Manila: Investos, including Overseas Filipino Workers (OFWs) who signed up with Pag-IBIG, a government housing mutual fund, are in for bumper earnings.
Formally known as Home Development Mutual Fund, Pag-IBIG declared Php48.76 billion ($869 million) in dividends — the highest in its 43-year history — to be distributed to members as earnings in 2023, it was announced on Tuesday.
That means those who invested in the modified Pag-IBIG 2 (MP2) savings could earn a dividend rate of 7.05 per cent, a senior official reported on February 27. Earnings from Pag-IBIG and the MP2 are tax-free.
Marilene C. Acosta, CEO of the state-backed housing mutual fund, has reported on February 27 a robust financial performance for 2023, boasting record-breaking dividend rates, a jump in membership savings, and increased approvals for housing loans.
Its Modified Pag-IBIG II (MP2) Savings Programme is voluntary, and designed as low-risk investment vehicle within the Pag-Ibig system.
It is open to active Pag-IBIG members seeking to earn higher dividends and save more over a five-year maturity period.
It is designed for active member and wish to save – and earn – more.
Acosta also disclosed that the regular savings dividend rate soared to 6.55 per cent – the highest since the onset of the pandemic.
Meanwhile, total membership savings for Pag-IBIG Fund surged by 12 per cent to Php 89.26 billion ($1.6), with MP2 savings witnessing a notable 17% growth to Php 46.5 billion.
Acosta also highlighted record-high home and cash loan issuances, robust collections, and a strengthened fiscal position.
Secretary Jose Rizalino Acuzar of the Department of Human Settlements and Urban Development (DHSUD) underscored the ongoing commitment of Pag-IBIG Fund in assisting Filipinos in saving for and owning homes amidst the reshaped spending and saving patterns brought about by the pandemic.
One of the savings programs that has garnered considerable interest among Filipinos is the voluntary savings programme of Pag-IBIG.
Who can enroll in the Pag-IBIG MP2:
- Active Pag-IBIG Fund Members
- Former Pag-IBIG Fund Members with other sources of monthly income and/or pensioners, regardless of age, with at least 24 monthly savings prior to retirement
To enroll in the Pag-IBIG MP2 Savings Programme, an active member can invest a minimum monthly saving of Php 500 ($10), with limit on the amount a member can save.
It also offers an option to open and maintain multiple MP2 savings accounts. The platform generally offers higher annual dividends compared to the regular savings program with Pag-IBIG. Dividends, whether withdrawn annually or after the 5-year maturity period, are tax free.
As the savings are government-guaranteed, its considered a low-risk investment. The platform also offers online access to view MP2 Savings via Virtual Pag-IBIG app.
Compared to the regular savings programme, MP2 savings earn higher dividends derived from 70 per cent of the annual net income of Pag-IBIG. To be eligible for MP2, a member must have an equivalent of 24 monthly savings. It offers the following features:
- Voluntary for Pag-Ibig Members (membership to Pag-Ibig 1 is mandatory for OFWs).
- Secure, state-guaranteed savings scheme, with higher earnings than time or savings deposits.
- Minimum monthly deposit of Php500 (about $10).
- If you miss a monthly deposit, your money does not get forfeited, unlike many insurance plans.
- No limit to the amount invested.
- Higher dividend earnings than the regular Pag-Ibig savings program (dividends are derived from at least 70% of Pag-Ibig Fund's annual net income), and
- Tax-free earnings.
