The Market Monitor Minding the Nation's Business
State-owned Pag-IBIG Fund has declared more than P14 billion in dividends, the highest payout in the 35-year history of the agency.
“This year, we declared dividends worth P 14.24 billion. This is the highest amount that Pag-IBIG has ever declared since it opened its doors three and half decades ago. This will be credited directly to the accounts of our members within the first quarter of 2016,” said Pag-IBIG Chairman Chito M. Cruz.
Every year Pag-IBIG Fund credits dividends to members’ accounts. This year’s dividend is more than 25 percent, or P 2.89 billion, higher tham the P 11.35 billion declared last year. Since 2010, Pag-IBIG has declared more than P61.33 billion in dividends.
“Remember that the members’ monthly contributions are the members’ savings, and their savings earn dividends each year. The dividend rate this year is 4.83 percent, which is much higher compared with interest rates on other savings instruments. The best part is that Pag-IBIG dividends are not subject to withholding tax, kaya walang kaltas kahit isang sentimo,” said Pag-IBIG President and CEO Darlene Marie Berberabe.
She also reminded members aged 65 and older to claim their matured Pag-IBIG savings, otherwise known as their Total Accumulated Value (TAV). The TAV is made up of the member’s contributions, the employer counterpart share, and Pag-IBIG dividends earned throughout the years of one’s membership.
In Dec. 2014 the agency launched its BalikSavings65 program, which simplified the savings-withdrawal process for elderly Pag-IBIG members. About 7,662 members who are senior citizens have received their TAV as last Dec. 31. Their savings total to more than P301 million that were claimed.
“There are still many 65er-members who have yet to withdraw their TAV. Their TAV is money that they saved, and now is the time to reap the benefits. The TAV usually ranges from P40,000 to P70,000, but some members upgrade their monthly contribution so they can have a much bigger TAV. Some of the biggest TAVs I’ve seen ranged from P532,000 to more than P733,000. I’m calling our retired members to claim their matured savings to help with their finances. It’s time for them to enjoy their hard-earned savings,” Berberabe said.