Pag-IBIG FundCorporate Headquarters

Petron MegaPlaza358 Sen. Gil Puyat Ave., Makati City

Circular No. 380

TO: ALLCONCERNED

SUBJECT: AMENDED GUIDELINES ON PAG-IBIG FUND MEMBERSHIPTERMINATION

Pursuant to the approval of the Senior Management Committee in its Meeting held last July11, 2016, the following Amended Guidelines on Pag-IBIG Fund MembershipTermination are hereby issued:

A. OBJECTIVE

These guidelines aim to:

1. Provide general guidelines to operationalize Sections 9, 10 & 11, Rule V ofImplementing Rules and Regulations (IRR) of Republic Act (RA) 9679 or the HomeDevelopment Mutual Fund (HDMF) Law of 2009.

2. Define the grounds for termination of membership with the Fund; and

3. Prescribe rules relative to the application, processing, approval, and fund releasingfor provident benefit claims of Fund members who qualify for membershiptermination.

B. COVERAGE

These guidelines shall cover all Pag-IBIG members who are entitled to withdraw theirTotal Accumulated Value (TAV) anytime upon the occurrence of any of the grounds fortermination of Fund membership as provided under RA 9679 or the HDMF Law of 2009,and its IRR.

C. EXCLUSION

The following shall not constitute as grounds for termination of membership:

1. Resignation, lay-off, suspension from employment, or unemployment.

2. The optional withdrawal of savings does not terminate Pag-IBIG Fund membership.A member who availed of this program shall continue to become Fund member untilsuch time that he becomes eligible to terminate his Fund membership under thegrounds for membership termination.

D.GROUNDS FOR MEMBERSHIP TERMINATION

Membership with the Fund shall be terminated anytime upon occurrence of any of thefollowing grounds, provided the necessary application together with the supportingdocumentary requirements have been filed, processed, and approved:

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1. Membership Maturity

1.1. Eligibility for membership maturity shall be based on twenty (20) yearsof membership with the Fund, reckoned from the first day of the monthto which the member's initial contribution to the Fund applies;provided, that the member shall have contributed a total of twohundred forty (240) membership savings at the time of maturity.Member's savings shall comprise of employee and employer share, ifapplicable.

1.2. The base date of the initial contribution shall refer to the initial periodcovered that is recorded in the database.

However, if the employer pays unremitted collections due toenforcement, the same shall be applied retroactively upon theemployee's presentation of proof that said contributions werepreviously collected/deducted from him/her. Such shall also apply tosaid employer's previous employees from whom deductions weremade but were not remitted. In these cases, the reckoning ofmembership shall be on the date that the member should have beencoverable by the Fund.

2. Retirement

A member shall be compulsorily retired with the Fund upon reaching the age ofsixty-five (65).

2.1. A member may opt to retire earlier under the Fund anytime upon occurrenceof any of the following events, provided the member is not a housing loanborrower:

2.1.1. Actual retirement from SSS and/or GSIS.

a. SSS Retirement

ApplicableLaw Retirement

RA 8282 • Sixty (60) years old and has at least onehundred twenty (120) SSS monthlycontributions

• Sixty-five (65) years old and has at least onehundred twenty (120) SSS monthlycontributions

For underground mineworkers:

• Fifty-five (55) years old with at least five (5)years in service as underground mine workerand has at least one hundred twenty (120)SSS monthly contributions

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b. GSIS Retirement

ApplicableLaws Retirement

RA 8291 At least fifteen (15) years of service and must be atleast sixty (60) years old upon retirement

RA660 • On completion of thirty (30) years of totalservice and attainment of age fifty-seven (57)years.

• In case of those who are at least fifty-seven(57) years of age, a period of service shorterthan thirty (30) years may be allowed,provided that each year decreases in serviceshall be compensated by one-half yearincrease in age over fifty-seven (57) years.

• A younger age of retirement may bepermitted provided that each year decreasebelow fifty-seven (57) years shall becompensated by one year increase in serviceover thirty (30) years

• In all cases no one shall be entitled toretirement benefit if his age is below fifty-two(52) years or his total service is less thanfifteen (15) years.

I Age I 52 I 53 I 54 I 55 I 56 I 57 I 58 I 59 I 60 I 61 I 62 I 63 I 64 I 65 II YOS I 35 I 34 I 33 I 32 I 31 I 30 I 28 I 26 I 24 I 22 I 20 I 18 I 16 I 15 I

RA 1616 • In government service on or before May 31,1977; and

• Has rendered at least twenty (20) years ofservice regardless of age

PO 1146 • In government service after May 31, 1977before June 24, 1997

• Sixty (60) years old and has rendered at leastfifteen (15) years of service

2.1.2. Actual retirement from government service by provision of law, as inthe following:

a. Members of the Armed Forces of the Philippines (PO 1650)

• Optional retirement - at least twenty (20) years of activeservice;

• Compulsory retirement - at least thirty (30) years of activeservice or at least fifty-six (56) years old with at least twenty (20)years of active service.

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b. Members of the Philippine National Police (RA 8551), Bureau ofJail Management and Penology, and Bureau of Fire Protection(Ra 9263)

• Optional retirement - at least fifty (50) years old and twenty(20) years of active service;

• Compulsory retirement -at least fifty-six (56) years old.

c. Members of the Philippine Coast Guard and Uniformed ServiceAttaches to the Department of Transportation andCommunications (RA 9993)

• Optional retirement - at least twenty (20) years of activeservice;

• Compulsory retirement - at least thirty (30) years of activeservice or at least fifty-six (56) years old with at least twenty(20) years of active service.

d. Members of the Judiciary (RA 9946)

• Optional retirement - at least sixty (60) years old with at leastfifteen (15) years of active service;

• Compulsory retirement - seventy (70) years old.

Retirement must be evidenced by corresponding proofs ofretirement of the member issued by his/her employer that he wasable to meet the minimum service requirement and/or agerequirement as prescribed under their respective charter.

2.1.3. Retirement under a private employer's provident/retirement plan,provided that the member is at least forty-five (45) years of age atthe time of retirement.

2.1.4. Reaching the age of sixty (60)

3. Permanent Total Disability or Insanity

A member shall terminate his membership with the Fund in case of permanent totaldisability (PTO). PTO refers to the loss or impairment of a physical or mentalfunction resulting from injury or sickness, which incapacitates said member toperform any work or engage in any business or occupation.

The following disabilities shall be deemed total and permanent:

3.1. Temporary total disability lasting continuously for more than one hundredtwenty (120) days;

3.2. Complete loss of sight of both eyes;

3.3. Loss of two limbs at/or over the ankle or wrist;

3.4. Permanent complete paralysis of two (2) limbs;

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3.5. Brain injury resulting in incurable insanity; and

3.6. Such other cases which are adjudged to be total and permanent disability by aduly licensed physician and approved by the Fund's Board of Trustees (Board).

4. Termination from Service by Reason of Health

A member can no longer render service to an employer due to severe healthconditions, as certified by his doctor. Severe health conditions constitute an illness,injury, impairment or, physical or mental condition that involves in-patient or out-patient care or a continuing treatment by a health care provider.

5. Permanent Departure from the Country

A member has been permitted by his host country to remain there indefinitely orhas permanently left the Philippines to reside in another country.

6. Death

Death of a member as evidenced by a Death Certificate issued by the PhilippineStatistics Authority (PSA)

7. Any other reasons as may be approved for by the Board.

E. EFFECTS OF MEMBERSHIP TERMINATION

If the member applying for membership termination has outstanding obligation in anyof the Fund's programs, the following policies shall apply:

1. For Short Term Loans, any outstanding, including interest and penalties, shall bededucted from the borrower's TAV and/or any amount due him that are in thepossession of the Fund. .

1.1. For membership maturity, retirement, and permanent departure from thecountry, the cut-off date for the computation of loan balances and offsetting ofloan obligation, if applicable, shall be the date of approval of the application forprovident benefit claim.

1.2. For termination due to PTD, termination from service due to health reasons orborrower's death, the cut-off date for the computation of loan balances andoffsetting of loan obligation, if applicable, shall be at point of occurrence of thesaid grounds.

If the occurrence is prior to date of TAV offsetting due to default, the loanbalances, interests and penalties shall be re-computed up to the occurrence ofthe applicable grounds.

1.3. Any remaining TAV after offsetting in cases mentioned in sub section 1.2.above, shall earn dividends up to date of filing of provident benefit claim.

2. For Housing Loans, regardless of its status and Circular by which it was takenout, the member shall be allowed to withdraw his TAV but shall continue topay the amortization of the loan until it is fully paid.

3. The cut-off date for the computation of TAV shall be the date of receipt of theapplication for provident benefits.

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'F. PAYMENT OF BENEFITS

1. Return of Total Accumulated Value

1.1. The TAV to be returned to the member or his legal heirs, less of any and allpending obligations with the Fund, shall consist of the following:

a. The member's remitted accumulated savings;

b. The employer's counterpart savings, if applicable; and

c. Dividend earnings credited to the member's account as declared by theBoard.

1.2. For members with outstanding obligations with the Fund, at the time oftermination of membership, the said obligation shall be deducted from his TAVprior to the release of the provident claim. Application of member's TAV shallbe according to the following order of priority:

1.2.1. Short-Term Loan

a. Penalty, if applicableb. Interest, andc. Principal

1.2.2. Pag-IBIG Loyalty Card Fee

1.3. Release of member'S TAV shall be based on actual savings remitted by theemployee and employer (if applicable). In the case of member-claimants whoseemployer counterpart savings have not been remitted to the Fund, a partialrelease of their TAV shall be made based on actual amounts credited to theiraccounts. In the same manner, the computation of annual dividends shall bebased on actual remittances made.

Any amount that the Fund may collect (i.e. total unremitted monthly savings andcomputed deprived dividends) from the employer due to enforcement shall besubsequently released to the member or his heirs.

1.4. In case of member's death, the release of his provident benefit claims shall bein accordance with the laws on succession.

1.5. A member who has multiple employers shall be entitled to claim his entiresavings anytime upon occurrence of any of the grounds for membershiptermination.

2. Death Benefit

2.1. Upon the death of a member, his legal heirs shall be entitled to receive theapplicable death benefit in addition to the deceased member's TAV. Theamount of the death benefit shall depend on his membership status with theFund at the time of his death:

2.1.1. For active members at the time of death - P6,OOOregardless of theamount of TAV

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2.1.2. For inactive members at the time of death - the amount is equivalent tomember's TAV or P6,OOO, whichever is lower.

2.1.3. If TAV offsetting occurred prior to the member's death - the amount ofdeath benefit to be granted shall depend on the membership status as ofdate of death. In case of inactive status as of date of death, the TAVunder consideration shall be the TAV prior to offsetting.

2.2. The legal heirs of the deceased member may still be entitled to death benefit,subject to the conditions set in Item F subsection 2.1 hereof under the followingcircumstances:

2.2.1. The check for provident benefit claims based on the grounds formembership termination other than death is not yet released to themember.

2.2.2. The member's provident benefit claim proceeds are not yet credited tohis disbursement/cash card or LANDBANK's Payroll Credit SystemsValidation (PACSVAL) at the time of his death.

3. Manner of Payment

3.1. The provident benefit claim proceeds due to membership termination shall bepaid to the member or his legal heirs through any of the following modes:

3.1.1. Crediting to the claimant's disbursement/cash card;

3.1.2. Crediting to the borrower's bank account through LANDBANK'sPayroll Credit Systems Validation (PACSVAL);

3.1.3. Through check payable to the claimant; or

3.1.4. Other similar modes of payment approved by the Board

3.2. Claiming of checks through a representative shall be allowed provided therepresentative shall present the documents that the Fund may require relativeto the provident benefit claim.

G. OTHER PROVISION

If after membership termination a member places himself in a situation that wouldsubject him to mandatory coverage, he shall continue to be mandatorily covered bythe Fund. His employer shall continue to deduct and remit the monthly savingstogether with the corresponding employer's counterpart savings.

H. MECHANISM ON RESOLUTION OF ISSUES

Any issue in the interpretation and implementation of this Guidelines shall, as muchas possible, be resolved by the concerned officer. Matters that are not therebysatisfactorily resolved shall be escalated to the next higher approving authorities.

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'I. REPEALING CLAUSE

Any circular, clarificatory memo, rules, regulations and other issuances inconsistentherewith are hereby repealed, amended or modified accordingly.

I. EFFECTIVITY

These guidelines shall take effect after fifteen (15) days following the completion oftheir publication in a newspaper of general circulation.

ACMAD RI~~' MOTIOfficer-in-Charge

Chief Executive Officer

Makati City,

May 12,2017

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