TO HELP its employees amid the hard times brought about by the coronavirus disease (Covid-19), the Department of Education (DepEd) imposed a three-month moratorium on the payment of provident fund loans.
The DepEd will not charge penalty or interest to the borrowers for the whole duration of the moratorium.
A provident fund is a savings scheme consisting of contributions from both the employees and the employer that serve as a loan facility and provider of supplementary welfare of employees.
DepEd Secretary Leonor Briones approved on Monday, April 6, 2020, the board resolution of the DepEd Provident Fund National Board of Trustees imposing the three-month moratorium on the payment of loans in compliance with the Implementing Rules and Regulations of Republic Act 11469, or the Bayanihan to Heal as One Act.
The moratorium will be extended upon the extension of enhanced community quarantine (ECQ) by President Rodrigo Duterte. The ECQ in Luzon was extended until 11:59 p.m. April 30 from the original April 12 to prevent the spread of Covid-19.
Aside from the moratorium, DepEd 7 Director Salustiano Jimenez said the department also secured an agreement with the Government Service Insurance System (GSIS) and Home Development Fund (Pag-IBIG Fund) to also implement a three-month postponement of loan payments for their members and pensioners.
Jimenez said the members' contributions to the GSIS and Pag-IBIG Fund will not be stopped.
Also the private lending institutions reached an agreement with the DepEd central office, allowing the latter not to remit to them the loan deductions for the payroll month of April 2020. The amount will be refunded to the DepEd employees. (WBS)