IMPLEMENTING RULES AND REGULATIONS OF THE
COMMISSION ON HUMAN RIGHTS
EMPLOYEES MEDICAL AND WELFARE FUND, INC.
(CHREMWFI)
As of 2012
The Commission on Human Rights, pursuant to its Resolution No. 96-083 dated
5 December 1996 establishing the CHR Employees and Medical Welfare Fund in accordance
with the provisions of Section 1 (9), Chapter I, Book VI Executive Order No. 292, hereby adopts
the following rules and regulations to govern its operations.
ARTICLE I
NATURE OF THE MEDICAL AND WELFARE FUND
SECTION 1. Creation of the Fund
The CHR Employees Medical and Welfare Fund, Inc. (CHREMWFI) is created by the
Commission on Human Rights pursuant to Resolution No. A96-083 dated 5 December 1996.
SECTION 2. Objectives
The general objective of the Fund is to provide assistance/benefits to all its members.
Specifically the Fund aims: (a) to provide immediate source of assistance to its
members in case of emergency, urgent or pressing needs; (b) to inculcate the virtue of financial
prudence among CHR officials and employees; and, (c) to promote and encourage a healthy
lifestyle.
SECTION 3. Source of Funds
The Fund shall consist of, but not limited to, the contributions of the Commission as
well as the contributions of the members, earnings, loan guarantee insurance fund, unclaimed
benefits, loans and investments.
SECTION 4. Administration of the Fund
The Fund shall be administered by a Board of Directors which shall be responsible for
formulating policies and programs for the Fund’s efficient, economical, and effective
operations.
SECTION 5. Beneficiaries of the Fund
The direct beneficiaries of the CHR Employees Medical and Welfare Fund, Inc. shall be
the officials and employees of the Commission on Human Rights who are bona fide members
of the Fund.
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Employees Medical and Welfare Fund, Inc. as of 2012
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ARTICLE II
DEFINITION OF TERMS
SECTION 1. Definition
The following terms shall be taken and understood in the sense indicated hereunder,
unless the context requires otherwise:
a. COMMISSION – shall mean the Commission on Human Rights, including its Central and
Regional Offices as well as its Sub/Desk/Extension Offices in the different regions of the
country.
b. MEMBER – shall mean any permanent, temporary, casual or coterminous official or
employee of the Commission on Human Rights entitled to the benefit of the Fund.
Contractual employees may voluntarily be a member of the Fund.
c. FUND – shall mean the CHR Employees Medical and Welfare Fund, Inc.
d. BOARD – shall mean the Board of Directors duly constituted to administer and operate
the Fund.
e. OFFICERS OF THE FUND – shall refer to the officers designated by the Board of Directors
to implement the policies and programs promulgated by the Board.
f. SALARY CONTRIBUTION – shall mean a portion of the monthly current basic pay of the
respective member contributed to the Fund as personal share.
g. EARNINGS – shall include all interests, dividends and other increments accruing to the
Fund.
h. SEPARATION FROM THE SERVICE – shall include resignation, retirement, death,
disability or any other mode of cessation of employment from the Commission.
i.
SECOND AND FIRST LEVEL EMPLOYEE – shall refer to an employee occupying the
position or having the rank of Division Chief and below, respectively.
j. THIRD LEVEL OFFICIALS – shall refer to the Executive Director, Central Office Directors,
and Heads of Regional Offices, excluding the Commissioners and the Chairperson.
k. MEMBERSHIP SERVICE – shall mean the total length of membership in the Fund. It
includes the periods of leave of absence with pay, other official leave with pay, or leave
due to the State’s call for military service/training of such officer/employee member;
Provided, however, that in cases of authorized leave of absence without pay, such
affected member may opt to continue the status of good standing only upon payment of
monthly membership contributions made in advance or on monthly basis covering such
period of absence.
l.
GENERAL RESERVE – shall mean the seed capital of the Fund in the amount of One
Million Pesos (Php 1,000,000.00) by virtue of authorization from the Commission to use
unobligated savings from the year 1998 and which shall not be apportioned as employer’s
share.
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Employees Medical and Welfare Fund, Inc. as of 2012
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m. ADDITIONAL RESERVE – shall mean the amount declared by the Board as such, and
those unclaimed benefits forfeited in favour of the Fund, which shall not be apportioned
as employer’s share.
n. DIVIDEND – shall mean that share, part or portion of the profits of the Fund which, upon
vote of the Board of Directors, is to be distributed proportionately to the qualified
members based on equity.
o. BORROWER – shall mean any bona fide member of the Fund qualified to avail loans and
other benefits of the Fund.
p. CO-MAKER – shall mean co-obligor with equal obligation/solidary liability with the
borrower who is a bonafide member of the Fund with permanent appointment from the
Commission.
ARTICLE III
MEMBERSHIP
SECTION 1. Requisites for Membership
Any person appointed by the Commission on a permanent, temporary, casual or
coterminous basis shall automatically become a member of the Fund effective the first day of
assumption to office, subject to the payment of monthly membership contribution to the
Fund.
Contractual employees of the Commission on Human Rights may voluntarily be a
member of the Fund subject to rules as may hereafter be provided.
To complete membership in the Fund, the official/employee shall accomplish the
required membership form and such other papers as may be prescribed by the Board and pay
the prescribed contribution.
SECTION 2. Duration of Membership
Membership in the Fund shall continue until the separation of the member from the
service of the Commission, unless the member signifies in writing the intention to withdraw, in
which case, the member shall be entitled to the automatic return of the employee’s share.
The corresponding employer’s share, if applicable, shall be released after six months
from the date of separation/withdrawal and upon submission of a written request to the Board.
SECTION 3. Suspension of Membership
When a member suffers suspension or is penalized with suspension without pay by
virtue of a final and executory judgment in an administrative case, his/her membership in the
Fund shall be deemed suspended during preventive suspension, or suspension imposed in the
administrative case. His/her membership is deemed reinstated when said member, resumes
work after such suspension and upon payment of the personal contribution and his/her
arrearages to the Fund. During the period of suspension, the member shall not be credited
with the Commission’s share, if any.
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However, if said member is exonerated in the administrative case, membership shall be
deemed continuous after the payment of the member’s personal contributions.
The effect of reinstatement under this section restores the member to his/her original
status, hence, entitled to all benefits and privileges of the Fund.
SECTION 4. Renewal of Membership
An official or employee of the Commission who has retired, resigned, or transferred to
another government office, and has been paid his equity from the Fund, or was separated for
any cause from the service of the Commission and has been paid his/her personal
contributions, but subsequently re-employed in the Commission shall be considered eligible
for membership as a newly appointed official or employee of the Commission.
Members who voluntarily withdrew their membership under Section 2 of this Article in
the Fund may renew their membership only once, subject to the approval of the Board.
ARTICLE IV
SOURCES OF FUNDS AND INVESTMENT
SECTION 1. General Reserve
The One Million Pesos (Php 1,000,000.00) contributed by the Commission as seed
capital shall constitute the general reserve of the Fund.
The General Reserve shall be used only as a last resort when no other funds are
available upon the resolution by a majority of all members of the Board and only upon the
concurrence of the members through a referendum duly called for the purpose.
SECTION 2. Sources of Funds
a. Member’s contribution – Each member shall contribute the minimum amount of One
Hundred Pesos (Php 100.00) per month which shall be effected by the Commission
through automatic payroll (salary) deduction every 15th and 30th day of each month.
Any member may signify in writing to the Fund his/her intention to increase his/her
monthly contribution as may be provided.
b. Earnings from loans – These comprise all income arising from loans including, but not
limited to, interests, penalties, and processing fees.
c. Loan guarantee insurance fund – This shall be the insurance fee deducted from the loan.
In case of death or permanent or total disability of the borrower, the outstanding loan
balance shall be paid from this source.
d. Commission’s contribution – The Commission shall contribute to the Fund at least One
Million Pesos (Php 1,000,000.00) every calendar year and for the duration that the Fund is
in existence and operational. Such contribution to be divided on a quarterly basis shall be
chargeable against the savings from the appropriations of the Commission under the
Annual General Appropriations Act for the year involved, and every year thereafter, said
amount shall be equally apportioned and accordingly credited to the individual account
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Employees Medical and Welfare Fund, Inc. as of 2012
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of all the members on record at the time the remittances are due, subject however, to the
Fund’s payables, expenditures and other obligations.
SECTION 3. Additional Reserves
In addition to the general reserve provided for, the Board of Directors shall provide
additional reserves for the employees’ benefits in such amounts to be determined by the Board
of Directors in appropriate resolutions from time to time, from capitalization and earnings but
not from the employer’s share.
SECTION 4. Increase of Member’s Optional Personal Contribution
a. A member who is interested to increase his/her Optional Personal Contribution must
accomplish the form signifying his/her intention and indicating the proposed amount and
agree that he/she will not withdraw said amount contributed within the period of one (1)
year;
b. The increase in the amount of Optional Personal Contribution shall not merit any
corresponding increase in the employer’s share in the event that the Commission
releases its contribution to the Fund;
c. In case of declaration of dividend, the total contributions of a member, including his/her
Optional Personal Contribution, shall serve as the basis in computing the amount of
dividend that a member is entitled to receive;
d. Any member may withdraw his/her Optional Personal Contribution or a portion thereof
only after one (1) year from the time the said contribution was paid to the Fund and after
one (1) month from a written notice/request, without affecting the monthly minimum
contribution;
e. In case of cessation of membership, the Optional Personal Contribution shall be released
upon written request/notice and only after the member has settled his/her obligations to
the Fund, if any;
f. The withdrawal of Optional Personal Contribution shall not affect the status of a member
in availing of the other benefits provided by the Fund to its members;
g. The increase in Optional Personal Contribution shall be subject to the existing
Commission on Audit (COA) rules on the allowable take home pay.
SECTION 5. Remittance
The Financial Management Office shall remit to the Fund all members’ contributions
and payment for loans, including interests and penalties, if applicable, within the first ten (10)
days of the succeeding month.
SECTION 6. Use of Funds
All financial resources of the Fund shall be held solely and exclusively for the benefit of
the members and their beneficiaries, and no part of said contribution or their earnings shall be
used for, or diverted to, purposes other than for the exclusive benefit of such members and
their beneficiaries in accordance with these rules.
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All operational expenses exceeding the amount of Five Thousand Pesos (Php 5,000.00)
shall require the approval of the majority of all members of the Board subject to existing
auditing rules and regulations.
SECTION 7. Unclaimed Benefits; Forfeiture
Any amount payable to a member or his/her beneficiary/ies which, for any reason, is not
claimed by such member or beneficiary/ies within a period of one (1) year from receipt of
written notice shall, after such period, be forfeited in favour of the Fund.
Any forfeited benefit shall accrue to the additional reserves, referred to in Section 3 of
this Article.
SECTION 8. Loans and Investments
The Board shall contract loans and invest the resources of the Fund in a prudent
manner to ensure the preservation of the Fund’s resources and the adequacy of its earnings. It
may invest, within the context of safety, liquidity and profitability, in interest-earning deposits,
money market instruments and other forms of investment; Provided that, they are supported
by necessary feasibility study.
SECTION 9. Earnings
The earnings of the Fund shall be used for payment of dividends, assistance, and
benefits to qualified members.
At the beginning of each year, the Board shall determine the adequacy of earnings
realized in the preceding year from the investments and loans that may be declared and
apportioned as dividends to all qualified members based on equity.
SECTION 10. Disposition of Funds
The disposition of the funds, including the modes of deposits and withdrawals, shall be
subject to the rules to be promulgated by the Board and to proper accounting and auditing
regulations.
SECTION 11. Depository of the Funds
The funds of the Fund shall be deposited with the Land Bank of the Philippines (LBP) or
any depository bank authorized by the government under combination of savings and current
deposits arrangement (COMBO Deposit Accounts).
The Fund shall maintain three (3) separate accounts as follows:
a. General Reserve Fund – shall refer to the seed capital stated in Section 1 of this Article.
b. General Fund – which shall consist of all contributions from members including loan
payments, interests, service/processing fees, and other income. The General Fund shall
be the source of all loans and assistance to the members as well as the operating
expenses of the Fund.
c. Loan Guarantee Insurance Fund – shall refer to the one percent (1%) insurance fee
deducted from the loan.
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ARTICLE V
BOARD OF DIRECTORS
SECTION 1. Composition
There shall be a Board of Directors composed of seven (7) members, one (1) coming
from the Commission Proper who shall automatically be the Chairperson; two (2) from the
third level officials elected from among themselves, one representing the Central Offices and
the other representing the Regional Offices; and, three (3) from the rank and file (second and
first levels) employees who shall be chosen at large through a general election called for the
purpose; and the President of the legitimate employees’ organization or his/her official
representative.
SECTION 2. Term of Office of the Members of the Board
The term of office of the members of the Board shall commence on June 1 next
following their election or designation, as the case may be, on the 3rd Monday of May.
A member coming from the Commission en Banc who shall be the ex-officio
Chairperson of the Board shall serve for two (2) years without re-designation. Members
coming from the 3rd level shall serve for two (2) years and may be re-elected only once.
Members coming from the rank and file shall serve for three (3) years without re-election. The
member coming from the legitimate employees’ organization shall serve subject to their
internal rules on the matter.
In case of any vacancy as a result of resignation from the Board or resignation,
retirement, cessation or separation of a Board Member from the Commission, such vacancy
shall be filled-up through a special election held for the purpose. But no such special election
shall be held when the vacancy occurs within three (3) months preceding the next regular
election for Board Members of the Fund.
In case of vacancy from the member of the Board coming from the Commission en
Banc and the representative from the employees association, the Commission en Banc and the
employees’ organization must immediately appoint their replacement.
The newly elected/selected members of the Board shall serve only the unexpired
portion of the term of office of their predecessors except for the representative from the
employees’ organization.
SECTION 3. Election/Selection
A member coming from the Commission en Banc shall be chosen among themselves.
Members coming from the 3rd level shall be voted through an election among themselves to be
held on the 3rd Monday of May and every two (2) years thereafter. Members coming from the
rank and file shall be chosen through a general election to be held on the 3rd Monday of May
and every three (3) years thereafter. The member coming from the legitimate employees’
organization shall automatically be its President or his/her duly designated representative.
For election of members of the 3rd level, the Executive Director shall be requested to
facilitate the election assisted by the Field Operations Office Director.
For purposes of election of members of the Board from the rank and file, an Election
Committee shall be constituted by the outgoing Board who shall be composed of one (1)
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Chairperson and four (4) members. The Elections Committee shall promulgate their internal
rules. The members of the Election Committee shall have the authority to hold cash advance in
such amount as the Board may deem appropriate to cover expenses for materials,
communication, meals, and other miscellaneous expenditures for the conduct of the election,
subject to auditing rules and regulations.
SECTION 4. Powers and Functions of the Board
The Board shall have the following powers and functions:
a. Exclusive administration and control of the Fund in accordance with these Rules;
b. Promulgate policies, rules and regulations for the effective operations of the Fund and
the protection and preservation of the Fund’s monetary resources;
c. Appoint officers and staff of the Fund from among the members thereof;
d. Ensure the faithful implementation of the rules and policies of the Fund;
e. Award benefits in accordance with these Rules;
f. Investigate allegations of acts inimical to the interest of the Fund;
g. Be familiar with the flow of operations and internal processes of the Fund; and,
h. Perform such other functions that may be necessary to carry out the objectives of the
Fund for the maximum assistance to, and the welfare and interests of, all members.
SECTION 5. Internal Rules of the Board
The Board of Directors shall promulgate the rules for the conduct of its meetings,
deliberations and such other proceedings as may be necessary to enable it to function
efficiently and effectively.
SECTION 6. Regular and Special Board Meetings
The regular board meeting shall be held every 2nd and 4th Thursday of the month or any
day of the week as may be designated for that purpose; while special board meeting/s may be
called any time as the need arises.
Board members must dutifully attend all meetings.
The Board Secretary shall be responsible for notifying the Board for regular board
meetings. Special board meetings to discuss/take action on pressing matters that need
immediate attention shall be called at the instance of any Board member who shall instruct the
Board Secretary or the Welfare Fund Officer to notify the other members.
Pertinent documents necessary for the smooth conduct of the regular board meeting
shall be furnished to the members of the Board at least two (2) days before the scheduled
meeting. In case of special meetings, the Welfare Fund Officer shall be responsible for
notifying the Board of the urgency or the matter to be taken up.
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SECTION 7. Venue of Meeting
Meetings of the Board shall be held at the Fund Office or in case of its unavailability, in
any place as agreed by the Board.
SECTION 8. Quorum
The presence of at least four (4) members of the Board shall constitute a quorum.
All actions taken at a meeting shall not be legally binding without the favourable vote
of a simple majority of all the members of the Board of Directors present. Provided that for
purposes of amending the rules and regulations of CHREMWFI and promulgation of new
policies and guidelines, the presence of at least five (5) members is required to constitute the
quorum.
SECTION 9. Presiding Officer
The presiding officer shall be the Chairperson of the Board. In his/her absence, the
members present shall choose among themselves. The presiding officer shall not vote except
in case of tie.
SECTION 10. Board Meeting Allowance
The Board of Directors shall be entitled to board meeting allowance in an amount that
it may deem reasonable but not exceeding Five Hundred Pesos (Php 500.00) per meeting
actually attended: Provided, that no Director shall receive more than Two Thousand Pesos
(Php 2,000.00) per month.
Fund shall not be allocated for food during board meetings unless for justifiable reason
supported by a majority vote of the Board and which justification and votation shall be
properly reflected in the minutes.
ARTICLE VI
OFFICERS OF THE FUND
SECTION 1. Composition
The Board of Directors shall appoint members of the Fund to act as Welfare Fund
Officer, Deputy Welfare Fund Officer, Board Secretary, Board Treasurer, Assistant Treasurer,
Legal Counsel, Accountant, Medical Officer, Clerk, Liaison Officer, and such other officers and
staff as may be determined by the Board. They shall hold office at the pleasure of the Board
unless separated from the service of the Commission.
There shall be at least one (1) full time staff of the Fund to be detailed by the
Commission.
SECTION 2. Auditor
The Fund shall designate an internal auditor who shall be responsible for financial and
management audit.
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Employees Medical and Welfare Fund, Inc. as of 2012
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SECTION 3. Honorarium
All officers and other employees of the Fund shall be entitled to a monthly honorarium
in an amount as may be deemed reasonable by the Board subject to existing rules and
regulations.
SECTION 4. Duties and Responsibilities
a. Welfare Fund Officer

Serves as Chief Executive Officer of the CHREMWFI office and assists the Board in
appraising the performance of all other officers and staff;

Ensures the implementation of all resolutions of the Board;

Secures and is accountable of all office records and equipment;

Drafts memoranda, letters, etc. to all concerned members or offices;

Recommends, if necessary, pertinent documents for final action of the Board;

Reviews and signs documents prepared and/or evaluated by other officers and, if
necessary, makes comments thereon before submitting them to the Board for
consideration;

Receives and verifies due accomplishment and proper submission of necessary
documents on applications for loans and assistance;

Backstops the Board, when required, in the deliberation of pending businesses;

Prepares and/or assigns letters/complaints/queries to other officers;

Supervises the timely submission of the financial reports needed by the Board or the
Commission;

Submits to the Board as soon as possible after the close of each fiscal year a complete
report of activities and operations of the Fund for the fiscal year under his/her term;
and,

Does legal research and other related work as may be requested by the Board.
b. Deputy Welfare Fund Officer

Assists the Welfare Fund Officer in ensuring proper implementation of the rules and
policies of the Fund; and,

Performs such other duties and functions as may be assigned from time to time by the
Board.
c. Board Secretary

Serves as Secretary to the Board of Directors;
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
Prepares the agenda of the Board Meetings and gives all notices required by the Rules;

Writes and keeps the minutes of the meeting of the Board of Directors;

Observes the general rule that the minutes cannot be altered after the Board has
approved them, and must be produced any time by the Secretary to provide
information, to settle an argument, or for any purpose; and that the minutes should
form a record of the actual proceedings and not the opinion of the Secretary;

Ensures that the minutes contain the following essentials:
 The type of meeting, whether regular, adjourned or special;
 The name of the Fund;
 The date and place of the meeting;
 The presence of the Chairman, as well as that of the Secretary, or the names of the
substitutes, if these officers are absent;
 The number of the directors present and their names;
 The announcement that the minutes of the last meetings were read and approved;
 All motions that were made and the names of the movants, except those that were
withdrawn without vote;
 Complete detail on the resolutions adopted and a statement concerning the general
purpose of any rejected resolution;
 A record of all voting except viva-voce voting, with the number of votes cast on
each side;
 The terms at which the meeting adjourned;
 The features of any program that followed the meeting;

Prepares resolutions passed by the Board;

Keeps and safeguards the important documents of the Fund;

Ensures prompt and efficient dissemination of all policies and pertinent documents of
the Fund. For this purpose the Board Secretary may request the assistance of the Clerk;
and,

Does other related work, as may be assigned by the Board from time to time.
d. Board Treasurer

The Treasurer shall have charge of the funds, receipts and disbursements of the Fund;
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
Keeps all money and other valuables of the Fund only in such banks as the Board may
designate;

Keeps and has charge of the books of accounts;

Posts a bond in such amount as may be fixed by the Board or by the Bank;

Submits to the Board a report on the financial standing of the Fund at least once a year
or whenever required to do so;

Looks after the collection of the contributions, payments, fees and other dues agreed
upon to be levied on the members;

Prepares checks, disbursement vouchers, and other supporting documents; and,

Performs such other duties and functions as may be assigned from time to time by the
Board.
e. Assistant Treasurer

Augments the function/work of the Accountant;

Assists the Board Treasurer in ensuring proper implementation of the operations of the
Fund; and,

Performs such other duties and functions as may be assigned from time to time by the
Board.
f. Auditor

The Auditor shall be responsible for the financial management and audit of the Fund;

Submits reports as required by the Board; and,

Performs other duties as may be deemed necessary.
g. Accountant
The Accountant shall have similar duties and responsibilities attached to the position of
the Accountant of the Commission, such as, but not limited to the following:

Maintains and keeps the accounts and financial records of the Fund;

Ensures that all transactions are in accordance with accounting and auditing rules and
regulations of the Commission on Audit;

Certifies all disbursement vouchers as to availability of funds;

Responsible for the timely submission of financial statement and other reports needed
by the Board or Commission;

Conducts feasibility or other financial studies as may be requested by the Board; and,
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Employees Medical and Welfare Fund, Inc. as of 2012
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
Performs such other related duties that the Board may assign to him/her.
h. Medical Officer

Evaluates claims for hospital, medical, maternity, and dental assistance benefits for
completeness, consistency and document sufficiency, and if necessary, require the
submission of additional documents;

Determines the kind of operation, diseases, illness or injury upon which the amount of
the claim for such benefit shall be based;

Make recommendations to the Board on claims after evaluation;

Submits to the Board monthly accomplishment report and make necessary
recommendations, if any;

Upon request by the Board, does medical research in aid of policy formulation; and,

Does other related duties that the Board may assign to him/her.
i.
Liaison Officer

Assists the Welfare Fund Officer and Treasurer in maintaining working connection
between the Fund, the LBP, other financial institutions and offices; and,

Does other related work.
j. Office Clerk

Assists the Accountant in daily posting of loan amortization payment;

Assists the Treasurer in preparing all checks for release;

Encodes and prints letters, memoranda and other communications; and,

Does other related work as may be assigned to him/her from time to time by the
Welfare Fund Officer.
SECTION 5. Resignation
In case of resignation of any officer of the Fund, the Board shall facilitate the selection
process. In the discretion of the Board, the resigned officer may be required to stay for a period
of not more than thirty (30) days for turn-over purposes. In order not to derail the regular
functions of the Fund, the Board may appoint one (1) of its members to serve as the officer in
an acting capacity.
SECTION 6. Regional Focal Person
The Head of the Administrative Section of each regional office shall be designated as
Regional Focal Person who shall receive all communications and documents from the Fund and
who shall be responsible for their effective and prompt dissemination.
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Employees Medical and Welfare Fund, Inc. as of 2012
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ARTICLE VII
BENEFITS
A. Welfare Assistance Benefits
SECTION 1. Kinds of Assistance Benefits
a. To cope with the high cost of hospital and medical expenses, a member may avail the
following benefits:
a.1 Hospital Assistance Benefit
A member who is admitted for confinement in a hospital due to illness or operation or
sustains an injury requiring hospitalization shall be extended assistance in accordance
with the following rates and conditions:
Php 15,000.00
Php 5,000.00
Php 4,000.00
Php 4,000.00
–
–
–
–
Major Operation/Major Illness
Minor Operation
Same Day Operation
Minor Illness/Injury

MAJOR OPERATION – it is a surgical procedure under a general or regional anaesthesia
requiring post-operative monitoring and further hospitalization.

MINOR OPERATION – it is a surgical procedure performed under local or regional
anaesthesia with or without sedation and required hospital admission.

SAME DAY OPERATION – it is a surgical procedure performed under sedation or
general, local or regional anaesthesia and discharged home directly from the recovery
room.

MAJOR ILLNESS – shall mean a presence of potential threat to life which needs an
intensive care management such as cardiovascular diseases, cerebrovascular accidents,
malignancy, and other contagious/debilitating illnesses.

MINOR ILLNESS/INJURY – shall mean an illness/injury with absence of immediate
threat to life but required hospitalization.

Members with health maintenance organization (HMO) or health card shall submit,
together with the prescribed documents necessary for the claim, a certification from
the health card company that the member claiming assistance is as member or enrolled
in the health card company stating the contract or agreement number and/or copy of
the identification card issued by the health card company.
a.2 Medical Assistance Benefit
This covers assistance given to a member who has an illness or injury not requiring
hospitalization in accordance with the following rate and condition:

MINOR ILLNESS/INJURIES – shall mean medical illness/es where hospitalization is not
indicated.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 14

A member who has an illness or sustains an injury not requiring hospitalization shall be
extended medical assistance benefit in an amount not exceeding Five Thousand Pesos
(Php 5,000.00) in any given year.
a.3 Maternity assistance benefit

A female member may also avail the maternity assistance benefit to defray expenses
incurred due to normal childbirth up to the fourth (4th) delivery in the amount of Two
Thousand Pesos (Php 2,000.00). This assistance may be availed only twice.

Delivery by caesarean section shall be considered major operation under these Rules.
Provided, that the attending physician must certify as to the necessity of the delivery
by caesarean section. Provided further, that the clinical abstract stating the indication
of operation shall be submitted. If necessity of delivery by caesarean section is not
shown, the delivery shall be considered normal delivery subject to the provision of the
preceding section.

Expenses due to unintentional miscarriage shall not be more than Two Thousand Pesos
(Php 2,000.00).

Intentional miscarriage is not covered under these Rules.
a.4 Dental assistance benefit

The following shall be the schedule of dental assistance to members:
a)
b)
c)
d)
Tooth extraction – actual amount but not more than Php 300.00/tooth
Tooth filling – actual amount but not more than Php 500.00/tooth
Root canal – actual amount but not more than Php 1,000.00/tooth
Denture – actual amount but not more than Php 2,000.00

Dental expenses not included in the above procedures shall not be considered for
dental assistance.

The grant of dental assistance shall not exceed Two Thousand Pesos (Php 2,000.00) in
any given year; further, the dental assistance, taken together with the medical
assistance, shall not exceed Five Thousand Pesos (Php 5,000.00) in any given year.

The claim for dental assistance shall be fully supported by original receipts and
certification from a licensed dentist.
b. Physical check-up, cosmetic or other surgeries for aesthetic reasons, alcoholism, use of
prohibited/regulated drugs, self-inflicted wounds or illness due to immoral conduct, and
congenital anomalies are excluded from this benefit.
c. A certificate by the attending physician/surgeon as to the nature and cause of illness or
injury, or the nature of operation, and copy of the statement of account issued by the
attending physician, hospital or medical clinic shall be submitted by the member
concerned to support his/her claim for assistance. Provided that, claim for hospital
assistance benefits shall require the submission of a clinical abstract upon request by the
Medical Officer.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 15
Medical certificate issued by the incumbent Medical Officer of the Fund shall not be
recognized.
Members claiming the assistance provided under this section shall fully accomplish the
necessary application form (Form A) and submit the same, together with the required
attachments, to the Welfare Fund Officer.
d. Claims for assistance shall require the pre-evaluation by the Welfare Fund Officer and the
Medical Officer and passed upon by the Board on a case to case basis in time to meet the
medical needs of the member concerned.
e. The maximum amount extended annually to members are the following:




Hospital assistance benefit
Medical assistance
Dental assistance
Maternity assistance
–
–
–
–
Php 15,000.00
Php 5,000.00
Php 2,000.00
Subject to Section a.3 of this Article
Assistance for legitimate drug maintenance/medication for diabetes, hypertension,
arthritis, and such other disease/s as may later be determined by the Board upon the
recommendation of the Medical Officer shall be limited to Three Thousand Pesos
(Php 3,000.00) per disease. Provided that the medical and dental assistance, including
the assistance in the preceding sentence, to be extended to members, shall not be more
than Five Thousand Pesos (Php 5,000.00) annually.
In no case, however, shall the total amount of assistance benefits extended to a member
exceed Fifteen Thousand Pesos (Php 15,000.00) in any particular calendar year.
f. Claims for assistance benefits should be filed within ninety days (90) days after
discharge/check-up. Provided that, for claims falling within the months of November and
December, the application must be filed within thirty (30) days.
g. Benefits under this section shall be available to those who are members of the Fund for at
least six (6) months.
h. The Board may approve/deny/defer any application for assistance. In case of
denial/deferment, the Welfare Fund Officer shall immediately inform the member
concerned through the Notice of Deferment/Denial on Requested Assistance (Form C)
stating the reason therefor.
Questions on the action on the assistance requested may be raised to the Board through
a letter for reconsideration filed within thirty (30) days from receipt of notice from the
Welfare Fund Officer.
SECTION 2. Burial/Mortuary Assistance
a. The beneficiaries of a member, in case of death of the latter, shall be entitled to TwentyFive Thousand Pesos (Php 25,000.00) burial assistance; provided he/she is a member of
the Fund for at least six (6) months prior to his/her death. Provided further, that should
the cause of death be work-related, the requirement of six (6) months membership shall
not apply.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 16
In case of death during hospitalization (confinement/ operation), the member is still
entitled to burial assistance in addition to the hospitalization benefits, if applicable.
A duly authenticated copy of the death certificate of the deceased member shall be
submitted to support the claim of his/her beneficiary/ies and/or legal heirs to support the
claim for burial/mortuary assistance.
The Board, in its discretion, may require the submission of documents to prove the
entitlement as beneficiary or legal heirs.
b. Mortuary assistance shall be granted in the amount of Three Thousand Pesos
(Php 3,000.00) in case of death of the following member’s immediate family member/s:



Mother and father, if the member is single
Spouse and children, if the member is married; and,
Children, if the member is a solo parent.
c. For purposes of this assistance, the applicant shall duly accomplish the Notification Form
(Form B) and submit the same, together with the following required documents to the
Welfare Fund Officer:





Death certificate;
Birth certificate of the member in case of death of mother or father;
Marriage contract in case of death of spouse;
Birth certificate in case of death of children; and,
Certification or ID as a solo parent.
SECTION 3. Death During Suspension of Membership
When death occurs while the member is under suspension, membership dues
corresponding to the period of suspension shall be automatically deducted from the amount of
benefit extended, unless the heirs of the deceased member pays such dues directly to the
Fund.
The procedure for claims under this section shall be the same under Section 2 of this
Article.
SECTION 4. Permanent Total Disability of Member
In case of separation from the service due to permanent total disability of a member,
he/she shall be entitled to receive the amount of Fifteen Thousand Pesos (Php 15,000.00) in
addition to his/her employee’s and employer’s shares, if applicable.
For purposes of this section, permanent total disability shall mean total incapacity to
perform normal work.
A duly accomplished Notification Form (Form B), together with the medical certificate
and medical abstract from the attending physician shall be required to be submitted to the
Welfare Officer for the availment of this assistance. The Medical Officer shall then be required
to evaluate the claim and make proper recommendation/s to the Board for appropriate action.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 17
B. Medical and Welfare Fund Loans
SECTION 1. Entitlement/Qualification of the Borrower
The loan shall be available to those who are members of the Fund for at least six (6)
months prior to the month of application for loan. However, in case of loan for emergency
purposes, the loan may be granted to those who are members of the Fund for at least one (1)
month, subject to the discretion of the Board.
SECTION 2.Types of Loans
a. GENERAL PURPOSE LOAN
The General Purpose Loan (GPL) is intended to serve any purpose for the interest of the
Borrower.
Any qualified member of the Fund may avail of the general purpose loan in an amount
which shall not be less than One Thousand Pesos (Php 1,000.00) but not more than Sixty
Thousand Pesos (Php 60,000.00) based on the following schedule:
Amount of Contribution
Length of Membership
100.00
100.00
150.00
200.00
250.00
300.00
More than 6 months
More than 12 months
More than 18 months
More than 21 months
More than 24 months
More than 24 months
Maximum Loanable
Amount
20,000.00
40,000.00
45,000.00
50,000.00
55,000.00
60,000.00
General purpose loan shall bear an interest pursuant to the following schedule of
payments:
Interest Rate
Eight percent (8%)
Nine percent (9%)
Ten percent (10%)
Eleven percent (11%)
Twelve percent (12%)
Period of Payment
Twelve (12) months
Eighteen (18) months
Twenty-four (24) months
Thirty (30) months
Thirty-six (36) months
For casual and contractual employees of the Commission who are members of the Fund,
the maximum loanable amount is Twenty Thousand Pesos (Php 20,000.00) with four
percent (4%) interest and payable for a period of six (6) months. They may avail a
maximum of Thirty Thousand Pesos (Php 30,000.00) subject to the discretion of the
Board.
Renewal shall be allowed if the member-borrower has paid at least thirty percent (30%)
of the total loan payable or six months amortization whichever comes first.
b. EDUCATIONAL ASSISTANCE LOAN
The Educational Assistance Loan (EAL) shall cover the payment of tuition fees, school
supplies, uniforms, books, and other related school expenses of the dependent
beneficiary/ies of the member of the Fund.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 18
The member-borrower must have paid at least six (6) months contribution to the Fund
prior to his/her application for EAL and must have no pending administrative case or no
pending request for separation from the Commission at the time of the application.
The maximum loanable amount for EAL is Twenty Thousand Pesos (Php 20,000.00). This
loan shall bear a five percent (5%) interest and payable in twelve (12) months.
Renewal of this loan shall be allowed on a case-by-case basis as per the Board’s discretion
provided the member-borrower has completed payment of at least fifty percent (50%) of
the total amount loaned.
There shall be a separate form (Form No. 4) to be used in applying for EAL.
c. EMERGENCY LOAN
Emergency loans are intended to defray the hospitalization or funeral expenses of spouse
or dependent child or parent of a bonafide member. Emergency loan privileges may also
be availed of by any member who is a victim of natural or man-made calamity, such as
but not limited to typhoon, flood, earthquake, fire or fortuitous event, force majeure or
any similar event.
The maximum amount for emergency loan shall be Ten Thousand Pesos (Php 10,000.00)
and shall bear an interest of four percent (4%) and payable in twelve (12) months.
For emergency loan to defray hospitalization expenses or funeral expenses, the
submission of medical records or death certificate of the spouse/child/parent shall be
required.
Renewal of this loan shall be allowed after payment of at least six (6) months.
d. HEALTH MAINTENANCE INSURANCE LOAN
The Health Maintenance Insurance Loan (HMIL) shall be for the use of member-borrower
to avail private health care insurance.
The amount of loan to be granted shall not exceed Ten Thousand Pesos (Php 10,000.00)
each year with an interest of eight percent (8%) and payable for a period of twelve (12)
months.
Members applying for this loan must submit original or certified true copy of the
statement of account/billing from any health maintenance organization of their choice.
The original receipt should be submitted to the Welfare Fund within thirty (30) days from
the date of receipt of loan proceeds.
Members who availed of the loan but failed to use the proceeds thereof for the intended
purpose shall no longer qualify to apply for the HMIL.
Renewal of this loan shall only be allowed after full payment.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 19
e. CERVICAL CANCER VACCINE LOAN
The Cervical Cancer Vaccine Loan (CCVL) shall be for the availment of cervical cancer
vaccination of female members or any female beneficiary of the members of the Fund.
The amount of loan to be granted shall not exceed Five Thousand Pesos (Php 5,000.00)
with an interest of four percent (4%) and payable for a period of one (1) year.
Members applying for loan shall submit the original or certified true copy of the receipt in
purchasing the cervical cancer vaccine within thirty (30) days from the completion of
vaccination procedure. Otherwise, the member will not be allowed to avail of special loan
provided by the Board in the future.
Renewal of this loan shall only be allowed after full payment.
f. OTHER LOANS
Other types of loan may be granted by the Board provided they are consistent with the
objectives of the Fund and shall be covered by a comprehensive feasibility study by the
Accountant of the Fund.
SECTION 3. Conditions for Loans
a. Take home pay. The amount of loan that may be granted shall be subject to the
limitation that the take home pay of the member-borrower, after deducting the
amortization for the loan and all other allowable deductions, shall not be less than Five
Thousand Pesos (Php 5,000.00) per month.
b. Co-makers. All loans, except Emergency Loan, shall require a co-maker who must also be
a member of the Fund and a permanent employee of the Commission. Provided that, for
loans exceeding Forty Thousand Pesos (Php 40,000.00), an additional co-maker shall be
required.
Loans availed by coterminous employees shall require as co-maker their Commissioner or
Chairperson.
The co-maker shall be solidarily liable to the loan of the member-borrower to the full
amount of the obligation. In case of separation from service of the member-borrower,
the co-maker shall automatically assume the outstanding obligation.
The co-maker must not have been a co-maker for General Purpose Loan for the last six
(6) months immediately preceding the filing of application.
c. Procedure for application. The member-borrower shall submit to the Welfare Officer a
duly accomplished application form together with the certified true copy of payslips
representing one (1) month salary of the borrower and co-maker/s.
The Welfare Fund Officer and the Board Treasurer shall evaluate and facilitate the
application in accordance with these Rules. However, the former shall have the authority
to deny any application which does not conform to the conditions for the loan.
d. Payment. Amortization of the principal obligation plus prescribed interest thereon shall
be payable in equal monthly instalments through automatic salary deduction.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 20
e. Service fee and other charges. The loan shall be subject to service fee of one percent (1%)
and insurance fee of one percent (1%) which shall be deducted from the loanable
amount.
Charges incidental to the execution and consummation of the loan agreement/ contract
shall be for the account of the member-borrower.
The loan charges shall be deducted from the loanable amount.
f. Penalty charges. Unpaid amortization shall bear one percent (1%) interest compounded
monthly. In exceptional cases, penalty charges may be waived upon the discretion of the
Board.
g. Rebates. Rebates shall be allowed for complete payments of the loan before the period
allowed for payment.
h. Additional conditions. The Welfare Officer may impose additional conditions to
coterminous employees in consideration of the date of application for loan.
i.
In case of separation from the service of the Commission, except due to death or
permanent total disability, the Board, pursuant to the written authority of the memberborrower as incorporated in the loan agreement, shall cause the application of any and all
sums receivable by said member-borrower from the Commission and/or the Government
Service Insurance System (GSIS) sufficient to cover his/her existing loan obligation with
the Fund or balance thereof. Any excess shall be turned over to the member and/or
beneficiary/ies concerned.
SECTION 4. Revision
The above provisions may be changed, revised or modified any time at the sound
discretion of the Board: Provided that, such change, revision or modification shall not affect
existing loans.
C. Other Benefits
SECTION 1. Dividends
If adequate, at the beginning of each year, the earnings realized in the preceding year
from the investments and loans shall be declared and apportioned as dividends to all qualified
members based on equity.
SECTION 2. Physical Check-Up
There shall be a free annual physical check-up to all members of the Fund. For this
purpose, the Board shall request the assistance of the Forensic Center of the Commission, the
Department of Health (DOH), and other medical service providers. The Board shall hereafter
provide for the guidelines of this benefit.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 21
ARTICLE VIII
RELEASE OF CONTRIBUTIONS
SECTION 1. Member’s Contribution
a. A member’s contribution shall be released upon written request of the employee/
member of the Fund regardless of the nature of his/her separation from employment.
b. The total amount of personal contribution shall be subject to deduction of any amount
due to the Fund, such as unpaid loan as principal or as co-maker, and to the Commission.
c. Refund of personal contributions of an employee not yet separated but voluntarily severe
his/her membership with the Fund shall be allowed upon written request to be approved
by the Board.
d. In the event of resignation, retirement or separation of a member from the service to the
Commission not due to his/her fault, he/she, or in case of death, the legal heirs specified
in his/her application form as his/her beneficiary/ies, shall be entitled to the refund of
his/her contributions and the whole amount credited in his/her name in the books of
account of the Fund, as well as its corresponding earnings, if any, after deducting any
amount due the Fund and/or the Commission.
e. In case of separation from the service to the Commission for cause, the member shall be
entitled to only the refund of his/her contributions and the earnings thereon, if any, after
deducting any amount due the Fund and/or the Commission.
SECTION 2. Employer’s Contribution
a. A member who is separated from employment for cause or on absence without leave
(AWOL) shall not be entitled to the refund of government shares credited to his/her
account which amount shall be forfeited in favour of the Fund.
b. Refund of government shares to members who were separated without cause shall be
released only after six (6) months from the time of separation from the service and upon
a written request, accompanied with a certification from the Legal Office/Human
Resources Development Division that the concerned member has no pending
administrative case or was not separated from employment for cause.
c. The government share shall be subject to deduction of any amount due to the Fund, such
as unpaid loan as principal or as co-maker, and to the Commission.
d. In case the government share of the requesting member will be applied to unpaid loan
either as the principal borrower or for unpaid loan where the said employee is the comaker, any excess amount shall be released after six (6) months from the time of
separation from service of the Commission.
e. The employer’s contribution to be computed shall cover only the contribution of the
Commission from 2000 to 2006 and such other time that the Commission shall remit its
contribution.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 22
ARTICLE VIII
BENEFICIARIES OF THE MEMBERS
SECTION 1. Beneficiaries/Claimants
The beneficiary/ies shall be the legal heir/s recognized under the law on succession. In
its discretion, the Board may require the submission of documents pertinent to the claims for
burial and other benefits accruing to the member of the Fund.
In case of default or absence of beneficiary/ies enumerated above, the benefits shall be
declared forfeited in favour of the Fund as part of its additional reserve, after the lapse of one
(1) year from death or separation of the member.
Applications for claims under this section shall be filed within one (1) year from the
death or separation from the service of the member, otherwise, the amount due the member
shall be forfeited in favour of the Fund.
ARTICLE IX
MISCELLANEOUS PROVISIONS
SECTION 1. Prospective Application
The terms of office and the board meeting allowance specified under these Rules shall
be applicable to the Board elected following the approval of this Implementing Rules and
Regulations.
SECTION 2. Costs, Expenses, Etc.
All costs, expenses, taxes, if any, which are incidental and necessarily connected with
the administration of the Fund shall be borne by the Fund.
SECTION 3. Lien on Amounts Creditable to Members
The Fund shall have first and paramount lien upon the amount outstanding to the credit
of any member reflected in the members’ Fund account to cover all unpaid loans or credit
accommodations and other claims of whatever nature which the Fund may have against the
member.
The Commission shall also have lien on said amount credited to a member to cover all
loans, costs and expenses which the Commission or the Fund may legally sustain against an
employee-member by reason of the latter’s dishonesty, theft, defalcation, embezzlement,
falsification or for any accountability due to the Commission.
Unless otherwise herein provided, no member can draw against his/her credit in the
books of the Fund nor can any such credit be made available as security for a loan except in
favour of the Fund.
SECTION 4. Signatories
All checks, orders and other related documents issued on behalf of the Fund shall be
signed and countersigned, respectively, by the persons to be designated by the Board.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 23
SECTION 5. Accounting Records; Inspection
The Fund shall keep an accurate and detailed account of all investments, receipts,
disbursements, and other transactions. All accounts, books and records relating thereto shall
be open for inspection and audit by any member and/or his/her authorized representative or
counsel, or by the authorized official/representative of the Commission duly designated by it
for the purpose, at any time during working days.
SECTION 6. Audit
An internal audit twice a year shall be conducted by a committee created by the Board.
The Board shall cause the conduct of external audit annually.
SECTION 7. Annual Reports on Financial Condition
The Board of Directors shall submit to the Commission and report to the members
within the first two (2) months of the following year, an annual audited report of the Fund
showing the income, expenditures, and financial condition of the Fund. Copies of each report
shall be posted in conspicuous places in the Central and Regional Offices of the Commission
for the general information of the members of the Fund.
SECTION 8. Dissemination of Information
The Board shall ensure prompt and effective dissemination of information, including
policies and other related reports, to all members of the Fund.
Provided that, in case of detailed financial reports, the same shall be available only
upon written request to the Welfare Fund Officer.
SECTION 9. Interpretation of Rules
The Board’s interpretation of these Rules shall be final and binding, unless otherwise
ruled by a court of competent jurisdiction.
SECTION 10. Amendment and Revision of Rules
These rules may be modified, revised and/or amended by the Board when called for
under the circumstances, after a consultation with the members of the Fund for the benefit
and welfare of the members and the continuing existence and operation of the Fund.
SECTION 11. Consultation with Members
As far as practicable, the Board shall consult with members on important policies, rules,
and/or programs that will be created and implemented.
SECTION 12. Termination or Dissolution of the Fund
In the event of termination or dissolution of the Fund, balances to the credit of each
member, including all earnings shall be paid each member in full, subject to liens provided for
in these Rules.
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 24
SECTION 13. Repealing Clause
All existing policies inconsistent with the present rules and regulations shall be deemed
repealed.
SECTION 14. Separability Clause
Should any part of this Implementing Rules and Regulations be declared ineffective, the
remaining provisions shall remain effective.
SECTION 15. Effectivity
These Rules shall take effect fifteen (15) days after its official transmittal/dissemination
to all members of the Fund.
Approved this 27th day of March, 2012 in Quezon City, Philippines.
(Signed)
JOSE MANUEL S. MAMAUAG
Chairman
(Signed)
(Signed)
DAVID M. BERMUDO
Member
MA. NERISSA M. NAVARRO-PIAMONTE
Member
(Signed)
(Signed)
ELDESIE M. MISTICA
Member
JESSICA A. GAMBOL SCHUCK
Member
(Absent)
(Signed)
(Signed)
MARILOU V. SEBASTIAN
Member
TEODOLFO T. ELGARICO, JR.
Member
Attested by:
(Signed)
PRINCESS S. MOLLENO
Board Secretary
Rules and Regulations of the Commission on Human Rights
Employees Medical and Welfare Fund, Inc. as of 2012
Page 25