MANILA, Philippines - The Home Development Mutual Fund or Pag-IBIG Fund has approved the declaration of P8.5 billion in dividends for the year 2009 for more than 7.4 million members throughout the country.
Vice President Noli de Castro, who chairs the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees, said the P8.5 billion represents 71 percent of the fund’s P12-billion net income.
De Castro said the dividends would be credited to the members’ total accumulated savings.
“The amount, which represents an increase of 20 percent compared to last year’s level of P7.1 billion, is the biggest so far in the Fund’s 29-year history,” De Castro said.
As provided for in its Charter, the Pag-IBIG Fund sets aside an amount equivalent to at least 70 percent of the institution’s annual net income to be declared as dividends.
The dividends are tax-free and fully guaranteed by the national government.
For the last five years, Pag-IBIG dividends have been continuously increasing from P4.8 billion in 2004, P5.5 billion in 2005, P6.2 billion in 2006 and 2007, P7.1 billion in 2008 and P8.5 billion in 2009.
Jaime Fabiaña, chief executive officer, attributed the steady increase to more effective collection procedures and prudent fund management. – Pia Lee Brago