Administration of the Funds
- Government employees' fund administered by the Government Service Insurance System (GSIS).
- Private employees' fund administered by the Social Security System (SSS).
- Contributions are voluntary, set at 3% of basic salary.
- Government and employers match the employees' contributions.
Membership and Contributions
- Employees who contribute become members.
- Members in good standing must be current with monthly contributions.
- Contributions earn annual interest as prescribed in implementing rules.
- Surplus profits may be declared as dividends to good-standing members.
Eligibility for Housing Loans
- Members in good standing can apply for long-term housing loans.
- Loan approval is subject to rules set by GSIS or SSS.
Loan Terms and Security
- Loans secured by real estate mortgage.
- Loans up to 80% of appraised collateral value, not exceeding ₱80,000.
- Loans also depend on applicant’s paying capacity and other requirements.
Investment and Use of Fund Assets
- Fund money not needed for operations to be prudently invested considering liquidity.
- GSIS or SSS may contribute land and housing units at appraised values for development and resale.
- Contributions by GSIS or SSS earn yearly interest under corresponding implementing rules.
Tax Exemptions for the Fund
- The Fund, including interests and dividends, is exempt from all forms of taxes and fees.
- This tax exemption can only be repealed by a law explicitly naming the Fund.
Initial Funding and Operational Advances
- GSIS or SSS to provide necessary initial capital for Fund operations.
- Such advances also earn interest as provided.
Membership Termination and Continued Obligations
- Membership ends upon retirement, death, disability, resignation, or dismissal.
- Members may continue membership at the discretion of GSIS or SSS.
- Mortgages remain valid after separation; member must continue contributions based on last salary.
Return of Contributions Upon Separation
- Employees separated from service entitled to refund of contributions following implementing rules.
Rulemaking and Administration
- GSIS and SSS directed to promulgate rules implementing the Decree.
- Authorized to hire necessary staff exempt from Civil Service Law and related wage and classification rules.
Repeal of Conflicting Provisions
- Any laws, decrees, or rules conflicting with this Decree are repealed or modified to conform.
Effectivity
- The Decree takes effect immediately upon approval.