By Digna Banzon/PNA
DAVAO CITY — The Modified Pag-IBIG 2 (MP2) Savings Program of the Home Development Mutual Fund (Pag-IBIG Fund) is becoming an alternative savings program of choice for retirees of both government agencies and private companies, officials said.
Manolito Olegario, Pag-IBIG for Southern Mindanao area head, said MP2 is a voluntary savings program for members–both active and former Fund members who wish to save more and earn higher dividends.
Olegario said MP2 yields higher dividends and tax-free, making it a popular option for most retirees. In 2018, he said the MP2 dividend rate was at 7.41 percent.
“This is open to all members and we want to offer this product also to the retirees as this is a better alternative program where their hard earned money is safe and secure and yet earned dividends at higher rates,” he said.
Olegario said Pag-IBIG will strive to make the program more mainstream because “we want our members to be given an opportunity to save more and make their money grow”.
Pag-IBIG Fund Davao Central head Grace Camaganacan said that a lot of active members, especially the young professionals, have also started investing in MP2.
Camaganacan said MP2 has a 5-year maturity but can be withdrawn prior to maturity under specific circumstances, such as total disability or insanity, separation from service by reason of health, and even unemployment arising from layoffs or business closure.
Pag-IBIG’s Southern Mindanao area has a current membership of 579,325 covering the areas of Davao City, Tagum City, Panabo City, Digos City, the Island Garden City of Samal, Davao del Norte, Compostela Valley Province, Davao Oriental, Davao del Sur, and Davao Occidental.
