Tuesday, 15 December 2009 00:00 [ manilatimes.net ]
Home Development Mutual Fund (Pag-IBIG Fund) announced that it would widen its coverage and increase the contribution rate of all members to improve its services.
Vice President Noli de Castro, who is also Pag-IBIG Fund chairman, said that beginning next year, all workers earning P1,000 and above would be covered.
Its new charter would be enforced under Republic Act 9679, or the Home Development Mutual Fund Law of 2009, which was enacted into law in July this year.
Pag-IBIG also said it would increase the rates for membership contributions to rationalize its savings scheme so members with higher incomes will have to save more.
Its members currently contribute 2 percent of their monthly earnings, with the fund salary ceiling pegged at P5,000. This translates to a monthly contribution of P100 for members earning P5,000 or P50,000 per month.
De Castro, however, said that those who belong to the lower income bracket will not be adversely affected by the adjustment in rates.
With the current rates, a member who contributes to the Fund P100 monthly will be able to withdraw around P78,000 after 20 years. This is divided into P24,000 from the member’s personal savings, P24,000 in employer counterpart contributions, and the balance representing accumulated dividends earned during the 20-year period.
Pag-IBIG added that increasing contribution rates would allow members to borrow bigger amounts and would support the higher loan packages under its housing finance program while still ensuring the long-term stability of the Fund.
In the first 10 months this year, Pag-IBIG extended about P29 billion in multipurpose loans to its more than 1.5 million members. Latest data also showed that as of December 7, the Fund approved P11.67 billion in calamity loans to about 700,000 members. The figure was 174 percent higher than last year’s P4.26 billion.
Pag-IBIG also released nearly P37-billion worth of housing loans to more than 61,000 members.
The fund lends out about P160 million for housing every day.
LAILANY P. GOMEZ
