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What is the rationale for including probationary employees to automatically become members of the Plan?

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What is the rationale for including probationary employees to automatically become members of the Plan?

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The rationale for this is that under the Labor Code, as amended by R.A. 7641, the lump sum retirement benefit is computed from date of employment as a probationary employee, not from the date of permanency or acquisition of teneure. Hence, a Participating Employer might as well start contributing to his employees retirement from the date of hiring as a probationary employee and not three (3) years later. If the employee does not become permanent, his credits in the Retirement Plan due to his employers contributions are forfeited and used to reduce the employees subsequent contributions. This is also in line with the requirement in the Social Security Act that a probationary employee is covered by social security from the date of hire. It will also mean that the counting of periods of continuous service will commence from date of hiring as a probationary employee and not three (3) years later (in the case of academic employees) or six (6) months later (in the case of non-academic employ

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