Employee Retirement Plan

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Internal Proposal — June 2026

CoDev Philippines
Employee Retirement Plan

A private retirement plan designed to reward loyalty, build long-term financial security, and make CoDev the employer of choice in the Philippine tech industry.

6%
Core Employer Contribution
+4%
Max Employer Matching
20%
Max Total Monthly Rate
100%
Employee Fund Ownership

Who This Plan Covers

A private retirement plan separate from — and supplementary to — the SSS pension. All eligible employees are automatically enrolled.

Regular Employees

Automatically enrolled. The plan begins building their retirement fund from day one of eligibility.

Probationary Employees

Covered from the start of probation. No waiting for confirmation to benefit from the plan.

🌏

Foreign Nationals

Eligible if employed under a local CoDev Philippines contract, subject to applicable Philippine laws.

🔄

Re-hires

Re-entry date is used as the reference point for benefit computation and contribution reckoning.

Not Covered

Fixed-term, project-based, casual, and temporary employees are excluded from the plan.

🌐

International Transfers

Employees reassigned abroad who retain a local PH contract may stay enrolled. Those who cease PH employment receive 100% of all contributions.

🇺🇸
Optional — US Employees

Suggested: 401(k) Plan for US-Based Staff

While this proposal is scoped for Philippine employees, CoDev may consider offering a 401(k) retirement savings plan for US-based employees. A common structure includes a 3–6% employer match, vesting over 3–6 years, with Roth or traditional pre-tax elections.

Not required here, but recommended as a future initiative. A qualified plan administrator (e.g., Guideline, Human Interest, or Vanguard) can set this up with minimal overhead.

Contribution Structure

Four types of contributions work together to grow each employee's retirement account every pay period.

A

Core Employer Contribution

CoDev contributes 6% of monthly basic salary for employees with at least 2 years of service — at zero cost to the employee.

B

Employee Voluntary Contribution

Employees choose to contribute 5%, 7.5%, or 10% of monthly basic salary via annual online enrollment.

C

Employer Matching

CoDev matches a portion of every voluntary contribution — the more an employee saves, the more CoDev adds on top.

D

Past Service Contribution

A catch-up contribution for all missed Core Contributions before the plan's effective date, amortized over 5 years.

Employer Matching Schedule
Employee VoluntaryEmployer MatchCore ContributionTotal Monthly Rate
5% of basic salary+ 2%+ 6%= 13%
7.5% of basic salary+ 3%+ 6%= 16.5%
10% of basic salary+ 4%+ 6%= 20%

Example — PHP 30,000/month salary at 10% voluntary: Employee PHP 3,000 + Employer match PHP 1,200 + Core PHP 1,800 = PHP 6,000 added to retirement fund monthly.

Who Benefits — and How

Compounding value for employees and strategic advantages for CoDev Philippines as an organization.

💰

Free Money from CoDev

The 6% core contribution is added to your fund just for being employed — you don't contribute a single peso for it.

📈

Your Savings Amplified

Contribute 10% and CoDev adds 4% on top. Combined with the core, up to 20% of your salary builds retirement wealth monthly.

🔒

Always 100% Yours

Your voluntary contributions are yours from the moment they're deducted — with all earnings and losses, no conditions attached.

🏦

Emergency Loan Access

Borrow up to 100% of your voluntary fund at a below-market fixed interest rate with flexible 6–24 month terms.

📊

Professional Fund Management

A top-tier fund manager (e.g., BPI Asset Management) grows your balance — no expertise or personal fees required.

👨‍👩‍👧

Full Beneficiary Freedom

Nominate up to 5 beneficiaries of your choice, including common-gender partners. No relationship declaration needed.

📅

Annual Rate Update Window

Every March, adjust your voluntary contribution rate — increase, decrease, or stop. Outside this window, your rate stays fixed unless you initiate a full withdrawal.

↩️

10-Day Withdrawal Revert

If you initiate a withdrawal of your voluntary balance, you have 10 days to cancel it before it's processed — a safety net against impulsive decisions.

💻

Online Account Portal

View balance, contributions, and investment performance anytime — portal to be built and launched as part of this plan's rollout.

🏅

Top-Tier Employer Status

Fewer than 50% of PH shared services companies offer this. Launching immediately places CoDev in the top tier — a real edge in every job offer.

🤝

Dramatically Better Retention

Vesting milestones at 5, 7, and 10 years create compounding financial reasons to stay — reducing turnover and protecting institutional knowledge.

📣

Stronger Employer Brand

A retirement plan is a powerful signal on LinkedIn, Jobstreet, and Glassdoor — showing CoDev's long-term investment in its people.

⚖️

Philippine Labor Law Compliance

Under Republic Act No. 7641 (Retirement Pay Law), all private sector employers must provide at least ½ month salary per year of service for qualifying employees. CoDev's plan exceeds this — fully satisfying and surpassing the statutory requirement.

📉

Predictable Budget Line

Fixed, formulaic contribution rates make this a transparent, budgetable workforce investment — not a reactive retention bonus.

💡

More Productive Teams

Financially secure employees are measurably more engaged. Reducing financial anxiety through structured savings directly improves performance.

🚀

Stronger Talent Pipeline

Senior candidates weigh total compensation. A retirement plan closes offers faster and attracts higher-caliber talent than base salary alone.

🌍

Supports Global Mobility

100% portability for internationally reassigned staff supports CoDev's ability to deploy talent globally without penalising people.

The Longer You Stay, the More You Earn

Voluntary contributions are always 100% owned by the employee. Employer contributions vest progressively over 10 years.

Employer Contribution Vesting — Early Retirement (below age 60)
Less than 5 years
0%
5 – 6 years
30%
6 – 7 years
44%
7 – 8 years
58%
8 – 9 years
72%
9 – 10 years
86%
10+ years
100% ✓

Employee voluntary contributions vest at 100% immediately, regardless of tenure or separation type.

All Separation Types
Normal RetirementAge 60
Employer: 100%Employee: 100%
Late RetirementAge 61–65
Employer: 100%Employee: 100%
Death / Total DisabilityAny age
Employer: 100%Employee: 100%
Involuntary SeparationAny age
Employer: 100% or statutoryEmployee: 100%
Dismissal for Just CauseAny age
Employer: ForfeitedEmployee: 100%

Member Loan Program

Employees enrolled in voluntary contributions can borrow against their own fund — without disrupting retirement goals.

Loan Features
Who can applyRegular employees with active voluntary contributions
Max amount100% of voluntary contributions + earnings
Monthly capAmortization ≤ 30% of basic salary
Loan terms6, 12, 18, or 24 months
Interest rateFixed annual rate, below market — reviewed yearly by Trustee Bank
Who earns itInterest stays within the fund — earned back by members, not a third party
RepaymentEqual bi-monthly salary deductions
DisbursementPayroll account within 15 business days
RenewalOnce balance falls below 50% of original loan
100%

Of your voluntary savings — available when you need it

While a loan is active, voluntary contributions continue and employer matching is fully retained. Your fund keeps growing while you repay.

  • No penalty on employer matching
  • Below-market interest rate
  • Interest stays inside the member fund
  • 4 flexible repayment terms
  • Active loan locks rate above 0%

How It Works Day-to-Day

Simple, structured processes for HR and employees — no portal yet, to be built as part of the rollout.

1
Enrollment
New hires have a 60-day open enrollment window to join voluntary contributions after their start date.
Annual re-enrollment runs March 1–31 every year — deductions start April 15th.
During enrollment: employees may change contribution rate, update beneficiaries, or stop contributions.
Employees who miss Annual Enrollment may still enroll via Open Enrollment at any point during the year.
2
Contribution Updates
Contribution rate can only be updated during the March annual enrollment window.
Stopping contributions outside of enrollment triggers a full voluntary balance withdrawal — all employer matching is forfeited.
Employees with an active loan may change their rate but cannot set it to 0% — voluntary contributions are the loan's collateral and must stay active.
3
Withdrawal Rules
Full withdrawal only — partial withdrawals are not permitted.
Withdrawal forfeits all corresponding employer matching contributions.
A 10-day revert window allows employees to cancel a withdrawal before it is processed.
Re-enrollment is permitted 12 months after withdrawal at the next annual open enrollment.
4
Benefit Payout
All benefits paid as a single lump sum credited to the employee's payroll account.
Processing time: up to 60 business days from separation or retirement date.
Tax treatment follows applicable BIR regulations at time of payment.
Company holds first lien on remaining balance to cover any outstanding employee liabilities.
5
Tenure & Service Computation
Service counted from date of hire to date of retirement, separation, death, or disability.
Leaves Without Pay (LWOP) are excluded from tenure computation.
Fractions of 6 months or more count as one full year; less than 6 months are disregarded.
Re-hires use their re-entry date; international assignees use their CoDev PH start date.

Getting This Plan Live

A seven-step path from proposal approval to first contribution — including the employee portal build.

1

Secure Leadership Approval

Present to CoDev Philippines leadership and board — approve plan structure, contribution rates, and annual budget allocation.

2

Form a Retirement Plan Committee

HR, Finance, and senior management representatives to govern the plan, set policy, and liaise with the fund manager.

3

Appoint a Fund Manager / Trustee Bank

Engage a reputable trustee (e.g., BPI Asset Management, BDO Trust, or Metrobank Trust) via a formal RFP process.

4

Legal & Regulatory Compliance

Draft the Plan Document with legal counsel — confirm compliance with RA 7641, the Labor Code, BIR regulations, and SEC requirements for private retirement plans.

5

Build the Employee Portal

No portal exists yet — this is a critical build item. Must support enrollment, beneficiary management, account balance viewing, loan applications, and withdrawal requests.

Portal Features Required

Employee enrollment flow
Beneficiary management
Account balance dashboard
Loan application module
Withdrawal requests
Monthly statement export
6

Employee Communication Launch

Town halls, email announcements, and an FAQ document to introduce the plan company-wide and drive voluntary enrollment from day one.

7

Plan Go-Live

Set the effective date, commence first Core Employer Contributions, and open the first voluntary enrollment window for all Philippine employees.