Pag-IBIG plans to raise contributions

The Home Development Mutual Fund otherwise known as Pag-IBIG Fund is planning to revive an earlier proposal for an increase in contribution through flexible options on the part of employee and employer to possibly double its fund to P50 billion.

Pag-IBIG Fund chief executive officer Atty. Darlene Marie B. Berberabe said she will attempt to propose this plan again by next year to the Pag-IBIG Board.

According to Berberabe, the Pag-IBIG board in 2010 already approved to double the monthly contribution to P200 to shore up its fund but this was shoot down because other government financial institutions like PhilHealth and Social Security System were already planning to increase their membership contributions.

Actually, Berberabe said, there was no problem with the employees' part but it was the employers' side as represented by the Employers Confederation of the Philippines who opposed the increase in contribution because it would cause additional burden on their part with the implementation of the increased SSS and PhilHealth mandatory contributions.

As a result, the Pag-IBIG Board passed a resolution not to implement the decision.

Vice-president Jejomar Binay, who is also Pag-IBIG chairman, then directed Pag-IBIG to raise its funds by recruiting more members. At that time, there were only 9 million members including overseas Filipino workers.

"So in two years, we are able to increase our membership by 3.6 million," said Berberabe.

The increase in membership has also raised its collections to P25 billion last year from an estimated P23 billion fund in 2011.

This, she said, could possibly justify a revival of its plan to also increase their mandatory contributions.

"I will attempt to bring this up next year," she said.

According to Berberabe, there are plans to make the increase in contributions more flexible. It could be that it would start from the employees first or the employers can contribute lesser than the employees.

Doubling of the members' P100 monthly contribution could possibly double the Pag-IBIG fund to P50 billion.

With bigger funds, Pag-IBIG can expand its loans to real estate developers and individual housing loans.

So far, Pag-IBIG accounts for 50 percent of the total mortgage industry as the Central Bank has imposed a 20 percent capped on real estate loans to ensure there is no overexposure in the real estate sector.

Savings through Pag-IBIG also earns more, Berberabe said. Under its Modified Pag-IBIG 2 program, interest on savings this year alone is 4.17 percent or a five-year average interest of between 4 to 5 percent.

Aside from the high interest income, Pag-IBIG savings are government guaranteed and tax free. (BCM)

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • First China air force drills in 'far offshore' Pacific
    First China air force drills in 'far offshore' Pacific

    China's air force has carried out its first ever military drill over the western Pacific Ocean, state media said, highlighting Beijing's growing military reach. Several aircraft from China's People's Liberation Army (PLA) on Monday flew over the ocean via the Bashi Channel, which runs between Taiwan and the Philippines, the official Xinhua news agency said. "This is the first time that the PLA Air Force conducted such drills in an airspace far offshore from Chinese coastlines," Xinhua cited …

  • Shorter hours for rail lines tomorrow
    Shorter hours for rail lines tomorrow

    The Metro Rail Transit (MRT), Light Rail Transit (LRT) and the Philippine National Railways (PNR) will have shorter hours tomorrow for the replacement of defective railroad tracks during the Holy Week. …

  • Noy increases allowances for cops, soldiers
    Noy increases allowances for cops, soldiers

    President Aquino has signed a joint congressional resolution raising the daily subsistence allowance for both members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP). Presidential spokesman Edwin Lacierda said Aquino signed last March 27 the merged Joint Resolution 2 of the Senate and Joint Resolution 26 of the House of Representatives. Speaking to reporters, Lacierda yesterday said the daily allowances of police officers and soldiers were raised from P90 …

  • Oil firms raise gas prices today
    Oil firms raise gas prices today

    This year’s Holy Week break will be accompanied by an increase in local pump prices after oil companies announced yesterday a P1.10 per liter hike for gasoline and P0.60 per liter for diesel effective today. “Phoenix Petroleum Philippines will increase the prices of gasoline by P1.10 per liter and diesel by P0.60 per liter effective 6 a.m. of March 31, 2015 to reflect the movements in the prices of refined petroleum products in the international market,” said Phoenix Petroleum, an independent …

  • DFA denies dropping Phl claim to Sabah
    DFA denies dropping Phl claim to Sabah

    The Philippines has never offered to drop its Sabah claim in exchange for Malaysia’s support for Manila’s arbitration case against China over the West Philippine Sea issue, the Department of Foreign Affairs (DFA) said yesterday. “In the context of our friendly bilateral relations, our two countries have been for years exchanging ways on how to address the issue of the extended continental shelf (ECS) in the South China Sea,” Foreign Affairs spokesman Charles Jose said in explaining the DFA’s …

  • Pagcor remits record high P5 B to national treasury
    Pagcor remits record high P5 B to national treasury

    The Philippine Amusement and Gaming Corp. (Pagcor) has remitted P5 billion in cash dividends to the National Treasury, fully settling all its arrears incurred in the last several years. Pagcor chairman and chief executive officer Cristino Naguiat Jr. said with this year’s remittance, the state-owned gaming firm has fully settled all remaining arrears in cash dividends that were incurred by the previous administration since 2005. Pagcor’s cash dividends to the National Treasury under its …

  • Maysak moves closer to Phl
    Maysak moves closer to Phl

    The typhoon with international name Maysak slightly accelerated as it moved closer to the Philippines yesterday, threatening to dump rains over eastern Luzon this weekend, the state weather bureau said. Rene Paciente, senior weather forecaster of the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), said Maysak was spotted at 2,175 kilometers east of Mindanao as of 1 p.m. yesterday. Paciente said based on their latest forecast, Maysak is likely to affect …

  • Phl gets P2-B climate projects from Germany
    Phl gets P2-B climate projects from Germany

    The Philippines is getting 41 million euros or around P2 billion from the International Climate Initiative (ICI) of Germany that will fund 10 bilateral projects to address the impact of climate change. Climate Change Commission (CCC) vice chairman Lucille Sering yesterday met with Norbert Gorissen – head of the International Climate Finance of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety – to discuss the projects, some of which will be …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options