Passage of HDMF Law lauded

CEBU, Philippines – Senate Majority Leader Juan Miguel Zubiri the other day lauded the Senate and the House of Representatives following their passage of the Home Development Mutual Fund Law of 2009, also known as the Pag-IBIG Fund.

Senator Zubiri, who came here for some speaking engagements, said that the approval of the new law on the Pag-IBIG Fund will help over 1.5 million Filipinos who are renting houses to better plan for their housing needs.

“The measure has been repeatedly introduced in the last four Congresses. It usually passes the approval of the House but remains stalled on Second Reading at the Senate in the last four Congresses.”

“Finally we made it. The new Pag-IBIG Fund Law has been adopted by both Houses. The House of Representatives has agreed to adopt the Senate version of the bill and came up with the law. It is now awaiting the signature of the president,” Zubiri said.

The new Pag-IBIG Fund Law provides for an integrated nationwide provident savings system and housing through mobilization of funds for shelter finance.

Among the significant provision of the Act includes the power of the Board of Trustees to increase the monthly contributions similar to the Government Service Insurance System and the Social Security System.

The amended Act also provides members the option to withdraw his or her contribution after 15 years of continuous membership similar to the “optional retirement in the government service”.

It likewise retained the provision allowing the Board of Trustees of Pag-IBIG to “invest not less than 70 percent of its investible funds to housing programs”.

The new Act also restored the tax-exemption provided by the Republic Act 7742 to Pag-IBIG Fund and all its assets and properties.

“The tax exemption status of the fund will free around P2 billion annually that can be invested for more housing projects, and can be lent to enabling borrowers,” Zubiri said.  — Jose P. Sollano/BRP (THE FREEMAN)