BENEFITS

Benefits under RA 9679:

1. Savings
2. Dividends
3. Housing Loans
4. Short-term Loans and Other Programs
5. Death Benefits

Savings

The PAG-IBIG Regular Savings Program is a convenient savings facility where a

member’s monthly savings or contributions go. The monthly contributions earn dividends.

The Board shall set aside annually an amount which in no case be less than seventy
percent (70%) of the annual net income of the Fund, to be paid in the form of dividends to
members. The member's contributions, inclusive of employee's and employer's contributions,
shall earn dividends which shall be distributed annually and credited to his or her TAV. Only
members with outstanding TAV as of year-end shall be entitled to dividends declared for that
particular year. All dividend earnings shall be tax-free. A member’s savings is returned upon its
maturity after 20 years, upon retirement or other grounds. (Sec. 4, Rule IX, IRR)

A member shall be entitled to receive his Total Accumulated Value upon termination of
membership in accordance with Section 9 of Rule V of these Rules, less any and all pending
obligations with the Fund. In the event of death, the member's heirs shall likewise receive the
same less any and all pending obligations with the Fund. (Sec. 5, Rule IX, IRR)

The MP2 (Modified Pag-IBIG 2) Savings is a special savings facility with a 5-year
maturity, designed for Pag-IBIG Fund members who wish to save more and earn even higher
dividends, in addition to their Pag-IBIG Regular Savings. The minimum MP2 savings is PhP500
per remittance. There is no limit as to the amount of monthly contribution. However, a member
who wish to save an amount exceeding PhP500,000.00 would have to issue a personal or
manager’s check.

Optional Withdrawal

Those who become members of the Fund after the effectivity of R.A. 9679 shall have the
option to withdraw his or her Total Accumulated Value on the fifteenth (15th) year of continuous
membership. Provided, that said member has no outstanding housing loan with the Fund at the
time of withdrawal.

The exercise of this option by the member shall not be considered as a ground to terminate
his membership with the Fund. The member shall continue to be mandatorily covered by the Fund
and his or her employer is mandated to continue deducting and remitting the employee's required
contribution together with the corresponding employer's contribution pursuant to these Rules.
(Sec. 9, Rule IX, IRR)

Housing Loan
 A member of good standing shall be eligible to apply for housing loans, under such terms
and conditions as may be authorized by the Board, taking into account ability to pay. The Board
of Trustees shall institute policies to ensure that lower-income members obtain such housing
loans. (Sec. 6, Rule IX, IRR)

The Pag-IBIG Fund Housing Loan allows a member to borrow up to Php 6 million to
purchase a residential lot, a house and lot or a condominium unit. He may also secure a loan for
house construction, home improvement or renovation or even to refinance an existing housing
loan.

The types of properties that a qualified member may purchase and the various purposes
where such member can use his Pag-IBIG Fund Housing Loan are the following:

• Purchase of fully-developed residential lot or adjoining residential lots not exceeding one
thousand square meters (1,000 sqm);
• Purchase of a residential house and lot, townhouse, or condominium unit;
• Construction or completion of a relative of the borrowers;
• Home improvement on the house owned by the borrower or a relative of the borrower, or
on a property currently secured under Contract-to-Sell (CTS) or Deed of Conditional
Sale (DCS) between Pag-IBIG Fund and the buyer.
• Refinancing of an existing housing loan;
• Purchase of residential lot or unit plus cost of transfer of title.

The Pag-IBIG Fund Housing Loan Program is available to all active Pag-IBIG Fund
members, who have satisfied the following requirements:

• Active member with least 24 months savings;

• Not more than 65 years old at the date of loan application and is not more than 70 years
old at the date of loan maturity;
• Legal capacity to acquire and encumber real property;
• No Pag-IBIG housing loan foreclosed, cancelled, bought back, or voluntarily surrendered;
• If with existing Pag-IBIG Housing account or Short Term Loan (STL), payments must be
updated; and
• Passed satisfactory background/credit and employment/business checks of Pag-IBIG
Fund

Short-term Loans
A member may avail of the Fund's various short term loans and other benefit programs,
provided that he or she satisfies the eligibility requirements set by the Board. (Sec. 7, Rule IX,
IRR)
The Pag-IBIG Fund Multi-Purpose Loan or MPL Program is a cash loan that qualified
members may secure to assist them with any immediate financial need.
 Here are a few examples where a qualified member can use his or her MPL:
• Minor home improvement
• Additional capital for a small business
• Tuition Fee and other education-related expenses
• Purchase of furniture, appliances or electronic gadgets
• Payment of utility and credit card bills
• Vacation and travel
• Special events
• Car Repair; or
• Other Needs

A member must be an actively contributing member with at least twenty-four (24) monthly
membership savings (MS) and sufficient proof of income to qualify. If he has an existing Pag-IBIG
Fund Housing Loan, MPL and/or Calamity Loan, payments must be updated in order to be
qualified.

With Pag-IBIG Fund’s MPL program, qualified member can borrow up to 80% of his total
Pag-IBIG Regular Savings, which consist of his monthly contributions, his employer’s
contributions, and accumulated dividends earned. If he has an outstanding Calamity Loan, the
amount of loan he will receive shall be the difference between the 80% of his total Pag-IBIG
Regular Savings and the outstanding balance of his Calamity Loan.

The Pag-IBIG Fund Calamity Loan is a cash loan facility to assist Pag-IBIG Fund
members who reside in areas declared under a state of calamity and are affected by such
disasters. The loan seeks to provide immediate financial assistance to help members recover
from the effects of such calamity.

Such member must be an actively contributing member residing in an area declared by

the Office of the President or the Local Sanggunian under a state of calamity, with at least twenty-
four (24) monthly membership savings (MS) and sufficient proof of income to qualify. If he has an
existing Pag-IBIG Fund Housing Loan, MPL and/or Calamity Loan, his payments must be updated
for him to qualify.

Qualified member may borrow up to 80% of their total Pag-IBIG Regular Savings, which
consist of his monthly contributions, his employer’s contributions, and accumulated dividends
earned. If he has an outstanding Multi-Purpose and/or Calamity Loan, the amount of loan he will
receive shall be the difference between the 80% of his total Pag-IBIG Regular Savings and the
outstanding balance of his loan/s.

Death Benefits

Upon the death of a member, his or her beneficiaries shall be entitled to death benefits in
an amount to be determined by the Board in addition to the Total Accumulated Value as
mentioned provided for under in Section 5 thereof. (Sec. 10, Rule IX, IRR)
Portability of Membership

A member who transfers to another employer or who becomes self-employed carries with
him his Total Accumulated Value. (Sec. 8, Rule IX, IRR)

Penalty Clause

Pursuant to Section 25 of R.A. 9679, refusal or failure without lawful cause or with
fraudulent intent to comply with the provisions of said law and these Rules, particularly with
respect to registration of employees, collection and remittance of employee-savings as well as
the required employer contributions, or the correct amount due, within the time set under these
Rules or the policies and guidelines adopted by the Board, or specific call or extension made by
the Fund Management, shall constitute an offense punishable by a fine of not less than, but not
more than twice, the amount involved or imprisonment of not more than six (6) years, or both such
fine and imprisonment, in the discretion of the Court, apart from the civil liabilities and/or
obligations of the offender or delinquent. (Sec. 1, Rule XII, IRR)