Application Process and Grounds for Penalty Condonation
- Employers must submit a letter requesting penalty condonation.
- Grounds include financial difficulties, lack of management knowledge of default, unsuccessful legal contestations, or other acceptable reasons by the Board of Trustees.
- Application deadline is the last working day before December 31, 2009.
Payment and Terms of Penalty Condonation
- Employers must remit all unremitted employer contributions retroactively and current periods.
- Penalties from first delinquency month to approval are condoned if obligations are settled within 30 days from approval.
- If unable to pay fully, employers may submit a payment plan within 7 days:
- Maximum 24 months settlement.
- Proportional penalty condonation based on downpayment.
- Remaining balance accrues 1% monthly interest.
- Payment commencement one month after approval.
- Post-dated checks must cover the payment plan.
- Failure to pay within stipulated periods results in restoration of penalties, legal action, and additional monthly penalties of 3% for unremitted current contributions.
Monitoring and Reporting
- Pag-IBIG Fund units are required to submit monthly reports on penalty condonation to the Senior Vice President for Provident Operations.
- The SVP consolidates and endorses reports to the Board of Trustees.
Continued Liability and Penalties for Non-Compliance
- Employers failing to register or submit payment plans, or refusing to collect/remit contributions, remain subject to penalties and criminal prosecution under PD 1752.
Effectivity of Membership Coverage
- Membership effective from employee's initial PFR date.
- For employees with previous deductions unremitted, membership starts from when remittances should have been made.
Amendments and Repeal
- The Senior Management Committee may amend these guidelines consistent with the Fund’s mandate.
- All contrary or inconsistent rules are repealed or modified accordingly.
Effectivity
- Guidelines take effect immediately upon issuance on May 26, 2009.