Pag-IBIG forges pact with Cebu City gov’t

Local

LOCAL government employees in Cebu City, including project and contractual staff, will soon automatically benefit from the Home Development Mutual Fund (Pag-IBIG Fund) following the City Council’s approval of a new memorandum of agreement (MOA) on Dec. 19.

The special session saw Cebu City Council Majority Floor Leader Dave Tumulak move for the resolution’s approval, providing access to mutual provident savings as a benefit to all city government employees.

“This program ensures that every city employee, regardless of employment status, can access the mutual provident savings system offered by Pag-IBIG Fund,” Tumulak said.

The MOA was entered into between the City Government of Cebu, represented by Mayor Nestor D. Archival, and Pag-IBIG Fund, represented by Vice President for Members Services Operations Group – Visayas/Mindanao, Marivic E. Agot.

Under the agreement, Pag-IBIG Fund will carry out orientation campaigns, seminars, and fora to educate employees about their membership benefits under Republic Act 9679, or the Home Development Mutual Fund Law of 2009.

The campaign targets all city employees, including those under Job Order contracts, contractors, and other personnel classified as self-employed by the Fund.

All covered employees are required to submit a Member’s Data Form to register with Pag-IBIG Fund. Once registered, they will receive a permanent Member Identification Number (MID) and transaction card, and the city government will be furnished a copy of the registration for record-keeping.

Employees and the city government will each contribute 2% of the employees’ fund salary monthly, totaling 4%.

The fund salary includes the basic salary and other allowances, capped at P10,000 per month. Employees may opt to contribute additional amounts voluntarily.

The city government will automatically deduct the contributions from employees’ salaries, including payments for existing Short-Term Loans (STL), Multi-Purpose Loans (MPL), or Housing Loans, and remit the amounts to Pag-IBIG Fund by the 15th of the following month.

Contributions from project and contractual personnel will be separately documented to ensure accurate posting.

A penalty of 1/10 of 1% per day of delay will apply if the city deducts contributions but fails to remit them on time.

This penalty does not apply if no deduction was made.

All employees covered under the MOA are entitled to the full benefits granted by Pag-IBIG Fund, including access to housing loans, multi-purpose loans, and other programs as provided under existing laws and guidelines.

The MOA allows for amendments and revisions, incorporates all relevant Pag-IBIG Fund issuances, and remains in effect until terminated with a 30-day written notice.

The MOA will take effect immediately upon its execution

by both parties, ensuring that all provisions and benefits are enforced without delay.(TGP)