Question & AnswerQ&A (HDMF CIRCULAR NO. 348)
The guidelines apply to members who have savings remaining or remitted to the Fund including dividends accrued after receipt of their provident benefits, except those who returned to mandatory coverage unless termination occurred after re-coverage.
RTAV refers to the member's savings and dividends remaining in the Fund after the member has received their provident benefit claim due to membership termination grounds such as death, compulsory retirement, permanent departure, total disability, or termination due to health.
The grounds include death, compulsory retirement, permanent departure from the country, permanent total disability or insanity, and termination from service due to health reasons.
RTAV is computed by considering applicable declared dividends, member's savings and employer counterpart in the process of remitting, and member's savings plus deprived dividends collected from the employer due to Fund enforcement activities.
The Fund publishes announcements in newspapers, posts complete lists on its website and branches, and notifies members with RTAV of Php500 or more by mail to inform them about the credit or disbursement of their RTAV.
Unclaimed RTAV amounts of Php500 or more after ten years from membership termination are reclassified to the Fund's Retained Earnings and may no longer be claimed by the member.
If the original provident benefit was released via cash card, the RTAV is credited to the same cash card. If it was through a check, the Fund branches may use petty cash or revolving fund, and the members have 60 calendar days to claim these funds.
The unclaimed RTAV within the 60-day period is reclassified as the Fund's Miscellaneous Income, and the member may no longer claim the amount thereafter.
The Fund updates and releases RTAV amounts semi-annually based on records as of the last working day of April and September each year. The initial implementation included members entitled as of December 31, 2013.
Once RTAV is reclassified as Accounts Payable, it no longer earns dividends thereafter.
Any issues in the interpretation or implementation of the guidelines are initially resolved by the concerned officer, and if unresolved, escalated to the next approving authority.
The Senior Management Committee may amend, modify, revise, or update the guidelines provided that such changes align with the objectives of the program and comply with the Fund’s Charter and applicable laws.
The guidelines took effect immediately upon their issuance on September 8, 2014.