMBER - AN EMPLOYEE COVERABLE UNDER THIS ACT AND 
PAYS THE MANDATED CONTRIBUTIONS; 
L. "MEMBERSHIP TERM" - A PERIOD OF TWENTY (20) YEARS 
COMMENCING FROM THE FIRST DAY OF THE MONTH TO WHICH THE 
MEMBERS INITIAL CONTRIBUTION TO THE FUND APPLIES: PROVIDED, 
THAT HE SHALL HAVE CONTRIBUTED A TOTAL OF TWO HUNDRED 
FORTY (240) MONTHLY CONTRIBUTIONS AT THE TIME OF MATURITY; 
CURRENT LIABILITIES; 
M. "NET FUND ASSET" - THE TOTAL ASSETS OF THE FUND LESS 
N. "PERMANENT TOTAL DISABILITY" - LOSS OR IMPAIRMENT OF A 
PHYSICAL AND 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; 
0. "SSS' - THE SOCIAL SECURITY SYSTEM CREATED UNDER 
REPUBLIC ACT NO. 1161, ASAMENDED; 
SEC. [3] 5. Fund System. - To carry out the purposes of this Act, 
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[there is hereby created the Home Development Mutual Fund of 1980, also 
referred to herein as the Fund, a provident savings system for employees, 
private and public, who shall be the members, supported by matching 
contributions of their respective employers, with housing as the primary 
investment. The system may cover self-employed and other working groups, 
as herein provided.] THE PAG-IBIG FUND IS HEREBY CREATED. THE 
FUND SHALL BE A MUTUAL PROVIDENT SAVINGS SYSTEM FOR 
PRIVATE AND GOVERNMENT EMPLOYEES AND OTHER EARNING 
GROUPS, SUPPORTED BY MATCHING MANDATORY CONTRIBUTIONS 
OF THEIR RESPECTIVE EMPLOYERS WITH HOUSING AS THE PRIMARY 
INVESTMENT. 
The Fund shall be a body corporate, with principal office in Metro 
Manila, and shall replace the Home Development Mutual Fund established 
under Presidential Decree No. 1752, as amended. 
SEC. [4] 6. Fund Coverage. - Coverage of the Fund shall be 
mandatory upon all employees covered by the Social Security System and 
the Government Service Insurance System, and their respective employers: 
Provided, That coverage of the employees whose monthly compensation is 
less than Four thousand pesos (P4,OOO) shall be voluntary: Provided, further, 
That upon membership with the Fund, their employers shall contribute an 
amount in accordance with Section 5 of this Act. 
Such coverage may be extended to other working groups, with or 
without employer contributions, as may be determined by the Board of 
Trustees. [As amended by R. A. No. 7742).] COVERAGE IN THE FUND 
SHALL BE MANDATORY UPON: (A) ALL EMPLOYEES COVERED BY THE 
SSS AND THE GSIS, AND THEIR RESPECTIVE EMPLOYERS, 
NOTWITHSTANDING ANY WAIVER OF COVERAGE PREVIOUSLY 
ISSUED, INCLUDING THE UNIFORMED MEMBERS OF THE ARMED 
FORCES OF THE PHILIPPINES, THE BUREAU OF FIRE PROTECTION, 
THE BUREAU OF JAIL MANAGEMENT AND PENOLOGY, AND THE 
PHILIPPINE NATIONAL POLICE; AND (B) FILIPINOS EMPLOYED BY 
FOREIGN-BASED EMPLOYERS. 
SPOUSES WHO DEVOTE FULL TIME TO MANAGING THE 
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HOUSEHOLD AND FAMILY AFFAIRS MAY BE COVERED BY THE FUND 
ON A VOLUNTARY BASIS, ADOPTING AS A BASIS OF CONTRIBUTIONS 
ONE-HALF (1/2) OF THE MONTHLY COMPENSATION INCOME OF THE 
EMPLOYED SPOUSE, UNLESS THEY ALSO ENGAGE IN ANOTHER 
VOCATION OR EMPLOYMENT WHICH IS SUBJECT TO MANDATORY 
COVERAGE,. 
COVERAGE MAY ALSO BE EXTENDED TO OTHER WORKING 
GROUPS, WITH OR WITHOUT EMPLOYER CONTRIBUTIONS, AS MAY BE 
DETERMINED BY THE BOARD OF TRUSTEES. 
SEC. [5] 7. Fund Generation and Contributions. - THE FUNDS OF 
THE FUND SHALL BE GENERATED BY THE PROVIDENT SAVINGS THAT 
THE COVERED EMPLOYEES SHALL CONTRIBUTE FOR THE PURPOSE 
EVERY MONTH, AND THE EQUAL AMOUNTS THAT THEIR RESPECTIVE 
EMPLOYERS SHALL MANDATORILY CONTRIBUTE. 
Covered employees and employers shall contribute to the Fund based on 
the Monthly Compensation of covered employees as follows: 
(PI ,500) per month - one percent (1 %). 
(P1,500) per month -two percent (2%). 
"Employees earning not more than One thousand five hundred pesos 
"Employees earning more than One thousand five hundred pesos 
"All employers - two percent (2%) of the monthly compensation of all 
covered employees. 
[For purposes of this Section, "monthly compensation" shall mean the 
basic monthly salary plus cost-of-living allowance (COLA): Provided, 
however, That the maximum monthly compensation to be used in computing 
employee and employer contributions shall not be more than Five thousand 
pesos (P5,OOO). The employer shall not be entitled to deduct from the wages 
or renumeration of, or otherwise to recover from, the employee the 
employer's contribution. (As amended by Republic Act. No. 7742). ] 
THE MAXIMUM MONTHLY COMPENSATION TO BE USED IN 
COMPUTING EMPLOYEE AND EMPLOYER CONTRIBUTIONS SHALL NOT 
BE MORE THAN FIVE THOUSAND PESOS (P5,OOO); PROVIDED, THAT 
THIS MAXIMUM MAY BE FIXED FROM TIME TO TIME BY THE BOARD OF 
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TRUSTEES THROUGH RULES AND REGULATIONS ADOPTED BY IT, 
TAKING INTO CONSIDERATION ACTUARIAL CALCULATIONS AND RATES 
OF BENEFITS SUBJECT TO THE APPROVAL OF THE PRESIDENT OF 
THE PHILIPPINES. 
NOTWITHSTANDING ANY CONTRACT TO THE CONTRARY, AN 
EMPLOYER SHALL NOT DEDUCT, DIRECTLY OR INDIRECTLY, FROM 
THE COMPENSATION OF ITS EMPLOYEES COVERED BY THE FUND, OR 
OTHERWISE 
RECOVER 
FROM 
THEM, 
THE 
EMPLOYERS 
CONTRIBUTION WITH RESPECT TO SUCH EMPLOYEES. 
SEC. [6] 8. Membership Term. - Membership in the Fund shall be for 
a period of twenty (20) years [except when earlier terminated by reason of 
retirement, disability, insanity, death, departure from the country or other 
causes as may be provided for by the Board of Trustees: Provided, That 
those who become members of the Fund after the effectivity of this Act may 
withdraw the total accumulated value of their contributions to the Fund after 
the tenth or the fifteenth year of continuous membership: Provided, further, 
That said members have no outstanding housing loans with the Fund: 
Provided, finally, That this option may be exercised only once and shall not 
prejudice the member's continuing membership in the Fund.] PROVIDED, 
THAT THE MEMBER SHALL HAVE CONTRIBUTED A TOTAL OF TWO 
HUNDRED FORTY (240) MONTHLY CONTRIBUTIONS AT THE TIME OF 
MATURITY, EXCEPT WHEN EARLIER TERMINATED BY REASON OF 
RETIREMENT, DISABILITY, SEPARATION FROM THE SERVICE DUE TO 
HEALTH REASONS, INSANITY, DEATH, DEPARTURE FROM THE 
COUNTRY OR OTHER CAUSES AS MAY BE PROVIDED FOR BY THE 
BOARD OF TRUSTEES. 
Resignation, lay-off or suspension from employment may not 
necessarily constitute a ground for membership termination, except for 
suspension of contributions. 
SEC. [7] 9. Waiver or Suspension of Coverage. - Coverage of the 
Fund andlor the payment of monthly contribution to the same may, by rules or 
resolutions of the Board of Trustees, be waived or suspended by reasons of 
nature of employment, condition of business, ability to make contributions and 


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other reasonable considerations. 
SEC. [8] I O .  Provident Character. - The Fund shall be private in 
character, owned wholly by the members, administered in trust and applied 
exclusively for their benefit. All the personal and employer contributions shall 
be fully credited to each member, accounted for individually and transferable 
in case of change of employment. They shall earn dividends as may be 
provided for in the implementing 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 peripheral benefits for the 
member may be drawn. 
SEC. [9] 11. Housing Features. - A  member of good standing shall be 
eligible to apply for housing, under such terms AND CONDITIONS as may be 
authorized by the Board of Trustees, taking into account ability to pay. The 
Board of Trustees shall institute policies to ensure that lower-income 
members obtain such housing loans. THE BOARD MAY, UPON 
RECOMMENDATION OF THE CHIEF EXECUTIVE OFFICER, DEPUTIZE 
ANY MEMBER OF THE FUNDS LEGAL STAFF TO ACT AS SPECIAL 
SHERIFF IN FORECLOSURE CASES, IN THE SALE OR ATTACHMENT OF 
THE DEBTORS PROPERTIES, AND IN THE ENFORCEMENT OF COURT 
WRITS AND PROCESSES IN CASES INVOLVING THE FUND. THE 
SPECIAL SHERIFF OF THE FUND SHALL MAKE A REPORT TO THE 
PROPER COURT AFTER ANY ACTION TAKEN BY HIM, WHICH SHALL 
TREAT SUCH ACTION AS IF IT WERE AN ACT OF ITS OWN SHERIFFS IN 
ALL RESPECTS. 
SEC. 12. IMPLEMENTING BODY. - THE PAG-IBIG FUND CREATED 
UNDER THIS ACT, SHALL IMPLEMENT THE PROVISIONS HEREOF. 
SEC. [IO] 13. [Corporate Powers] POWERS AND FUNCTIONS OF 
THE FUND. - The Fund shall have the powers and functions specified in this 
Act and the usual corporate powers: 
(a) To make policies and guidelines, as well as adopt, amend and 
rescind such rules and regulations as may be necessary to carry out the 
provisions and purposes of this Act; 
(B) TO ADOPT OR APPROVE THE ANNUAL AND SUPPLEMENTAL 
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BUDGET OF RECEIPTS AND EXPENDITURES INCLUDING SALARIES 
AND ALLOWANCES OF THE FUND PERSONNEL; TO AUTHORIZE SUCH 
CAPITAL AND OPERATING EXPENDITURES AND DISBURSEMENTS OF 
THE FUND AS MAY BE NECESSARY AND PROPER FOR THE EFFECTIVE 
MANAGEMENT AND OPERATION OF THE FUND; 
[b] (C) To submit annually to the Congress and the President of the 
Philippines not later than March 15, a report of its activities and the state of 
the 
Fund during the 
preceding year, 
including information and 
recommendations for the development and improvement thereof; [and to 
furnish each member of the Fund a Statement of His Accumulated Fund 
Value at least once a year;] 
[c] (D) To invest [not less than seventy percent (70%) of its investible 
fund to housing,] ITS FUNDS in accordance with this Act; 
[d] (E) To acquire, utilize, or dispose of, in any manner recognized by 
law, real or personal properties to carry out the purposes of this Act; 
[e] (F) To set up its own accounting and computer systems; to conduct 
continuing actuarial and statistical studies and valuations to determine the 
financial viability of the Fund and its project: to require reports, compilations 
and analysis of statistical and economic data, as well as make such other 
studies and surveys as may be needed for the proper administration and 
development of the Fund; housing,] ITS FUNDS in accordance with this Act; 
personal properties to carry out the purposes of this Act; 
[f (G) To have the power of succession; to sue and be sued; to adopt 
and use a [separate] CORPORATE seal: 
[g] (H) To enter into and carry out contracts of every kind and 
description with any person, firm or association or corporations, domestic or 
foreign; 
[h] (I) To borrow funds from any source, private or government, foreign 
or 
[i] (J) To invest, own or otherwise participate in equity in any 
establishment, firm or entity; to form, organize, invest in or establish and 
maintain a subsidiary or subsidiaries in relation to any of its purposes; 
(K) TO APPROVE APPOINTMENTS IN THE FUND EXCEPT 
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APPOINTMENTS TO POSITIONS WHICH ARE POLICY DETERMINING, 
PRIMARILY CONFIDENTIAL OR HIGHLY TECHNICAL IN NATURE 
ACCORDING TO THE CIVIL SERVICE RULES AND REGULATIONS; 
PROVIDED, THAT ALL POSITIONS IN THE FUND SHALL BE GOVERNED 
BY A COMPENSATION AND POSITION CLASSIFICATION SYSTEM 
QUALIFICATION STANDARDS RECOMMENDED BY THE FUND’S BOARD 
OF TRUSTEES AND APPROVED BY THE PRESIDENT OF THE 
PHILIPPINES BASED ON A COMPREHENSIVE JOB ANALYSIS, WAGE 
COMPENSATION STUDY AND AUDIT OF ACTUAL DUTIES AND 
RESPONSIBILITIES; PROVIDED, FURTHER, THAT THE COMPENSATION 
PLAN SHALL BE COMPARABLE WITH PREVAILING COMPENSATION 
PLANS IN THE PRIVATE SECTOR AND SHALL BE SUBJECT TO THE 
PERIODIC REVIEW OF THE BOARD NO MORE THAN ONCE EVERY 
FOUR (4) YEARS WITHOUT PREJUDICE TO YEARLY MERIT REVIEWS 
OR INCREASES BASED ON PRODUCTIVITY AND PROFITABILITY; 
(L) TO MAINTAIN A PROVIDENT FUND, WHICH SHALL CONSIST 
OF CONTRIBUTIONS MADE BY BOTH THE FUND AND ITS OFFICERS 
AND EMPLOYEES AND THEIR EARNINGS, FOR THE PAYMENT OF 
BENEFITS TO SUCH OFFICIALS AND EMPLOYEES OR THEIR HEIRS 
UNDER SUCH TERMS AND CONDITIONS AS IT MAY PRESCRIBE; 
(M) TO DESIGN AND ADOPT AN EARLY RETIREMENT INCENTIVE 
PLAN (ERIP) FOR ITS OWN PERSONNEL: EXERCISE ITS POWERS IN 
THESE PLACES; 
AND EXERCISE ITS POWERS IN THESE PLACES; 
(N) TO ESTABLISH FIELD OFFICES AND TO CONDUCT BUSINESS 
(0) TO APPROVE RESTRUCTURING PROPOSALS FOR THE 
PAYMENT OF DUE BUT UNREMITTED CONTRIBUTIONS AND UNPAID 
LOAN AMORTIZATIONS UNDER SUCH TERMS AND CONDITIONS AS THE 
BOARD OF TRUSTEES MAY PRESCRIBE; 
(P) TO DETERMINE, FIX AND IMPOSE INTEREST AND PENALTIES 
UPON UNPAID CONTRIBUTIONS DUE FROM EMPLOYERS AND 
EMPLOYEES; 
(Q) TO ENSURE THE COLLECTION AND RECOVERY OF ALL 
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INDEBTEDNESS, LIABILITIES AND/OR ACCOUNTABILITES, INCLUDING 
UNPAID CONTRIBUTIONS IN FAVOR OF THE FUND ARISING FROM ANY 
CAUSE OR SOURCE OR WHATSOEVER, DUE FROM ALL OBLIGORS, 
WHETHER PUBLIC OR PRIVATE; TO DEMAND PAYMENT OF THE 
OBLIGATIONS REFERRED TO HEREIN, AND IN THE EVENT OF FAILURE 
OR REFUSAL OF THE OBLIGOR OR DEBTOR TO COMPLY WITH THE 
DEMAND, TO INITIATE OR INSTITUTE THE NECESSARY OR PROPER 
ACTIONS 
OR 
SUITS, 
CRIMINAL, 
CIVIL, 
ADMINISTRATIVE, OR 
OTHERWISE, BEFORE THE COURTS, TRIBUNALS, COMMISSIONS, 
BOARDS OR BODIES OF PROPER JURISDICTION, WITHIN THIRTY (30) 
DAYS RECKONED FROM THE EXPIRY DATE OF PERIOD FIXED IN THE 
DEMAND WITHIN WHICH TO PAY OR SETTLE THE ACCOUNT 
fROV/D€D, THAT THE FUND MAY COMPROMISE OR RELEASE, IN 
WHOLE OR IN PART, ANY INTEREST, PENALTY OR CIVIL LIABILITY TO 
THE 
FUND 
IN 
CONNECTION 
WITH 
THE 
COLLECTION 
OF 
CONTRIBUTIONS AND THE LENDING OPERATIONS OF THE FUND, 
UNDER SUCH TERMS AND CONDITIONS AS PRESCRIBED BY THE 
BOARD OF TRUSTEES; 
(R) TO DESIGN AND IMPLEMENT OTHER PROGRAMS THAT WILL 
FURTHER PROMOTE AND MOBILIZE SAVINGS AND 
PROVIDE 
ADDITIONAL RESOURCES FOR THE MUTUAL BENEFIT OF THE 
MEMBERS 
WITH 
APPROPRIATE 
RETURNS 
ON 
THE 
SAVINGSIINVESTMENTS. THE PROGRAM SHALL BE SO DESIGNED AS 
TO SPUR SOCIO-ECONOMIC TAKE-OFF AND MAINTAIN CONTINUED 
GROWTH: 
(S) TO CONDUCT CONTINUING ACTUARIAL AND STATISTICAL 
STUDIES AND 
VALUATIONS 
TO 
DETERMINE THE 
FINANCIAL 
CONDITION OF THE FUND AND TAKING INTO CONSIDERATION SUCH 
STUDIES AND VALUATIONS AND THE LIMITATIONS HEREIN PROVIDED, 
READJUST THE BENEFITS, CONTRIBUTIONS, INTEREST RATES OR 
THE ALLOCATION OR REALLOCATION OF THE FUNDS TO THE 
CONTINGENCIES COVERED ;AND 
[J] (T) To exercise such powers and perform such acts as may be 
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necessary, useful, incidental or auxiliary to carry out the provisions of this Act. 
SEC. [I1 .] 14. Board of Trustees. - The CORPORATE powers and 
functions of the Fund shall be VESTED IN AND exercised by a Board of 
Trustees [composed of the Minister of Human Settlements as Chairman, the 
Minister of Finance as Vice-chairman, the Minister of the Budget, the Minister 
of Labor, the Minister of Industry, the Chief Executive Officer of the Fund, two 
representatives of private employees, two representatives of private 
employers, and one representative of government employees as members. 
The four private sector representatives shall be appointed by the 
President of the Philippines for a term of two (2) years: Provided, That of the 
first set to be appointed, one representative of the employees and one 
representative of the employers shall have a term of only one year. The 
representative of the government employees shall be appointed by the 
President of the Philippines for a term of two years. 
The members of the Board shall receive a per diem and reasonable 
transportation and representation allowance at par with other government 
financial institutions, as may be provided for by the Board of Trustees and 
approved by the President of the Philippines. 
Until the appointment of another person by the President of the 
Philippines upon the recommendation of the Board of Trustees, the President 
of the National Home Mortgage Finance Corporation shall be the Chief 
Executive Officer of the Fund.] 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES, COMPOSED OF 
THE FOLLOWING: 
(A) THE CHAIRPERSON OF THE HOUSING AND URBAN 
DEVELOPMENT AND COORDINATING COUNCIL, AS THE EX-OFFICIO 
CHAIRPERSON; 
(B) THE SECRETARY OF THE DEPARTMENT OF FINANCE, AS THE 
EX-OFFICIO VICE CHAIRPERSON; 
(C) THE SECRETARY OF THE DEPARTMENT OF LABOR AND 
EMPLOYMENT OR HlSlHER DULY DESIGNATED UNDERSECRETARY, AS 
EX-OFFICIO MEMBER; 
(D) THE SECRETARY OF THE DEPARTMENT OF BUDGET AND 
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MANAGEMENT OR HlSlHER DULY DESIGNATED UNDERSECRETARY, AS 
EX-OFFICIO MEMBER; 
(E) THE SECRETARY OF THE DEPARTMENT OF TRADE AND 
INDUSTRY, AS EX-OFFICIO MEMBER; 
(F) THE CHIEF EXECUTIVE OFFICER OF THE FUND, AS MEMBER; 
(G) FIVE (5) APPOINTIVE MEMBERS, TWO (2) REPRESENTATIVES 
OF PRIVATE EMPLOYEES, TWO REPRESENTATIVES OF PRIVATE 
EMPLOYERS AND ONE (1) REPRESENTATIVE OF GOVERNMENT 
EMPLOYEES. 
THE FOUR (4) PRIVATE SECTOR REPRESENTATIVES SHALL 
EACH BE APPOINTED BY THE PRESIDENT OF THE PHILIPPINES FOR A 
TERM OF TWO (2) YEARS, PROVIDED HOWEVER, THAT OF THE FIRST 
TO BE APPOINTED, ONE REPRESENTATIVE OF THE EMPLOYERS 
SHALL HAVE A TERM OF ONLY ONE (1) YEAR. THE REPRESENTATIVE 
OF THE GOVERNMENT EMPLOYEES SHALL BE APPOINTED BY THE 
PRESIDENT OF THE PHILIPPINES FORATERM OF TWO (2) YEARS. 
THE CHAIRMAN, VICE CHAIRMAN, AND MEMBERS OF THE 
BOARD SHALL BE ENTITLED TO PER DIEM FOR EACH MEETING 
ACTUALLY ATTENDED AT SUCH AMOUNTS AS MAY BE FIXED BY THE 
BOARD IN ACCORDANCE WITH EXISTING LAWS, RULES AND 
REGULATIONS. 
SEC. [12.] 15. Powers of the Board. - The Board shall have the 
following powers: 
(a) To formulate policies, rules and regulations to carry out effectively 
the functions of the Fund under this Act; 
(b) [To direct operations and administration of the Fund;] 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 
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purposes: 
(d) To approve [appointments of personnel: and] 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 MEMBERSlBORROWERS 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 RECOMMEND FOR APPROVAL BY THE PRESIDENT OF 
THE 
PHILIPPINES 
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 12 (K) HEREOF; AND 
[e] (G) To exercise such [other] powers as may be necessary to carry 
into effect the powers and accomplish the purposes for which the Fund is 
established. 
SEC. r13.J 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)] Extension of Fund coverage to other working groups, and waiver 
or 
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[(c)] (B) Grounds for and effects or termination of membership other 
than by suspension of coverage or its enforcement for reasons herein stated;] 
completion of term; 
[(d)] (C) Fund earnings and their distribution, investment andlor 
plowing back for the exclusive benefit of the members; 
[(e)] (D) Interim disbursements of accumulated values to members of 
ameliorative and similar purposes: 
(E) BENEFITS, CONTRIBUTIONS INCLUDING THEIR RATES, 
PREMIUM RATES, AND INTEREST RATES SUBJECT TO THE APPROVAL 
OF THE PRESIDENT OF THE PHILIPPINES; 
(f) Housing and other loan assistance programs for members; 
(9) 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 [initial coverage drive through 
phased implementation based on reasonable classifications of employer 
andlor employee groups] FUNDS COVERAGE; and 
(i) Other matters that, by express or implied.provisions of this Act, shall 
require implementation by appropriate policies, rules and regulations. 
SEC. [14.] 17. Powers and Duties of 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. [Subject to 
the approval of the Board, said officer shall appoint and assign the personnel 
of the Fund, remove, suspend or otherwise discipline them for cause and 
prescribe their duties and qualifications.] 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 
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COMPETENT PERSONNEL MAY BE EMPLOYED. 
SEC. 1151 18. Money Investments. - All moneys of the Fund as are 
not needed to meet current administrative and operational requirements, shall 
be invested with due and prudent regard for its safety, growth and liquidity 
needs. 
SEC. [16.] 19. [Tax and Guarantee Benefits.] EXEMPTION FROM 
TAX, LEGAL PROCESS AND LIEN - [Notwithstanding any provisions of 
existing law, decree, 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 Fund, or dividends paid or received by the members 
thereof, or their heirdbeneficiaries, 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 covered 
member to the Fund. In addition, the Government of the Republic of the 
Philippines hereby guarantees the payment of employees' and employers' 
contributions and dividends to the members when they are due.] 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 
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OF THE STATE IN SECTION 2 HEREOF GRANTING TAX EXEMPTION TO 
THE FUND. ANY TAX ASSESSMENT AGAINST THE FUND SHALL BE 
NULLAND VOID. 
SEC. 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. 
SEC. [17.] 21. Administration Costs. -The Fund shall bear the costs 
of its administration and development, in such amounts andlor limits as the 
Board of Trustees may deem appropriate, but not exceeding two percent (2%) 
of the Net Fund Assets of the previous year, [Expenses for initial operation, 
however, may be provided for 'by the National Home Mortgage Finance 
Corporation, either as advances subject to reimbursement, with or without 
interest, or as subsidy for the development of housing finance.] excluding 
operating cost directly relating to the lending operations of the Fund. 
SEC. [18.] 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 PD NO. 1445. 
[SEC. 19. Existing ProvidentlHousing Plans. - An employer andlor 
employee group who, at the time this Decree becomes effective, have their 
own provident andlor employee-housing plans, may register with the Fund, 
for any of the following purposes: 
(a) For annual certification of waiver or suspension from coverage or 
participation in the Fund, which shall be granted on the basis of verification 
that the waiver or suspension does not contravene any effective collective 
bargaining agreement and that the features of the plan or plans are superior 
to the Fund or continue to be so; or 
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(b) For integration with the Fund, either fully or partially. The 
establishment of a separate provident and/or housing plan after the effectivity 
of this Decree shall not be a ground for waiver of coverage in the Fund; nor 
shall such coverage bar any employer andlor employee-group from 
establishing separate provident andlor housing plans. 
SEC. 20. Existing Coverage. - Membership under the Fund 
established under Presidential Decree No. 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 
andlor integrated into the new Fund hereby established, subject henceforth to 
policies and rules adopted thereunder. 
SEC. 21. Substitute Retirement Plan. - A  private employer shall have 
the option to treat the coverage by the Fund as a retirement plan for the 
employee concerned, within the purview of the Revised Labor Code of the 
Philippines, subject, however, to any existing collective bargaining on the 
matter.] 
SEC. [22] 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 [through the Social Security System and] 
IN ACCORDANCE WITH A MECHANISM AS 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 non 
payment 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. 
[(b) Failure or refusal of the employer to pay or remit the contributions 
herein prescribed shall not prejudice the right of the covered employee to the 
benefits under this Act.] 
(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 
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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 FUNDS. 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. 
(E) THE CONTRIBUTIONS UNDER THIS ACT, IN CASES WHERE 
AN EMPLOYER REFUSES OR NEGLECTS TO PAY THE SAME, SHALL BE 
COLLECTED BY THE FUND IN THE SAME MANNER AS TAXES ARE 
MADE COLLECTIBLE UNDER THE NATIONAL INTERNAL REVENUE 
CODE, AS AMENDED. THE RIGHT TO INSTITUTE THE NECESSARY 
ACTION AGAINST THE EMPLOYER MAY BE COMMENCED WITHIN 
TWENTY (20) YEARS FROM THE TIME DELINQUENCY IS KNOWN OR 
THE ASSESSMENT IS MADE BY THE FUND, OR FROM THE TIME THE 
BENEFITACCRUES, AS THE CASE MAY BE. 
SEC. 24. EMPLOYMENT RECORDS AND REPORTS. - (A) EACH 
EMPLOYER SHALL IMMEDIATELY REPORT TO THE FUND THE NAMES, 
AGES, CIVIL STATUS, OCCUPATIONS, SALARIES, AND DEPENDENTS OF 
ITS COVERED EMPLOYEES. 
(B) EVERY EMPLOYER SHALL KEEP TRUE AND ACCURATE 
WORK RECORDS FOR SUCH PERIOD AND CONTAINING SUCH 
INFORMATION AS THE FUND MAY PRESCRIBE, IN ADDITION TO THE 
ANNUAL REGISTER OF NEW AND SEPARATED EMPLOYEES WHJCH 
SHALL BE SECURED FROM THE FUND, WHEN THE EMPLOYEE SHALL 
ENTER ON THE FIRST DAY OF EMPLOYMENT OR ON THE EFFECTIVE 
DATE OF SEPARATION, THE NAMES OF THE PERSONS EMPLOYED OR 
SEPARATED FROM EMPLOYMENT AND SUCH OTHER DATA THAT THE 
FUND MAY REQUIRE AND SAID ANNUAL REGISTER SHALL BE 
SUBMITTED TO THE FUND IN THE MONTH OF JANUARY OF EACH 
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YEAR. SUCH RECORD SHALL BE OPEN FOR INSPECTION BY THE 
FUND OR ITS AUTHORIZED REPRESENTATIVES QUARTERLY, OR AS 
OFTEN AS THE FUND MAY REQUIRE. 
SEC. 123.1 25. Penal Provisions. - Refusal or failure without lawful 
cause or with fraudulent intent to comply with the provisions of this [Decree] 
ACT, as well as the implementing rules and regulations adopted by the Board 
of Trustees, particularly with respect to registration of employees, collection 
and remittance of employee-savings as well as the employer counterparts, or 
the correct amount due, within the time set in the implementing rules and 
regulations or specific call or extension made by the Fund Management shall 
constitute an offense punishable by a fine of not less THAN, but not more 
than twice, the amount involved or imprisonment of not more than six (6) 
years, or both such fine and imprisonment, in the discretion of the Court, 
apart from the civil liabilities andlor obligations of the offender or delinquent. 
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 the 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. 
IN CASE OF GOVERNMENT INSTRUMENTALITIES, AGENCIES OR 
CORPORATIONS, THE TREASURER, FINANCE OFFICER, CASHIER, 
DISBURSING OFFICER, BUDGET OFFICER OR OTHER OFFICIAL OR 
EMPLOYEE WHO FAILS TO INCLUDE IN THE ANNUAL BUDGET THE 
AMOUNT CORRESPONDING TO THE EMPLOYERS' CONTRIBUTIONS, 
OR WHO FAILS OR REFUSES OR DELAYS BY MORE THAN THIRTY (30) 
DAYS FROM THE TIME SUCH AMOUNT BECOMES DUE AND 
DEMANDABLE OR TO DEDUCT THE MONTHLY CONTRIBUTIONS OF 
THE EMPLOYEE SHALL, UPON CONVICTION BY FINAL JUDGMENT, 
SUFFER THE PENALTIES OF IMPRISONMENT OF NOT MORE THAT SIX 
(6) YEARS, AND A FINE OF NOT LESS THAN. BUT NOT MORE THAN 
TWICE THE AMOUNT INVOLVED. 
SEC. p4.126. Visitorial and Enforcement Powers. - (a) The Fund or 
its duly authorized representatives [may, at any time,] IS EMPOWERED TO 
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inspect the premises, books of accounts and records of any person or entity 
covered by this Act; require it to submit its reports regularly; and act on 
violations of any provisions of this Act. 
(b) Particular aspects of the Fund’s administration may be subject to 
supervision, visitation or verification by appropriate agencies of the 
government as may be designated and authorized by the President of the 
Philippines. 
SEC. 27. BORROWERS’ INSURANCE ACCOUNT. - (A) AS PART OF 
ITS INVESTMENT OPERATIONS, THE FUND MAY ACT AS INSURER OF 
ALL OR PART OF ITS INTEREST ON PROPERTIES MORTGAGED TO THE 
FUND, OR LIVES OF BORROWERS WHOSE LOANS ARE FINANCED BY 
THE FUND. FOR THIS PURPOSE, THE FUND MAY ESTABLISH A 
SEPARATE ACCOUNT TO BE KNOWN AS THE “BORROWERS’ 
INSURANCE ACCOUNT”. ALL AMOUNTS RECEIVED BY THE FUND IN 
CONNECTION WITH THE AFORESAID INSURANCE OPERATIONS SHALL 
BE PLACED IN THE BORROWERS’ INSURANCE ACCOUNT. THE ASSETS 
AND LIABILITIES OF THE BORROWERS’ INSURANCE ACCOUNT SHALL 
AT ALL TIMES BE CLEARLY IDENTIFIABLE AND DISTINGUISHABLE 
FROM THE ASSETS AND LIABILITIES IN ALL OTHER ACCOUNTS OF THE 
FUND. NOTWITHSTANDING ANY PROVISION OF LAW TO THE 
CONTRARY, THE ASSETS HELD IN THE BORROWERS’ INSURANCE 
ACCOUNT SHALL NOT BE CHARGEABLE WITH THE LIABILITIES 
ARISING OUT OF ANY OTHER BUSINESS THE FUND MAY CONDUCT 
BUT SHALL BE HELD AND APPLIED EXCLUSIVELY FOR THE BENEFIT 
OF THE OWNERS 
OR BENEFICIARIES OF 
THE 
INSURANCE 
CONTRACTS ISSUED BY THE FUND UNDER THIS PARAGRAPH. 
(B) THE FUND MAY INSURE ANY OF ITS INTEREST OR PART 
THEREOF WITH ANY PRIVATE COMPANY’ OR REINSURER. THE 
INSURANCE COMMISSION OR ITS AUTHORIZED REPRESENTATIVES 
SHALL MAKE AN EXAMINATION INTO THE FINANCIAL CONDITION AND 
METHODS OF TRANSACTING BUSINESS OF THE FUND AT LEAST ONCE 
IN TWO (2) YEARS, BUT SUCH EXAMINATION SHALL BE LIMITED TO 
THE INSURANCE OPERATION OF THE FUND AS AUTHORIZED UNDER 
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THIS PARAGRAPH AND 
SHALL NOT EMBRACE THE 
OTHER 
OPERATIONS OF THE FUND; AND THE REPORT OF SAID EXAMINATION 
SHALL BE SUBMITTED TO THE COMMISSION AND A COPY THEREOF 
SHALL BE FURNISHED THE OFFICE OF THE PRESIDENT OF THE 
PHILIPPINES WITHIN A REASONABLE TIME AFTER THE CLOSE OF THE 
EXAMINATION: PROVIDED, THAT FOR EACH EXAMINATION, THE FUND 
SHALL PAY TO THE INSURANCE COMMISSION AN AMOUNT EQUAL TO 
THE ACTUAL EXPENSES OF THE INSURANCE COMMISSION IN THE 
CONDUCT OF THE EXAMINATION: PROVIDED, FURTHER, THAT THE 
GENERAL LAW ON INSURANCE AND THE RULES AND REGULATIONS 
PROMULGATED 
THEREUNDER 
SHALL 
HAVE 
SUPPLETORY 
APPLICATION INSOFAR AS IT IS NOT IN CONFLICT WITH THIS ACT AND 
ITS RULES AND REGULATIONS. 
SEC. 28. IMPLEMENTING RULES AND REGULATIONS. - THE 
IMPLEMENTING RULES AND REGULATIONS TO EFFECTIVELY CARRY 
OUT THE PROVISIONS OF THIS ACT SHALL BE ADOPTED BY AND 
PROMULGATED BY THE BOARD OF TRUSTEES OF THE PAG-IBIG FUND 
NOT LATER THAN NINETY (90) DAYS AFTER THE APPROVAL OF THIS 
ACT WHICH SHALL BE PUBLISHED IN AT LEAST TWO (2) NATIONAL 
NEWSPAPERS OF GENERAL CIRCULATION. 
SEC. [25.] 29. Repealing Clause. - Any provisions of law, decree, 
executive order, rules or regulations as are in conflict or inconsistent with the 
provisions and/or purposes of this [decree] ACT are [accordingly] HEREBY 
repealed, amended or modified ACCORDINGLY. 
SEC. [26.] 30. Effectivity. - [This Decree shall take effect 
immediately.] THIS ACT SHALL TAKE EFFECT FIFTEEN (15) DAYS AFTER 
THE COMPLETION OF ITS PUBLICATION IN THE OFFICIAL GAZETTE OR 
IN AT LEAST TWO (2) NATIONAL NEWSPAPERS OF GENERAL 
CIRCULATION. 
Sec. 2. Separability Clause. - In the event that any provision of this Act is declared 
unconstitutional, the validity of the other provisions shall not be affected by such declaration. 
Sec. 3. Repealing Clause. - All laws, decrees, orders, rules and regulations and 
other issuances or parts thereof which are inconsistent with the provisions of this Act are 
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Approved, 
hereby repealed or modified accordingly 
Sec. 4. €ffecfivify - This Act shall take effect 15 days following its publication in the 
Official Gazette or in at least two newspapers of general circulation. 
23