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State-owned Pag-IBIG Fund on Wednesday said its members will enjoy additional benefits that come with the 100-percent increase in contributions starting next month.
Under the agency’s new rates, the monthly savings of Pag-IBIG Fund members for both the employee’s share and the employer’s counterpart will increase to P200 each from the current P100.
But the agency assured that fund members are set to enjoy "doubled savings and higher cash loan entitlements."
“We at Pag-IBIG Fund have long recognized the need of our members to have higher savings that shall provide them with decent and fair returns upon their retirement, as well as higher cash loans to help them during times of need," it said in a statement.
"By implementing the new Pag-IBIG Monthly Savings Rates of both members and employers originally scheduled in 2021, not only would we be able to improve the benefits of our members, we would also be better equipped to finance the growing demand for home loans of our members while maintaining our affordable rates."
The housing agency's new monthly rates were initially approved by its Board of Trustees in 2019 then obtained the concurrence of stakeholders to implement a scheduled increase in 2021.
The corporation deemed the increase necessary as it projected that the amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ savings.
But due to the difficulties brought about by the COVID-19 pandemic in 2021 and 2022, the Pag-IBIG Fund Board deferred the increase of the agency’s savings rates.
Pag-IBIG again deferred the implementation of the increase in 2023, following the request of the Employers’ Confederation of the Philippines (ECOP) to provide the business community with time to further recover.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta, meanwhile, thanked stakeholders for their support while assuring members of better benefits under the agency’s new rates.
“We thank the Trade Union Congress of the Philippines (TUCP), the Federation of Free Workers (FFW), the Philippine Government Employees’ Association (PGEA), Overseas Filipino Workers’ (OFW) Organizations, and the Employers’ Confederation of the Philippines (ECOP) for supporting our plans and for recognizing that raising our monthly savings rates will allow Pag-IBIG Fund to continue to provide affordable home loans to its members in the coming years,” said Acosta.
“It is also important to note that the increase in our monthly savings rates shall benefit our members the most because every peso they save will go to their Pag-IBIG Savings. Under our new rates, they will have higher Pag-IBIG Savings that earn annual dividends, which they shall receive upon membership maturity or retirement. For example, based on our old rates, a member would receive around P87,000 upon reaching membership maturity. On the other hand, a member who saves under our new rates over a period of 20 years would receive P174,000 or double the amount. And, because of their higher savings, they shall also be entitled to higher multi-purpose and calamity loan amounts to help them with their financial needs,” she added.
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