We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer

History of Pag – Ibig Fund

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Government Development Agency: Pag-ibig Fund Submitted By: Henna Mae Faeldo Jeanne Marie Danielle Gosgolan – The Pag-IBIG Fund maintaining to bind these four divisions of the society to work together towards giving fund members with sufficient housing through an efficient savings system. I. History of Pag- ibig fund When did Pag-ibig Fund Philippines start? Pag-ibig Fund started in 1978. But, it was only in 1981 when many employees came to know about Pag-ibig Fund or Home Development Mutual Fund (HDMF). It was the year employers started implementing Presidential Decree 1530, which was issued on December 14, 1980.

Don't use plagiarized sources. Get Your Custom Essay on
History of Pag – Ibig Fund
Just from $13,9/Page
Get custom paper

This decreed Pag-ibig as mandatory for all employees and their employers. In June, 11, 1978, two Home Development Mutual Funds were established by the administration of then President Ferdinand Marcos (Presidential Decree 1530 ) — one administered by SSS and another administered by GSIS — to provide a program for employees to apply for housing loans. However, participation was voluntary. In June 4, 1979, Executive Order No. 538, the two Home Development Mutual Funds were merged into one Fund managed by the National Home Mortgage Finance Corp.

In December 14, 1980, the PD 1752 was amended PD 1530. The Home Development Mutual Fund was made one corporate body with a corporate office. Coverage was made mandatory for all government and private employees and their employers. It also extended the fund to other working groups, such as the self-employed, with or without employer contributions. In August 1, 1988, under the Executive Order 35 by President Corazon Aquino, this amended 5 sections of PD 1752 and the percentage of employee contributions was reduced from 3 percent to 2 percent.

In December 17, 1986, under the Executive Order 90 by President Corazon Aquino, this repealed the Section 4 of Presidential Decree no. 1752. And then, Pag-ibig Fund was made voluntary. In June 1994, under the Republic Act 7742 by President Fidel Ramos, this amended PD 1752 and repealed Executive order no. 90. And then Pag-ibig Fund was made mandatory again. In July 21, 2009, under the Republic Act 9679 by President Gloria Macapagal Arroyo; * Addition of death benefit Mandatory membership for Filipinos employed by foreign-based employers, including Overseas Filipino Workers (OFWs) * Mandatory membership for employees whether permanent, provisional or temporary * Voluntary coverage for persons who are at least 18 years old and are not subject to mandatory coverage * Paved the way for the launching of Modified Pag-ibig II, a five-year renewable savings program with a higher interest rate. II. Mission and Vision of Pag-ibig Fund Mission: To uplift the quality of life of members through savings.

Vision: The premier and globally competitive provident financial institution. III. Membership How to be a Member? If you’re already a Pag-ibig member… 1. Get Employees Statement of Accumulated Value(ESAV) to the nearest PAG-IBIG Branch where your employer pay. 2. Document Requirements (Link to Pag-IBIG Membership Procedure) If not yet a Pag-ibig member… 1. Go to the nearest Pag-Ibig Branch and bring a Company ID or any Valid ID (SSS, PRC, Drivers License or Passport). 2. Pay P200 pesos monthly contribution for 24 months or P4,800 pesos Membership fee. . Document Requirements (Link to Pag-IBIG Membership Procedure)| | IV. Benefits and Programs * MEMBERSHIP PROGRAMS * PROVIDENT (Savings) PROGRAMS * HOUSING LOAN PROGRAMS Membership Program All employees who are or ought to be covered by the Social Security System (SSS),  provided that actual membership in the SSS shall not be a condition precedent to the mandatory coverage in the Fund. It shall include, but are not limited to: – A private employee, whether permanent, temporary, or provisional who is not over sixty (60) years old; A household helper earning at least P1,000. 00 a month. A household helper is any person who renders domestic services exclusively to a household such as a driver, gardener,  cook, governess, and other similar occupations; -A Filipino seafarer upon the signing of the standard contract of employment between the seafarer and the manning agency, which together with the foreign ship owner, acts as the employer; – A self-employed person regardless of trade, business or occupation, with an income of at least P1,000. 0 a month and not over sixty (60) years old; -An expatriate who is not more than sixty (60) years old and is compulsorily covered by the Social Security System (SSS), regardless of citizenship, nature and duration of employment, and the manner by which the compensation is paid. In the absence of an explicit exemption from SSS coverage, the said expatriate, upon assumption of office, shall be covered by the Fund. -An expatriate shall refer to a citizen of another country who is living and working in the Philippines. All employees who are subject to mandatory coverage by the Government Service Insurance System (GSIS), regardless of their status of appointment, including members of the judiciary and constitutional commissions; Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police; 5 Filipinos employed by foreign-based employers, whether they are deployed here or abroad or a combination thereof. PROVIDENT (Savings) PROGRAMS

Pag-IBIG Fund guarantees the refund of member’s total accumulated savings (TAV), which consists of the member’s accumulated contributions, the employer counterpart contributions, if any, and the dividend earnings credited to the member’s account upon occurrence of any of the following grounds for withdrawal. 1. Membership maturity. The member must have remitted at least 240 monthly membership contributions with the Fund. For Pag-IBIG Overseas Program (POP) members, membership with the Fund shall be at the end of five (5), ten (10), fifteen (15), or twenty (20) years depending on the option of the member upon membership registration. . Retirement. The member shall be compulsorily retired upon reaching age 65. He may however, opt to retire upon the occurrence of any of the following: – actual retirement from SSS, the GSIS, or a separate employer provident/retirement plan, provided the member has at least reached 45. – Upon reaching age 60. 3. Permanent and Total Disability or Insanity. 4. Separation from the service due to health reason. 5. Permanent departure from the country. 6. Death. In case of death, the Fund benefits shall be divided among the members legal heirs in accordance with the New Civil Code as amended by the New family Code.

Housing Loan Program * “Gabay Pabahay” Program * Socialized and Low-Cost Housing Loan Restructing and Penalty Condonation Program. * “Magaang Pabahay, Disenteng Buhay” Program (Acquires assets) * ROPOA for Joint Venture V. PAG – IBIG FUND Achievements (2011 and first quarter of 2012) Financial Milestones In 2011, Pag-IBIG Fund once again asserted its position as one of the country’s strongest and most profitable Government Financial Institution (GFI). Profitability has always been a Pag-IBIG Fund trademark, making it one of the best performing financial institutions in the country today, be it in the private or government sector.

As of March 2012, the Fund’s total assets reached ? 307 billion, higher by ? 24 billion compared to the ? 283 billion-assets a year ago. This was boosted by the 11% growth in members’ equity at ? 220 billion from ? 198 billion in 2011 and by a 10% decline in its financial obligations. Growing pag-ibig Fund Membership * PAG-IBIG Fund is now 10. 7 Million member- strong By March 2012, Fund membership has grown by 509,714 members from the 2011 yearend level, bringing the total Pag-IBIG membership to 10. 725 million. Tie-ups with LGUs, the POEA, and various organizations for membership generation Pag-IBIG Fund’s new Board of Trustees led by Vice President Jejomar Binay launched a proactive approach to its potential partners. Thus far, the agency has dialogued with 228 local government units (LGUs) Similar agreements on Fund membership registration or collection and remittance of contributions have also been signed with the Philippine Overseas Employment Administration, ABS-CBN Star Magic, Integrated Midwives Association of the Philippines, 14 national transport groups, and four cooperatives. Housing Reform

Pag-IBIG Fund Ties Up with LGUs for Housing * Pag-IBIG Fund also travelled all over the country in order to introduce its housing programs through the Pabahay Caravan. Vice President Binay together with CEO Darlene Marie B. Berberabe talked with local government units in the Metro and in all of the regions across the country to introduce the Group Housing Loan Program (GHLP). Bigger and Better Service * Pag-IBIG Fund is now ISO Certified * Pag-IBIG Fund is now More Efficient and Productive * Pag-IBIG Fund is now Connected * Pag-IBIG Fund Establishes Good Governance Program VI. Frequently Asked Questions 1.

Who should register with the Pag-ibig Fund asmembers? With the signing of Republic Act No. 9679, membership to the Fund shall be mandatory for the following:  a. All employees, workers, professionals, officers and companies who are compulsorily covered by the SSS and GSIS b. Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police;  c. Overseas Filipino Workers (OFWs) d. Filipinos employed by foreign-based employers, whether deployed locally or abroad. Membership to the Fund is also open to the following: a.

Non-working spouses of Pag-IBIG members; b. b. Filipino employees of foreign government or international organization, or their wholly-owned instrumentality based in the Philippines, in the absence of an administrative agreement with the Fund; c. Employees of an employer who is granted a waiver or suspension of coverage by the Fund under RA 9679; d. Leaders and members of religious groups; e. A member separated from employment, local or abroad, or ceased to be self-employed but would like to continue paying his/her contribution; f. Public officials or employees who are not covered by the GSIS such as barangay officials; and g.

Filipinos naturalized in other countries. 2. How much is the monthly contribution? With the signing of Republic Act. No. 9679, membership to the Fund shall be mandatory for the following: Monthly Compensation:| | Percent of Monthly Compensation:| | Employee share| Employer share| P1,500 and below| 1%| 2%| Over P1,500| 2%| 2%| *The maximum monthly compensation used in computing the employee contributions is currently set at P5,000. This means that the maximum member contribution and employer counterpart per month are both currently P100. 3. What are the benefits of Pag-ibig membership?

The Fund offers its members the following benefits: 1. Savings 2. Short Term Loans 3. Access to Housing Programs 4. What is the Provident savings program? The Pag-IBIG provident savings program is a fast, easy and affordable way for a member to save for his future needs. ember to save for his future needs. The contributions that a member makes together with the employer counterpart are credited to his Total Accumulated Value (TAV). A member contributing two percent of his monthly compensation doubles his savings immediately with the addition of the employer counterpart contribution.

Meanwhile, a member contributing one percent of his monthly compensation triples his savings as the employer counterpart remains at two percent. Aside from being fully guaranteed by the national government, members’ contributions are deducted from the gross income prior to computation of the income tax. Members’ savings earn annual dividends that are also tax-free. The dividend rate varies depending on the net income of the Fund at yearend. 5. When can a member withdraw the savings? A member may withdraw his TAV or savings after 20 years of membership with the Fund and after having made a total of 240 monthly contributions.

A member may also withdraw his savings under any of the following valid grounds: a. Retirement • Early retirement at age 45 • Optional retirement at age 60 • Mandatory retirement at age 65 b. Permanent departure from the country c. Permanent or total physical disability d. Insanity e. Termination from service by reason of health f. Death of the member g. Optional withdrawal at 10 or 15 continuous years of membership • A member who registered under RA7742 may be allowed to withdraw his TAV after 10 or 15 years of continuous membership. A member who registered under RA9679 may be allowed to withdraw his TAV after 15 years of continuous membership. h. Other causes as may be provided by the Board of Trustees 6. What short-term loans are available to the member? Pag-IBIG Fund’s Short-term loan programs are meant to provide assistance to its members, provided they are active and have made at least 24 monthly contributions. There are two short-term loan programs that a member may avail of when the need arises.

The Multi-Purpose Loan Program was designed to help finance members’ immediate medical, educational or livelihood needs; minor home improvement, purchase of appliance and furniture, and other related needs. Meanwhile, the Calamity Loan Program is extended to members who have been affected by a recent calamity, as proven by a declaration of calamity in their area of residence. 7. What housing programs are available for the members? An eligible member may avail of a housing loan under either the End-User Financing Program or the Magaang Pabahay, Disenteng Buhay Program.

Under the End-User Financing Program, a member may avail of a loan to finance any of the following (Circular 247): a. Purchase of a fully developed lot not exceeding one 1,000 square meters, which should be within a residential area; b. Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot. The unit may be: • Old or brand new; • A property mortgaged with the Fund; or • An acquired asset, which is disposed of through sealed public bidding, negotiated sale, or the Rent-to-Own Program. c.

Construction or completion of a residential unit on a lot owned by the member; d. Home improvement, i. e. any alteration in an existing residential unit intended by a homeowner to be a permanent integral part of the property, which will enhance its durability and material value; e. Refinancing of an existing mortgage with an institution acceptable to the Fund, provided that: • The loan is not in default within the 12 months prior to the date of application; • The said loan has a repayment history of at two years with the original mortgagee f.

Combination of loan purposes, which shall be limited to the following: • Purchase of a fully developed lot not exceeding 1,000square meters and construction of a residential unit thereon; • Purchase of a residential unit, whether old or new, with home improvement; • Refinancing of an existing mortgage with home improvement; • Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.

Under the Magaang Pabahay, Disenteng Buhay Program, a qualified member may purchase an acquired asset of the Fund either in cash or through a housing loan at very reasonable prices. A buyer who purchases an acquired asset in cash is entitled to a 20% discount on the property’s sales price, while a buyer who purchases through a housing loan is entitled to a 15% discount on the property’s sales price. 8. Who are eligible to avail a housing loan under the End-user Financing Program?

To qualify for a Pag-IBIG housing loan, a member must satisfy the following requirements: a. Must be a member under the Pag-IBIG I for at least 24 months, as evidenced by the remittance of at least 24 monthly contributions at the time of loan application. b. Not more than 65 years old at the date of loan application and must be insurable; provided further that he is not more than 70 years old at loan maturity; . Has the legal capacity to acquire and encumber real property; d. Has passed satisfactory background/credit and employment/business checks conducted by the developer and the Pag-IBIG Fund; e. Has no outstanding Pag-IBIG housing loan, either as a principal borrower or co- borrower; f. Has not availed of a

Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property; g. May have an outstanding Pag-IBIG multi-purpose loan but which is updated in payments at the time of loan application. A member whose multi-purpose loan is in arrears shall be required to pay his arrears over the counter to update his account. V. Analysis and Conclusion

Cite this History of Pag – Ibig Fund

History of Pag – Ibig Fund. (2016, Sep 30). Retrieved from https://graduateway.com/history-of-pag-ibig-fund/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page