The Modified Pag-IBIG II (MP2) is an optional savings program offered to all existing Pag-IBIG I (P1) members in cooperation with HDMF. The MP2 program, which is different from the Pag-IBIG Overseas Program and P1 Fund. It is tax-free with a five-year renewal savings option and provides a yield higher than regular savings and investment products from banks.
How to start an MP2 account?
Before you begin, you should meet the Pag-IBIG MP2 eligibility requirements first. This saving mechanism is open to all regular Social Security System (SSS) and Pag-IBIG members, local employees, and OFWs.
The good thing is that all Pag-IBIG (P1) members are allowed to enroll regardless of monthly income and current age. In addition, the enhanced savings program is extended to pensioners who are former Pag-IBIG members, provided that they have contributed at least 24 months to their P1 membership before reaching retirement.
Any interested applicant should be an active Pag-IBIG I (P1) member with a regular monthly contribution. You are required to maintain at least Php100 monthly contribution to your current P1 account.
Here’s what you need to do:
- Bring your Pag-IBIG ID or HDMF Transaction Card to any local Pag-IBIG branch nearest you
- Fill up the application form with complete details including your membership ID. Pag-IBIG I members are still allowed to enroll even if they haven’t received their HDMF Transaction Card yet.
- You will be required to deposit at least Php500 as your MP2 monthly contribution on top of your membership fee per month.
- Pay the corresponding contributions. You will be asked to submit two separate payment forms for P1 and MP2 accounts.
Alternatively, you may also enroll for your MP2 savings through MP2 Enrollment System. Kindly visit http://www.pagibigfund.gov.ph/memserv/ to submit your details. The MP2 Fund does not limit the number of accounts you wish to enroll provided that you consistently fulfill the required monthly contribution.
Benefits of the MP2 program
The MP2 program is a low-risk savings scheme in which terms are renewable after 5 years. Here are the good benefits of this program:
- An HDMF Transaction Card is all you need to apply.
- Earnings and contributions are protected and guaranteed by the government.
- MP2 Fund has better interest rates as compared with P1 Fund as well as time deposits accounts from private banks.
- Dividend rates are flexible but still far better than P1 contribution.
- There’s no penalty when you stop depositing on your MP2 account.
- There’s no 20% withholding tax for the Total Accumulated Value (TAV).
- Beneficiaries are allowed to claim the savings in case of a member’s death.
The MP2 savings and annual dividends can be withdrawn after five years. Early withdrawal is permitted in cases of permanent disability, insanity, and loss of a job.
The MP2 program is a viable option for many Filipinos who do not have much money to save. This moderate investment is good for your short-term plans and may also provide your money more room to grow.