Law Summary
Eligibility and Terms for Housing Loans
- Members in good standing may apply for housing loans.
- Loan terms are set by the Board of Trustees considering the member’s ability to pay.
- The Board must have policies to ensure that lower-income members can access housing loans.
Reporting and Member Communication
- The Fund must submit an annual report to the President by March 15 covering the previous year’s activities and Fund status.
- The report must include information and recommendations for the Fund’s development and improvement.
- Each member must be furnished with a statement of their Accumulated Fund Value annually.
Employer’s Duty to Remit Contributions and Penalties
- Employers must set aside and remit contributions through the Social Security System, Government Service Insurance System, or any Board-approved mechanism.
- Employers are liable for timely payment of these contributions.
- Non-payment incurs a penalty of 3% per month on the overdue amounts from the due date until settlement.
- Failure or refusal by employers to remit contributions does not affect employees’ rights to benefits under the Act.
Visitorial and Enforcement Authority
- The Fund or its authorized representatives may inspect premises, books, and records of covered entities at any time.
- They may require regular reports and take action against violations of the Act.
- Supervision or verification of certain Fund administration aspects may be done by government agencies authorized by the President.
Repeal and Effectivity
- Any orders, issuances, or regulations inconsistent with this Executive Order are repealed or modified accordingly.
- The Executive Order takes effect on August 1, 1986.