Title
Amendments to HDMF Rules on Waiver and Coverage
Law
Hdmf
Decision Date
Oct 25, 1996
The Second Amendments to the Rules and Regulations Implementing Republic Act 7742 introduce new definitions for terms and allow waivers or suspension of coverage for distressed employers, with mandatory deductions still required from employee-members.
A

Waiver or Suspension of Coverage

  • Generally, waivers or suspensions of coverage are not allowed except for distressed employers.

Effects of Waiver or Suspension on Employers and Employees

  • The waiver/suspension granted to an employer applies to all employees except member-borrowers.
  • Member-borrowers must continue to pay and remit monthly contributions personally.
  • Member-savers may choose to remit contributions with or without employer participation to remain in good standing.
  • Employers are obligated to deduct and remit contributions for member-borrowers through salary deductions, despite having waiver or suspension certificates.

Application Processing for Waiver or Suspension

  • The Fund President issues rules on filing, receiving, requirements, processing, and decision on waiver/suspension applications.
  • Applications must use forms prescribed by the Fund President.
  • Mandatory coverage remains effective until expressly waived or suspended by the Fund President.

Decision on Waiver or Suspension Application

  • The Fund President's decision is final and unappealable after 30 days unless appealed to the Board of Trustees.
  • The Board's decision is final and unappealable after 15 days unless appealed to a competent court.

Repealing Clause

  • All conflicting policies, guidelines, or rules inconsistent with these amendments are repealed, amended, or modified accordingly.

Effectivity of the Amendments

  • Amendments take effect 15 days after publication in at least two national newspapers.
  • A copy must be filed with the Office of the National Administrative Register, University of the Philippines Law Center in compliance with the Administrative Code.

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