Regulations for the Preventive Planning of the Honduran Institute of Comprehensive Social Security

The Plan of Teacher Provision PRICPHMA is established, as a National Governing Body of the First Honduran Professional College of Teachers PRICPHMA, in accordance with the Organic Law of PRICPHMA, to provide benefits or economic benefits and services to those affiliated with PRICPHMA, which shall be governed by the Organic Law of PRICPHMA and its own regulation.

The Plan of Teacher Provision PRICPHMA is a National Governing Body, eminently professional in character, with its own assets and indefinite duration, which, in the context of this regulation shall be referred to as THE PLAN.

THE PLAN is the body of PRICPHMA, to which it corresponds to apply the established norms to guarantee the granting of benefits or social benefits and services to teachers affiliated with PRICPHMA, who comply promptly with the monthly payment of their fees, contributions and obligations to PRICPHMA, as established by the Law on Compulsory Professional Registration, the Organic Law of PRICPHMA, the Regulation of its Organic Law and the present regulation of THE PLAN.

THE PLAN has as its purpose to collect the funds corresponding to the contributions to THE PLAN, to administer them in an efficient and transparent manner, to generate the surpluses that allow compliance with the granting of benefits or social benefits, as well as the provision of services, among others loans.

THE PLAN shall have its domicile in the city of Tegucigalpa, municipality of the Central District, being able to organize regional offices in the departments that have a high membership, to avoid the mobility of those affiliated with PRICPHMA to the city of Tegucigalpa. CHAPTER II OF THE LEVELS OF AUTHORITY

THE PLAN has as levels of Authority for its operation:

• a)

  The General Assembly of PRICPHMA.

• b)

  The Central Executive Board, in recess of the General Assembly.

• c)

  The Board of Administration.

The General Assembly of the First Honduran Professional College of Teachers PRICPHMA is the highest authority, composed of Delegates legally accredited and registered, before whom it shall render a Report of work and financial matters annually. The General Assembly of PRICPHMA represents and expresses the collective will of its members.

The Plan of Teacher Provision PRICPHMA shall be in charge of the Board of Administration, which shall be composed of six (6) Members, shall be presided over by the President of the Central Executive Board and five (5) of the Members shall be elected in accordance with what is indicated in the Regulation of the National Electoral Council.

The Board of Administration of THE PLAN is the governing, decision-making and executive body of the Plan of Teacher Provision PRICPHMA.

The Board of Administration of THE PLAN is composed of the following Members: a) President, a position held by the President of the Central Executive Board of PRICPHMA. b) Vice President. c) Secretary. d) Treasurer. e) Member I. f) Member II.

To be a Member of the Board of Administration, the following requirements must be met:

• a)

  To be a Honduran by birth.

• b)

  To be a teacher affiliated with PRICPHMA, with a minimum of ten years of professional experience.

• c)

  To be of recognized moral integrity.

• d)

  To be in full enjoyment of civil rights.

• e)

  To be current with the payment of ordinary and extraordinary fees, loans and credits granted by THE PLAN or PRICPHMA.

The following may not be Members of the Plan of Teacher Provision PRICPHMA:

• a)

  Teachers who are not current with PRICPHMA and THE PLAN.

• b)

  Teachers who hold executive positions in other National Governing Bodies of PRICPHMA.

• c)

  Spouses or relatives of each other, up to within the fourth degree of consanguinity or second degree of affinity.

• d)

  The spouse and relatives up to within the fourth degree of consanguinity or second degree of affinity with the administrator of THE PLAN.

• e)

  Teachers who have firm objections with PRICPHMA and/or THE PLAN.

• f)

  Teachers who have complaints before the PRICPHMA Court of Honor, or who have had complaints and have been sanctioned.

• g)

  Teachers who are under civil interdiction.

• h)

  Teachers who have been convicted and defeated in judgment in the Courts of the Republic.

• i)

  Teachers affiliated with another teaching organization who are activists within the same.

• j)

  Teachers who are public officials or who hold positions of popular election.

In the event of absence of the President of the Board of Administration of THE PLAN of Teacher Provision PRICPHMA, he or she shall be replaced by the Vice President or the Member of the Board of Administration of THE PLAN who is available.

In the event of manifest and unjustified absence or resignation of any of the members of the Board of Administration of THE PLAN of Teacher Provision PRICPHMA, the Central Executive Board of PRICPHMA shall replace them with other Teachers affiliated with PRICPHMA, who meet the requirements, in accordance with what is established in the Organic Law of PRICPHMA.

The Board of Administration of THE PLAN shall hold ordinary sessions on the last Monday of each month, except when due to force majeure or when the established date is a public holiday; and extraordinary sessions when there are urgent matters to be dealt with, convened by the President or at the request of three or more of its Members.

The sessions of the Board of Administration shall be valid if held with the attendance of at least four (4) of its Members.

The Resolutions and Agreements of the Board of Administration shall be adopted by simple majority of votes. An exception shall be made for Resolutions of a financial or investment nature, in which cases the favorable vote of five (5) of its members shall be required. The President shall decide with a tie-breaking vote any ties that may occur.

Members of the Board of Administration shall not intervene in or hear matters of their personal interest, nor those of their spouse or their relatives within the fourth degree of consanguinity or second degree of affinity, and shall recuse themselves from the discussion of that agenda item.

Members of the Board of Administration who, by their favorable vote on Resolutions or Agreements, violate the provisions of this Regulation and cause damage and injury to the teachers of PRICPHMA, shall be jointly and severally liable for the damage and injury that by their actions they may cause to the teacher of PRICPHMA; Members of the Board of Administration who vote against are excepted from liability, if such opposition is recorded in the respective minutes.

Members of the Board of Administration shall not receive salary or wages for the position they hold, but shall receive a per diem for each session they attend. CHAPTER III CONCERNING THE POWERS AND DUTIES OF THE BOARD OF ADMINISTRATION

Members of the Board of Administration shall have the following powers:

• a)

  To establish the general policy of THE PLAN, in accordance with this Regulation, the Organic Law of PRICPHMA and its Regulation, the agreements and resolutions of the General Assembly and other legal provisions that may be established.

• b)

  To organize, administer and supervise the functioning of THE PLAN.

• c)

  To prepare projects for reform of THE PLAN Regulation, for approval by the Ordinary General Assembly of PRICPHMA.

• d)

  To approve Resolutions and Agreements and normative provisions that ensure efficient administration of THE PLAN.

• e)

  To prepare the strategic plan, budget project and annual report of activities to present to the Ordinary General Assembly for discussion and approval.

• f)

  To verify that the established requirements for granting benefits and services to teachers affiliated with PRICPHMA are met.

• g)

  To propose to the Central Board of Directors of PRICPHMA the removal of the General Administrator of THE PLAN, in accordance with the legal and regulatory provisions approved.

• h)

  To approve the general balance sheet and financial statements of THE PLAN.

• i)

  To receive the bond or security that must be presented by the Administrator of THE PLAN.

• j)

  To ensure that THE PLAN has the technical studies that guarantee its financial stability.

• k)

  To propose to the Central Board of Directors of PRICPHMA the appointment and removal of employees of THE PLAN.

• l)

  To propose that actuarial reviews of THE PLAN be conducted at least every three (3) years and to submit them to the Central Board of Directors for presentation to the General Assembly.

• m)

  To approve the request for benefits and services, following the study and report prepared by the General Administrator.

• n)

  To approve the investment portfolio, following the study and report prepared by the General Administrator of THE PLAN. o) To examine on a quarterly basis the internal audit report, and to inform the Central Board of Directors so that measures may be taken if necessary. p) To prepare an Action Plan to execute the Agreements and Resolutions approved by the General Assembly and the Central Board of Directors of PRICPHMA.

The powers of the President of the Board of Administration are:

• a)

  To preside over the sessions of the Board of Administration.

• b)

  To convene sessions of the Board of Administration through the Secretary.

• c)

  To comply with and enforce this Regulation, the Agreements and Resolutions of the General Assembly and other normative provisions that are established, relating to the functioning of THE PLAN.

• d)

  To prepare the agenda for each session of the Board of Administration.

• e)

  To sign with the Secretary the minutes of the sessions of the Board of Administration.

• f)

  To authorize with his signature jointly with the General Administrator, the opening of bank accounts for checking and savings, negotiable securities, checks and all administrative documents concerning income and expenses, for payment of benefits, loans, salaries, travel allowances and all administrative expenses inherent to the functioning of THE PLAN.

• g)

  The other powers indicated by this Regulation and the Agreements and Resolutions of the General Assembly, the Central Board of Directors and the Board of Administration of THE PLAN.

The powers of the Vice President are:

• a)

  To substitute the President in case of temporary absence.

• b)

  To perform the functions assigned by the President.

• c)

  To perform all activities inherent to his or her condition as a member of the Board of Administration.

The powers of the Secretary are:

• a)

  To draft and certify the minutes of sessions of the Board of Administration of THE PLAN, agreements, resolutions and communications of THE PLAN.

• b)

  To sign with the President the minutes, agreements and resolutions issued by the Board of Administration of THE PLAN.

• c)

  To custodize the Book of Minutes, Resolutions, Agreements and other correspondence of the Board of Administration, organizing the necessary records.

• d)

  To transcribe the Resolutions adopted by the Board of Administration and notify them to the appropriate party.

• e)

  To exercise the other functions and activities inherent to his or her position and all those indicated by the Board of Administration.

• f)

  To sign with the President the minutes of the sessions of the Board of Administration.

The powers of the Treasurer are:

• a)

  To certify the reports, balance sheets, financial statements and budget of THE PLAN, for which purpose he or she may receive the necessary technical advice from accounting and finance professionals.

• b)

  To participate in the audits and financial and legal compliance inspections that must be conducted annually on THE PLAN.

• c)

  To present to the General Assembly the External Audit Report for analysis and final approval.

The powers of the Vocal Members are: a) To substitute, in case of duly justified temporary absence, any Member of the Board of Administration. b) To serve on committees and perform activities assigned to them, inherent to their position. CHAPTER IV CONCERNING THE GENERAL ADMINISTRATOR

The General Administrator is responsible for executing the Resolutions and Agreements issued by the General Assembly, Central Board of Directors and Board of Administration of THE PLAN.

Requirements to hold the position of General Administrator of THE PLAN:

• a)

  To be Honduran by birth.

• b)

  To be in full exercise of his or her civil rights.

• c)

  To be of legal age and single status.

• d)

  To be a university professional in the area of economic sciences, business administration, accounting or finance, or related field.

• e)

  To provide the Bond or Security that the Board of Administration of THE PLAN shall establish, according to the amount of values and assets to be administered.

The following may not hold the position of General Administrator of THE PLAN: a) Those under twenty-five (25) years of age. b) Those found in the cases stated in subsections: c), d), h), i), j) of Article 12 of this Regulation. c) Spouses and relatives up to the fourth degree of consanguinity or second degree of affinity with members of the Central Board of Directors of PRICPHMA and Members of THE PLAN.

The General Administrator shall be appointed by the Central Board of Directors at the proposal of the Board of Administration of THE PLAN.

The General Administrator shall be selected in accordance with the requirements established to assume the position and shall not be disqualified as provided in this Regulation.

The General Administrator shall have the following powers and duties:

• a)

  To exercise organizational, administrative, and financial functions aimed at achieving the objectives of THE PLAN's strategic plan.

• b)

  To propose to the Board of Directors the plans, programs, projects, and feasibility studies in accordance with the needs and qualitative and quantitative growth of THE PLAN.

• c)

  To propose to the Board of Directors of THE PLAN the appointment, suspension, or removal of THE PLAN's employees in accordance with applicable legal and regulatory provisions.

• d)

  To authorize with his signature jointly with the President of the Board of Directors of THE PLAN the opening of checking and savings accounts, securities and all administrative documents of income and expenses related to the payment of benefits, loans, salaries, travel allowances, and all administrative expenses related to the payment of benefits, loans, salaries, travel allowances, and all administrative expenses inherent to the functioning of THE PLAN.

• e)

  The others specified in this regulation or that may be conferred by the Board of Directors, the Board of Directors, and the General Assembly. CHAPTER V OF THE PARTICIPANTS OF THE PLAN

Participants in THE PLAN DE PREVISIÓN DEL DOCENTE PRICPHMA shall be all Teachers affiliated with PRICPHMA who are in good standing with their monthly contribution payments as indicated in the Law of Mandatory Professional Affiliation, the Organic Law of PRICPHMA, whether in ordinary or extraordinary installments.

Teachers who affiliate with PRICPHMA having reached 46 years of age shall be granted benefits proportionally according to the applicable scale in accordance with the table established by the Board of Directors and detailed in Article 63 of this regulation.

To have the right to be a recipient of benefits and services provided by THE PLAN, it is an indispensable condition to be in good standing with the payment of affiliation contributions to PRICPHMA from the date of affiliation to PRICPHMA.

The obligations of the Participants are as follows:

• a)

  To be in good standing with the monthly affiliation contributions to PRICPHMA, with PRICPHMA being responsible for managing appropriate methods to apply deductions through payroll by means of the General Subdirectorate of Teaching Human Resources of the Ministry of Education, by bank deduction, payment through the cooperative of teachers affiliated with PRICPHMA, payment at the counter to PRICPHMA's accounts in banking institutions, in the case of those affiliated in retired status, through INPREMA.

• b)

  To authorize the administration of Non-Governmental Educational Centers to apply the corresponding monthly deduction if the teacher affiliated with PRICPHMA works in one of them, or if not done directly at the bank counter.

• c)

  If the Teacher is outside the National Educational System, he must pay directly at PRICPHMA's treasury or at any banking institution where PRICPHMA has its savings accounts and must report such payments to PRICPHMA for the respective registration.

• d)

  To inform THE PLAN, the Boards of the corresponding Sectionals, or the Central Board of Directors of PRICPHMA when any employment movement occurs, whether transfer, promotion, exchanges, change of address, or change of Educational Center if working in Governmental Educational Centers.

• e)

  To report to the appropriate person at PRICPHMA or THE PLAN if the respective monthly affiliation contribution is not being applied, whether through the General Subdirectorate of Teaching Human Resources or the administration of the Non-Governmental Educational Center where employed.

• f)

  To inform THE PLAN or the Central Board of Directors of PRICPHMA the collection number or unique registry granted by INPREMA when the PRICPHMA Teacher is authorized his Retirement benefit so that the respective retirement may be applied.

• g)

  To authorize deduction by direct debit through the banking institution where payment is credited if the deduction is not applied directly by INPREMA in the case of PRICPHMA Teachers in retired status.

The PRICPHMA teacher loses the status of Participant in THE PLAN and therefore shall have no right to enjoy the benefits and services granted if in any of the following cases:

• a)

  After three (3) months in arrears with PRICPHMA in his complete mandatory affiliation contributions.

• b)

  By written resignation filed with PRICPHMA being in good standing with his affiliation contributions and granted loans and approved by the Central Board of Directors of PRICPHMA.

• c)

  Having been permanently suspended from PRICPHMA by resolution issued by the Honor Court and approved by the Ordinary General Assembly of PRICPHMA.

• d)

  By death of the Participant.

The PRICPHMA teacher if in arrears may be considered again as a Participant of THE PLAN upon resuming payment of his contributions to PRICPHMA and THE PLAN. CHAPTER VI OF CONTRIBUTIONS

Participants in THE PLAN shall contribute from their affiliation with PRICPHMA a monthly contribution equivalent to four point two zero seven three five five percent (4.207355%) of the active teacher's base salary. When the Participant in THE PLAN acquires the status of retiree or pensioner, he shall contribute to THE PLAN a monthly contribution equivalent to sixty-six point four four four nine one one percent (66.944911%) of the contribution paid by the Participant as an active teacher.

The monthly contribution paid by Participants in THE PLAN in their capacity as active Teachers shall be distributed as follows:

• a)

  Percentage of contribution to THE PLAN: 3.369317% of base salary.

• b)

  Percentage of contribution to the JDC-PRICPHMA: 0.582447% of base salary.

• c)

  Percentage of contribution to the Sectional to which it belongs: 0.255591% of base salary. Total percentage of base salary contributed monthly: 4.207355%

The monthly contribution paid by Participants in THE PLAN in their capacity as Retired Teachers shall be distributed as follows:

• a)

  Percentage of contribution to THE PLAN: 80.10501% of the monthly contribution.

• b)

  Percentage of contribution to the JDC-PRICPHMA: 13.84626% of the monthly contribution.

• c)

  Percentage of contribution to the Sectional to which it belongs: 6.04872% of the monthly contribution.

Failure to pay three monthly contributions shall be recorded as arrears. Notwithstanding, if the participant works in Governmental Educational Centers and due to administrative proceedings arising from appointment, promotion, transfer, exchange, suspension of deductions, or application of improper deductions and therefore is not subject to regular payment or the payroll deduction is not applied, he shall be granted a maximum grace period of six (6) months to pay the overdue contributions. After this period has elapsed and the participant does not get current, it shall be recorded as arrears and he shall lose all his rights.

The participant who falls in arrears with his obligations to PRICPHMA or THE PLAN loses his status as a member of THE PLAN and as an immediate effect shall have no right to the benefits established in this Regulation. CHAPTER VII OF THE PATRIMONY OF THE PLAN

The economic patrimony of the Plan de Previsión del Docente PRICPHMA shall be comprised of:

• a)

  The monthly contributions of each participant in THE PLAN.

• b)

  The extraordinary contributions agreed upon by the General Assembly of PRICPHMA.

• c)

  Transfers, inheritances, legacies, and donations made in favor of THE PLAN of lawful origin and accepted by the Board of Directors.

• d)

  Movable and immovable property acquired by THE PLAN.

• e)

  The financial returns from its resources and reserves.

• f)

  Immovable property acquired as an investment either for the operation of regional offices or for rental, as well as the financial returns generated by the rentals.

• g)

  Others of lawful origin. CHAPTER VIII OF RESERVES AND INVESTMENTS

For the purpose of guaranteeing the payment of benefits, economic reserves shall be established as determined by the actuarial studies conducted by THE PLAN.

The financial resources of THE PLAN shall be invested under maximum conditions of liquidity, security and profitability, and may be invested in financial, commercial, industrial activities and of any kind that results in the growth of reserves, for the fulfillment of social commitments.

The Board of Directors of THE PLAN shall approve the program of its investments, taking into account the recommendations resulting from financial studies, prepared by technical advisors with vast experience in this field and which shall have as their purpose the capitalization of its economic resources. CHAPTER IX OF THE BENEFITS

The benefits that THE PLAN shall grant to its participants shall be known as Social Benefits and Services. Understanding as Social Benefits the rights acquired by the participants of THE PLAN that are in good standing, when contingencies occur and the Participant or those designated as beneficiaries meet the requirements established for their enjoyment.

The following are considered Social Benefits: a) Life insurance due to death of the Participant b) Funeral expenses due to death of the Participant c) Benefits for total or permanent disability d) Benefits for Advance payment for terminal illness e) Program for advance payment of the total insured amount, of the Life insurance due to death f) Funeral aid due to death of the spouse, father, mother or children of the Participant.

Life insurance due to death is understood as the benefit to which persons designated by the participant or persons legally entitled to it have the right in accordance with this Regulation, when their death occurs by natural or accidental cause.

THE PLAN shall execute a collective life insurance policy with insurance institutions regulated by the National Banking and Insurance Commission, by virtue of which, each year the amounts to be received for the Social Benefits enumerated in the

may be improved or readjusted, in accordance with those published in this reform to the Regulation of THE PLAN.

Upon the death of the Participant, THE PLAN shall pay to his beneficiaries the following amounts: a) For natural death L.250,000.00 b) For accidental death L.500,000.00 c) For qualified accidental death L.750,000.00

The beneficiaries designated by the Participant, at the time of his death, shall present themselves at the offices of the administration of THE PLAN, presenting the respective death certificate and fill out the respective forms, to initiate the process for payment of the benefit.

Once the administrative process for payment of the benefit is concluded, which must not take more than ninety (90) calendar days after the application has been submitted, the benefit shall be paid as established in this Regulation.

If as a result of an illness or accident, the participant suffers total and permanent physical or mental disability that prevents him from performing his work or habitual occupation, professional practice or the development of any other personal activity, he shall have the right to the benefit of disability assistance. Likewise, indemnities shall be granted when as a result of an accident or other contingency, any dismemberment or loss of organs or extremities or parts thereof occurs, which shall be resolved in accordance with the table of indemnities in effect that is contracted in the collective insurance policy.

The benefit of assistance for total and permanent disability that shall be paid to the participant shall be one hundred percent (100%) of the value that would have corresponded to him for natural death, payable in twelve (12) monthly installments.

To prove the disability of the participant, he must present a duly authenticated photocopy of the medical opinion issued by the Disability Commission of the Honduran Social Security Institute, said documentation shall be reviewed and studied by the general administrator, prior to the approval of the Board of Directors of THE PLAN.

Once the matter established in the preceding article has been verified, the Participant shall fill out the forms that shall be provided to him, accompanying the required documents.

Advance assistance for terminal illness is understood as the benefit to which Participants are entitled, who are diagnosed with a terminal illness such as Alzheimer's, Parkinson's, Cancer, renal insufficiency, to whom an advance of the total insured amount shall be granted, equivalent to the percentage established in the policy that is executed annually.

The benefit for funeral expenses consists of granting a sum intended to cover part of the funeral expenses incurred by the death of the Participant and shall be delivered to the person who has incurred the expenses, presenting the respective invoices.

The Benefit for funeral expenses due to death of the Participant shall be in the amount of Forty Thousand Lempiras (L. 40,000.00).

The Benefit for funeral assistance is established to help cover the costs of funeral services caused to the Participant by the death of: a) Spouse and children L.40,000.00 b) Parents L.30,000.00 Payment of this benefit shall be made effective no less than thirty (30) working days, as a minimum, and sixty (60) days as a maximum, after the date on which the application has been submitted with all required documentation and the Participant is current with the payment of their contributions, as of the date of the family member's death.

The Program for advance payment of the benefit due to death of the Participant consists of delivering to the Teacher PRICPHMA, who has reached sixty (60) years of age, shall be benefited, as of the effective date of this Regulation, with the delivery of a percentage of the total sum insured by the Insurance due to death.

The Gold Bonus Program 62+ is hereby created, directed at Participants retired who are current with PRICPHMA and THE PLAN, and who have been benefited with the delivery of the advance payment of the benefit due to death and who have reached sixty years of age before February sixteenth of two thousand twenty-two (2022), this benefit shall be paid in staggered form, subject to approval of the Board of Directors of THE PLAN.

The amount delivered to the Teacher PRICPHMA upon reaching 60 years of age, as advance payment and the Gold Bonus 62+, shall be deducted from the value of the benefit due to death, which must be received by the beneficiaries designated by the Participant, at the time of his or her death.

When the teacher affiliates with PRICPHMA from forty-six years of age onward, he or she shall be entitled to receive as

The term advance assistance for terminal illness is understood as the benefit to which Participants are entitled, who have been diagnosed with a terminal illness including, among others, Alzheimer's, Parkinson's, Cancer, renal insufficiency, to whom an advance shall be granted of the total sum insured, equivalent to the percentage established in the policy subscribed annually.

The benefit for funeral expenses consists of granting a sum intended to cover part of the funeral expenses incurred by the death of the Participant and shall be delivered to the person who has incurred the expenses, presenting the respective invoices.

The Benefit for funeral expenses due to death of the Participant shall be in the amount of Forty Thousand Lempiras (L. 40,000.00).

The Benefit for funeral assistance is established to help cover the costs of funeral services caused to the Participant by the death of: a) Spouse and children L.40,000.00 b) Parents L.30,000.00 Payment of this benefit shall be made effective no less than thirty (30) working days, as a minimum, and sixty (60) days as a maximum, after the date on which the application has been submitted with all required documentation and the Participant is current with the payment of their contributions, as of the date of the family member's death.

The Program for advance payment of the benefit due to death of the Participant consists of delivering to the Teacher PRICPHMA, who has reached sixty (60) years of age, shall be benefited, as of the effective date of this Regulation, with the delivery of a percentage of the total sum insured by the Insurance due to death.

The Gold Bonus Program 62+ is hereby created, directed at Participants retired who are current with PRICPHMA and THE PLAN, and who have been benefited with the delivery of the advance payment of the benefit due to death and who have reached sixty years of age before February sixteenth of two thousand twenty-two (2022), this benefit shall be paid in staggered form, subject to approval of the Board of Directors of THE PLAN.

The amount delivered to the Teacher PRICPHMA upon reaching 60 years of age, as advance payment and the Gold Bonus 62+, shall be deducted from the value of the benefit due to death, which must be received by the beneficiaries designated by the Participant, at the time of his or her death.

When the teacher affiliates with PRICPHMA from forty-six years of age onward, he or she shall be entitled to receive as a benefit the following percentages: No. AGE RANGE AT AFFILIATION % OF BENEFIT BENEFITS TO WHICH AFFILIATES OF PRICPHMA ARE ENTITLED 1 46 YEARS OF AGE 65% INSURANCE DUE TO DEATH. ADVANCE OF BENEFIT DUE TO DEATH UPON REACHING 60 YEARS OF AGE. FUNERAL ASSISTANCE FUNERAL EXPENSES DOMESTIC CALAMITY 2 47 YEARS OF AGE 60% IDEM 3 48 YEARS OF AGE 55% IDEM 4 49 YEARS OF AGE 50% IDEM 5 50 YEARS OF AGE 45% IDEM 6 51 YEARS OF AGE 40% IDEM 7 52 YEARS OF AGE 35% IDEM 8 53 YEARS OF AGE 30% IDEM 9 54 YEARS OF AGE 25% IDEM 10 55 YEARS OF AGE UP TO 60 YEARS 20% IDEM CHAPTER X OF THE BENEFICIARIES

When the Participant designates his beneficiaries, he must clearly indicate the

La Gaceta Section B Legal Notices REPUBLIC OF HONDURAS - TEGUCIGALPA, M.D.C., NOVEMBER 26, 2025 No. 37,003 benefit the following percentages: CHAPTER X OF BENEFICIARIES

When the Participant designates his beneficiaries, he must clearly indicate the percentage assigned to each beneficiary. In case of failure to assign the percentage, it shall be distributed in a proportional and equal manner.

The Participant may freely and spontaneously designate his beneficiaries and has the right to revoke, replace, increase, or decrease them.

If the Participant has not made the designation of his beneficiaries, the following shall have the right to receive the Insurance by reason of the Participant's death: a) The spouse or domestic partner, the conjugal fourth, that is to say twenty-five (25) percent of the total benefit. b) The children the remaining seventy-five (75) percent, distributed in equal parts.

In the absence of the existence of the persons indicated in Article 62 of this Regulation, the benefit shall be delivered to those declared as heirs by a final judgment issued by the Competent Courts of Justice, or through a Notary and properly registered. CHAPTER XI OF SERVICES

The services provided by THE PLAN to its Participants are different modalities of personal loans, automatic loans, health loans, loans to pay arrears of contributions to PRICPHMA, loans to refinance loans with THE PLAN, education loans, loans to consolidate debts from personal loans and credit cards, loans for the acquisition of technological equipment, up to an amount of ONE HUNDRED THOUSAND LEMPIRAS (L.100,000.00), provided that they meet the requirements established in this regulation and have payment capacity.

The provision of loan services shall be regulated in this regulation.

The Board of Administration of the Teacher Benefit Plan PRICPHMA is authorized to establish other services that increase the range of benefits for its affiliates, without affecting the benefit fund; as well as to diversify investments in accordance with technical studies prepared for that purpose. CHAPTER XII OF THE LOAN FUND

The loan fund constitutes a service of THE PLAN for all solvent Participants who are in full enjoyment of their rights, which shall be subject to certain conditions, for the purpose of preventing any decapitalization of THE PLAN.

The loan fund shall be constituted by a

La Gaceta Section B Legal Notices REPUBLIC OF HONDURAS - TEGUCIGALPA, M.D.C., NOVEMBER 26, 2025 No. 37,003 capital that shall be established by the Board of Administration of the Teacher Benefit Plan PRICPHMA, in the Budget of Income and Expenses for each Fiscal Year, taking as a basis the financial capacity of THE PLAN, provided that there is technical and financial support established in an actuarial study.

The loan service shall have as its main objectives the following:

• a)

  To cover the demands and needs of Participants who request the services of the loan fund.

• b)

  To promote union solidarity.

• c)

  To guarantee the social and financial investment of THE PLAN's resources.

The loan fund offers the following modalities of loans:

• a)

  Personal loans.

• b)

  Automatic loans.

• c)

  Loans to pay arrears with PRICPHMA.

• d)

  Health loans.

• e)

  Loans to refinance loans in THE PLAN.

• f)

  Loans to promote Entrepreneurship of affiliates to PRICPHMA.

• g)

  Loans for vehicle acquisition.

• h)

  Loans for the acquisition of technological equipment.

Interest rates shall be determined by the Board of Administration of the Teacher Benefit Plan PRICPHMA.

Payment of loans granted shall be made through level installments accruing a revisable interest rate.

Penalty interest shall be charged after the deadline established for the payment of each installment expires, charging a rate of zero point five percent monthly (0.5%) additional on the overdue amount.

The requirements for requesting personal loans are as follows:

• a)

  Complete the loan application with the respective data, requested amount and term.

• b)

  The applicant must present photocopies of the National Identification Document and the payment voucher signed and sealed by the General Subdirection of Teaching Human Resources.

• c)

  The borrower must complete two authorizations for withholding payment of loan installments and affiliation fees, one shall remain in the loan file and the other shall be sent to the General Subdirection of Teaching Human Resources, or another Institution with which an agreement is executed to achieve payment withholding or for the application of the respective deduction.

• d)

  In the case of retired or pensioned teachers, they must complete and update annually the withholding authorizations for INPREMA.

• e)

  Have paid at least sixty (60) percent of the previous loan, in order to request a refinancing.

• f)

  Loan applications shall be submitted for analysis and approval by the Administration Council of THE PLAN.

• g)

  Loan applications shall be resolved immediately.

Personal loans are granted through a scale according to the earned and available salary of the Participant and their payment capacity.

Loans shall be granted immediately to address an urgent need of Participants in good standing with the PRICPHMA and with THE PLAN. Refinancings shall be granted upon having paid fifty percent (50%) of the previous loan.

A maximum amount of ONE HUNDRED THOUSAND LEMPIRAS (L.100,000.00) shall be granted for the terms chosen by the PARTICIPANT, without exceeding sixty (60) months; no guarantors shall be required.

The fundamental requirement for the granting of loans is to have a permanent position, have payment capacity and demonstrate that they have a good credit record.

Personal loans shall be granted to Participants of THE PLAN who are in good standing with the payment of affiliation fees, have payment capacity and authorize withholding of loan payment, through the General Subdirection of Teaching Human Resources, to retirees through INPREMA, or death benefit insurance, or through any financial institution.

In cases where Participants at the time of death are in arrears with personal loans, the outstanding balances shall be paid with the value of death benefit insurance, which corresponds to the beneficiaries.

Debt readjustment is the mutual agreement between the debtor and THE PLAN to address outstanding balances of existing loans, with the purpose of projecting new installments over a new defined term, according to the established conditions plus accrued interest and insurance; it is another loan modality that THE PLAN shall grant.

The Participant who processes a debt readjustment shall be considered in good standing with THE PLAN, once their application has been approved by the Administration Council of THE PLAN.

The Participant who is subject to a loan for debt relief with another creditor entity or for debt readjustment may not request any other type of loan in the PRICPHMA.

THE PLAN must contract insurance to protect the movable and immovable property of THE PLAN and the services and benefits of the Participant, to guarantee the financial stability of THE PLAN, to safeguard its assets from a catastrophic loss.

Insurance contracting must be done through a Bidding Process, in which only Insurance Institutions legally authorized and supervised by the National Banking and Insurance Commission may participate.

THE PLAN may transfer in whole or in part the risk assumed and derived from the benefits granted by this regulation to National or International Insurance Institutions that offer the most advantageous premium for THE PLAN's interests.

THE PLAN shall contract debt insurance to ensure the return of the values granted in loans, when for different circumstances the teacher falls into arrears in the payment of their monthly installments, the value of the insurance premium shall be deducted monthly with the loan installment granted.

THE PLAN shall have an internal auditor to safeguard and ensure the interests of the PRICPHMA, constantly conducting internal control reviews, advisory services and audit of the economic and financial movement of THE PLAN.

The Internal Auditor shall report directly to the Central Board of Directors of PRICPHMA and shall have the functions and responsibilities corresponding to his position.

The Internal Auditor shall be appointed in a session of the Central Board of Directors of PRICPHMA, requiring the majority vote of those attending said session. The Administration Council of THE PLAN shall propose a slate of three candidates for the position of internal auditor. CHAPTER XV TRANSITORY PROVISIONS

As of the effective date of this Regulation and for a period of six months, that is until June thirtieth (30) of the year two thousand twenty-five (2025), AMNESTY shall be granted to PARTICIPANTS OF THE PLAN who, for various reasons, are not CURRENT with the payment of affiliation fees to PRICPHMA, for which purpose FIFTY PERCENT (50%) OF THE DEBT shall be waived, AUTHORIZING AN AUTOMATIC LOAN for the payment of the remaining amount owed, thereby reactivating their social benefits and services as a PARTICIPANT OF THE PLAN.

The value representing the percentage of contribution to THE PLAN on the part of PARTICIPANTS in the condition of Active Teachers and Retired or Pensioned Teachers which, as provided in the Regulation of the Organic Law of PRICPHMA, is four point two zero seven three five five percent (4.207355%), shall vary as the value the teacher receives as base salary increases. The Administration Council of the Plan de Previsión del Docente PRICPHMA is authorized to apply the percentage of contribution of the monthly fee of the Participants to THE PLAN in the condition of Retired Teachers not in full, issuing the respective Resolution to that effect. CHAPTER XVI GENERAL PROVISIONS

The values corresponding to death insurance of the PARTICIPANT, funeral expenses, and advance of death insurance, shall be delivered in a single payment, except for disability assistance indemnity which shall be paid in twelve (12) monthly installments.

The monthly fees paid by the Participant to THE PLAN are part of his patrimony and used for the payment of benefits; they are not savings contributions and therefore, under no circumstances shall be subject to reimbursement.

The Participant who at the moment of his death is current in the payment of his affiliation fees to PRICPHMA and contributions to THE PLAN, but has pending payment accounts with the Central Board of Directors or the Plan de Previsión del Docente PRICPHMA in relation to personal loans granted, collection of the advance of death insurance of the Participant, values received from the disability assistance benefit, those values shall be deducted from the total amount of the benefit that his beneficiaries will receive, delivering to the beneficiaries the surplus that corresponds to them.

If the death of the Participant is caused as principal or accomplice by any of the persons designated as beneficiary, that designation shall be considered null if it is proven by competent judicial authority, by means of a final judgment, that those persons are responsible.

Against the Resolutions issued by the Administration Council of the Plan de Previsión del Docente PRICPHMA, the Participant or the Beneficiaries designated by the deceased Participant may file a Motion for Reconsideration before the same Body that issued the Resolution and the Appeal shall be filed with the Administration Council of the Plan de Previsión del Docente PRICPHMA, which shall send the case file to the Central Board of Directors within a reasonable time, so that it may forward it to the General Assembly of PRICPHMA, for its knowledge and final resolution, thereby ending the administrative procedure.

The rights derived from this Regulation of the Plan de Previsión del Docente PRICPHMA prescribe in twelve (12) months counted from the date of the event that gave rise to them, or failing that, as of the last action taken by the claimant or beneficiary.

Everything not provided for in this Regulation shall be resolved by the Administration Council of the Plan de Previsión del Docente PRICPHMA and in last instance by the General Assembly of PRICPHMA.

This Regulation may only be amended by the votes of more than one-half of the duly accredited proprietary delegates in an Ordinary or Extraordinary General Assembly of PRICPHMA. CHAPTER XVI SUPPLEMENTARY PROVISIONS

This Regulation repeals all previous Regulations of the Plan de Previsión del Docente PRICPHMA and all provisions that conflict with the content thereof.

Validate and ratify all actions taken by the Administration Council of the Plan de Previsión del Docente PRICPHMA regarding the subscription of collective insurance policies, which have already been processed and paid during the period from January of the year 2023 to December 2024.

This Regulation shall enter into force once it is approved by the LVIII Ordinary General Assembly of PRICPHMA "Professor NORMA MORALES REYES" held on December 10 and 11, 2024 and shall be published in the Official Gazette La Gaceta.