About Provident Fund
October 14, 1993
- The Provident Fund was created together with its rules and regulations for its establishment and administration per PPC Board Resolution No. 93-116.
- The primary objective of its establishment and operation is to maximize the payment of benefits to PPC employees and officials as a fitting reward for their faithful and dedicated service, in addition to the usual retirement benefits under existing laws and regulations.
November 10, 1993
- To initially fund its operation, the Philippine Postal Corporation, through BR No. 93-125, has appropriated and released the amount of P 30 Million to serve as SEED MONEY of the fund.
- The initial member’s contribution and Corporation’s share started in June 1994 following the Fund’s Implementing Rules and Regulations which requires PPC to make contributions in the amount equivalent to 10% of each member-employee’s basic salary. The member-employee’s contribution is equivalent to 5% of the monthly basic salary.
- P25 Million of the SEED MONEY was used to pay the employer’s share.
- The Commission on Audit (COA) has ordered the discontinuance of the payment of 10% corporate share to the fund for lack of legal basis on its creation on the reason that AO No. 279 pertains to establishment of Provident fund to Government Financial Institutions (GFIs) only.
- Because of the order of COA, the Department of Budget and Management (DBM) disapproved the inclusion of the Corporate Share on the PPC’s Corporate Budget for CY 1997 and 1998 which eventually not carried out in the succeeding years.
- The PPC Board of Directors has suspended the payment of its corporate shares to the Fund effective January 1998 but collection of the member-employee’s share has only stopped in May 1998.
- The fund has continued its business of granting Multi-purpose loan, Education loan and Calamity loan to its members despite the suspension of the collection of both corporate and employee’s contribution.
- PPC Board Resolution No 2000-38 authorized the management to terminate the existence of the fund on the weight of the recommendation by the Joint Board and Management Committee, for the ff. reasons:
- It’s creation has no legal basis;
- Disapproval by the DBM of the corporate share in the PPC’s corporate budget for CY1997 and 1998; and
- By the reason of its tight financial condition, PPC cannot sustain payment of its share to the Fund, among others.
- However, in the view of a diffused position of employees and upon popular clamor of various labor organizations, the Board suspended the implementation of the said resolution and, instead, create an Ad Hoc committee tasked to integrate the collective sentiments and to unify position of various labor unions.
October 3, 2002
- Former Postmaster and CEO Nicasio P. Rodriguez Jr, requested the Office of the Republic of the Philippines for a Post Facto Approval of the PPC-Provident Fund Office
- The request was denied through a letter from the then DBM Sec. Emilia T. Boncodin stating that the creation of Fund and the Commitment of government resources thereto have no sufficient legal basis.
November 3, 2003
- PPC-Provident Fund Office was granted Post Facto Approval by the President of the Republic of the Philippines during the 105th Anniversary Celebration of the Philippine Postal Corporation. (Annex B)
- To formalize the verbal announcement, Executive Secretary G. Romulo, in a letter to Postmaster General Diomedio P. Villanueva, dated November 11, 2003 stated that the President’s approval shall be subject to the ff. conditions:
- The employers counterpart to the Fund should not exceed 5% of the employee’s basic salary;
- The employees shall be given the discretion to decide the amount of their contribution to the fund.
- The herein approval of the President shall be strictly effected in accordance with applicable budgeting, accounting and auditing rules and regulations.
March 16, 2004
- PPC Corporate Officer-in-charge Antonio Z. De Guzman, in a letter to Hon. Exec. Secretary Alberto G. Romulo, requested a written confirmation on the status of PPC’s 10% corporate share.
September 13, 2004
- PPC-Postmaster General Dario C. Rama wrote a follow-up letter to Hon. Executive Secretary Eduardo R. Ermita, requesting written confirmation whether the said 10% corporate share shall be treated as additional SEED MONEY or capital of PPC Provident Fund Office. (Annex C)
September 16, 2004
- The above request was referred by Senior Deputy Executive Secretary, Waldo Q, Flores to Hon. Emilia T. Boncodin, Secretary, Department of Budget and Management (Annex D)
March 7, 2005
- In his comment to the letter- request dated September 13, 2004 of PPC-Postmaster General Dario C. Rama, Mr. Mario Relampagos, Acting Secretary of the Department of Budget and Management stated the ff. (Annex E)
- Reiterates that the approval of the creation of the PPC Provident Fund Office is subject to the condition that the employer’s counterpart should not exceed 5% of the employee’s basic salary;
- It is their understanding that the employer’s counterpart contribution equivalent to 5% of the employee’s monthly basic salary is intended as additional capitalization of the Provident Fund;
- Said employer’s contribution shall not be automatically granted but should instead be based on the PPC’s attainment of its desired level of performance and profitability and shall be charged solely against corporate earnings.
- The operation of the fund shall also be governed by the by-laws being applied by PPC in the operation of PFO.
- As per COA’s recommendation during the special audit of the PPC-PFO books for the CYs 2003-2005, the 50% of the outstanding corporate share was returned to the Philippine Postal Corporation. The balance amounting to P 69.715 Million plus the P 5 Million seed money remained in the books of Provident Fund Office and lodged as additional capital of the Fund
Year 2009 to present
- The Provident Fund Office continued the collection of employee’s contribution amounting to P350 /member and increased to P500/member on April 2015. However, the contribution of the Corporation was not yet resumed