Question & AnswerQ&A (PROCLAMATION NO. 407)
A Distressed Employer is an employer who suffered at least twenty-five percent (25%) capital impairment for the past taxable year as evidenced by its Audited Financial Statement.
Waiver of Coverage refers to a temporary exclusion from coverage under the Fund of an employer who is not yet registered with the Fund.
Suspension of Coverage is a temporary exclusion from coverage under the Fund of an employer who is already registered with the Fund.
No, waivers or suspensions of coverage are not allowed except in the case of distressed employers.
Waiver or suspension granted applies to all employees except those who are member-borrowers of the Fund. Member-borrowers must continue to pay and remit their monthly contributions, while member-savers may opt to remain in good standing by remitting monthly contributions with or without employer contributions. Employers must still deduct and remit contributions for member-borrowers.
The employer is still obligated to service member-borrowers by deducting contributions through salary deduction and remitting these to the Fund.
Mandatory coverage remains in full force and effect until it is expressly waived or suspended by the President of the Fund.
They have thirty (30) days from receipt of notice to appeal the President's decision to the Board of Trustees.
The decision of the Board of Trustees becomes final and unappealable after fifteen (15) days from the notice of the decision unless appealed to a competent court.
All conflicting or inconsistent policies, guidelines, rules, and regulations or parts thereof are repealed, amended, or modified accordingly.
They take effect fifteen (15) days after complete publication in at least two national newspapers of general circulation, and after a copy is filed with the Office of the National Administrative Register, University of the Philippines Law Center.