Home Development Mutual Fund Law of 2009 for Over Seas Filipino Worker part. 1

1      

           1.    What is Republic Act 9679 or Home Development Mutual Fund (known as Pag-           IBIG Fund) Law of 2009?

RA 9679 is the law aimed at strengthening the ability of Pag-IBIG to achieve the following objectives:

• Improve the livelihood of Filipinos by providing adequate housing;

• Provide a national savings system;

• Mobilize funds for the housing program

2. How is RA 9679 different from the earlier laws of Pag-ibig?

      First, RA 9679 sets out universal coverage. That is, the membership range is expanded, with the following:

• employees and workers of SSS and GSIS

• Overseas Filipino Workers, including Clerks / Seafarers

• Uniformed staff of the Philippine Armed Forces, the Bureau of Fire Protection, the Bureau of Jail Management and Penology and the Philippine National Police

Secondly, Pag-IBIG's tax exempt returns where the agency will save three billion a year. Now, this amount can be allocated for housing and for high dividends for members.

Thirdly, the Board of Trustees of the Paging IBIG has the power to raise the monthly contribution of the member. This means greater savings for members and higher loan entitlements. There may also be a higher proportion of the members to be given because of this. Since 1986, Pag-IBIG has never raised the contribution rate, while several other government agencies have raised their contributions.

Currently, a member contribution rate of Pag-IBIG is two percent based on a monthly income of P5,000. The member remains a P100 while he earns P5,000 or P50,000.

By raising the contribution rate, larger contributions will be the monthly contribution of members, while the contributions of members in the lower income bracket will remain at P100.

3. When was the law effective?

RA 9679 was effective on August 27, 2009.

4. When did the law begin?

The law was implemented since January 2010.

5.  Are all OFWs covered by the mandatory coverage of RA9679?

Yes. According to RA 9679 and its Implementing Rules and Regulations, PAG-IBIG must register all OFWs, whether land-based or sea-based (seafarer or working within the ship). A seafarer is enrolled as a member after signing a contract with his agency or manning agency that stands as an employer, as well as a foreign owner of the ship. As an employer, the agency will contribute the corresponding portion of the two percent contribution, based on the monthly marine income. Meanwhile, landbased OFWs must register before they leave the Philippines or before returning to work. Current ones abroad may also register for Pag-IBIG Posts.

6. Why are OFWs included with mandatory membership coverage?

All Filipino workers, whether in the Philippines or abroad, should have an equal opportunity to benefit from all the benefits of the Pag-IBIG program. The membership of OFWs has been mandated to give them the opportunity to save and reach their dream of owning a home.

7. How to register OFWs under mandatory coverage?

OFWs can register with the following:

• Pag-IBIG desks located at the Embassy or Philippine Consulate outside the country

• Pag-IBIG Fund International Operations Group, 6th Floor, Justine Bldg., Gil Puyat Avenue, Makati City

• Any branch or office of Pag-IBIG in the Philippines

• Pag-IBIG satellite office of the Philippine Overseas Employment Agency (POEA)

• Preferred banks and remittance agencies recognized by Pag-IBIG such as PNB, Metrobank and iRemit Global Remittances Inc.

8. How is theregistration process for former Pag-IBIG members under the Pag-IBIG OverseasProgram (POP)?

The OFW can visit the Pag-IBIG Information Desk based on the Embassy or Consulate of the Philippines to fill out the Member's Data Form (MDF-FPF0909) or Membership Registration Form (MRF-FPF095). If he is in the Philippines, he can go to the nearest office. They also need to update their record, especially if there are changes to their personal information. The Pag-IBIG website can be downloaded on MDF and MRF. (Downloadable Forms)

9. If an old member would register as an OFW, what would happen to his or her contribution?

Pag-IBIG combines all her contributions as well as her previous invites. Portable or remain in the name of the member, he or she will transfer the company. Pag-IBIG ensures that the members are safe and free.