Objectives of the Provident Fund
- Serve as a savings and loan credit facility for government officials and employees.
- Provide supplementary welfare benefits to members.
Governing Policies
- Membership is voluntary.
- Both employees and employers share roles in Fund establishment and administration.
- Regulatory structures ensure uniformity, integrity, and viability.
- Equal access and rights for all officers and employees; no special rules for select groups.
- Management by a Board of Trustees with equal employer and employee representation.
- Advocacy to encourage contributions and preservation of Fund accounts.
- Strong legal protection against fraud, theft, or mismanagement.
Funding Sources
- Contributions from members.
- Initial agency counterpart support for operational needs (personnel, facilities).
- Other legal funding sources identified by the Board of Trustees.
- Future government cash contributions may be authorized subject to DBM guidelines.
Governance Structure
- Managed by a Board of Trustees with adequate representation from employer and employees.
- The highest financial official in the agency may serve as Board Chairman.
Functions and Responsibilities of the Board
- Formulate and enforce rules and regulations for Fund use, operation, and investment.
- Identify and secure valid and authorized fund sources.
- Determine loan types, amounts, repayment terms, and interest rates.
- Establish benefits and eligibility criteria for membership and claims.
- Approve membership, loans, benefits, and expenditures considering poverty thresholds.
- Designate officers and staff from agency personnel and define their roles.
- Create regional boards if necessary to manage Fund operations.
- Determine sanctions and liabilities for rule violations and fund mismanagement.
- Perform other necessary functions to achieve Fund objectives.
Compensation and Expenses
- Board members serve without compensation.
- Actual overtime pay allowed for support staff.
- Reasonable expenses related to Board activities reimbursable with proper documentation.
- Reimbursements processed according to existing accounting and auditing rules.
Accounting and Auditing Requirements
- The Fund and its operations are subject to existing government accounting and auditing standards.
Reporting Requirements
- Annual report on Fund operation and financial condition to be submitted to Fund members.
- Copies of the report furnished to the Office of the President and Department of Budget and Management.
Implementing Rules and Regulations
- Department of Budget and Management to issue rules within 60 days of the Order.
- Immediate establishment of Provident Funds by agencies is allowed prior to issuance of rules.
Separability Clause
- Invalidity of any part of the Order does not affect the validity of remaining provisions.
Effectivity
- The Order takes effect 15 days after publication in a national newspaper.