Adjusting PSALM Dividend Rate under RA 7656

Republic Act No. 7656 requires GOCCs to declare and remit at least fifty percent (50%) of their annual net earnings as cash, stock, or property dividends to the National Government.
Section 5 of Republic Act No. 7656 authorizes the President, upon the recommendation of the Secretary of Finance, to adjust the dividend percentage for reasons of national economy and general welfare.
Executive Order No. 59 bases the adjustment on the need to support the viability and mandate of Power Sector Assets and Liabilities Management Corporation (PSALM).
The adjustment is made in consideration of liquidity and debt servicing relative to PSALM’s net earnings for specific years.
The Secretary of Finance recommends a downward adjustment for years 2004, 2007, 2008, 2013, 2014 and 2015.

SECTION 1 adjusts the dividend percentage PSALM must declare and remit as dividends to the National Government.
The adjusted dividend rate is set from the minimum at least fifty percent (50%) to 3.3030407%.
SECTION 1 sets the adjusted dividend rate for calendar years 2004, 2007, 2008, 2013, 2014 and 2015.
SECTION 1 states that the adjusted rate corresponds to an estimated dividend amount of PHP 2.11 Billion.
The adjustment applies pursuant to Section 5 of Republic Act No. 7656.

The adjusted rate applies to Power Sector Assets and Liabilities Management Corporation (PSALM).
The dividends covered are dividends declared and remitted to the National Government.
SECTION 2 provides that the adjusted dividend rate applies only to PSALM’s net earnings for the years stated in SECTION 1.
The years covered are calendar years 2004, 2007, 2008, 2013, 2014 and 2015.
The adjusted rate is not stated to apply to PSALM’s net earnings for any other year.

SECTION 3 provides that Executive Order No. 59 shall take effect immediately.