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DepEd Provident Fund

The DepEd Provident Fund (PF) was established by virtue of Administrative Order No. 279 dated May 5, 1992 and implemented through DECS Order No. 97, s. 1992 dated October 1, 1992 which was amended by DECS Order No. 12, s. 2004 dated February 24, 2004, DepEd Order No. 36 dated June 1, 2007 and DepEd Order 37, s. 2018.

Objectives of Provident Fund

The Fund aims to provide DepEd officials and employees with benefits and loans for emergency needs; for their education and that of their children; for their hospitalization and that of their immediate dependents; for minor but immediately needed repair of their houses; and for other similar purposes as determined by the Board of Trustees. The beneficiaries of the fund are the teachers as defined in the Magna Carta for Public School Teachers and administrative support staff of the Central, Regional, Division and field offices of the Department who have permanent/regular status of employment.

Source of Fund

The DepEd Provident Fund derives its funding from the Service Fees (SF) collected from Private Lending Institutions (PLIs) and Insurance Companies (ICs) on the implementation of the Automatic Payroll Deduction Scheme of the then IBM-PSD, RPSUs and school-based or office-based payroll preparation. The SFs collected monthly are deposited to the National Treasury which is later requested for release of Notice of Cash Allocation in favor of the DepEd PF. In previous years, some regions were able to request directly from their respective PF.

However, as the DepEd Central Office move to standardize operations, such procedure is no longer allowed. Instead, certifications of deposits from the National Treasury are submitted to the Central Office as integral document for issuance of Notice of Cash Allocations (NCAs) from the DBM and subsequently allocated to the Regional Offices following certain criteria and procedures.

The following is the manner of allocation and distribution of service fee (which form part of the additional equity/capital of the PF) per Resolution No. 01, s. 2010 issued by the National Board:

  • Twenty percent of the service fee collections shall be transferred to the National Common Fund;
  • Fifty percent of the amount of service fee collected by the concerned regional implementing units shall be returned to them; and
  • The remaining balance shall be distributed among the regional implementing units based on equity and performance on a 60/40 ratio.

Types of Loan

The types of loan that can be availed by the borrowers with six percent per annum interest add-on and diminishing computation is stated below:

A. Regular loans – for emergency needs of the teachers/employees, or immediate and other members of his/her family up to the fourth degree of consanguinity and affinity (up to P100,000.00)

  • Hospitalization and/or medical expenses resulting from an accident/ illness;
  • Death of immediate and /or other members of his/her family;
  • Minor but immediately needed repair of the house of the teacher/ employee;
  • Educational loans;
  • Other emergency expenses to be specified by the teacher/employee-applicant;

B. Additional loan (up to P100,000.00) can be granted at the discretion of the Secretary to teachers and non-teaching employees, suffering from extreme financial difficulty because of an immediate need for financial assistance and whose final recourse is the DepEd Provident Fund;

C. Calamity loan (maximum of P20,000.00) may be availed in areas and provinces declared under State of Calamity.

The accumulated interests earned from the lending operations over the years also work as a revolving fund for continuous loaning operations. Administrative expenses to support the operations are allowed but not to exceed 20 percent of the current year interest income earned.

Management of the Fund

The fund is being managed by the (1) National Board of Trustees which promulgate rules and policies governing operations of the Fund, (2) the Regional Board of Trustees which implement the policies, rules and regulations promulgated by the National Board and supervises the Fund operations to their respective regions, (3) and along with them are the designated Secretariats of the National/Regional Boards that serve as the implementing arm of the Fund. Currently, the Chairman for the National Board of Trustees is Undersecretary Victoria M. Catibog and Assistant Secretary Jesus L.R. Mateo sits as Vice-Chairman of the Board.

New Provision

DepEd Order 37, s. 2018 added a provision to DO 12, s. 2004 permitting the Newly hired teachers to avail of Provident Fund loan.

For interested borrower applicants, the following are the documentary requirements:

i. Accomplished application form, stating among others, the specific purpose for which the loan will be used; and
ii. Latest pay slip/payroll indicating monthly salary deductions.

Source: COA Consolidated Annual Audit Report on the Department of Education for FY 2017 World Bank Public Document August 2018 and DepEd Order 37, s. 2018

Margarita Lucero Galias

Margarita L. Galias began her career in education as a high school math and physics teacher in Immanuel Lutheran High School in Malabon City and Manila Central University, Caloocan City before serving as a public school teacher in Sorsogon City in 1995. She was a university scholar and graduated cum laude with a bachelor’s degree in Education, major in Math-Physics from De La Salle Araneta University. She also holds a master’s degree in Management, major in Administration and Supervision from Sorsogon State College. She is now currently employed in Mercedes B. Peralta Senior High School as a classroom teacher and a guidance counselor designate.

1 thought on “DepEd Provident Fund”

  1. Dear Madam The Peace of God is with us
    Good Morning ! I would like to avail provident loan for the repair and business amounting to 100.000 I am looking for the application of loan and how to apply I am in service of 30 years plus and I am 55 years old Thanks Madam and more power to you Mam God bless Very truly yours Vinia Daguio Capili


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