Press Release
July 21, 2009

As PAG-IBIG bill was signed into law today
ANGARA EYES FOR A BETTER NATIONWIDE PLAN FOR EMPLOYEES' HOUSING NEEDS

Sen. Edgardo J. Angara today acclaimed the ratification of the PAG-IBIG Fund bill as it was signed into law today. SB 2971, also known as the Home Development Mutual Fund seeks to establish, develop, promote and integrate a nationwide sound and viable tax-exempt mutual provident savings system suitable to the needs of the employed and other earning groups. The bill likewise aims to motivate the labor force to better plan and provide for their housing needs, by membership in the PAG-IBIG, together with compulsory support from their employers.

At the helm of the drafting of this law, Sen. Edgardo J. Angara shares, "This is a milestone in our efforts to continuously improve the living condition of our citizens and their families; and one effective way to ensure that government funds are mobilized to address the housing needs of Filipinos."

The PAG-IBIG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund Law is available to all employees covered by the SSS and the GSIS, and their respective employers, notwithstanding any waiver of coverage previously issued, including uniformed members of the AFP, Bureau of Fire Protection, Bureau of Jail Management and Penology and the PNP; OFWs; and spouses who devote full time to managing the household and family affairs, unless they also engage in other employment, in that it is a choice to contribute half of their monthly compensation.

Sen. Angara adds, "This law re-enforces the right of every citizen to a decent home, for us to strongly drive the housing sector to benefit from the national economic progress we have been seeing despite the current global financial crisis. To sustain the dynamic workforce in the country, it is then imperative that we provide our workforce the quality of life that they deserve."

Sen. Angara led the Senate to introduce key amendments to three of the provisions in the former PAG-IBIG charters namely: to restore the tax exemption privilege of the Fund; to grant power to PAG-IBIG Trustees to set contribution rates and to adopt a compensation scheme for employees that is at par with that employed in the private sector.

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