How to Earn More on Savings with PAG-IBIG’s MP2 and Get Benefits

At the mention of Pag-IBIG Fund, what may immediately come to mind is a housing loan. But that is not the only benefit you get as a Pag-IBIG Fund member. Your monthly membership contributions, as deducted from your payslip, go to a national savings program that gives you high annual dividend earnings. Pag-IBIG also has the Loyalty Card and Loyalty Card Plus that give you discounts on many goods and services. Just keep reading to find out more. 

Types of Pag-IBIG Savings

There are two types of savings under the program – the Pag-IBIG Regular Savings and the Pag-IBIG MP2 Savings. While the Regular Savings is mandatory by law and deducted from wages, the MP2, which stands for ‘Modified Pag-IBIG II,’ is a voluntary savings program.

The MP2 is a special savings product with a five-year maturity. It is for Pag-IBIG Fund members

who want to earn even higher dividends on their savings, in addition to their Pag-IBIG Regular Savings. Because this program is voluntary, it is also open to retirees and pensioners who were former Pag-IBIG Fund members.

As with any savings program, Pag-IBIG members have the option to withdraw it upon maturity or when certain life events occur. In these cases, you can apply for what is called a Pag-IBIG Provident claim.

As of June 2022, Pag-IBIG Fund has released more than P187 million in Provident claims for over 4.75 million claimants. By paying your monthly Pag-IBIG contribution, you will also be able to make a Pag-IBIG Provident claim in the future.

Also read: A Guide to the 10 Pre-Employment Requirements Of Your New Company

Opening a Pag-IBIG MP2 Savings Account

As a voluntary program, the Pag-IBIG MP2 Savings earns a higher dividend rate than the mandatory Pag-IBIG Regular Savings. In 2021, the Pag-IBIG MP2 Savings dividend rate was at 6 percent, higher than what some banks will give you. The more money one has saved in their Pag-IBIG MP2 Savings, the higher dividends they will earn.  

The dividend rate may be computed using simple and compound interest formulas and a calculator or Excel sheet, or you can use an online Pag-IBIG MP2 calculator or download an app into your mobile phone.

The Pag-IBIG MP2 requirements to open an account are simple.

Who can apply?

You must be an active Pag-IBIG member who has paid at least 24 months’ worth of contributions before retirement. If you have paid less than 24 months’ worth, you have to pay for the remaining months. 

How to apply?

Fill out the MP2 Enrollment form at your nearest Pag-IBIG branch. You must have a bank account because that is where your dividends will be credited. You may also fill out the same form online at the Pag-IBIG website. Have your Pag-IBIG MID (member ID) ready. 

How to pay Pag-IBIG MP2 Savings contributions?

The minimum contribution is P500. You may choose to contribute any amount higher than that. To pay, you can ask your employer to deduct it from your salary. You can also pay it yourself using the Virtual Pag-IBIG online payment facility, at a Pag-IBIG branch (except the ones at the malls), at payment centers, online payment channels such as Gcash, and some overseas remittance channels.  

Your Guide To Filing A Pag-Ibig Provident Claim

Let’s say you would now like to avail of your benefits. This handy guide takes you through the whole process, from finding out whether you are qualified to file a Pag-IBIG Provident claim up to the release of the Pag-IBIG Provident claim amount.

To avoid any inconvenience when filing a Pag-IBIG Provident claim, start by finding out the following information first.

Who is qualified for a Pag-IBIG Provident claim?

As a member, you may apply for a Pag-IBIG Provident claim upon membership maturity, or after 20 years of membership from the initial contribution. At this point, you should have made a total of 240 monthly contributions to the Fund.

You may also make a Pag-IBIG Provident claim upon retirement, usually at the age of 65. If a permanent total disability prevents you from working or engaging in business, or if you are terminated from service due to severe health conditions, you may also withdraw your Pag-IBIG savings.

Here are other cases wherein a member can apply for a Pag-IBIG provident claim:

• critical illness of a member or immediate family member
• permanent departure from the country, expatriation
• maturity of Pag-IBIG MP2 Savings

The optional withdrawal of Pag-IBIG Regular Savings is also allowed but only after 15 years of continuous membership.

Who can file?

The Pag-IBIG member, their guardian, or any authorized representative is allowed to apply for a Pag-IBIG Provident claim. If the reason for the claim is the death of the member, the heirs or an authorized representative may apply on the member’s behalf.

What is the application process?

There are two ways to file a Pag-IBIG Provident claim: in-person and online. First, make sure you have the right Pag-IBIG Provident claim form which you can secure at any Pag-IBIG Fund branch or download from the Pag-IBIG website. You need to accomplish one copy of the application form.

Pag-IBIG Provident claim requirements are the same for both online and in-person applications. These include a photo or scanned copy of one valid ID, supporting documents, and a selfie photo showing your ID card. 

To file online, access the Virtual Pag-IBIG for members at the Pag-IBIG Fund website. Log in to submit the application for Pag-IBIG Provident claim together with the Pag-IBIG Provident claim requirements. You can only file a Pag-IBIG Provident claim online application upon membership maturity, retirement, and optional withdrawal at 15 years.

For in-person applications, go to any Pag-IBIG Fund branch and submit the Pag-IBIG Provident claim form together with the Pag-IBIG Provident claim requirements.

How do I claim Pag-IBIG Provident benefits?

The total accumulated value (TAV) is the amount to be returned to the member or their legal heirs. This consists of your remitted accumulated savings, your employer’s counterpart savings, if applicable, plus dividend earnings. Any outstanding obligations are deducted from the TAV before the release of the Pag-IBIG Provident claim.

For optional withdrawal, a member is entitled to a Pag-IBIG provident claim amount that is less than the equivalent sum of 180 monthly savings. You will receive the remaining TAV together with succeeding savings when your membership is terminated on the grounds of membership maturity, retirement, permanent disability, critical illness, or death.

Upon the death of a member, the legal heirs can claim an additional death benefit of P6,000  if the membership is active at the time of death. For inactive members at the time of death, the amount is equivalent to the member’s TAV or P6,000, whichever is lower. 

Learn more about other Pag-IBIG benefits

Manner of payment

The member or their legal heirs can receive the Pag-IBIG Provident claim amount through the claimant’s disbursement/cash card or payroll account. The Pag-IBIG Provident claim amount can also be issued through a check payable to the claimant. A representative is allowed to claim the check for the Pag-IBIG Provident claim amount as long as they can present any documents that Pag-IBIG may require.

The Pag-IBIG Loyalty Card Plus

The Pag-IBIG Loyalty Card lets you avail of exclusive discounts and rewards at hundreds of partner establishments such as supermarkets, restaurants, schools, hospitals, and other businesses. 

The Pag-IBIG Loyalty Card Plus, on the other hand, is not only a discount card, it is also an ATM cash card with an EMV chip for security, to be used for the deposit and withdrawal of your Pag-IBIG loan proceeds, Pag-IBIG MP2 Savings dividends, and other benefits.  

The Pag-IBIG Loyalty Card Plus is also considered a valid ID for transactions, and can also be used to create and activate a Virtual Pag-IBIG account online. Having one also makes the processing of your loans faster. Visit the Pag-IBIG website to learn how to apply for this card. 

Be in the know when it comes to employee benefits and how these can help you prepare for your future. Jobstreet helps by sharing useful information. 

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