THE HOME DEVELOPMENT MUTUAL FUND (Pag-IBIG) LAW of 2009

After several Presidential Decrees, Executive Orders, and Republic Acts that came to pass, counting 29 years back, finally, Pag-IBIG Fund re-engineers its mandate. With the signing of RA 9679, Pag-IBIG is now wider and better. Features are:

1.  UNIVERSAL COVERAGE:


Extension of mandatory coverage to:

Employed individuals formerly considered voluntary:
• Those earning less than PhP 4,000.00 per month;
• Employed under an employer with a Waiver/Suspension of coverage;
• Household Helpers;

Self-employed groups:
• Practicing Professionals;
• Engaged in business (sole proprietors/ partners/ incorporators/ cooperators);
• Other earning groups;

Seafarers and Overseas Workers:
• Filipinos employed by foreign based (private) employers

Acceptance of voluntary membership of:
• Full-time housewives;
• Filipino employees of foreign government/international organization;
• Employees of an employer granted of Waiver/Suspension of coverage
• Leaders and members of religious groups;
• Public officials under the Barangays (under EO 308)
• Separated employees from their employment

2.  TAX EXEMPT

3.  EMPOWERMENT of the BOARD of TRUSTEES to:
• Upgrade the members’ contribution and employers’ counterpart contribution;
• Formulate a Condonation program for the borrowers’ and erring employers;
• Grant Waiver/Suspension of coverage when deemed reasonable;
• Deputize Legal Officers as Special Sheriff in foreclosure cases

4. BENEFITS:

• Mandatory contributory support of the employer
• Tax-free contributions
• Tax-free annual dividend earnings
• Return of all contributions
• Housing loan availment even to lower-income members
• Short-term loans
• 15 years optional withdrawal
• Membership portability
• Additional death aid assistance

For details on membership, visit our Pag-IBIG Davao Branch Office or call (082) 2228055 or 2275827.
 

Expanded Membership Coverage

Pag-IBIG has expanded its membership coverage even for individual payors, those that are not in service, are not self employed, nor rendering service as job order contractual in government offices. With the modification to the membership guidelines, age range is from 15 to before 65 years old.

Present membership coverage with the Fund is categorized into:

1. Pag-IBIG 1:
1. employed (mandatory coverage),
2. Individual Payers (optional)

                                                               i.      self-employed

                                                             ii.      self-paying/voluntary

2. Pag-IBIG Overseas Program (POP)
3. Pag-IBIG 2 (special savings program)

With the new amendment to the membership coverage, as early as 15 years old, an individual may enroll for membership to the Fund. This includes those still studying, seeking employment or voluntary membership during in-between jobs.

Registration is easy, just have a duplicate copy of any valid ID card and birth certificate, accomplish (3) Members Data Form (available at any Pag-IBIG office near your locality) and deposit/contribute an amount convenient to you (starting at PhP200).

Visit us the G/F of the Membership Counter at the Marketing and Enforcement Division, Pag-IBIG Fund Davao Branch, Pyrce Tower Condo at JPLaurel Ave., Bajada, Davao City

Public Service Announcement

TO ALL EMPLOYED Pag-IBIG MEMBERS

Pursuant to the Members ID (MID) Project, an employed Pag-IBIG member shall be issued one permanent ID number. Its objective is to facilitate identification of member, improve accuracy, and accelerate loans and claims transactions.

Hence, employers are required to submit the Members Records Update Template (MRUT) containing the necessary information for uploading in the database on or before January 31, 2009.

Following the "NO ID, NO POSTING POLICY", employees of non-compliant employers may suffer delays in their transactions.

Employers, or their representatives, should coordinate with Engr. RUELAN S. SAGOLILI, Acting Chief of Division of the Marketing and Enforcement Division. He may be reached through telephone numbers (082) 222 8055 and 227 5827, and/or visit us at our office at the ground floor (G/F), Pag-IBIG Fund, Davao Branch, Pryce Business Park, Pryce Tower Condominium, JPLaurel Avenue, Bajada, Davao City.

Dear reader, if your employer has not submitted, either through e-mail, or CD-R, or floppy disk, or at least a hardcopy of the MRUT  [for employers with at least fifteen (15) employees], kindly relay this matter to your Admin/ HD Heads/ or bookkeepers, which is of importance.

This advisory is a directive of Pag-IBIG's Department Manager, Mr. MANOLITO O. OLEGARIO.




Thank You.

Pag-IBIG II Savings Program

It has been weeks since my last post. I know most of you who visited this blogsite were anxious to know of the latest in the foreclosed properties/ acquired assets of the Fund.

I've been trying to secure the latest Acquired Assets list within Davao City, and Digos City, Matanao and Padada of Davao del Sur but somehow since the discounted promo will end by June 30, 2008, the Acquired Assets Unit of Pag-IBIG ceased to provide said list for the meantime pending the memo that would either extend the said promo for the 3rd or 4th time OR resume the old procedure of disposal which is the sealed public bidding/ negotiated sale.

In the meantime, allow me to focus my exposition on Pag-IBIG Fund's "Pag-IBIG II" or "P2" program.

This savings program's objective is to give the employees (self-employed, and other income groups) whose monthly income is more than PhP5000.00 another savings option with the Fund whose original intention was for a higher loan amount for housing- that was way back October 1989. Due to the modifications of the housing loan guidelines, Pag-IBIG II or "P2" may be considered as the better savings program compared to the common Pag-IBIG 1 membership.

It is voluntary upon all private or government employees whether, as well as self-employed and other working groups.

The contribution rate is PhP500.00 per month.

The dividend rate is fixed at seven and a half (7.5%) percent per annum.

The accumulated savings under this program may only be withdrawn at the end of five (5), ten (10), fifteen (15), or twenty (20) years, at the member's option upon membership registration.

In the event that the member still has an outstanding loan with Pag-IBIG as of the savings' maturity date, the said member shall be given the following options:
(1) pay off the housing's outstanding loan balance and withdraw his accumulated savings;
(2) continue amortizing the loan until it is fully paid at which time the member can withdraw his savings;
(3) apply the accumulated savings to the outstanding loan balance an pay off (or amortize) the remaining loan amount, should there be any.

Withdrawal of contributions prior to maturity shall only be allowed in any of the following:
(1) death;
(2) total disability/ insanity;
(3) separation from service by reason of health.

A member who opts for Pag-IBIG 2 membership may choose to maintain his membership under Pag-IBIG 1 and remit the required contributions under each program.

His Pag-IBIG 1 membership shall be subject to the provisions of Pag-IBIG's Implementing Rules and Regulations for Pag-IBIG 1, while his Pag-IBIG II membership shall be guided by the provisions of HDMF Circular No. 72.

As such, he shall be entitled to all benefits under Pag-IBIG I and Pag-IBIG II.

As to the loan availment, the said particular HDMF Circular (for P2) covers only up to a maximum of PhP500,000.00. Whereas, under Pag-IBIG I's latest guidelines, the maximum loan availment is PhP2,000,000.00.

So, now, why discuss Pag-IBIG II? It is because of its higher yield in earnings over Pag-IBIG I- 7.5% p.a. tax free. Your next question is, I guess, how do i register as P2 member?

Simple. Approach us at our Membership counter at the Marketing & Enforcement Division, G/F Pryce Tower Condo, Bajada, Davao City, ask for the P2 membership form, attach a valid ID card (xerox copy) plus any proof of employment (company ID, payroll, recent SSS report [R3], or certification) or proof of being self-employed .

Going back, if at present your registration is under P1, register under P2 separately. See me or visit us at Pag-IBIG, we'll be happy to serve you.

That's all.

FAQs about Pag-IBIG: Membership, Registration, Contributions, Reactivation

In my long years of conducting lectures, a.k.a Fund briefings, I've collected the most FAQs there is on Membership ranging from coverage, registration, contributions, reactivation. I will, at another time, post on issues about the FAQs on Pag-IBIG's Short-Term Loan, Pag-IBIG's Housing Loan, and Acquired Assets. Here goes.

1. Q: How can a member secure a Pag-IBIG number prior to employment?

A: An individual need not go to Pag-IBIG to secure a number, it will automatically be assigned to the member upon posting of initial contribution (whether as employed, self-employed, as individual-payor, as an OFW, or as Pag-IBIG II member).

2. Q: Will Pag-IBIG issue a membership card after the initial registration/ remittance?

A: At the moment issuance of the Pag-IBIG ID is suspended. However, a member may request for a print-out of contributions to confirm registration with Pag-IBIG.

3. Q: How can I be a member?

A: If you are employed, it’s the duty of our employer to collect & remit the required contributions to the Fund. Upon the initial remittance you are automatically a member. If you are a self-employed, individual payor, or an OFW, you may secure the membership papers, accomplish, & make the initial registration-remittance on the nearest Pag-IBIG office.

There are three (3) savings program under Pag-IBIG.

(1) Pag-IBIG I (P1)
-“employee-employer” deduction, self-employed, individual payor, self-paying membership;
- contribution rate from P200 to P950 or over;
- withdrawable upon 20 years (240 monthly contributions), maturity, retirement, disability, insanity, separation from service by reason of health, death, and optional withdrawal at 10 or 15 years of continuous membership; and
- dividend rate of variable percentage per annum.

(2) Pag-IBIG II (P2)
- minimum P500 per month contribution for employed and self-employed individuals;
- withdrawable upon either 5, 10, 15, or 15 years maturity; and
- fixed dividend rate of 7.5% per annum

(3) Pag-IBIG Overseas Program (POP)
- contribution rate from P200 to P950 or over;
- withdrawable upon either 5, 10, 15, or 15 years maturity; and
- fixed dividend rate of 7.5% per annum

4. Q: What are the (membership) requirements?

A: For employed individuals, it’ll be their respective employers who will be required to submit employment records of its employees.

For self-employed, individual payors, OFWs, any proof of what you say you are (photocopy):
(1) Any valid ID showing picture, name & signature

for Self-Employed, it’s either:
(2) Business permit/ DTI registration certificate (engaged in business); or
(3) SSS Self-Employed registration [RS-1 &/or RS-5]; or
(4) Professional Tax Receipt & PRC card (practicing professionals); or
(5) Land title & Certification from 2 Barangay officials re: source of livelihood (farming); or
(6) Certificate of Commission Basis (if without basic salary).

for Individual Payor, it's either:
(7) Working contract; or
(8) Certificate of Contract & Compensation (job order contractors).

for OFWs, it's either:
(9) Seaman’s book; or
(10) working contract; or
(11) Certificate of Employment & Compensation; or
(12) Passport and Visa (photocopy).

5. Q: I am employed but we only have SSS & PHIC coverage, may I register myself as self-employed or voluntary paying member?

A: No, the Implementing Rules requires that the employer should register you (all employees).

However, it may be temporarily allowed if it is because of housing loan intention. The Membership Unit of Pag-IBIG will accept initial registration, as self-paying, but we will require the employer to register eventually.

6. Q: I work as a job order contractual in (a certain government office) but we not covered by SSS/GSIS, may I register voluntarily?

A: Voluntarily, Yes, as an Individual payor.

7. Q: I’ve been a member for so long but I don’t know my Pag-IBIG number, I wish to request for an ID, what division should I go to?

A: You may visit our Membership Unit at the Marketing & Enforcement Division at the Ground Floor of Pryce Tower for us to provide you a print-out of your contributions where your Pag-IBIG will be reflected. Pag-IBIG ID’s, however, are suspended indefinitely (since 1997).

8. Q: I transferred from one employer to another several times and don’t know my number?

A: You definitely have more than one (1) Pag-IBIG number. It is a result of
- having multiple employment, either simultaneously or at different intervals;
- changing marital status;
- erroneous declaration of employer/s, payroll in-charge, or by the employee.

Visit the Marketing & Enforcement Unit for details. We will advise you on what forms to accomplish to either have it edited, merged or transferred.

9. Q: Can I pay in advance to easily avail of Pag-IBIG Fund’s loan extension programs?

A: For the Housing Loan Program, YES, you may pay the twenty-four (24) monthly contribution requirement or its lacking number of months, to qualify.
For the short term loan, most known to the majority as the Multi-Purpose Loan, NO, there must be an actual (residency) membership contributions of twenty-four (24) months, and most of all, an active member

10. Q: How can I request for a replacement of my old Pag-IBIG ID?

A: It is suspended indefinitely, so we cannot issue you a new one just yet.

11. Q: How long does it take for a member to avail of a loan extended by the Fund?

A: Standard procedure requires twenty-four months or two years contribution, so long as it is updated at the time of loan availment.

12. Q: Can a non-working spouse avail of the housing program of Pag-IBIG?

A: No. Non-working simply means no means of salary or income, a dependent of a ‘working’ spouse, therefore has no capacity to pay. We do, however, encourage Self-Employed membership instead. Requirements? Please refer to Question #4.

13. Q: How frequent can an employer deduct Pag-IBIG contributions to his employee/s?

A: It all depends on the mode of releasing salary/wages, it may be on a weekly mode, semi-monthly (either every 15th and every 30th, or its cut-off equivalent), or monthly.

14. Q: Can household helpers qualify for membership with Pag-IBIG?

A: Yes, their monthly contribution will depend on their monthly salary, for compensation not exceeding P1,500.00, monthly contribution is 1% while employer counterpart is 2%.
So, as an example, if a household helper receives P1,400.00 per month, employee’s contribution is P14.00 and P28.00 as counterpart by the employer. 2% employee contribution commences where salary is P1,501.00 and above, and the employer’s share is at 2%.

15. Q: What is the maximum allowable age for membership with Pag-IBIG?

A: 59 years old.

16. Q: Can an individual who is an OFW register while working abroad?

A: Yes, the Membership Unit of Pag-IBIG will evaluate the required documents submitted by the nearest kin, a Special Power of Authority is not needed. And for as long as the attachment jives with the Member’s Data Form, all signatures affixed and data supplied, an absentee membership applicant may register.

17. Q: How much is the monthly contributions?

A: The minimum contribution amount is P200 per month (combined employee and employer counterpart) while the maximum is unlimited.

18. Q: What if an individual already has a house, is working but mandatorily covered, can he/ she be excused from the coverage?

A: No, the law requires that all employees covered by SSS and GSIS with a monthly compensation P4,000.00 and above is mandatorily covered, thus, should be covered (deducted by the employer and must be registered/ remitted by the same- until separation). The housing program is optional but the savings programs is mandatory.

19. Q: I got a main job, as well as a part-time job, can I enroll myself twice?

A: There is what we call ‘multiple coverage’. Should the compensation under the ‘part-time’ job fall under the mandatory category, the employer is bound to deduct 2% for the employee’s personal contribution and remit the same together with its counterpart, thus, double coverage.

20. Q: My spouse is already a member, we both work, can I excuse myself from being a member?

A: No, if you are mandatorily covered. Besides, it helps to have a separate Pag-IBIG savings ‘account’. You never know when you will need the Fund’s assistance, either through short term or long term.

21. Q: Can a pensioner still apply for membership with Pag-IBIG?

A: No, a pension is not an income. And a prospective member may register only either as (1) Employed, (2) Self-employed, (3) Individual Payor, (4) Overseas Filipino Worker, or (5) reactivating Self-Paying member.

22. Q: Aside from Pag-IBIG office, where can I (Self-Employed; Individual Payor; OFW; Individual Payor) pay my contributions (even loan payments)?

A: Initial registration MUST be made directly at the Pag-IBIG branch nearest you or where you belong. Subsequent remittances or loan repayments may be paid at either any Land Bank of the Phils. (LBP), Development Bank of the Philippines (DBP), or United Coconut Planters Bank (UCPB).

Posting of payments will definitely be delayed. So, periodic updating/ reconciliation must be made.

23. Q: I was a member when I was still an employee back then until I worked abroad, what will happen to my contributions?

A: Contributions made under Pag-IBIG 1 even if it becomes inactive will still enjoy the benefit of earning dividends yearly. Even if one registers anew under the Pag-IBIG Overseas Program, it is recommended that the Pag-IBIG 1 membership be reactivated as bigger contributions will yield bigger dividend earnings, bigger entitlement when borrowing, and bigger return of investment upon maturity.

There. I hope these issues helped in some way. Should you have any Qs, you may post it here, allow some time for me to A it, as I am not online.