(The Philippine Star) Updated March 02, 2010 12:00 AM
MANILA, Philippines - Vice President and concurrent chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the board of trustees of the Home Development Mutual Fund (Pag-IBIG Fund) Noli “Kabayan” De Castro, announced that the Pag-IBIG Fund is now offering Filipino workers a voluntary savings program with higher yields and shorter terms, dubbed the Pag-IBIG program.
“Under this program, Pag-IBIG members have a savings option with a term as short as five years and a preferential divided rate that is higher than that of regular membership (Pag-IBIG I). Last year, Pag-IBIG dividends amounted to P8.5 billion with a five-percent rate, higher than any bank could offer. These will be credited to members’ savings accounts which they can get after 20 years and 240 monthly contributions,” said De Castro.
He added, “the program is open to all Pag-IBIG I members and overseas Filipino workers (OFWs) with a monthly gross income exceeding P5,000. A member may contribute as low as P500 monthly. The resulting dividend earnings are tax free and guaranteed by the National Government.”
Jaime A Fabiaña, Pag-IBIG Fund chief executive officer, also pointed out that at a six-percent dividend rate per annum, a monthly contribution rate of P500 can generate savings of P34,921.79 for five years and P81,655.02 to 10 years. If a member doubles his monthly contribution to P1,000, this will yield five-and 10-year savings of P69,843.58 and P163,310.65.
Fabiaña clarified the members who want to avail themselves of the Pag-IBIG II savings mechanism should also maintain their mandatory Pag-IBIG I membership, where they have to contribute at least P100 monthly as employee counterpart and which has a 20-year maturity.
The Pag-IBIG Fund, through more effective collection procedures and prudent fund management, has posted consistent growth in its annual net income which reached P12 billion in 2009, the highest in its history. Pag-IBIG members’ benefit from the Fund’s steadily increasing income, as at least 70 percent of this, is set aside as dividends that are added to their total savings.
For inquiries about the Pag-IBIG II program, interested members may call the Pag-IBIG call center at 724-4244, visit the nearest branch in their area, or log on to www.pagibigfund.gov.ph.