Central Fund

About the Central Fund 

MASS-SPECC has established a central fund unit managing the investments of the members and provides wholesale loan to qualified cooperative-members. Pooled funds of cooperatives, as well as external funds are utilized and managed by the Central Fund unit in several ways.  As of 2015, the Central Fund is able to administer the total amount of almost P490 Million investments (savings and share capital) of member cooperatives and more than P600 Million of loan receivables with delinquency rate of 5% at PAR 1 day.  


MASS-SPECC provides financial assistance to qualified members who are in need of loan for various purposes.  The Loan Fund is from both internal and external sources.  Savings deposits of co-op members are either invested in Trust banking or lent out to other co-op members in need of financial assistance.  Loan products are designed according to purpose, repayment term and credit rating of borrowing co-ops.  In order to protect the funds of the members used in wholesale lending activity of the Federation, risk management measures are put in place.  A credit rating system is practiced and applied to all new and repeat borrowers.  Loan pricing is flexible according to risk of each account.  Pricing is also based not only on amount borrowed but also on all other services provided by the Federation to ensure that the borrowing cooperative is not only financially sound but also healthy in areas of governance, management and social performance.   



Also known as Certificate of Deposit (CD) held for a fixed-term. The Certificate of Deposit is issued for a specified term with a minimum of 30 days up to a maximum of five years. The longer the term and the higher the amount, the higher the interest will be.

The Time Deposit rates are on a per annum basis and are subject to change without prior notice. Pre-termination of TD is allowed, however, interest rate shall be based on the prevailing savings deposit rate of MASS-SPECC. All earnings from the Time Deposit are not subject to withholding tax as mandated with RA 9520.

MASS-SPECC can provide its primary member cooperatives with interest rates that are competitive with other financial institutions. Beyond the interest rate, your placement will afford MASS-SPECC to reach out to other cooperatives in the Philippines.


R.A. 9520 requires that every cooperative shall determine its net surplus at the close of every fiscal year and allocate at least 10% to its General Reserved Fund.  Provided that, in the 1st 5 years of operation after registration, this amount shall not be less than 50% of the net surplus.

The accumulated reserve fund is usually deposited in the bank for the protection of and shall be used for the stability of the cooperative and to meet net losses in its operations.  The general assembly may decrease the amount of allocation when the fund already exceeds the share capital.

Most often coops do not make optimal use of their reserve funds.  And to make matters worse, due to common misconceptions their reserve funds may not be adequately funded.  However, with proper planning, these shortcomings can be avoided by regularly setting up a corresponding amount to fund the reserve fund.  The cooperative shall ensure that the fund shall be utilized for investment in safe and secure investments like liquid, fixed-term deposits in the secondary or tertiary cooperative, with any commercial bank or in any financial instruments under the provisions of the R.A 9520.  

MASS-SPECC provides investment scheme proposals that will assist cooperatives in managing their General Reserve and Retirement Fund portfolio. Both the General Reserve and Retirement Funds can help cooperatives in maximizing the potential earning capacity of their own funds.  And this will be realized thru the concept of pooling together the resources of the coops to accumulate a substantial amount and then invest them in a diversified portfolio of Fixed-income securities and Equities security investments.

We prudently select the top 3 best investment companies with the best financial managers in the country.  Doing this on your own will not give you the best earnings you desire, but together with other coops we will be able to enjoy the earning power of our millions.


Republic Act 7641, otherwise known as the Compulsory Retirement Act, states that institutions with at least 10 regular employees are required to provide retirement benefits to employees who are at least 60 years old and who have rendered at least 5 years of service.

As a result of this mandatory pension scheme, employers are left with no choice but to put money aside for their employees’ retirement.  

Setting-up of a retirement plan will enable the cooperatives to prepare for future retirement benefits due to the employees under the law. Instead of outright and lump sum payment of retirement benefits directly from the coop’s funds, the coops are able to program their contributions in a much smaller amount by investing the fund to a high performance investment solutions that are available in the market.

Investment vehicles that are specifically designed for retirement savings have tax benefits, as compared with general investments. An employer-sponsored retirement investment plan can be one of the most critical elements in your retirement savings picture.

As we are concerned of the cooperatives’ welfare, MASS-SPECC offers to be the custodian of your Cooperative’s Retirement Fund.  As custodian, we will:

  • Let you decide what type of instrument to invest in.
  • Require you to deposit your fund for a minimum of 5 years.
  • Provide you with regular updates of your investment.
  • Provide the coop with sample retirement plan template.
  • Require your coop to have your Retirement plan approved by the BIR for tax exemption purposes.
  • MASS-SPECC will charge a management fee of 0.75% of the earnings.

MASS-SPECC will prudently select the top 3 best investment companies with the best financial managers in the country to maximize the value of the fund while taking into account the risks involved. 

TD Matrix 2018_final