InterAksyon.com
The online news portal of TV5
CEBU CITY -- Members of the Home Mutual Development Fund (HMDF), or the Pag-IBIG Fund, can get their money back even if they only contributed for less than 10 years, as long as they are 60 years old and above and fall under the senior citizen category. Manuel Margallo, Pag-IBIG Fund senior marketing specialist, said if a member worked for three years when he was over 30 years old, another three years when he was over 40 years old, and another three years when he was 50 years old, he can get all his money including the employer’s counterpart fund, plus annual dividends, if he is a senior citizen. ”All the contributions of all the (inactive) members remitted a long time ago can be withdrawn by them if they are already senior citizens,” Margallo said. ”There is no such thing as dormant account. If a person has contributed to Pag-IBIG, his money will always be there and will earn five percent interest per annum, without withholding tax unlike the interest in private banks,” Margallo said. Margallo said regular members can withdraw their capital or membership contributions if their membership has reached the 20 year maturity, if they died, if they go abroad, and live there permanently, or if they are availing themselves of optional withdrawal if they have contributed for 10 years or 15 years. However, he said those who have contributed capital equivalent to one month up to more than nine years cannot get their money back using the above mentioned rules, if they have not reached 60 years of age. Those who opt for an optional withdrawal must have straight remittance of contributions for 10 or 15 years. They will not qualify even if they have only one month unpaid contribution. If a member died, his family will receive all his contributions, employer’s counterpart and dividends, plus P6,000 in death benefits. Meanwhile, Margallo urged all Pag-IBIG members not to withdraw their investments with HMDF so they could earn more money the safe way. He said members who have reached the 20-maturity but are still working should not withdraw their money so their employers will continue paying their counterpart fund. Their money will also continue to earn dividends, tax free, Margallo said. He added that investing in Pag-IBIG, which has a guaranteed dividend of five percent per annum, is safer than depositing in private banks.
In Pag-IBIG, even if a member will stop contributing for five years, his money will continue to earn dividends. In private banks, his account will be declared dormant if it has no movement for two years.
