IMPLEMENTING RULESAND REGULATIONS

OFREPUBLIC ACT NO. 9679

Home Development Mutual Fund Law of 2009, otherwise
knownasPag-IBIG (Pagtutulungan sa kinabukasan: Ikaw,
Bangko, Industriya at Gobyerno) Fund

RULE I
PRELIMINARY PROVISIONS

Section 1. [Link] Rules shall be referred to

as the Rules and Regulations Implementing
Republic Act No. 9679 or the Home Development
Mutual Fund Law of 2009, otherwise known as
Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw,
Bangko, Industriya at Gobyerno) Fund.

Section 2. [Link] doubt in the

interpretation of these Rules shall be resolved in
favor of the members.

RULE II
DECLARATION OF STATE POLICY AND STATEMENT
OF THE FUNDS OBJECTIVES

Section 1. Declaration of State [Link] is the

policy of the State to establish, develop, promote, and
integrate a nationwide sound and viable tax-exempt
mutual provident savings 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 Home
Development Mutual Fund, with mandatory
contributory support of the employers in the spirit of
social justice and the pursuit of national development.

Section 2. Statement of Funds [Link] general, the

objectives of the Fund are:

Improve the quality of life of its members by developing and

promoting an integrated nationwide, sound, and viable taxexemptmutual provident savings system suitable to the
needs of the employed and other earning groups;
Improve the quality of life of its members by promoting home
ownership through the extension of affordable housing
loans;
Stimulate and assist the shelter industry through the extension
of developmental and institutional financing;
Invest the provident savings of its members taking into
consideration profitability and safety of the funds as a means
of providing them provident benefits upon termination of
theirmembership in the Fund;
Provide small and short term loans, other benefits and
assistance programs to its members, consistent with the Funds
provident character; and
Design and implement other programs that shall further promote
and mobilize savings and provide additional resources for
the mutual benefit of its members with appropriate returns on
the savings and investments.

RULE III
DEFINITION OF TERMS

Section 1. Definition of [Link] purposes of

these Rules and Regulations, the following terms
shall, unless the context indicates otherwise, have
the following meanings:
I. Fund. The Home Development Mutual Fund, otherwise

known as Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw,

Bangko, Industriya at Gobyerno) Fund, created under R.A. 9679,
which is a government financial institution involved in
mobilizing provident funds primarily for shelter finance. It
replaces the Home Development Mutual Fund established
under Presidential Decree No. 1752.

N. Member-Borrower. A member who has an

outstanding account under any of the Funds loan
programs.
O. Member-Saver. A member who has no
outstanding account under any of the Funds loan
programs.
P. 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 the member shall have
contributed a total of two hundred forty (240)
monthly contributions at the time of maturity.
[Link] Accumulated Value. The sum of the
members contributions and the employers
required contributions, when appropriate, and the
corresponding dividends credited thereto.

RULE IV
ORGANIZATION, ADMINISTRATION, POWERS AND
FUNCTIONS OF THE HOME DEVELOPMENT MUTUAL FUND

Section 1. Home Development Mutual Fund, otherwise

known as Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw,
Bangko, Industriya at Gobyerno) [Link] Home
Development Mutual Fund or the Pag-IBIG Fund created under
R.A. 9679 is a government financial institution involved in
mobilizing provident funds primarily for shelter finance. It is a
nationwide tax-exempt mutual provident savings system for
private and government employees and other earning groups,
supported by matching mandatory contributions of their
respective employers in the spirit of social justice and the
pursuit of national development, with housing as the primary
investment.

Section. 2. 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
provided for in these Rules. The said amounts
shall constitute the provident fund of each
member, to be paid to him or her, his or her
estate or beneficiaries upon termination of
membership, or from which peripheral benefits
for the member may be drawn.

Section 3. Powers and Functions of

the [Link] addition to the usual
corporate powers under existing laws,
the Fund shall have the following
specific powers and functions:
To formulate, adopt, amend and/or rescind

such rules and regulations as may be

necessary to carry out the provisions and
purposes of R.A. 9679. b. To adopt or approve
the annual and supplemental budget of
receipts and expenditures including salaries
and allowances of the Funds personnel;

 To submit annually to 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;
To invest not less than seventy percent
(70%) of its investible funds to housing, in
accordance with R.A. 9679;
To acquire, utilize, or dispose of, in any
manner recognized by law, real or personal
properties to carry out the purposes of R.A.
9679;

 To have the power of succession; to sue and be sued;

and to adopt and use a corporate seal;

To borrow funds from any source, private or

government, foreign or domestic;

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;
To maintain a provident fund, which shall consists 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;

Section 4. Board of [Link] corporate powers and

functions of the Fund shall be vested in and exercised by the
Board that shall be composed of the following:
The Chairperson of the Housing and Urban Development

Coordinating Council, as the ex officio Chairman ;

The Secretary of the Department of Finance, as the ex officio Vice

Chairman.
The Secretary of the Department of Labor and Employment, or

his/her duly designated undersecretary, as ex officio member;

The Secretary of the Department of Budget and Management, or

his/her duly designated undersecretary, as ex officio member;

The Secretary of the Department of Trade and Industry, or his/her

duly designated undersecretary, as ex officio member;

The Chief Executive Officer of the Fund; and
Five (5) appointive members, two (2) representatives of private

employees, two (2) 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 (1) 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

for a term of two (2) years.
The Chairman, Vice Chairman and members of the

Board shall be entitled to a reasonable per diem for

each meeting actually attended and other allowances
at such amounts as may be fixed by the Board, in
accordance with existing laws, rules and regulations.

Section 5. Powers of the [Link] Board shall have the

following powers:
To formulate policies, rules and regulations to carry out

effectively the functions of the Fund under R.A. 9679;

To promulgate such rules and regulations as may be

necessary or proper for the effective exercise of the powers and

functions, aswell as the discharge of the duties and
responsibilities of the Fund, its officers and employees;
To authorize expenditures of the Fund in the interest of

effectiveadministration and operations; to adopt from time to

time thebudgets for said purposes;
To approve the annual and supplemental budget of receipts

andexpenditures including salaries and allowances of the

Fundpersonnel; to authorize such capital and operating
expendituresand disbursements as may be necessary and proper
for theeffective management and operation of the Fund;

 To condone, in whole or in part, penalties imposed on loans

of members and borrowers who, for justifiable reasons prescribed

by the Board, failed to pay on time any obligation due to the Fund;
Provided, that such exclusive power to condone shall likewise apply
to penalties imposed on employers, who justifiably fail to remit
when due the required contributions of their employees;
To approve the Funds 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 8,
Rule IV hereof;
To approve or confirm appointments of officers and other

personnel of the Fund, as the case may be; and

To exercise such powers as may be necessary to carry into

effect the powers and accomplish the purposes for which the Fund
is established.

Section 6. Rule-Making [Link] Board shall

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:
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;
Grounds for and effects of termination of membership other than

by completion of term;
Fund earnings and their distribution, investment and/or plowing

back for the exclusive benefit of the members;

 Interim disbursements of accumulated values to members of

ameliorative and similar purposes;

Benefits, contributions including their rates, premium rates, and

interest rates;
Housing and other loan assistance programs to members;
Adjudication and settlement of claims and disputes and the

procedures for the same on any matters involving the interests of

members in the Fund;
Optimize the effectiveness of the Funds coverage;
Extension of Fund coverage to other earning groups, with or

without employer contributions, and waiver or suspension of

coverage or its enforcement by reasons of nature of employment,
condition of business, ability to make contributions and other
reasonable considerations; and
Other matters that, by express or implied provisions of R.A. 9679,

shall require implementation by appropriate policies, rules and

regulations.

Section 7. Chief Executive [Link] Chief Executive

Officer ofthe Fund shall be appointed by the President of the
Philippines and shall execute and administer the policies and
resolutions approved by the Board of Trustees, prepare its
agenda, and direct and supervise the operations and
management of the Fund. The Chief Executive Officer, subject
to the approval of the Board in case of approval of
appointments to managerial positions and above, and the
confirmation of the Board in appointments to below that of
manager level, shall appoint the personnel of the Fund,
remove, suspend or otherwise discipline them for cause, and
prescribe their duties and qualifications, in accordance with
existing civil service laws, rules and regulations, to the end
that only competent personnel may be employed.

Section 8. Organizational and administrative structures

and staffing [Link] organizational and administrative
structures and staffing pattern of the Fund shall be as
determined by the Board. All positions in the Fund shall be
governed by a compensation and position classification system
and qualification standards approved by the Board based on a
comprehensive job analysis, wage compensation study and
audit of actual duties and responsibilities; Provided, 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. The Fund shall,
therefore, be exempt from any laws, rules and regulations on
salaries and compensations.

Section 9. Administration [Link] Fund shall bear the costs

of its administration and development, in such amounts and/or
limits as the Board of Trustees may deem appropriate, but not
exceeding two (2%) percent of the Net Fund Assets of the previous
year, excluding operating cost directly relating to the lending
operations of the Fund.
Section 10. [Link] Chairman of the Commission on Audit
shall act as the ex-officio auditor of the Fund and, accordingly, is
empowered to appoint a representative and other subordinate
personnel to perform and report on such audit duties, responsible
to and removable only by the Commission on Audit Chairman,
without prejudice, however, to the power of the Board of Trustees
to contract for another mode of independent audit service, in
addition to that provided by the Commission on Audit as provided
for under Presidential Decree No. 1445, otherwise known as the
Government Auditing Code of the Philippines.

Section 11. Exemption from Tax, Legal Process and

[Link] 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 there from,
as well as all supplies, equipment, papers or documents shall be
exempt from any tax, assessment, fee, charge, or customs or
import duty; and all benefit payments made by the Pag-IBIG Fund
shall likewise be exempt from all kinds of taxes, fees or charges,
and shall not be liable to attachments, garnishments, levy or
seizure by or under any legal or equitable process whatsoever,
either before or after receipt by the person or persons entitled
thereto, except to pay any debt of the member to the Fund. No
tax measure of whatever nature enacted shall apply to the Fund,
unless it expressly revokes the declared policy of the State in
Section 2 of R.A. 9679 granting tax exemption tothe Fund. Any
tax assessment against the Fund shall be null and void.

Section 12. Money [Link] moneys of the Fund

not needed to meet current administrative and operational
requirements, shall be invested with due and prudent
regard for its safety, growth and liquidity needs. Provided,
that at least seventy percent (70%) of the Funds investible
funds shall be invested in housing, in accordance with R.A.
9679.
Section 13. Visitorial and Enforcement Powers.
The Fund or its duly authorized representative is empowered to inspect

the premises, books of accounts and records of any person or entity

covered by R.A. 9679; require to submit its reports regularly, and act
on violations of any provision of R.A. 9679.
Particular aspects of the Funds 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.