VICE President Noli “Kabayan” De Castro today informed that in a report submitted to him by the Home Development Mutual Fund or Pag-IBIG Fund, Overseas Filipino Workers in Hong Kong welcome the mandatory coverage of the Fund provided for under Republic Act 9679 or the Home Development Mutual Fund Law of 2009 signed by President Arroyo in July last year.

According to De Castro, based on the results of the meeting of Pag-IBIG’s Chief Executive Officer Jaime Fabiaña with leaders of Filipino communities in Hong Kong last January 30, “the positive response of our OFW leaders to the Fund’s expanded coverage was overwhelming.”

The report cited that hundreds of OFWs flocked to register at the iREMIT registration center and at the Philippine Consulate General where the Pag-IBIG information desk is based.

Under the new law, an OFW-member will contribute a minimum of only P100 a month as contribution, much lower than the US$5 he or she contributed before. “Majority of the new registrants in Hong Kong paid for their contributions that are good for at least three months, while some paid for the entire year,” Fabiana pointed out.

Under Pag-IBIG’s universal or expanded membership coverage, all Overseas Filipino Workers, and Filipinos employed by foreign-based employers, whether deployed in the country or abroad, are mandatorily covered beginning January 2010. Also covered are those employees who are members of the SSS and GSIS, uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology and the Philippine National Police.

The Hong Kong Forum is the first stop in a series of meetings with OFWs to inform them on the new HDMF Law as well as the benefits that members can avail of from Pag-IBIG, such as:

Savings. Members’ contributions are credited to their savings or the total accumulated value that earn dividends and fully guaranteed by the national government. In 2009, Pag-IBIG declared tax-free dividends amounting to P8.5 billion with a dividend rate of 5%. “At this dividend rate, an OFW member will generate savings amounting to P40,753 if he contributes P100 monthly for 20 years; P81,507 if he contributes P200; and P203,768 at P500 a month. “The bigger the contribution, the bigger the savings,” De Castro explained.

The savings are also portable which remain in the name of a member even if he transfers employers, works abroad or becomes self-employed or even unemployed.

Short Term Loans. OFW-members can avail of short-term loans that will help address their immediate financial needs such as payment for tuition fees, hospital bills, appliance purchases, minor home repairs, and even for small business capital.

Housing Loan. OFWs can apply for a home financing loan that has an interest rate of as low as 6% to 11.5% payable in 30 years. The maximum loan amount is P3 million. In 2009, Pag-IBIG extended a total of P9.6 billion in housing loans to their OFW members which financed 12,233 housing units. “To my mind, there is no other bank, government or private, which has extended this much for OFWs’ housing,” De Castro stressed.

The Vice President said he has instructed the Fund’s Senior Management to further improve its services to its more than 7.4 million members worldwide, particularly, the infrastructure toward a more efficient membership registration and payments system and greater access in the availment of benefits.

“Only Pag-IBIG offers a singular opportunity to our members to secure a bright future for themselves. They can triple their savings which are guaranteed by the government and earn tax-free dividends. They can have access to benefits no banks can give such as the lowest interest housing loans, fast salary loans and reliable calamity loans,” De Castro added.

To register for membership, OFWs can call 724.4244 or visit the Pag-IBIG office located at the 6F, Justine Building, Gil Puyat Avenue, Makati City (beside Land Bank). They can also register through the Pag-IBIG satellite offices at the Philippine Overseas Employment Agency (POEA) and the Ninoy Aquino International Airport (NAIA) or coordinate with the Pag-IBIG information officers who conduct the Pre-Departure Orientation Seminar for OFWs. OFWs can likewise visit Pag-IBIG’s website, www.pagibigfund.gov.ph for further details.