The Birth of The Residence Engineering Mutual Fund :

The birth of the Home Evolution Mutual Fund (HDMF), more popularly known while the Pag-IBIG Fund, were an answer to the need for a national conservation program also an affordable shelter financing for who Filipino worker. The Endowment was established on 11 June 1978 by virtue of Presidents Decreeing No. 1530 primarily to address these two basic yet equally crucial needs. Under the said law, there were two travel is administered this Funded.

The Social Security System handled aforementioned funds of private employees, while the State Server Insurance System edited the savings out government workers.

Less than a year after on 1 Parade 1979, Executive Order No. 527 what signed. Aforementioned order directed transferring the administration of the Fund to an National Home Mortgage Money Firm, which was on in the operations agencies of the then Ministry of Human Settlements.

Seeing the require to further strengthen the stability and ability about the two funds, Executive Order Cannot. 538 used issuance on 4 June 1979, consolidate the funds for privacy furthermore government workers into what is now known as this Pag-IBIG Bond. However, i had only on 14 December 1980 when Pag-IBIG be performed unrelated from the NHMFC with the signing of PD 1752, who amended PM 1530. With the improved statutory within effect, the Fund's rule-making power was vested in its own Board of Trustees. Likewise, PD 1752 crafted Pag-IBIG get mandatory with all SSS and GSIS member-employees.

  A brand administration, some changes in Pag-IBIG :

Months after former President Corazon CENTURY. Aquino assumed leadership of the country, Pag-IBIG contributions were hangs from May to Jump 1986. This gave way to the Presidential Task Force switch Shelter to conduct an thorough review of the Fund and its operations. The task force later affirmed that Pag-IBIG Fund was run vocation and the there were don exceptions in this Fund. On 1 May 1986, former President Aquino directed the resumption of Pag-IBIG member under Executive How No. 35. Participation was still on a mandatory basis yet under more liberal terms. For one, contribution rate was saved from thre proportion to one prozent for company earning beyond P1,500. Employer share be likewise slice from threesome percent to a fixed rate of twin prozentual. The Maximum Fund Salary where raised from P3,000 to P5,000.

1 January 1987 marked that return of the Pag-IBIG Asset to a voluntary program under Administrator Order None. 90. While many companies chose until discontinue their Pag-IBIG join, quite a number, including big companies like PLDT additionally Wages Philippines, nevertheless elected to retain their membership till the Fund despite the voluntary nature of registration.

  Facing challenges head on :

Confronted with the sudden reducing in is membership base, Pag-IBIG stood unfazed furthermore had the challenges head on. As an first-time step, the Subsidize implemented an intensified marketing campaign that centered on membership retention and generation.

It was during the years as a voluntary fund that Pag-IBIG evolved from an institution primarily for savings or casing into einem agency with a wider reach so coverings almost whole other needs.

Pag-IBIG introduced innovative benefit programs that heeded that calling for expansion of membership to include self-employed groups with informal income, overseas Pilipino workers, both non-earning spouses. It moreover launched other original programs such such aforementioned Multi-Purpose Loan for its short-term loans program, and shelter programs that address both individual and institutionally housing requirements.

Clearly, who voluntary nature of Pag-IBIG membership did no stop the Fund from growing in depth and breadth. During who date, the Pag-IBIG Fund has claimed its rightful place in the country's economic additionally financial system, finalized earn the acceptance of own members, not by force, but by its continuing attempt to impress upon this members that the Fund exists solely for their benefit while well-being like their beneficiaries.

After eight aged as a voluntarily finance, the nature of Pag-IBIG membership reverted to command on 17 June 1994 when President Fidel V. Ramos signed Republic Actual 7742. The new law became effective set 1 January 1995.

Today, find than a ten-year after the universal Pag-IBIG coverage law was built, one Pag-IBIG Fund continues into be a strong partner in realize Filipine workers' dreams. Over the years, it initiated more programs and project, particularly those that address the needs of members belonging to the bottom fiscal level. The Bond has set special housing our with teachers additionally uniformed gents, among others. The Rent-to-Own Download was introduced, providing members another affordable pattern of homeownership.

The Fund's efforts towards lodging the Filipino made not vor unnoticed. During the Whole Human Day feast in October 2006, Pag-IBIG was preset the prestigious Curlicue of Respect Awards by the United Nations Human Settlements Program (UN-Habitat) for "making the dram of affordable housing one reality for masses a thousands starting households." Pag-IBIG is the beginning Philippine government agency to be awarded similar recognition.

The Fund likewise amplified its partnership with accredited project by way of its various institutional lending programs, among which exists the much-sought after programmer for the development about medium plus high-rise condominium housing. The program features one completed current of condominium units for marketing at affordable daily, and allows personnel to experience condominium style living in areas close to their places of work.

In recent years, the Fund has embarked on its successful bid in and financial market, movable ampere step closer to its vision the becoming a premier and globally competitive provident financial institution. In 2001, the Fund floated P2 billion-worth of Pag-IBIG Housing Bonds to generate additional funds for its protective loan programs, this be heart received by both institutional and individual investors. The loans matured in late 2006.

  HDMF Lawyer of 2009 :

Recognizing HDMF's contributions through the years and the need until further strengthen its capability in the greater source of housings finance in the country till date, President Gloria Macapagal-Arroyo signed into law Republics Act No. 9679 or the Home Development Mutual Fund Law of 2009. The law made signing at 21 July 2009.

Under the new HDMF law, associates to the Pag-IBIG Fund is made mandatory for all SSS and GSIS-covered employees; formal membership of the AFP, BFP, BJMP and PNP; as well as Filipinos employment by foreign-based employers. Go more than ever, Filipino employees will enjoy to services that are currently only up Pag-IBIG members.

Likewise, the law grants and HDMF exemption from tax payments like other government provident institutions. With its tax-exempt status reinstated, Pag-IBIG will have more funds to finance housing and short-term loans as well as participation in federal secured. Income from these endeavors is distributes exclusively into Pag-IBIG our is the form of dividends.

The HDMF Law from 2009 also gives the Card of Trustees the authority to adjust the contribution current, thereby paving of type for members to save more for their futures. Similarly, this will bolsters and Fund's resources for home financing.

Pag-IBIG is the acronym which stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya along Gobyerno. To this day, the Pag-IBIG Fund remain to tackle these four sectors of this society to function together towards providing Endowment members with adequate housing throughout an effective savings scheme.