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This page features the full text of
Republic Act No. 7742
AN
ACT AMENDING PRESIDENTIAL DECREE NO. 1752, AS AMENDED.
REPUBLIC
ACT NO. 7742AN
ACT AMENDING PRESIDENTIAL DECREE NO. 1752, AS AMENDED.
SECTION
1. Section 4 of Presidential
Decree No. 1752, as amended, which was repealed by Executive Order No.
90, is hereby reinstated, with amendments, to read as follows:
"Sec.
4. Fund Coverage. — Coverage
of the Fund shall be mandatory upon all employees covered by the Social
Security System and the Government Service Insurance System and their
respective
employers: Provided, however, That coverage of the employees whose
Monthly
Compensation is less than Four thousand pesos (P4,000.00) shall be
voluntary:
Provided further, That upon membership with the Fund, their employers
shall
contribute an amount in accordance with Section 5 of this Act. chanrobles virtuallaw libraryred"Such
coverage may be extended to other working groups, with or without
employer
contributions, as may be determined by the Board of Trustees." chanrobles virtuallaw libraryred
Sec.
2. Section 5 of Presidential
Decree No. 1752, as amended, is further amended to read as
follows:
"Sec.
5.Fund Contributions. — Covered employees
and employers shall contribute to the Fund based on the Monthly
Compensation
of covered employees as follows: "Employees
earning not more than One thousand five hundred pesos (P1,500.00) per
month
— one percent (1%).chanrobles virtual law library
"Employees
earning more than One thousand five hundred pesos (P1,500.00) per month
— two percent (2%).
"All
employers — two percent (2%) of the monthly compensation of all covered
employees.
"For
purposes of this Section, "Monthly Compensation" shall mean the
basic monthly salary plus Cost of Living Allowance (COLA): Provided,
however, That the maximum Monthly Compensation to be used in
computing
employee and employer contributions shall not be more than Five
thousand
pesos (P5,000.00). The employer
shall not be entitled to deduct from the wages or remuneration of, or
otherwise
to recover from the employee the employer's contribution."
Sec.
3. Section 6 of Presidential
Decree No. 1752, as amended, is hereby further amended to read as
follows:
"Sec.
6.Membership Term. — Membership in
the Fund shall be for a period of twenty (20) years, except when
earlier
terminated by reason of retirement, disability, insanity, death,
departure
from the country or other causes as may be provided for by the Board of
Trustees: Provided, That those who become members of the Fund
after
the effectivity of this Act may withdraw the total accumulated value of
their contributions to the Fund after the tenth or the fifteenth year
of
continuous membership: Provided, further, That said members
have
no outstanding housing loans with the Fund: Provided, finally,
That
this option may be exercised only once and shall not prejudice the
member's
continuing membership in the Fund.chanrobles virtual law library "Resignation,
lay-off or suspension from employment may not necessarily constitute a
ground for membership termination, except for suspension of
contributions." chanrobles virtuallaw libraryred
Sec.
4. Section 10(c) of Presidential
Decree No. 1752, as amended, is hereby amended to read as follows:
"(c) to
invest not less than seventy percent (70%) of its investable fund to
housing,
in accordance with this Act;" Sec.
5. Promulgation of Rules and
Regulations. — Within sixty (60) days from the approval of this Act,
the
Board of Trustees of the Home Development Mutual Fund shall promulgate
the rules and regulations necessary for the effective implementation of
this Act.
Sec.
6. Sunset Provision. — Every
three (3) years after the effectivity of this Act, the Congress shall
conduct
a "sunset review" of the Fund which shall entail a systematic
evaluation
of the Fund to determine whether or not the Fund's performance, impact
or accomplishments with respect to its objectives or goals, the Fund
merits
continued existence.Such review
shall be undertaken by the Committees of the Senate and the House of
Representatives
which have legislative jurisdiction over the Fund.cralaw:red
chanrobles virtuallaw libraryred
Sec.
7. Repealing Clause. — Section
10(b), (c) and (d) of Executive Order No. 90 are hereby repealed and
all
laws, executive orders, rules or regulations, or any part thereof,
inconsistent
with any provisions of this Act are hereby repealed or modified
accordingly.cralaw:red
Sec.
8. Effectivity. — This Act shall
take effect fifteen (15) days after its complete publication in the
Official
Gazette or in at least two (2) national newspapers of general
circulation,
whichever comes first.
Approved:
June
17, 1994
.
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