Question & AnswerQ&A (EXECUTIVE ORDER NO. 44)
The primary purpose is to convert PPSB into an Overseas Filipino Bank (OFB) dedicated to providing financial products and services tailored to the requirements of overseas Filipinos, especially focusing on efficient foreign remittance services.
The recommendation is pursuant to Republic Act No. 10149, or the GOCC Governance Act of 2011.
Their necessary approval and/or clearance are required for the acquisition of PPSB by LBP and the subsequent conversion into an OFB in accordance with existing laws, rules, and regulations.
PPC and the Bureau of the Treasury are directed to transfer all their respective shares in PPSB to LBP at zero value.
PPSB is required to cause the expeditious transfer of all assets, liabilities, records, systems, and other appurtenant items to LBP.
The LBP is directed to infuse the necessary capital to OFB to strengthen its capital base and enable it to serve the financial and banking needs of overseas Filipinos.
The Board consists of nine members: the LBP President (Chairperson), the LBP-designated OFB President (Vice Chairperson), four LBP-designated Directors or Officers, a DOLE representative, an OWWA representative, and a private sector member representing overseas Filipinos.
PPSB officers and employees who voluntarily elect to retire or are separated shall receive retirement incentives based on their years of service multiplied by their Basic Monthly Pay (BMP), with rates increasing from 1.0x BMP for up to 20 years of service to 1.5x BMP for over 30 years.
PPSB is directed to return the balance of P249.23 Million to the National Treasury from the previously released P500 Million for the Project DRIVE Fund.
The Order takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation.