Pag-IBIG Fund expands coverage

Hongkong-based workers are keen in joining the home development mutual fund under its expanded coverage, according to Vice President Noli de Castro citing a report from Pag-Ibig Fund officials.

Led by Jaime Fabiana, chief executive officer, Pag-Ibig officers met with leaders of the Filipino community in Hong Kong last Jan. 30 in the first in a series of meetings with workers to inform them on the new law that makes it mandatory for all employees to join the fund.

“The positive response of our OFW leaders to the Fund’s expanded coverage was overwhelming,” Fabiana said in a report to De Castro, also chairman of the Pag-Ibig board of trustees.

The report said that hundreds of Filipinos flocked to register at the iREMIT registration center and at the Philippine Consulate General where the Pag-IBIG information desk is based.

Under the new law, new members will contribute a minimum of P100 a month, much lower than the $5 minimum required by the old law. “Majority of the new registrants in Hong Kong paid for their contributions that are good for at least three months, while some paid for the entire year,” Fabiana pointed out.

Under Pag-IBIG’s universal or expanded membership coverage, all Filipino workers, and Filipinos employed by foreign-based employers, whether deployed in the country or abroad, are mandatorily covered beginning January 2010. Also covered are employees who are members of the SSS and GSIS, uniformed members of the Armed Forces, Bureau of Fire Protection, Bureau of Jail Management and Penology and National Police. Pag-IBIG has 7.4 million members, so far.

Members’ contributions are credited to their savings or the total accumulated value that earn dividends and fully guaranteed by the national government. In 2009, Pag-IBIG declared tax-free dividends amounting to P8.5 billion with a dividend rate of 5 percent.

“At this dividend rate, a member will generate savings amounting to P40,753 if he contributes P100 monthly for 20 years; P81,507 if he contributes P200; and P203,768 at P500 a month. –Manila Standard Today