No increase in Pag-IBIG monthly mandatory contributions – VP Binay

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CALAMBA CITY, Laguna, June 26 (PNA) -- Vice President Jejomar C. Binay clarified on Monday that there will be no increase in monthly contribution for Pag-IBIG Fund members, according to a dispatch sent to the Philippines News Agency here.

“We shall continue to strive to provide better services and bigger benefits to all Pag-IBIG members while maintaining contribution rates at the current P100, an amount which have remained unchanged since 1986,” said Binay, who is also the Chairman of Pag-IBIG Fund.

“I’m proud to announce that despite our decision not to increase the contribution rates, Pag-IBIG has been able to double its maximum housing loan amount and at the same time reduced its interest rates. Owning your own home has never been this affordable to the common Filipino worker,” the Vice President said.

Binay also disclosed that the interest rate for calamity loans has been reduced almost by half, so that Pag-IBIG can truly be of help to its members during their times of great need.

He also explained that Pag-IBIG Fund has remained one of, if not the most, profitable Government Owned and Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs) in the country without the need of increasing the required contributions from the members.

Earlier this year, the agency credited P9.28 billion in dividends to members’ accounts – a declared amount that is the highest on record ever in the more than 30 years of existence of Pag-IBIG.

Atty. Darlene Marie B. Berberabe, president and Chief Executive Officer of Pag-IBIG Fund, further clarified that as early as 2010, the previous Board of Trustees already approved an increase in contributions but the present management led by VP Binay decided not to push through with it.

“Upon the initiative of Vice President Binay, we deferred the implementation of that measure and instead focused our efforts on generating new members. And I’m happy to report that Vice President Binay’s initiatives have been a success,” Berberabe expressed.

Over the last two and a half years, Pag-IBIG Fund has experienced tremendous growth in membership.

From 9 million at the end of 2010, it has a present total of 12.6 million members worldwide.

The new members’ contributions have not only enabled Pag-IBIG to sustain its various programs, but also capacitated the agency to improve the benefits it extends to members.

At the same time, Pag-IBIG has reached all-time highs in terms of profitability, which ultimately redounds to the benefit of each and every member in terms of dividends distributed.

Atty. Berberabe disclosed that these positive developments were accomplished without increasing the mandatory P100 monthly contributions from members, which have remained the same for the last 27 years.

In 2012, Pag-IBIG Fund raised the home loan cap from P3 million to P6 million and managed to reduce accompanying interest rates to as low as 7.985 percent per annum.

A new socialized housing program was also launched to help minimum wage earners buy a home for as low as P2,026.74 per month, at a fixed interest rate of only 4.5 percent for the first 10 years – the lowest ever in the annals of Pag-IBIG.

Interest rate of the Calamity Loan was also cut from 10.75% to 5.95% annually.

Vice President Binay assured “Pag-IBIG will continue to bring better services to its members. We are fully aware of the socio-economic impact of mandating any increase in contributions and any efforts towards this direction should be viewed as a last resort. Increasing Pag-IBIG membership contributions is the last thing we want to do.” (Media ng Bayan)

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