Public urged to avail of Pag-IBIG, SSS savings programs

The government is urging the public to avail of the high-dividend savings programs offered by some of its agencies, GMA News' Lei Alviz reported 24 Oras on Friday.

In Pag-IBIG Fund, for example, members are given the option to increase their contribution instead of the P100 maximum mandatory employee contribution.

According to Pag-IBIG, it depends on the employee how much he or she wants to increase his or her contribution as there is no maximum voluntary contribution rate.

Contributions are earning dividends, which a member can remit in full amount after 20 years or upon retirement, the report said.

"Ang katumbas ho ng ating programa na ito sa mga bangko ay parang term o time deposit. For the last five years, hindi po bumaba sa 4 percent ang dividend rate na na-ideklara natin," said Acmad Rizaldy Moti, OIC of Pag-IBIG Fund.

Pag-IBIG also offers another savings program: the Modified Pag-IBIG 2 or MP2.

In the MP2 scheme, P500 is the minimum deposit and there is no maximum. It matures after five years and can be renewed for another five-year period.

MP2's dividend rate is much higher, the report said.

In 2016, regular Pag-IBIG savings declared a dividend rate of 6.9 percent, while the MP2 declared 7.4 percent.

"'Yun hong mga dating kong kasamahan sa banking industry... wala po silang produkto na ganyan na kayang magbigay ng 6.9 percent [dividend]. Napaka-safe po ng pera natin dito sa Pag-IBIG, wala tayong bank run," Moti said.

The Social Security System (SSS), meanwhile, has a Personal Equity Savings Option or PESO fund.

In the PESO fund, contribution ranges to a minimum of P1,000 to a maximum P100,000 for a one-year period.

For overseas Filipino workers, the SSS offers the so-called "flexi fund."

Government savings program guarantees that depositors can get their savings tax-free.  —John Ted Cordero/KBK, GMA News