Friday, August 03, 2007 Gov't offices told to put up provident fund for workers
PRESIDENT Gloria Macapagal-Arroyo has ordered the creation of a provident fund in each government agency in order to supplement the retirement or separation benefits of employees and provide alternative sources of loan financing.
Arroyo, in issuing Executive Order (EO) 641 that authorized the creation of the provident fund, said the money shall serve as savings and loan credit facility of government workers and shall provide supplementary welfare benefits.
She said membership in the fund should be voluntary, employers and employees should help in its establishment and administration while having equal access to it, and reasonable regulatory structures should be established to ensure its integrity and viability.
Arroyo said the money for the funds could be sourced from members' contributions, initial government agency counterpart contributions and government cash contributions from savings.
The provident fund shall be managed by a board of trustees with adequate representation from the employer and employees. The agency's highest financial official may be designated as chairman of the board.
All members, officers and staff of the board shall serve without compensation, except for payment of actual overtime services rendered by the support staff. However, reasonable expenses incurred may also be reimbursed upon presentation of receipts and other documentary evidences. (JMR/Sunnex)
