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MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ EXECUTIVE ORDER NO. 90, April 06, 1999 ]

CREATING THE DEPARTMENT OF FINANCE CONTRACTUAL SAVINGS TASK FORCE

WHEREAS, the Presidential Commission for Retirement Income (PCRI) has been established to undertake technical analysis of and recommend improvements on the retirement income system;

WHEREAS, in support of the PCRI and to enhance its capability to accomplish its assigned tasks, it is necessary to adopt complementary measures that will ensure prompt and comprehensive resolution of the most important issues affecting the pre-need industry and promote the growth of a healthy occupational pension sector;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution and by the law, do hereby order:

Section 1. Organization. There is hereby created a DOF Contractual Savings Task Force under the supervision of the Department of Finance, composed of representatives of the life and non-life insurance industry, pre-need industry, trust fund industry, the Bureau of Internal Revenue, the Insurance Commission, the Philippine actuarial and accounting profession, and the Department of Finance for taxation policy. The Task Force shall closely work with the representatives of the Asian Development Bank (ADB), the United States Aid for International Development (USAID) and the World Bank to insure coordination in the application of resources.

Section 2. Powers, Functions and Responsibilities. The Task Force shall have the following powers, functions and responsibilities:

a) To implement the regulatory and supervisory reforms proposed by the ADB under its already approved technical assistance for the Insurance Commission;

b) To review the financial status of the pre-need industry and develop a strategy for any necessary restructuring/resolution of this sector, including the transfer of jurisdiction to the Insurance Commission;

c) To develop the appropriate law (partly covered by ADB technical assistance) and a clearer definition of the products which should and could be sold by pre-need companies;

d) To further develop enforceable accounting standards for the various components of the private contractual savings and insurance sector and, in particular, for pre-need companies and occupational pension plans;

e) To examine the factors inhibiting the development of self-employed persons and multi-employer group pension arrangements, to afford the working population and small employers access to efficient, tax-effective retirement savings mechanisms; this study to include an examination of the potential role of the Life Insurance sector in the pension area, particularly the right of Life Insurers to manage trust plans; and also a review of the potential role of Common Trust funds as retirement savings vehicles;

f) To review the law covering the ongoing monitoring of occupational pension plans, including ensuring the rights of members, establishing minimum funding levels, minimum investing levels, standards of portability and ongoing investment rules; this review to consider also the implications for the Insurance Commission taking over the responsibility for monitoring occupational pension plans, possibly in conjunction with the auditing profession; and

g) To support the ongoing tax review process of contractual savings, to be linked to reforms in the financial sector and financial institutions.

Section 3. Time Frame. The Task Force shall submit its recommendations not later than September 30, 1999.

Section 4. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 6th  day of April, in the year of Our Lord, Nineteen Hundred and Ninety-Nine.1a⍵⍴h!1

(SGD.) JOSEPH EJERCITO ESTRADA
President of the Philippines

By the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary

The Lawphil Project - Arellano Law Foundation

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