EXECUTIVE ORDER NO. 90
EXECUTIVE ORDER NO. 90 - 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.
Sec. 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 mange 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.
Sec. 3. Time Frame. — The Task Force shall submit
its recommendations not later than September 30, 1999.
Sec. 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.
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Since 19.07.98.